Balanced Score Card Management

According to Wikipedia, the Balanced Scorecard is a strategy performance management tool – a semi-standard structured report, supported by design methods and automation tools that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.

The origins of a Balanced Scorecard run deep and have been called various names such as “dashboard” and “performance management” or “corporate scorecard”.

The commercial debt collection business is, in some ways, the ultimate production and results-based environment. Compensation is solely based upon performance – No-Collection No Fee. Many factors and business processes must come together to result in the recovery of money. In more cases than not, the collection agency can do all the right steps, and the recovery may not happen. The best outcome in these situations is a timely report as to why the account should be sued or written off.

At Priority Credit Recovery (PCR), we look at the top 20 action items (like KFC's eleven herbs and spices) that MUST be completed if a client’s receivable is considered fully worked. Our operations, sales, and finance teams are all scored according to the vital components of their work. Weekly meetings are held to review our individual and team results. Each team lead must present their results and discuss. Issues that may be identified during team presentations are discussed in management strategy sessions and plans are made to address those issues.

At PCR, we have borrowed a phrase from Gino Wickman’s book “TRACTION”. The phrase is “everyone has a number”. If you have developed your scorecard correctly, objective data (numbers) can be allocated to each business process. We have found this process to be very illuminating at times. Once you shine a light on something – it gets fixed quickly. 

Our firm highly recommends that a process similar to this be implemented in your business. Each business unit - Sales, Credit, Warehouse, Procurement, and Human Resources as well as Information Technology, can provide the executive management team and business unit leaders with the critical data they need to run the business.

If you would like help to set up, implement, or manage the ongoing scorecard process, give PCR a call. Our executive team can provide the consulting necessary to get your business running at peak efficiency.  Our number is 1-866-266-0117.  Dial extension 350 for assistance.