In the previous issue, we looked at some common pitfalls in the implementation and execution of the balanced scorecard. We now take a closer look at one of the common pitfalls - the creation of too many Measures (or Key Performance Indicators, as we will refer to them). Failure to manage the use of Key Performance Indicators (KPI) affect an organization's ability to achieve and maintain strategic learning, the key benefit that organizations hope to reap from implementing the Balanced Scorecard.

It is surprisingly easy to lose sight of this and be buried by the tasks involved in collecting and measuring too many KPIs. Not only do we start to get obsessed with collecting too many KPIs that do not relate to the strategy; the manual collection, consolidation, distribution and analysis of the relevant KPIs can also be a laborious task.

To keep our time and energies focused on achieving Strategic Learning, we have to be selective and critical in the selection of KPIs. Do they promote behaviors that result in the achievement of our Strategic Objectives? As much as fulfilled KPIs appear to suggest that we're on the right track, wrongly identified KPIs steer the organization in the wrong direction despite having been successfully achieved.

Taking care of the actual work involved in collecting and managing the data related to the relevant KPIs can fortunately be simplified with the help of automation tools like the Artemis Balanced Scorecard. With the scorecards available to all stakeholders online and updated in real-time, and a central data repository, the time saved in managing this data can then be spent on strategic analysis and reap greater benefits for the organization.

See how the Artemis Balanced Scorecard can help you in automating your scorecard!