Scorecard Best Practices Design, Implementation, and Evaluation

by Lawson, Raef; Desroches, Denis; Hatch, Toby

• ISBN13: 9780470129463
• ISBN10: 0470129468
• Edition: 1st
• Format: Hardcover
• Copyright: 2007-11-09
• Publisher: Wiley

Summary

Scorecard Best Practices: Design, Implementation, and Evaluation expertly shows you how to bridge the gap between Scorecard theory and application through hands-on experiences and useful case studies. It is the one-stop resource you will turn to for the latest tools and know-how to implement corrective changes. Whether you are a CEO, CFO, CIO, vice president, or department manager, Scorecard Best Practices is the book you will keep at your fingertips to get your company running at maximum performance.

Author Biography

Raef Lawson, PhD, CPA, CMA, is Director of Research for the Institute of Management Accountants (IMA). He was formerly a professor and chair of the Accounting Department at the University at Albany, State University of New York. He has written extensively in the areas of scorecards, activity-based costing, and cost management, and his work has been published in a variety of publications.

Toby Hatch is a Domain Leader for Performance Scorecard and Business Modeling with Hyperion Solutions. Ms. Hatch has been involved with supporting and implementing scorecard systems, performance management solutions, and activity-based management solutions in companies around the world since 1988. Based on five years of research on implementing scorecard systems, she has published numerous articles in various magazines.

Denis Desroches is a Domain Leader in the business performance management field with Hyperion Solutions. Since 1993, he has supported organizations with the selection, implementation, and knowledge acquisition of scorecard, performance management, and activity-based management solutions.

Table of Contents

Foreword	p. xi
Charles Horngren's Reflections	p. xiii
Acknowledgments	p. xv
Introduction	p. 1
Shaps Study Overview	p. 1
Study Analysis Groups	p. 2
Contents of This Book	p. 3
Scorecard Systems Overview	p. 5
What is a Scorecard System?	p. 6
Attributes of Scorecard Systems	p. 6
Reasons for Implementing (Operational versus Strategic)	p. 10
Impetus for a Scorecard System Initiative	p. 12
Benefits of a Scorecard System	p. 13
Best Practice Organization Benefits	p. 15
Achieving Significant Benefits: International Results	p. 16
Use of Scorecard Systems by Demographic Segment, Size, and Industry	p. 18
What's Next?	p. 18
Establishing Motivation	p. 19
Background	p. 20
Impetus for Implementation	p. 21
Use of Targets	p. 22
Linking Performance Measures to Compensation and Rewards	p. 24
Aligning Measures and Employees to Organizational Goals	p. 25
Advertising Success	p. 26
Measures Used	p. 26
Software Features Made Available	p. 27
Communicating Appropriate Reasons for Scorecard Implementation	p. 28
Summary	p. 30
Enabling a Supportive Organizational Environment	p. 33
Background	p. 34
Have Buy-In from Top Level Management	p. 36
Articulate and Communicate the Organizational Strategy	p. 37
Define and Communicate the Reasons for and Benefits of Implementing a Scorecard System	p. 38
Align Human Capital to the Strategy	p. 39
Have a Strategy Champion to Maintain the Visibility Required to Be Successful	p. 40
Have Employees That Accept and Use the System	p. 41
Use a Feedback Loop to Understand Progress and Make Changes Where Required	p. 42
Suitable Automation	p. 43
An Eventual Link to Compensation and Reward Systems	p. 43
Use Consultants Appropriately	p. 44
Provide Adequate Time to Implement and Realize Benefits	p. 44
Have a System That Is Pervasive, but Implemented in Phases	p. 45
Summary	p. 46
Design of a Scorecard System I: The Organizing Framework	p. 49
Organizing Framework	p. 50
What Is an Organizing Framework and Why Do We Need One?	p. 51
Popular Frameworks	p. 53
Frameworks Typically Chosen	p. 59
Industry Example	p. 60
Can an Organization Have Multiple Frameworks?	p. 62
Multiple Frameworks or Management Initiatives?	p. 63
Summary	p. 65
Design of a Scorecard System II: Other Issues	p. 67
Background	p. 68
Ties between Measures and Organizational Strategy	p. 68
Linking Compensation with Performance	p. 73
A Pervasive Scorecard System	p. 75
Tracking the "Right" Measures	p. 77
Does Your Costing System Support Your Scorecard System?	p. 81
Self-Evaluation Questionnaire	p. 83
Summary	p. 83
Implementation Strategies	p. 85
Communicating Scorecard Concepts	p. 86
Selling the Scorecard	p. 87
Organization Levels	p. 88
Approaches to Implementation	p. 89
Impact of Implementation Approach	p. 92
Industry Differences	p. 93
Framework and Levels of Implementation	p. 93
Plans for Future Rollout	p. 94
Updating Scorecards	p. 94
Summary	p. 95
Implementation Issues	p. 97
Implementation Time-Frame and Deadline	p. 98
Implementation Time-Frame and Reason for Scorecard System Deployment	p. 99
Implementation Time-Frame and the Approach	p. 101
Effect of Rationale on Implementation	p. 101
Number of Measures	p. 102
Time to Implement Scorecard Software	p. 103
Use of External Consultants	p. 104
Consultants and Scorecard Automation	p. 107
Organizational Buy-In	p. 107
Scorecard and Other Performance/Cost Management Tools	p. 108
Summary	p. 112
Scorecard Automation	p. 113
Need for Automation	p. 114
Extent of Data and Report Automation	p. 115
Software Options	p. 118
Software Deployment	p. 120
Reporting Results	p. 121
System Functionality and Features	p. 123
System Flexibility	p. 124
Data Accessibility	p. 125
Summary	p. 125
Best Practice Considerations Checklist	p. 127
Best Practice Considerations Checklist	p. 128
Case Studies	p. 131
Suzano Petroquimica	p. 131
First National Bank: Banking Operations	p. 134
City of Boston	p. 137
Hospitality Services Company	p. 141
Fujitsu Services Oy	p. 148
Financial Services Company	p. 151
Entertainment Subscription Company	p. 154
Pfizer	p. 157
Glossary of Terms	p. 165
Index	p. 173
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