Benchmarking motivates in the world of finance

There is nothing more motivating that benchmarking. When you see people working on some task and they are working better than you! This is the right way of using Balanced Scorecard in finance, don’t try to link compensation plan to indicators’ values, instead use benchmarking to motivate people. Here how it works:

Make sure your managers and employees understand that successfully implementing the Balanced Scorecard will allow you to set fair, objective benchmarks.

Once you create Key Performance Indicators to measure the results of their work, it will be easy to compare the results achieved by different business units—and even by individual employees.  Who did the best job?  Why did they finish their work more quickly or achieve better results?

You may discover new techniques to do this job in a better way.  Or, you may identify some bad practices that need to be changed.  For instance, you might find that some employees are working only to improve the value of an indicator, not for the overall success of their team or your company.  Whether you choose to update the indicator or clarify the instructions for these employees, the Balanced Scorecard will help you to find and solve the problem.

As motivation is critical to the Balanced Scorecard implementation, you will find more balanced scorecard motivation ideas in the eTraining.