Been asked if I know what a balance scorecard is. Only heard of KPIs and even then my understanding of this is very basic (they’re a set of data (number sales vs inventory bought) etc)
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They are connected to be sure. In my work at least, we put together a list of KPIs to build a Balanced Scorecard. The balanced part just means that the set of KPIs covers the breath of things you want to measure so that you don’t over focus on one or two metrics and instead have a balance. One framework I’ve seen is QCDSE (google for details). The idea is you should have metrics for each letter and not just a few. For example, you don’t want to just measure an increase in C (Cost) and ignore the impact on S (Safety) as that could be detrimental to the overall performance of the business. We see this when a company starts to get worried about their finances and then neglects their employee or customer safety or engagement.
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