Design of a Scorecard System I: The Organizing Framework

This chapter discusses some aspects of the organizing framework of a scorecard system. The framework of a scorecard system highlights the important characteristics that one wishes to emphasize when evaluating the performance of business model. The framework helps organizations to operationalize the strategy. The framework is then used to organize or categorize reporting on measures and strategy. Although choosing an organizing framework seems like it should be a relatively simple task, choosing wisely can be difficult. A framework that accurately reflects the business model of an organization contributes to reporting that is well organized, easy for the organization to understand, and can be used to drive excellence throughout the organization. Most organizations used primarily financial indicators to understand where they stood with respect to the overall success of their business. The framework is crucial to the success of the scorecard system initiative, but there is no universal framework. All organizations should use the one that best fits their business model.