RE: Balanced Scorecard

["Ramanujam, Ram (M.K.)" <mramanuj@visteon.com>]

My question to the den:  Do you have to measure, and if so how do you
determine what to measure?  How do you measure in a way that provides
feedback but is not used to reward and punish?  The one thing I did like
about this presentation was that an individual could plug into the system
at any point in time and see where they stood.  There was a feedback
method.  Do you think this was good or bad and why?


The difference in Balanced Scorecard conceptually is that it tries to match
what is called the Lag Measurable (also called Result measurable) with a
Lead measurable (the Process measurable). So it is more like a
do-the-process-right-to-get-the-result-right approach which differs vastly
from get-the-objectives-fulfilled-somehow approach. So this scorecard would
look at  what you defined as the means to get there, apart from the actual
destination (result). The trick to is to match the means and end as close as
we can.

e.g If Supply base PPM is the 'objective' - the actual number matters a
little, only the direction that this should come down matters, my process
measurable could be the content and amount of training imparted to
Suppliers, Number of audits planned Vs Completed at High impact Supplier's
premises, etc. 

Bottomline - I think Balanced Scorecard shows you where you are and where
you are heading to and so makes a lot of sense....

Ram