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August 26, 2007

Building Accountability into a Balanced Scorecard Framework

The keys to driving improved business results in any organization are:

  1. Having a strategy that has laser-like focus
  2. Aligning all employees’ to that focus
  3. Improving the business processes that specifically target high-impact areas of the strategy
  4. Having a way to make employees do what they said they would do

Another word for "making employees do what they said they would do” is accountability, which can be elusive. What I have found is that holding people accountable requires clear expectations, strong leadership, and an event where they must discuss their performance with their boss. This event is a monthly scorecard-based business review and it should be held at all levels. Since this event (a scorecard-based business review) can lead to either positive recognition for a job well done or embarrassment for lack of performance, people usually opt for the first option. In order to be prepared for and look good in this monthly meeting, people focus on improving their performance (as shown on their scorecards). 

So, a scorecard-based business review should be a structured, repeatable, data-driven conversation on performance between a manager and his/her direct reports on a monthly basis.

Here’s what it should not be:

  • A PowerPoint-based “Dog & Pony Show” (i.e. pleasing to look at, but glossing over or omitting under-performing areas)
  • Something that changes structure from review to review
  • A thick report with no “drill down” visibility to real issues
  • A lengthy (e.g. day-long plus) session

A business review can be a win-win event with proper training, coaching, and preparation by the reviewer and the person being reviewed. Most importantly, it's a trigger that creates continual focus on the organizational strategy and its execution, leading to ongoing performance improvement and performance management.

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