An operations executive in my company has convinced the CEO to impose his results tracking scorecard on the entire company. We already track our objectives and metrics in a performance management system.
The performance management process (PMP) is your classic balanced scorecard type. Management sets financial objectives and the functions all create objectives and metrics that will support the goals. This is an annual process in terms of goal setting, tracking results, and evaluation at year end. This system is closed, only visible to the function and the individual.
This Strategy matrix lists the company strategies and financial objectives. Each function is to set 3-5 objectives that will support the achievement of the strategy; then identify the projects that will accomplish those objectives; metrics and milestones to track progress; and people who own the project. I think this will be public. Monthly updates will be color coded green, yellow, red so that you can see progress without reading anything.
In addition, every functional leader submits narrative monthly reports to the CEO. This new process feels like duplication to me, an added administrative task that adds no value. The Op exec is a high achiever who is very results focused. This type of measurement process is his style preference. I am wondering if the marketing, R&D, legal and other knowledge workers will respond favorably to yet another score keeping exercise. Is there any evidence that this kind of scorekeeping works. How about evidence that too much process can kill creativity and innovation?