Why your firm needs a scorecard

Working without a plan or a way to measure your output is like a person walking blindly in a dark tunnel. That is why performance review is important for any organisation that wants to achieve its objectives and mission. So, every firm needs to develop a scorecard on which to appraise its employees.

Monday, January 14, 2013
Lewis Ndichu

Working without a plan or a way to measure your output is like a person walking blindly in a dark tunnel. That is why performance review is important for any organisation that wants to achieve its objectives and mission. So, every firm needs to develop a scorecard on which to appraise its employees. Note that work appraisal is always viewed with suspicion when they are introduced. Some workers seen it as a secret weapon to punish or even dismiss them. Therefore, it is initially shunned. When you, however, create a scorecard and conduct work reviews, you start wondering why you were operating without one. It shows what everyone is doing as well as clear myths and work ethics. It brings to the fore workers and innovations that could have been previously ignored. The scorecard reviews an organisation within itself. It also reviews people among themselves and in the organisation, showing the way to go and how to get there. In the words of leadership guru, John Maxwell, "Every game has its own rules and its definitions of what it means to win”. Some teams may measure their success in points scored, others in profit, while some may look at the number of people they serve. This is the same as using a scorecard in firm. The approach motivates teams because each will be showing success.  Whatever your parameter, you need a scorecard. Performance contracting and scorecards are, therefore, among ways of measuring the success of both team and organisation. If you do not have an instrument to measure your success as a team or firm, it is difficult to tell whether you achieved anything or not.It is important to measure and know, objectively, the contribution that each team member is making. You need to know what you want to achieve and how you will accomplish it. If you do not know the means that will take you to your goal or know everyone’s contribution, how will you know whether you achieved your objectives or not? The scorecard is, therefore, essential in helping you understand the task at hand. It helps you to separate working hard from working smart. Handwork is not measurable and is subject to people’s definition of handwork. What is important is the results achieved from your handwork. Just like in football games, if you are a hard-hitter, but you are always directing the ball in the wrong direction and scoring against your side, you are useless to the team. So, a scoreboard provides you information that helps in decision-making and instituting the necessary adjustments vital to achieving success. All well informed activities always have a plan. You cannot stick to the same game plan and even make substations and hope to win. It is frequently said that insanity is to keep repeating the same thing the same way and expecting a different result. When you have a scorecard, you will know when to change the game plan or make an important move towards your goal.The method keeps everyone focused and encourages collaboration as opposed to ‘misguided competition’. It encourages co-operation rather than the hierarchical supervision that informed yester-years. For, like in ball games, the captain runs with the rest of the players to kick the ball, unless they are best placed for the task at hand. The captain kicks the ball when it is his turn. That way, everyone knows the pain of the task at hand. This is the beginning of a New Year and every organisation would wish to celebrate success at the end of 2013. Therefore, embrace scorecard, and flourish with the best.