Team Balanced Scorecard: How to find a team’s key performance indicators (KPIs)

Read time: 2.5 minutes

Teams can get fixated on a single measure of performance.

To perform at the top of their game, however, it’s best to monitor a balanced range of indicators to fulfil their purpose.

This Balanced Scorecard workshop (adapted for teams) helps them find their best set of key performance indicators (KPIs) and provides a method for identifying specific measures and goals.

Commonly, it’s a process used at an organisational level.

However, I’ve found it highly effective at the team level after they have nailed down their purpose/vision.

Below is my process for a Team Balanced Scorecard you won’t find anywhere else.

The benefits of this workshop are:

Some training companies charge thousands of dollars for you to earn a Balanced Scorecard Professional Certification over multiple days.

I like simplifying complicated processes so anyone can run them and give them to you for free.

Here’s how it works, step-by-step:

Objective

To create a picture of your team’s performance relative to the team’s vision, strategy and purpose in four main areas: Financial, Internal, Learning/Growth and Customer/Stakeholder.

Pre-work

You should arrive at your workshop with the following information:

Step 1: Set Team Vision and choose Perspectives

Establish or confirm the team’s vision related to the wider organisation.

Identify the perspectives for measurement that are clear and understandable for your team.

The original model uses four:

Feel free to add others, but I recommend you start with these four.

Step 2: Fill in Strategic Aims, CSFs and Strategic Measures

Break the team vision down according to each perspective, and first agree on your Strategic Aims.

For each Perspective, ask the question:

“For our Team Vision to succeed, how will we differ?”

Here’s an example of a Scuba Diving Center:

Then, identify the critical success factors (CSFs) by asking this question for each Perspective:

“What are the critical success factors for achieving our Strategic Aims?”

Here’s what our Scuba Center came up with:

Finally, develop Strategic Measures to evaluate those factors. Ask this question for each Perspective:

“What measurements (or KPIs) will prove we’re on the right track?”

Again, let’s see what our Scuba Center agreed on:

Before jumping to the final step, analyse the measures as a team to ensure they provide a ‘balanced’ picture.

Step 3 - Develop an Action Plan

Take the scorecard and create more detailed cards (on Post-Its), translating strategy to day-to-day tasks.

Formulate goals for every measure used. Ensure there are both short and long-term goals.

Develop an action plan to achieve the goals and strategy set like our Scuba Diving friends did here...

Conclusion

As with all workshops, the inclusive process of developing a scorecard is as valuable as the scorecard itself.

So make sure you have everyone in the room before you start.

Success depends on creating a shared understanding of each scorecard dimension.

You should not try to shoehorn existing measures into the scorecard.

Instead, take the opportunity to examine the team from a blank canvas and develop both financial and non-financial measures accordingly.

Ensure all your Strategic Measures are SMART (Specific, Measurable, Realistic and Timely) – you can’t improve on things you can’t measure.

Remember, the Team Balanced Scorecard is a workshop that enables teams to monitor and manage performance in a balanced and integrated manner.

Well, that’s it for today.

I hope you enjoyed it.