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Tuesday, October 06, 2015 
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Scorecarding best practices:
Choosing metrics and setting targets for
performance management

A Cognos White Paper

Scorecards are a powerful tool for executives to manage performance against strategy. But to perform this critical task, scorecards have several basic requirements. First, it is vital that executives contribute to setting up the metrics and targets; this is not just IT’s job. It’s also important to integrate scorecards into everyday processes and develop a strategy map to show the relationship among metrics. Assigning a strategy officer to own the process helps with these requirements.

These scorecarding basics are outlined in the companion to this white paper, Scorecarding basics: How to drive strategy and manage performance. The current paper takes you beyond the basics and into the realm of choosing metrics and setting targets. Carefully designed scorecards link employee incentives to outcome, driving the right behavior. Successful scorecards hinge on the care taken when both choosing metrics and setting targets. This effort cannot be taken lightly. Ill-chosen metrics and poorly defined targets inhibit the very goal they strive to create: a focus on performance.

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