Scorecards Focus on Common Goals

Scorecards have become a major management tool at Microsoft since Kevin Turner took over as chief operating officer in 2005, and they are widely used by managers and business groups in Turner’s areas of responsibility—primarily sales, marketing, and consulting and support services. Scorecards focus thousands of employees on common goals, track individual and group performance, and allow managers to see how specific tactics or operations are contributing to or hindering progress. Understanding scorecards can also give partners and customers insights into the company’s priorities and help them deal more effectively with the Microsoft field organization.

Management by Scorecard

Balanced scorecards are management tools popularized by Robert Kaplan and David Norton, who first wrote about the subject in 1992—the term “balanced” refers to their focus on more than financial metrics. In general, businesses define their major goals, and then determine key performance indicators (KPIs), which are specific, measurable activities that can help the organization track its progress toward meeting its goals. For example, a company that wants to improve customer satisfaction might measure the average time that the help desk takes to answer the phone, or the number of problems resolved on the first call, on the assumption that improving organizational performance on these activities will lead to higher overall customer satisfaction.