Each company's scorecard must reflect its unique business strategy, and the emphasis on different elements will vary. Getting results Balanced corporate scorecards should not be developed solely to provide more effective executive remuneration programs, but to improve corporate performance. There are five ways that performance can be improved through the effective use of balanced corporate scorecards. In addition to top management, all levels of the organization can become fully aligned with the corporate strategy through an understanding of the performance levels that have the maximum impact on results. Each department and each individual employee needs this information to contribute to improved collective results.
Measurement gives information about how well the business strategy is progressing over time.
It also gives a deeper understanding of how effectively all the moving parts of an organization work, thus providing an essential, ongoing learning tool to management. Measurement can also track the success of business initiatives for quicker reaction if problems arise. The balanced scorecard is an effective way to communicate ongoing results throughout the organization and to gain support for business initiatives. All organizations have significant investments in systems infrastructure. If a balanced scorecard is being used effectively, management is fully exploiting the information stored in these systems for the strategic benefit of the business.