Business consultant Jeff Nock outlines the importance of employing a so-called scorecard, or balanced scorecard, in business.
A business scorecard, balanced scorecard, or simply a scorecard is, in business, vital, according to marketing and product development specialist Jeff Nock from Iowa City, Iowa. An experienced executive and business consultant with a demonstrated history of growing startups, nonprofits, and established companies alike, Nock explains more about the process.
“A strategy performance management tool, a business scorecard, balanced scorecard, or simply a scorecard is a semi-standard structured report,” explains Jeff Nock, “that can be used to keep track of essential or otherwise important activities within a company or other organization.”
So-called business scorecards can be used, he says, by company owners and managers to monitor the execution of important activities by their staff. “The same semi-standard structured reporting process,” adds the Iowa-City based expert, “can then be used to determine the consequences of these activities or other actions.”
The term balanced scorecard, according to Jeff Nock, stems from the fact that the reporting process can be used-by a company owner, business manager, management team, or other executives-to assess either strategy implementation management or operational management in equal measure.
This, says business consultant Jeff Nock, is demonstrated in 2GC Active Management’s annual Balanced Scorecard Usage Survey. “Last year’s survey found that approximately half of respondents reported using business scorecards for strategy implementation management,” Nock reveals, “while half reported using them for operational management.”
Founded in 1999 and headquartered in Berkshire, England, 2GC Active Management’s mission, they say, is to understand and solve strategic and operational performance management issues for public, non-profit, private, and NGO sector organizations.
“Interestingly, their most recent survey also reported a number of individuals using a business scorecard to track personal performance,” reveals Nock, “although only 15 percent of respondents were found to use business scorecards or balanced scorecards in this way.”
Around twice as many, however, did report using corporate business scorecard elements to inform so-called personal goal setting and incentive calculations, the survey points out, according to the expert.
Iowa City-based business consultant Jeff Nock says that the critical characteristics that define a business or balanced scorecard are threefold, and include, first and foremost, a focus on the strategic agenda of the company or organization concerned.
“Elsewhere, the two other critical characteristics that define a business scorecard are,” he adds, wrapping up, “the selection of a limited number of data items to monitor, and a mix of both financial and non-financial data items, in that order.”