| "Do scorecards and metric trackers enhance or | | | | in people, processes, products/services, and climate, in |
| detract from speed of strategy execution? | | | | order to drive the needed customer experience. |
| Sometimes I feel we place too much emphasis on | | | | Problems with metrics arise when leaders focus |
| tracking." | | | | excessively on lagging indicators-or when they don't |
| We hear this question a lot from clients and other | | | | know exactly what to measure, and so just measure |
| business leaders. Scorecards and metrics play an | | | | everything. For example, when Unilever began to |
| important role in speedy execution. They relate to the | | | | execute a new strategy, one of its divisions collected |
| "future state" of the organization and provide leaders | | | | data on 192 metrics. 192! Can you imagine how |
| with vehicles with which to communicate that direction | | | | scattered (and, as a result, slow-moving) the Unilever |
| throughout the company. Mostly, though, scorecards | | | | people must have been? |
| and metrics define miracles. | | | | Challenges aside, scorecards and metrics enhance |
| Have you seen this cartoon: Two guys are looking at | | | | strategic speed if they: |
| a chalkboard, mapping out a beginning and an end | | | | 1. Connect business results to people |
| state, and in the middle they write: "And then a miracle | | | | 2. Involve a healthy mix of leading and lagging |
| occurs"? Those guys must work at a slower | | | | indicators |
| company. Faster organizations use scorecards to | | | | 3. Are kept alive in discussions-and not left sitting in a |
| define that "miracle." They connect intended business | | | | binder somewhere |
| results to people. For example, they start with | | | | 4. Are given time to work |
| revenue-growth targets, then determine what | | | | 5. Have teeth |
| customer responses are needed, if they are to hit | | | | 6. Support organizational goals over and above |
| those targets. From there, they identify the customer | | | | functional/divisional goals |
| experience needed, if they are to obtain those | | | | 7. |
| responses. Finally, they describe the changes needed | | | | |