Our client is a transaction processing company.
Our client had embarked on developing performance measures using the Balanced Scorecard tool. However, measures selected were unbalanced, short term and operational in nature. Effectively, there was little link between the organisation’s strategy and its performance measures. The glaring questions were – Why are we doing this? How is it benefiting us?
Performance measures should cascade from the organisation’s strategic objectives. They should be balanced covering all 4 quadrants of the scorecard. The measures may be qualitative or quantitative, but they should be meaningful and easy to measure.
What we did:
Tier 1: Defining organisation scorecards
Tier 2: Cascading goals to individual level
There was clarity on performance measures as they were linked to the organisation’s strategy.Managers had a clear line of sight on how they could make a difference. There was a higher acceptance of the performance measures across the board.