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How You Can Automatically Evaluate Your Balanced Scorecard Measures & Goals

Automatic balanced scorecard measure and goal evaluation can help you spend more time managing—and less time trying to determine results.

Tricia, Senior Consultant at ClearPoint, leverages her 4+ years of performance management experience when working with customers to improve their reporting and strategy execution.

RAG (red, amber, green) status indicators are often used in scorecards to help an organization understand progress toward their measures and goals.

  • Green means everything is on track.
  • Amber (or yellow) means the measure or goal is close to being on track or might self-correct.
  • Red means the measure or goal needs additional help or some outside resources allocated toward it to get things back on track.

But where do RAG status indicators come from? Determining RAG statuses is a more involved process than many imagine, and the mechanical process of setting up those evaluations is very important.

Before we explain how you can automate the process for determining these statuses—and why it’s so important—let’s walk through a few scenarios that could happen if you update your statuses manually instead.

Measure Issues

You might lower your target to meet your performance.

When you make manual updates to your statuses, you have two options for meeting your target: you can either improve your performance, or you can lower your target. The latter is almost never a good option, unless the target was set incorrectly the first time around. Automating this process takes out the guesswork.

You might hide your shortcomings.

Even if your data is accurate, manual status updating can allow you to hide your shortcomings by assigning a color that isn’t accurate. It’s important to note that this may be erroneous, but it could be purposeful. Regardless, assigning incorrect color statuses is a good way to surprise yourself (and your organization) at year end when your measures have not been met. Automatic evaluations will help you eliminate the possibility of this issue.

Goal Issues

You might use your gut instinct to set up your evaluations—even if it isn’t accurate.

You—or someone in your organization—might be guilty of thinking it’s impossible to automatically evaluate goals. This leads to setting up evaluations that make you feel more comfortable, even if those evaluations don’t reflect an accurate version of the truth. Thinking through what the rules for goal evaluations are as a team can help you have a more honest and thoughtful conversation around your organizational goals.

You might not tie your measures to your goals.

In order to properly evaluate your goals, you’ll need to assign several measures to them—and then weigh those measures by importance. This is a vital step in the process and gives you a high degree of confidence in your evaluations—particularly when they aren’t subjectively evaluated. Failing to do so can be an organization-wide issue.

Download Now: The Measure & Goal Evaluation Toolkit

After reading through these common mistakes and errors, you’re likely wondering how you can spend more time managing and analyzing results and less time trying to determine what those results are. That’s a great question.

Enter the Measure & Goal Evaluation Toolkit. This all-in-one, step-by-step guide walks you through the process of creating robust, automated evaluations for your measures and goals. Doing some hard thinking upfront about this process will help ensure that you build your scorecard right the first time, instead of learning from the problems and mistakes that will come from winging it.

By the time you’ve completed the templates included, you’ll feel confident that your statuses are based on both logic and good leadership alignment. It’s free—so download it now (below) and get to work right away!

How You Can Automatically Evaluate Your Balanced Scorecard Measures & Goals