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How many measures should there be on a typical scorecard? Does it vary by industry? And does it vary by the level in the organization (i.e., should higher levels in the organization have more measures?) |
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Think about the BSC as a framework for reviewing strategy. If you are a big organization, you may have a separate scorecard at division or department levels. So, you need to frame the question about the number of measures in the context of a particular scorecard. I agree with Dylan that you may have 20-25 measures, but if you have multiple scorecards, you may have that many measures at each level of your organization. Thus, you could end up with a lot more measures. I advise organizations to think about the number of measures that they can realistically focus on and collect for their monthly and quarterly strategy management meetings. For some organizations, it is best to start with a smaller number, like 12-18. Others will try to do even more than 30. If you choose a large number of measures, you will find that you don't have time to collect the data. On top of that, you won't have time to review the data you collected. This should be a simple process, rather than an overly cumbersome process for your organization. |
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A measure is a statement of how success in achieving an Objective will be measured and tracked. Measures are written statements of WHAT we will track and trend over time, NOT the actual targets (see below) such as direction and speed. A measure should include a statement of the unit to be measured ($, headcount, %, rating). Examples:
I recommend no more than 1-2 measures per strategic objective, which means that a typical scorecard should have no more than 20-25 measures. This doesn't vary that greatly by industry per se, but it does vary by organization. Some organizations just like to measure more (these are typically organizations that are earlier on in their Balanced Scorecard lifecycle). |
