Organizational Learning Strategies: Corporate Scorecard

A Corporate Scorecard is a tool that facilitates the implementation of long-terms goals and strategies through a mechanism of measurement. Also known as the Balanced Scorecard, this mechanism provides a medium to translate the vision and objectives of the organization into a system of performance measurements that effectively focuses the entire organization. The Scorecard tracks financial and nonfinancial drivers of performance as well as the impact of intangibles that are often overlooked (e.g., skill development and knowledge transfer between functions).

	To track performance against established strategic goals as required by the Government Performance and Results Act.
	To collect data that are useful in monitoring customer satisfaction, employee morale, and organizational learning along with the more traditional financial management measures.
	To identify the work activities that add value to the organization.
	To incorporate data from customers, employees, learning and growth, and financial growth perspectives.
	To obtain a balanced view of the present and future performance of the organization.

	Begin creating a Scorecard by setting strategic goals and measures in four areas: Customer perspective: Considers the organization through the eyes of a customer so the organization retains a focus on customer expectations and satisfaction. Internal perspective: Focuses attention on the key internal processes that drive the business. Learning and growth perspective: Focuses on the organization's people and infrastructure and how the organization can improve and create value. Financial perspective: Measures the ultimate results that the business provides to its shareholders.
	Map the strategic goals and measures to the work activities and individual performance.
	Pilot test the measures and survey instruments with small groups and make needed revisions.
	Conduct briefings with all stakeholders (employees, union representatives, managers, etc.) on the Scorecard elements, process to be used, and anticipated benefits.
	Collect and analyze the data using the Scorecard.
	Involve all stakeholders in working with the results. Find ways to sustain areas of high performance and develop strategies for improving areas of less successful performance.

As described below, learning strategies are often used in combination with one another or may be closely linked to one another.

Benchmarking: Benchmarking is a method for comparing an organization's activities against other organizations for the purpose of improving functions and performance. A Corporate Scorecard is an internal tracking and measurement system designed to help achieve long-term goals.

Strategic Planning: The Scorecard is a comprehensive measurement system that can be used to track and report on the implementation of Strategic Plans as required by the Government Performance and Results Act.

The Department of Treasury, U.S. Customs, Office of Internal Affairs (OIA)

OIA established a performance measurement system using the Balanced Scorecard methodology. Teams composed of both managers and employees determined the critical measures. Their task was two-fold: (1) to identify the types of work that added value to the job and drove performance, and (2) to develop a mission statement to make and evaluate decisions. The teams then looked at tracking financial information, internal processes, end users, and learning and growth measurements. As a result of this process the teams realized that all of the measures were interrelated. In addition, the teams found that the single unit of measure most common to everyone was cost of an hour of work. This finding provided the teams with a way to measure the cost of doing business. The teams also designed a survey to measure the value of their service (time, quality, and effectiveness) and sent it to all end users.

The performance measures ultimately developed by the teams resulted in the following outcomes:

A change in OIA work processes, including a complete transformation of its information systems.
The delivery of its product has improved, and a general "Scorecard" is distributed annually to everyone in the organization.
Reports containing specific feedback from the end user surveys are immediately sent to the appropriate individuals to help them monitor and track performance in a timely manner.

The Department of Transportation (DOT), Office of Human Resource Management, Performance Development Division

This organization wanted to find a way to measure its performance and determine whether that performance was producing the intended results. A team was formed with representatives from the various departments within DOT. A Scorecard was developed around five perspectives:

financial perspective,
customer perspective,
innovation and learning perspective,
internal business perspective, and
employee empowerment perspective.

The team then developed a survey that it sent to managers, employees, and customers to measure the five perspectives. Beta testing of its Balanced Scorecard model has begun. However, even before full implementation, DOT benefited from this process. DOT found that it helped to clarify and define performance for the organization. The Balanced Scorecard process began the critical dialogue between employees and managers on what needed to be learned and how it related to the big picture.

Web Resources

The Balanced Scorecard Institute An independent, nonprofit source of information about applications of the Balanced Scorecard approach to management in government.

Balanced Scorecard and Strategic Planning Online Article

The Balanced Scorecard Technology Council

Using a Balanced Scorecard Approach to Measure Performance, OPM Newsletter Reprint

Publications

Kaplan, R. S. & D. P. Norton. The Balanced Scorecard: Measures That Drive Performance, Harvard Business Review. Jan-Feb 1992, pp. 71-79.

Kaplan, R. S. & D. P. Norton. Putting the Balanced Scorecard to Work, Harvard Business Review. Sep-Oct 1993, pp. 134-147.

Kaplan, R.S. & D. P. Norton. Using the Balanced Scorecard as a Strategic Management System, Harvard Business Review. Jan-Feb 1996, pp. 75-85.

Following are links to the other Organizational Learning Strategies:

	Meetings
	Action Learning
	Cross-Functional Teams
	Work-Outs
	Strategic Planning
	Parallel Learning Structures
	Benchmarking
	Groupware
	Distance Conferencing