How to Audit and Adjust Scorecards

Business scorecards change and evolve over time.  On average, a scorecard is revised six times before it is meaningful and measuring the right metrics.  Every 90 days a scorecard audit needs to occur. Here are three tips for conducting an audit and making the necessary adjustments.

1) Check Trends
Check for any trends indicating a need for goal adjustment. Metrics which are green for more than 90 days provides an opportunity to raise the target and drive continuous improvement. Conversely, if any metric is red for 90 days with a valid corrective action plan in place, consider breaking the metric down further to determine underlying causes.

2) Corrective Actions and Impact
Can a corrective action improve results?  If the team is unable to impact the metric with a corrective action plan, discuss whether or not to keep it on the scorecard.

3) Ask Questions
- From where did the metrics come?  
Make sure it’s tied to organizational strategy and priorities.
- Do we have too many metrics?
Too many causes confusion and too many things on which to focus.
- Is the metric providing meaningful data?  
You may need to revise, replace or remove the metric.

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