Beyond the
Balanced Scorecard
Improving Business
Intelligence with Better Metrics
Mark Graham Brown
Objectives
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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
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Types of Data Needed to
Manage Performance
 Observation
 Asking
Questions
 Conducting Studies
 Reviewing Performance
Statistics (Balanced
Scorecard)
10 Stupid Measurement
Practices
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Trying
to link all metrics to
a vague vision
Annual metrics
Single question surveys
Superstitious process
metrics
No measures of
ethics/governance
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10 Stupid Measurement
Practices
Arbitrary
targets
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Surveys
No
external metrics
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Worthless HR metrics
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Measures drive wrong
behavior
Fourth Generation Scorecards
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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
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3rd Generation Scorecards
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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
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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
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Ist Generation Scorecards
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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
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Hard to cheat on
Better data on
performance
Provides more
information
Decreases risk
and improves
analysis
A few key metrics
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Easy to cheat on
Easier to collect
Provides a singular
number
Simplistic analysis
but greater risk
Requires many
metrics
5
APQC Best Practices Study
on Scorecards
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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
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Financial
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Customer
Internal
Learning,
Innovation, &
Growth
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Financial &
Strategic
Customer
Internal
People
External
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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
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External Metrics
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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
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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?
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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
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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
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