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Beyond the Balanced Scorecard:
Improving Business Intelligence with Better Metrics
Mark Graham Brown is one of the world’s leading authorities on
performance measurement. He will share real-life examples of how
key performance indicators have become more sophisticated and
complex so that intricate aspects of performance can be more
accurately evaluated. This Best-Selling Author and former Baldrige
Award Examiner will teach you how analytics can be designed to
accurately measure & evaluate complex aspects of performance
such as corporate culture, customer relationships, communication
and intellectual capital. Learn how to evaluate your existing
scorecard, design and implement better metrics based on best
practices and measure employee morale quickly without formal
surveys.
Beyond the
Balanced ScorecardImproving Business
Intelligence with Better MetricsMark Graham Brown
Objectives
Evaluate your existing scorecard
and metrics
Develop analytic metrics
Obtain ideas on how to measure
difficult aspects of performance
Create a plan for improving your
metrics and scorecard
Types of Data Needed to
Manage Performance
Observation
Asking Questions
Conducting Studies
Reviewing Performance
Statistics (Balanced
Scorecard)
10 Stupid Measurement
Practices
1. Trying to link all metrics to
a vague vision
2. Annual metrics
3. Single question surveys
4. Superstitious process
metrics
5. No measures of
ethics/governance
10 Stupid Measurement
Practices
6. Arbitrary targets
7. Surveys
8. No external metrics
9. Worthless HR metrics
10. Measures drive wrong
behavior
Fourth Generation Scorecards
Most metrics analytics
Equal # of metrics for performance dimensions
Scorecards linked to strategic plan and mission
Use of scorecard software
Definition of links between metrics
Scorecards for all employees
Good mix of past, present, future metrics
3rd Generation Scorecards
Most measures link to vague vision versus mission
12-20 metrics typical
Customer, Financial, Internal, and Growth metrics
All singular metrics
Customer & employee metrics annual and lack integrity
Spreadsheets and PowerPoints used to review data
2nd Generation Scorecards
Many quality/financial metrics
30-50 metrics common
All singular metrics
More measures are better
Metrics for many levels – not just
executives
All measures are lagging
More financial and operational
measures than other types
Ist Generation Scorecards
Metrics just for senior management
80-90% of measures financial/operational
All lagging metrics
Periodic studies on non-financial performance
Scorecard drives short-term focus and poor decision making
Analytics vs. Singular Metrics
Hard to cheat on
Better data on
performance
Provides more
information
Decreases risk
and improves
analysis
A few key metrics
Easy to cheat on
Easier to collect
Provides a singular
number
Simplistic analysis
but greater risk
Requires many
metrics
APQC Best Practices Study
on Scorecards
Majority have scorecards with
some non-financial measures
Best scorecards found at: Bank
of America, Saturn, Crown
Castle, Jet Blue, L.L. Bean
Best were level 3, most level 2
Many problems even in best
scorecards
Old vs. New Scorecard
Architecture
Financial
Customer
Internal
Learning,
Innovation, &
Growth
Financial &
Strategic
Customer
Internal
People
External
Strategic Metrics
Linked to Vision
Assess Progress on major
strategies
2-4 Key metrics
Change as vision and
strategies change
People Analytics
Employee
Engagement/Satisfaction
Safety and Health
Intellectual
Capital/Knowledge and
Skills
External Metrics
Like weather for a pilot
Supplier/partner performance
Political factors
Economic factors
Prices of raw materials
Consumer/customer trends
Competitor success/failures
Major Information Missing
From Most Scorecards
How much do we aggravate our
customers?
How much do we aggravate our
employees &
suppliers/partners?
What is going on in the world
that could devastate our
organization?
What Managers Need to
Know
Level – Actual versus Target
Trend – Performance/Time
Analysis – Why is this
happening?
Action Plan – What are we
doing to improve/maintain?
Summary
Most organizations struggling with metrics
Most scorecards still include lagging singular metrics
Trend toward more simplistic measures dangerous
Analytics provide more data without more metrics
PB Views ideally suited to analytics-based scorecard