To start building a Top-Level Balanced Scorecard, first copy the perspectives
and objectives from your
strategy map:
-
Perspectives
-- groupings that represent your organization’s highest level areas of focus, or
"stakeholders"
-
Objectives -- the 8-10 most important organizational goals (in
short, verb-noun format) from this year’s strategic plan, grouped by
Perspectives
The next step is to identify measures that will best determine if you are on
track to achieve each objective:
-
Measures -- also called KPIs (Key Performance Indicators) or
metrics. Align 1-3 measures as indicators of achievement to each Scorecard
Objective.
Many organizations struggle with how to focus the number of measures on their
scorecards to just 1-3 per objective. Remember:
-
These should be strategic measures
-
Day-to-day tactical or line-level quality measures can and should be moved to
lower level, cascaded scorecards
The final step is to identify initiatives that will address critical areas of
underperformance:
-
Initiatives - Time-specific projects (with identified start-
and end-dates) that should be aligned to critical underperforming measures or
objectives.