Business performance management systems that want to move beyond the obvious performance indicators such as corporate finance will have to include the balanced scorecard in their mix. It tends to operate by attaching targets to non-traditional performance factors such that the company has an overall picture of success.
The first major challenge is to identify which project requires which indicators. The list of performance desirable will be virtually endless and the managers will have to make a decision to prioritize or deprioritize certain factors.
A weighting index can be applied and the decision making about the factors can be democratized so that everyone has a chance to contribute their own interests. However the business has to have its own standards that ensure that the strategic objectives are being carried out even at the lowest units. … Read more