Generating Data for the Balanced Scorecard

Balanced Scorecard
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Francis Masereka, Uganda

Generating Data for the Balanced Scorecard

How does the balanced scorecard make the generation of various data complex?

  Francois Aye, Switzerland
 

Data Generation for Balanced Scorecard Takes a Lot of Time

By experience, financial / cost-related data are the easiest to generate ... although even they are seldom readily available.
Qualitative types of data - e.g. measuring customer satisfaction, process effectiveness, employee competencies or engagement - are even more complex and costly to generate for they frequently require to develop specific measurement tools. Such performance indicators however are critical to collect, because they are lead indicators (financial ones generally are lag indicators as they are watching the past) and they provide input from the perspective of a wide variety of stakeholders.
It could take between one to two years to develop such indicators and their tools, plus two years to start to have an historical background and allow some fine-tuning of indicators/tools. All in all it can take some 3 - 5 years to obtain something meaningful ! Top teams not ready to invest four years ahead should not start such a process - but their business will not be strategically driven.

 

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