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Performance Scorecards Ignore Supply Chain

Research shows corporate scorecards deployed only to finance and sales.

VentanaQuickTake

Take
One of the major tenets of performance management is to link strategy with corporate goals and objectives in ways that make the best use of the company's resources by coordinating the efforts of every member of the organization. But a recent study by Ventana Research on the use of performance management technology finds that not every member of the organization is being included. In particular, the study shows that current deployments of scorecards are narrowly focused. The largest numbers of users are in finance (46 percent) and sales (41 percent), while the smallest numbers are in supply chain operations (18 percent) and customer service operations (13 percent). The specific supply chain operations not being served by scorecards include product design, planning, sourcing and procurement, manufacturing, fulfillment, distribution and delivery, and returns. Ventana Research believes the frequency of deployments into the finance and sales functions confirms that companies value tracking revenue goals over tracking balanced measures of executing operational strategy; we believe this needs to change if organizations want to manage the performance of their operational assets.

Related Research Notes:
Supply Chain Improvement: Take It from the Top
Operational initiatives start with top-level performance scorecards.

About Ventana Research
Ventana Research is the leading Performance Management research and advisory services firm. By providing expert insight and detailed guidance, Ventana Research helps clients operate their companies more efficiently and effectively. These business improvements are delivered through a top-down approach that connects people, process, information and technology. What makes Ventana Research different from other analyst firms is a focus on Performance Management for finance, operations and IT. This focus, plus research as a foundation and reach into a community of over two million corporate executives through extensive media partnerships, allows Ventana Research to deliver a high-value, low-risk method for achieving optimal business performance. To learn how Ventana Research Performance Management workshops, assessments and advisory services can impact your bottom line, visit www.ventanaresearch.com.
2006 Ventana Research