How to improve performance with Scorecard, KPI or metrics

There are several well-known approaches for performance management and control: Balanced Scorecard, KPI, Metrics. Which methodology is the best for you, which one to choose?

Actually, there is now much difference between all these concepts. In simple words all these concepts base on the same idea, e.g. converting non-numerical values into measurable, numerical values.

The difference is about how to group these numerical values (indicators). These concepts suggest a different but very similar ways to groups and manage with indicators.

How to improve performance with KPI, metric or Balanced Scorecard?

1. The first and the main idea – you should find metrics that actually shows how your business is running. There are a lot of industry-default metrics, but to improve your performance you should consider using metrics and KPIs specific for your business.
2. Measuring is nothing… without action. If you have great scorecard or metrics set, then it is very important to do something, set some goals, work to achieve these goals. This is the way you will improve your business.
3. You have great KPI = you have great plan. You did a lot = your plan became action. What next? Check if you performance was really improved. Try to evaluate your business again, using the same and/or new indicators. Re-thinking and re-measuring is as important as metrics themselves.

Let’s talk tools that you can use to build Scorecard. It might be anything suitable for your very needs. It might be a plain text file or it might be an expensive ERP system. We design scorecard regularly and we know what problems you might face. That’s why we have created Balanced Scorecard Designer. This tool will not improve your performance itself, but it will help you measure with measure and control task, giving you a dashboard and start point for further innovations and improvement.

What role should play industry standards and default metrics in your scorecard? Well, it is a good start point. Why not use something that other people use? For this very purpose we design and suggest for sale our metrics:

HR Metrics: Human Resource Metrics, HR Hire Metrics, Training Metrics.

CRM Metrics: Customer Relationship Metrics, Call Center Metrics, Help Desk Metrics.

Marketing Metrics: Web Investment KPI, Brand Metrics, Presentation KPI, Market Metrics.

Sales Metrics: Retail Sales KPI, Sales Metrics.

Security Metrics: Identity Theft Risks Metrics, Security and Privacy Metrics, IT Security Metrics.

Transportation Metrics: Supply Chain KPI, Transportation KPI, Inventory and Warehousing KPI, Logistics Metrics.

Advertising Metrics: Web Advertising Metrics, Press Advertising KPI, TV Advertising KPI, Outdoor Advertising Metrics, Cinema Advertising Metrics, CD Advertising Metrics.

Banking Metrics: Credit Risk Metrics, Retail Banking Metrics, Mortgage Metrics.

Personal Metrics: Productivity Metrics, Innovations Metrics, Communication Measurements Metrics.

Project Management Metrics: Project Management Metrics, Product Launch Metrics, Operations Metrics, Risk Metrics Metrics, Change Management Metrics, Resource Management Metrics.

Quality Metrics: 6 Sigma Metrics Metrics, Continuous Improvement Metrics (Kaizen) , TQM (Total Quality Management) Metrics.

Real Estate Metrics: Real Estate Metrics, Property Investment KPI.

Risk Management Metrics: Market Risk Metrics, Financial Risks Metrics, Operational Risk Metrics.

Finanace Metrics: Financial Statement Analysis Metrics, Active Portfolio Management Metrics, Passive Investments Metrics.

Energy Metrics: Oil Production KPI, Gas Production Metrics.

Medical Metrics: Medical KPI.

What to do with these metrics? The best idea is to send them to your co-workers who will be involved in Balanced Scorecard design and development. These very people will work on performance improvement, so give them a chance to suggest their ideas when you build KPI.