Introduction to the Five Critical Components of Performance Management
Critical Component 5: Measurement Through a Balanced Scorecard
The fifth and last critical component of Performance Management is continuously monitoring the organization's progress in a manner that assures the appropriate balance between cost, quality, customer satisfaction, and continuous learning.
Improved performance doesn't happen by accident. It requires robust tools, state-of- the-art technology, and, above all, continuous monitoring and improvement. This requires a measurement methodology that provides a 360° view.
The Balanced Scorecard Methodology
The Balanced Scorecard methodology builds on key concepts of previous management ideas, customer-defined quality, continuous improvement, employee empowerment, measurement-based management and feedback, among others.
Characteristics of a Balanced Scorecard:
- Retains traditional financial measures.
- Incorporates other key operational measures.
- Is understandable at all levels of the organization.
- Is a management system that enables organizations to translate their vision and strategy into action.
- Provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results.
ExactCost Balanced Measurement SystemTM
The ExactCost Balanced Measurement System is designed to provide continuous monitoring of your operating departments performance while minimizing the adverse affect of a single measure that could place your organization in jeopardy. Our approach includes four key measures, including Cost, Quality, Customer Satisfaction, and Learning.
