Case Study—Using an Executive Scorecard
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Source: CPA Practice Management Forum Stambaugh Ness PC, The firm began with a strategic plan, which served as a guide to the creation of the executive scorecard. It uses specific goals tied to the strategic plan. Each person’s goals are paralleled with that person’s skills, which promotes teamwork. For example, if one partner has a specific chargeable hours goal, but a limit to the number of chargeable hours in one engagement, he or she might use some of that goal to help other partners. The scorecard also measures the person’s business development results, productivity, and contributions to management and process improvement. The executive scorecard program is managed by the executive committee, which meets annually with each person to help develop three to five individual goals in areas such as:
Coaching is provided for each person. Monitoring is continuous. Communications are crucial not just in the initial goal-setting meeting, but continually so there are no surprises about how each scorecard entry is rated. Communication is also important to assure understanding of changes that take place in the firm. The scorecard also includes such routine activities as on-time billings, and collections. A heavily weighted and difficult to quantify element is the partner’s support of the firm, and his or her commitment to new initiatives. There are no rewards associated with these, but there are penalties for failure to meet the requirements. From CPA Practice Management Forum, |