Balanced Scorecard: Strategic Performance Measures Improve Corporate Strategy Execution
CHAPEL HILL, N.C., Oct. 7, 2002-- Top companies utilize a balanced scorecard as a vehicle to deploy corporate strategy and as a useful approach to managing corporate performance. According to a study by research and consulting firm Best Practices, LLC, consistently updated, balanced scorecards help channel limited resources to critical functions and better measure corporate performance. Balanced scorecards strengthen communication of corporate goals, enhance customer service and focus strategy deployment. "Developing a Balanced Scorecard of Performance Measures" available at http://www.benchmarkingreports.com/r/r239.htm, reveals how world-class companies successfully implement balanced scorecard initiatives. For example: * Benchmarked companies communicate the importance of fast formation of balanced scorecards to measure performance: 86% of all benchmarked companies created their scorecards in nine months. * Benchmarked companies ensure scorecard measures are linked to compensation: 79% of the companies included compensation metrics while 64% also utilize performance appraisals and reward and recognition systems. * To reflect changing strategy, 62% of benchmarked companies update balanced scorecards annually, while 38% update every three to six months. The study contains frequently used performance measures, strategies for communicating the balanced scorecard and the most effective approaches for reporting corporate performance from 22 world-class companies across 12 industries. Key findings include: * Analyses of scorecard development processes * More than 20 actual corporate scorecards and more than 300 performance metrics used by benchmarked companies * Corporate strategy communication tools * Measures for integration of balanced scorecard with corporate goals "The balanced scorecard helps companies focus on all the factors that affect the bottom line," said Alex Lyons, manager at Best Practices, LLC. "It's like a divining rod that leads to hidden cost-cutting and performance improvement opportunities." To download a report summary of "Developing a Balanced Scorecard of Performance Measures," visit http://www.benchmarkingreports.com/r/r239.htm . For more information about this report or other benchmarking reports, contact Jeanne Langley at (919) 767-9258 or at firstname.lastname@example.org. ABOUT BEST PRACTICES, LLC Best Practices, LLC is a research and consulting firm that conducts work based on the principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class organizations. For more information, call 919-403-0251 or visit http://www.best-in-class.com/.