Get help now
  • Pages 3
  • Words 710
  • Views 456
  • Download


    Verified writer
    • rating star
    • rating star
    • rating star
    • rating star
    • rating star
    • 5/5
    Delivery result 4 hours
    Customers reviews 257
    Hire Writer
    +123 relevant experts are online

    Scorecard System Essay (710 words)

    Academic anxiety?

    Get original paper in 3 hours and nail the task

    Get help now

    124 experts online

    When an organization implements any management control tool, the cost/benefit balance is vital. The decision to deploy a scorecard system requires the same analysis.

    The costs of implementing a new tool are relatively easy to appraise, but often, there’s a lack of reliable information about the benefits. This article explores the extent to which organizations have realized significant benefits from using a scorecard system. (We use the term “scorecard system” to include both the scorecard as a control tool and the process, or technique, of integrating the scorecard system into the overall performance-achievement cycle of the firm. )Over 150 service, manufacturing, and government organizations have responded to an on-line scorecard survey sponsored by the AICPA, CAM-I, CMA Canada, IQPC, Targus Corporation, and Hyperion (http://graziadio.

    pepperdine. edu/shaps). This article is the first in a series focusing on key themes from our findings. Almost two-thirds of the survey respondents agreed that significant benefits had been realized from using a scorecard system. During the data analysis, respondents were divided into two groups: those that reported significant benefits from scorecard implementation (the “significant benefits group,” hereafter SBG) and those that reported no significant benefits (the “no significant benefits group,” hereafter NSBG). Organizations can maximize the benefit they receive from a scorecard implementation by following the recommendations provided below.

    These recommendations also provide a gauge by which to appraise existing scorecard systems. Impetus for ScorecardAligning employee behaviour with organizational goals and communicating strategy throughout the organization are important objectives of the scorecard system. The SBG unanimously set these reasons as a top priority, whereas only 39% of the NSBG cited these as objectives for implementing a scorecard system. A typical comment of the respondents was, “Perhaps the best benefits have been a disciplined approach to agreeing on what is most important to the organization and developing consensus on how to measure it. “Thus, a careful appraisal should be made of the reasons your organization is considering a scorecard system.

    Organizations that have had difficulty communicating strategy and aligning behaviour should realize significant benefits from a scorecard system assuming that a lack of focus on commonly accepted goals has had debilitating effects in the organization. A related observation is that employees in the SBG both accepted the scorecard system and used it as an effective management-control tool, whereas there was only minimal acceptance and use in the NSBG. Often, the benefits of a scorecard system are soft ones, but organizations in our survey also reported documented benefits such as a reduction in overheads of 25% in three years and “significant improvement in employee satisfaction and the highest sales and profit ever. ” This result isn’t unexpected: if communicating strategy and aligning employee behaviour with strategy aren’t top priorities of a scorecard system, employees won’t see value in using the system. Compensation linksEmployees value what’s measured but too often what’s measured isn’t of value to the organization.

    The study reveals a much stronger link between measures appearing on the scorecards and the compensation and reward system for the SBG than for the NSBG. As one company noted, “Employees throughout the organization have become more aware of business plan goals and objectives and strive for higher performance” due to scorecard implementation. Another company noted that the system resulted in a significant improvement in employee satisfaction. As almost all agree, measures motivate – one way or another. While we recommend that you link scorecard measures to compensation and rewards, you should also exercise care in doing so.

    Taking a year or so to evaluate the validity and reliability of measures, as well as the cause-effect validity of the entire scorecard system, is a prudent policy. Strategic tiesA frequent observation of managers in the SBG is, “(The scorecard system) has helped to better align operational improvements with the overall strategy of the organization. “Ties to strategy can be formal or informal. Perhaps the strongest formal tie to strategy is to assign responsibility for strategic initiatives to people (teams, departments, etc.

    ) and to place measures for these initiatives on related scorecards. Scorecards can also roll up to the next level in the organization, and measures and perspectives can be weighted to give priority to the most critical components of the company strategy.Enlarge 200% Enlarge 400% Table 1 PROFILE OF AN ORGANIZATION REALIZING SIGNIFICANT BENEFITS

    This essay was written by a fellow student. You may use it as a guide or sample for writing your own paper, but remember to cite it correctly. Don’t submit it as your own as it will be considered plagiarism.

    Need custom essay sample written special for your assignment?

    Choose skilled expert on your subject and get original paper with free plagiarism report

    Order custom paper Without paying upfront

    Scorecard System Essay (710 words). (2019, Feb 08). Retrieved from

    We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

    Hi, my name is Amy 👋

    In case you can't find a relevant example, our professional writers are ready to help you write a unique paper. Just talk to our smart assistant Amy and she'll connect you with the best match.

    Get help with your paper