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The Accountability Scorecard

A Stakeholder-based Approach to Assessing

Organizational Health and Performance

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Overview

Thinking

Structure

Stakeholders

Samples

Process

Pitfalls

Factors

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The Thinking

Peter Druckers Executive Dashboard

Kaplan & Nortons Balanced Scorecard

Contributions & Inducements

Chester Barnard

Richard Cyert & James March

James March & Herbert Simon

A comment by James Burke

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The Structure

QUALITY

of the

RELATIONSHIP

SHARED RESPONSIBILITY

MUTUAL ACCOUNTABILITY

CONTRIBUTIONS

INDUCEMENTS

OR

G

A

N

I

Z

A

TI

O

N

ST

A

K

E

H

O

L

DE

R

S

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The Key Stakeholder Groups

SUPPLIERS CUSTOMERS

MANAGEMENT

EMPLOYEES

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The Accountability Scorecard

SUPPLIERS

CONTRIBUTIONS INDUCEMENTS

MANAGEMENT

CONTRIBUTIONS INDUCEMENTS

CUSTOMERS

CONTRIBUTIONS INDUCEMENTS

EMPLOYEES

CONTRIBUTIONS INDUCEMENTS

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Management and Employees

MANAGEMENT

CONTRIBUTIONS INDUCEMENTS

Leadership anddirection

Sound financial

management

Integration & balancing

of stakeholder needs

Status and authority

Large domain of

influence

Leveraging of personal

impact

Appropriate

compensation

EMPLOYEES

CONTRIBUTIONS INDUCEMENTS

Time, energy and ideas

Commitment, loyalty

and reliability

Cooperation and

collaboration

Assumption of

responsibility

Application of skills

and knowledge

Solutions to problems

Innovations and

Improvements

Respect, recognitionand appreciation

Better than average

pay and benefits

Opportunities

Long-term prospects

Social context at work

Sense of

accomplishment

Decent working

conditions

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Suppliers and Customers

SUPPLIERS

CONTRIBUTIONS INDUCEMENTS

Quality products andservices

Competitive prices

Responsiveness and

flexibility

Prompt payment

Fair dealings and clear

requirements

Stable relationship

Long-term prospects

CUSTOMERS

INDUCEMENTS CONTRIBUTIONS

Revenues

Contracts

Sanction

Support

Clear specifications

and requirements

Valid, reliableinformation

Solid foundation for

decisions

Quality of our products

and services

Psychometric

leadership

ETDBW

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The Process

Identify the key stakeholders

Identify C-I for each stakeholder Reduce ruthlessly

Devise measures

Map to structure and processes Keep the officers involved

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Some Pitfalls to Avoid

Balanced scorecard consultants

Premature purchase of software Focusing on one side of the exchange

Measuring too much

Perceived irrelevance Confusing charter with commitment

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Factors to Consider

Dependence on stakeholders

Stakeholder attitudes Senior officers grasp of the business

Whos the customer?

How is it going to be used? Levels of arrogance and hubris

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James Burkes Comment

The ultimate measure of an

organizations success is the extent towhich it serves allof its constituencies

better than its competition.

PBS Video, 1995