Balanced Scorecard software - Strategy2act

How to develop scorecard, metrics or KPI?

The Balanced Scorecard concept is just few minutes to read, but actually, it is not so easy to understand. One of the most important aspects is how to develop good scorecard.

Why does one need to develop scorecard?

Balanced Scorecard is a performance management concept which might be very useful when the goal is to measure and control values associated with business performance. The concept is simple, but the main problem behind the scorecard is that people don’t know how to develop it, where to start and what results should be expected.

As long as this concept focuses on performance measurement, the most important are performance measurement indicators, e.g. metrics. So the goal of developing scorecard is actually the goal of developing correct metrics.

Once metrics were developed they should be grouped into categories, which should cover all possible business situations and aspects.

How to develop metrics and group them into scorecard

First, the number of metrics in each category should be about 3-4 metrics. If you have just 1, then this category is not balanced. If you have more, then probably you might think about grouping metrics into sub-category.

Actually, any complex balanced scorecard will contain sub-categories. It is not an easy task to maintain large number of metrics, especially grouped in sub-categories, so consider using some balanced scorecard software for this purpose.

Second, metrics should be descriptive. E.g. metrics should describe the way you or your employee could measure something.

Third, all parameters of the metric must be measurable, and you should know the rules of measurement. Perfect, if this rules are written in scorecard.

Let me give you some sample metrics (this is how metric is represented in Balanced Scorecard Designer). For instance, we deal with one of the HR metrics, here is a data from BSC Designer:

1. Indicator name: Time to Fill

2. Description: The period from job requisition approval to new hire start date

3. Measure units: Weeks

4. Min value: 0, Max value: 12

It is good indicator. What indicator would be “bad”? Indicator will be bad, if you will use as a description something like "the evaluation of the position fill efficiency", that is the bad indicator, because description doesn't really give any idea about how to measure  "time to fill" indicator.

Key aspects of developing KPI or Scorecard

  • Make sure all indicators are measurable;
  • Control the number of indicators, create sub-categories if necessary;
  • Describe your indicator so that you and your employees will understand how to use it;

What you will have once good scorecard is developed?

You will have an easy to use performance measurement system, which will not only answer your questions about what is performance smoothly and what should be improved, but will help to control and increase efficiency of most business processes in your company.

Please, find below balanced scorecard metrics from our commercial library which you might use for devloping your own scorecards and KPIs:

HR Metrics: Human Resource Metrics, HR Hire Metrics, Training Metrics, Leadership Metrics, Motivation Metrics, HR Outsourcing Metrics, Awards Metrics, Retirement KPI, Training Metrics Step by Step Pack.

CRM Metrics: Customer Relationship Metrics, Product Knowledge Management Metrics, Customer Profitability Metrics, Customer Profiling KPI, Customer Value KPI, Customer Conversion Metrics, Customer Loyalty KPI.

Social Metrics: Social Responsibility Metrics, Social Security Metrics, Unemployment KPI.

Communications Metrics: Communication Measurements Metrics, Cell Phone Metrics, Internet Access Metrics, VOIP KPI.

Computer Networks Metrics: Network Management Metrics, Network Security KPI, ITIL Asset Management KPI.

Leisure and Recreation Metrics: Ski Resort Metrics, Tennis Club KPI, Sport Gym KPI, Golf Club Metrics, Yacht and Sailing Club KPI, Swimming Pool Metrics.

Publishing Metrics: Publishing Metrics, E- Publishing KPI.

Marketing Metrics: Web Investment KPI, Brand Metrics, Presentation KPI, Market Metrics, Direct Mail KPI, Conference Metrics, Word of Mouth Marketing KPI, Exhibitions KPI.

Sales Metrics: Retail Sales KPI, Sales Metrics, Hypermarket KPI, Online Retail Metrics.

Security Metrics: Identity Theft Risks Metrics, Security and Privacy Metrics, IT Security Metrics, Data Leakage Metrics, Intrusion Prevention Metrics.

Transportation Metrics: Supply Chain KPI, Transportation KPI, Inventory and Warehousing KPI, Logistics Metrics, Custom Office Metrics, Travel Agency KPI, Procurement 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, Credit Card Processing Metrics, Investment Banking KPI.

Personal Metrics: Productivity Metrics, Innovations Metrics, Time Management Metrics, Trade Show Metrics, Personal Finance Metrics.

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

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

Real Estate Metrics: Real Estate Metrics, Property Investment KPI, Facility Management Metrics, Hotel Management KPI, Office Maintenance KPI, Real Estate Agency KPI.

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

Finance Metrics: Financial Statement Analysis Metrics, Active Portfolio Management Metrics, Passive Investments Metrics, Financial Crisis KPI, Budgeting and Forecasting KPI, Financial Securities Metrics, Financial Insurance Company KPI, Leasing Company KPI, E-commerce Scorecard KPI, Financial Outsourcing Metrics, Financial Benchmarking KPI, Earned Value KPI.

Energy Metrics: Oil Production KPI, Gas Production Metrics, Electricity Production Metrics, Alternate Energy Sources Metrics, Electricity Delivery Metrics, Gas Station KPI, Biofuel Production Metrics.

Medical Metrics: Medical KPI, Health Insurance Metrics, Health care facilities Metrics, Dental Practice Metrics.

Legal Metrics: Law Department Metrics, Litigation Metrics, Intellectual Property Metrics.

Airlines Metrics: Airlines KPI, Airport Metrics, Crew Management Metrics, Airline Ticketing and Reservation Metrics, Airport safety Metrics.

Crisis Management Metrics: Mergers and Acquisitions Metrics, Data Loss KPI, Crisis Management Companies Metrics, Government Crisis Management KPI, Natural Disaster Management KPI.

Accounting Metrics: Accounting Firm Metrics, HR accounting KPI, Profit Focused Accounting Metrics.

Business Intelligence Metrics: Competitor Analysis Metrics, Marketing Research Metrics, Benchmarking Metrics.

Outsourcing Metrics: Tasks Outsourcing Metrics, Product Outsourcing Metrics, Service Outsourcing Metrics.

Knowledge Management Metrics: Content Management Metrics, Knowledge management Metrics, Intellectual Capital Metrics, Data Records Management Metrics, Data Entry and Document Imaging KPI, Data Integrity KPI.

Manufacturing Metrics: Capacity management Metrics, Just in time Metrics, Manufacturing Metrics, Modular manufacturing Metrics, Forestry Metrics.

Education Metrics: Education Metrics, Academic Research Metrics, Certification Metrics, University Scorecard KPI, School Management Metrics.

Insurance Metrics: Insurance Claims Metrics, Insurance Sales KPI.

Business Management Metrics: Business Mission and Vision Metrics, Business Strategy Metrics, Public Sector KPI, Non-Profit Metrics, Private Sector KPI, Service Level Agreement Metrics.

Food Service Metrics: Restaurant Metrics, Cafe Metrics, Winery KPI.

Online Business Metrics: Web Hosting Metrics, SEO Metrics, Website Design KPI.

Software Development Metrics: Web Application Testing KPI, Functional Software Testing KPI, Software Design Metrics, Programming KPI.

Mass media Metrics: Television Station Metrics, Radio Station Metrics, Newspaper Management Metrics, Web Blog KPI.

Metallurgy Metrics: Steel Making Metrics, Aluminum Production KPI.

Ecology Protection Metrics: Greenhouse Gas Reduction KPI, Recycling KPI, Global Warming Metrics.

Financial service Metrics: Asset Management Firm KPI, Brokerage Firm Metrics, Wealth Management Metrics, Financial Advisory KPI.

Car Business Metrics: Car Renting Metrics, Car Sales Metrics, Car Manufacturing KPI, Car Insurance KPI, Car Safety Metrics, Auto Repair Workshop Metrics, Auto Wash Metrics.

City Services Metrics: Police Services Metrics, Firefighter Service KPI, Court Management Metrics, Emergency and Ambulance KPI.

Culture Metrics: Museum Management Metrics, Theatre Management KPI.

Financial Management Metrics: Activity Based Management KPI, Value Based Management Metrics, Activity Based Costing KPI, Intellectual Capital Development KPI.

Personal Health Metrics: Personal Health KPI, Weight Loss KPI.

Customer Service Metrics: Call Center Metrics, Help Desk Metrics, Interactive Voice Response Metrics, Call Center Outsourcing KPI.

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