How Efficient are Cascade Metrics?

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Navigation: All Balanced Scorecard Articles > Cascading in BSC

It is highly beneficial to know and understand the advantages of cascade metrics so that true performance of the organization is achieved. Check additional information about Cascade Metrics.

Cascade metrics solve the problem of communicating a well-balanced scorecard to your whole company. Even if the scorecard your organization has created is innovative in nature, cascading that to the rest of the people across all departments and sections is going to be a challenge.

Studies show that many companies around the world contribute their success to the fact that everyone in the company knows and understands the objectives and goals. It is really important for everyone in your company to know and understand the goals and objectives of the company so that they will know how to go about in achieving them. This will help promote cohesiveness in any organization. It would be a bad form if most of your employees do not know the objective of the company. The obvious solution is to make each one of your people study and understand the objectives of the company. The metrics mentioned above solves this problem. This type of metrics system is very helpful in setting up the lowest level employees up to the head honcho. They will be reading exactly the same metrics with a slight change in perspective.

Let us look at a BPO company. The lowest level employee in its roster would be the agent. In order to rate his or her performance, he or she will look at certain metrics and key performance indicators that measure his or her ability to handle a call. The next in line would be the team leaders. They would be looking at the metrics of each team member and averaging them to get the average metrics of the whole team. The next one would be the account manager who will look at the scorecards of every team so that he can create a scorecard for the whole account. The final one would be the site director. Basically, this manager will still be analyzing the metrics of every account. But in the end, the site director will create a scorecard that is reflective of the performance of the whole site.

Cascading the said metrics is done by tiers. It is basically the same with what a pyramid looks like but the difference is that tiers do not necessarily reflect the organizational chart. Some tiers are based on the pay grade. Just for the sake of understanding the concept of cascading scorecards, we will look at tiers and organizational charts as exactly the same. Tier 1 would be the first to be shown and made to understand the metrics. After that, it is passed to the next line of business which we will call tier 2. Then there would be tier 3 and so on and so forth until everyone in the whole organization is made aware of the metrics.

The tricky part of cascading scorecards is that it needs to be translated so that the next tier will understand them. You need to do this and keep the whole organization aligned to the company's goals and objectives at the same time. There is definitely a lot of work to be done. The good thing is that cascade metrics can really help you and your organization.

If you are interested in Cascade Metrics, check this link to find out more about cascade scorecard. Also, you can check other articles in Cascading in BSC category.


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