How we use scorecards…

A good starting point is to prepare an exhaustive definition of the product, determining customer requirements, and a value stream breakdown of the steps involved in the processes. The former reveals the true needs of the customer, as well as opportunities for growth. The latter shows opportunities in process value improvement.

Building a simple set of interrelated scorecards allows management to trickle down the goals of the company to all of its sections, with the consequent alignment of objectives.

First, we prepare the main strategic scorecard with rows of stakeholder (customers, employees, suppliers, community and shareholders) requirements and columns of metric goals by section (manufacturing, sales, marketing, distribution and finance). Then, based on this basic dashboard, we develop the corresponding sections’ offspring scorecards.

A continuous process improvement is achieved by training employees to work within an Agile project framework. Guided by their Scrum leaders, with close customer collaboration, employees work in project groups where they are encouraged to contribute ideas to define their areas’ goals –building and prioritizing backlog lists.

In order to stay agile, employees commit and are held accountable to deliver in short term iterations. The group is empowered to decide the best way to achieve the completion of their tasks, within budget and time constraints –management has a say, only when the next iteration’s tasks (or goals) are defined.