Audit of the Balanced Scorecard focused on customer management

We have finished audit of the scorecard of our client, we are now sharing some advise, that others might take into account in order to improve  their Balanced Scorecards.

Initial Data:

  • Balanced Scorecard focused on customer requirements.
  • Number of categories: 4
  • Number of indicators: 28

Problem found: In the perspective “Internal Processes Perspective” there are 18 indicators, it is obvious that this category is overloaded.
Possible solution: regroup KPIs, consider creating sub categories and placing KPIs there, we suggest adding about 4-5 sub categories or removing less important indicators.

Problem found: There are many indicators with weight 1. This is a sign that the Balanced Scorecard is not “balanced”.
Possible solution: check out the advice above, regrouping indicator will give you better understanding of what indicators are actually more important.

Problem found: no description for KPIs.
Possible solution: having no description for KPIs might make difficult for other members of your team understanding the scorecard.

Problem found: some KPIs have the value less than the minimum possible value as a result you can see negative performance that doesn’t make sense.
Possible solution: change the minimum value to some reasonable minimum value, use baseline to show the starting value.

Relevant information

Hello,
We have finished audit of your scorecard, please find below some advise, that you might take into account in order to improve your Balanced Scorecard.
Initial Data: Balanced Scorecard focsed on customer requirements.Number of categories: 4Number of indicators: 28

Problem found: In the perspective “Internal Processes Perspective” there 18 indicators, it is obvious that this category is overloaded.Possible solution: regroup KPIs, consider creating sub categories and placing KPIs there, we suggest adding about 4-5 sub categories or removing less important indicators
Problem found: There are many indicators with weight 1. This is a sign that the Balanced Scorecard is not balanced.Possible solution: check out the advice above, regrouping indicators in categories will solve this issue, regrouping indicator will give you better understanding of what indicators are actually more important
Problem found: no description for KPIs.Possible solution: having no description for KPI might make difficuilt for other memebers of your team understanding the scorecard
Problem found: some KPIs have value less than minimum possible value as a result you can see negative performance that doesn’t make sensePossible solution: change the minimum value to some reasonable minimum value, use baseline to show the starting value

Posted in Audit

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