Business Scorecard development

Aligning an organization to a clear strategy of competitive advantage is one thing. Measuring the success of organizational change is another. This process ensures that strategy is aligned to operational actions by establishing goals and measures that define success for an organization, help predict performance and inform management on operational and structural improvements.

The truth is most organizations measure too many things. In an effort to explain past performance, a volume of facts and data are collected and analyzed in an attempt to understand: “what happened?”

But Service Profit Chain Leaders treat measurement differently. Of course they want to understand what drove past performance, but more importantly, they want to predict future performance and constantly monitor and adjust those factors that appear to drive growth. This ‘cause and effect’ relationship is at the heart of building a business scorecard to bring the value profit chain to life.

Business Scorecard development starts by working with an executive team to define the business results for their company and determining the right set of goals, measures and targets for each scorecard dimension: Customers, People, Processes and Products/Services. Based on a shared view of the results we recruit a cross-functional group of leaders to further develop and test the goals, measure and targets over five meetings.

Once designed, the Business Scorecard is cascaded to each team to translate the strategy into operational terms that every manager and employee can relate to.


The Business Scorecard creates the opportunity to link unit performance to variable pay or profit sharing systems, supporting the concept of hiring and retaining ‘fewer, better people’ and performance-base pay. As a result of building the Business Scorecard, organizations are able to:

  • Identify the leading and lagging indicator of performance in their business
  • Apply predictive statistical analysis based on the ‘cause and effect’ relationship identified between the goals and measures
  • Take appropriate management actions based on the behaviors of measures that are proven to be most important to achieving their business results
  • Align the entire organization toward delivering a powerful value proposition by building Shared Services Business Scorecards that support the front line organization.

Free Tools and Assessments

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