Joint and Balanced Scorecards are strategic performance tools utilized in-concert by a customer and supplier to measure mutually agreed to business drivers and objectives. They deliver previously unidentified opportunities for positive and tangible financial outcomes.
The most critical component of the Joint and Balanced Scorecard are the Key Performance Indicators – the set of mutually agreed to values to measure performance against. The Key Performance Indicators, or KPIs, should be a mixture of financial and non-financial measure that align to the existing business strategies and visions of the customer and supplier. They should be fact-based and actionable, and drive ongoing collaboration between the customer and supplier.
A well-executed Joint and Balanced Scorecard will:
- Assess “Inputs” that influence desired “outputs”
- Align business activities to the vision and strategy of the organization and monitor client and supplier performance against strategic goals.
- Improve internal and external communications through a common language
- Establish a joint strategy in how to create future sustainable (economic) value for each party and focus on the elements of the relationship that matter most
- Establish a process that helps all parties measure factors that cause mutual (economic) value
- Result in a higher and more transparent “Partnership” between supplier and customer
- Create otherwise unknown opportunities for mutual success
The Chapman Group can be a great third-party and neutral resource to help develop, implement and support a Joint and Balanced Scorecard Program with your Strategic Accounts. We work with both the customer and supplier, to determine the Key Performance Indicators and other critical components of the relationship that need to be monitored and measured going forward. Our team of experts also help to facilitate the launch and adoption of the scorecard between the customer and supplier, as well as interpret findings to offer a Prescription for Mutual Success.
Implementing a Joint and Balance Scorecard is a critical element in sustaining a positive, collaborative and mutually beneficial customer / supplier relationship. Measuring performance against expectations will identify issues before they become “serious/catastrophic” issues and will assign accountability to the customer and supplier…
When we deal in generalities, we shall never succeed. When we deal in specifics, we shall rarely have a failure. When performance is measured, performance improves. When performance is measured and reported, the rate of performance accelerates.Thomas S. Monson