In large
companies Balanced Scorecard (BSC) is used as a management tool to align efforts of different teams/groups/departments to
achieve specific high level objectives / programs / goals. Under it, Key Performance Measures (KPMs) are defined under 4 perspectives: 1) Finance; 2) Customers/Peers; 3) Internal Business Performance; 4) Learning & Growth.
It serves as a tool for management to monitor the performance of various teams/groups/departments and encourage/reward the target achievers. This is
usually prepared every year and monitored on quarterly basis. It is preared in a tabular form in Excel.
On the other
hand process measurement sheet (PMS) which is being advocated in this blog details the core processes of teams/groups/departments. This is an essential tool for the head of teams/groups/departments to know their effectiveness of their processes.
However, staff sometimes feel that BSC is meant for performance so why to
implement PMS. An effort is
made to clarify the purpose of these two tools.
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Measurement
of Process
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BSC
/ Key Performance Indicators
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It is used to know the
effectiveness of the processes
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It is used to know effectiveness
of achieving any desired goal / programs / objectives
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Mandatory for each entity of
organization i.e. department or team involved in providing services to
measure the effectiveness of core processes
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Generally high level of goal /
programs / objectives are measured on 4 perspectives
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An essential tool with the entity
itself teams/groups/departments for assessing its own process and
to take remedial steps to improve the level of performance.
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It is a tool for top management to
monitor the performance of entity on specific goal / programs / objectives.
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All core processes need to be
measured and compared with the targets and actions need to be taken to
improve the processes
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Monitoring is done for only those
high level programs / objective which top management think for itself
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Not for alignment
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Only to align all the teams and
groups to achieve specific program / projects issues.
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Self-assessment and improvement
for the quality of services being provided
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Assessment by management and for
achieving specific goal
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It focuses improvement in the
services
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Main focus is to acheive high
level program / objective
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A tool within the team/department
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It comes from outside from top
management
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Self-correcting tool
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Forced correction
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Not for an incentive
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For incentive
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Essential for making strong
foundation/institutions
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Not necessarily will lead to
institution building
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Actions taken are preventive
actions
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Addresses issues only hence are
corrective actions
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In line with ISO requirements
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In line with ISO requirements
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