Michael R. Wood is a Business Process Improvement & IT Strategist Independent Consultant.
Michael is creator of the business process-improvement methodology called HELIX and founder of The Natural Intelligence Group, a strategy, process improvement, and technology consulting company. He is also a CPA, has served as an Adjunct Professor in Pepperdine's Management MBA program, an Associate Professor at California Lutheran University, and on the boards of numerous professional organizations. Mr. Wood is a sought after presenter of HELIX workshops and seminars in both the U.S. and Europe.
Scorecards have been around for quite a few years now. They come in all flavors and sizes and there is a plethora of automated tools to assist us in deploying them throughout the enterprise. The most popular flavors are Balanced and Performance scorecards. No matter what your preference, they all have something in common and that is to provide constant feedback as to how things are going. The challenge with deploying scorecards is identifying what to measure.
Performance scorecards use the concept of “Key Performance Indicators”. KPIs are those measures that provide the enterprise or the individual with information on how successfully they are doing their job. Of course this presupposes that the output or work products they produce have been quantified in an operationally meaningful way.
The Balanced Scorecard concept, which was developed at Harvard by Drs. Robert Kaplan and David Norton, provides a more holistic view of the enterprise by measuring the organization’s effectiveness on multiple axes such as Finance, Customers, Owners and Business Process.
Both types of scorecards have been somewhat homogenized and claim to offer benefits such as: