Auditing the context

Measurement strategy to suit a given context

The "balanced scorecard" is a model that includes a number of different "hard" and "soft" criteria for evaluating organisational effectiveness and therefore provide scope for a range of criteria for measuring your change initiative.

Developing a balanced scorecard involves identifying measures across a broad range of areas, not just the effect on the bottom line. Kaplan and Norton identify four areas that need to be scored and balanced.

They call these:

  • translating the vision
  • feedback and learning
  • business planning
  • communicating and linking

A balanced scorecard may be the extent to which it:

  • achieves goals - increase product/service quality, increase output, increases productivity
  • enables increased resourcefulness - an increased share of market, increased employee versatility
  • encourages the satisfaction of customers - an improved organisational image, a reduction in complaints
  • contributes toward the improvement of internal processes - increased group cohesiveness, increased quality of supervision, improved managerial abilities.

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