To be successful in the business world, corporations need a means of measurement to ensure company goals are being met and exceeded. A way to fully understand if goals are being met and exceeded is to keep a scorecard. A scorecard is a means of measurement where a business expresses goals and the ways it intends to meet those goals. A business scorecard is similar to a scorecard in sports. In sports, the goal is to win. The scorecard is used as a tool to keep people honest and on a level playing field. The leaders of the business use a scorecard to visualize the goal, keep score as it relates to organizational goal, and adjust in the event the scorecard must be balanced.
Focus on Goals
Focus on the goals within an organization. The goals are designed to be aligned throughout all levels, from the new hire to the executive level. Consider all goals as being wildly important and limit them to the top three which will ensure success.
Describe Goals as Specific Actions
Describe company goals as specific actions. The specific actions which will help in the achievement of goals are referred to as lags and leads. A lead is the specific goal and the lag is the action which will allow the organization to achieve the goal. For example if the overall goal is to improve customer satisfaction score by 2 basis points. The lead is to improve customer experience. The lag would be to speak to 50 customers every week regarding their experience.
Create a Visible Scorecard
Create a scorecard to ensure goals are being maximized. The scorecard measures the progress of your goals on a daily, weekly, monthly, and yearly basis. Having a visual scorecard allows you to adjust the lags in the event goals are not being met. For example, take the goal mentioned in the previous step. In the middle of the month, the organization is on track for a one basis point improvement on the customer satisfaction score. The lag should be changed to ensure at least twice as many customers are spoken to in order to reach the specific goals. Stephen Covey of Franklin Covey states, “People play different when they keep score.”
Hold One Another Accountable
Commit to the goals of the organization. If there is not commitment from all levels, someone should be held accountable for not performing. When someone is held accountable and everyone around them is accountable, the engagement will improve. The scorecard will move back into alignment due to everyone understanding and performing their role.