Learn how to develop an assessment scorecard featuring weighted evaluation criteria and align it with other strategy scorecards. Use it for employee and team performance evaluations.
Evaluation (or assessment) scorecards are widely used business tools in areas such as performance management, strategic planning, quality assurance, risk management, compliance monitoring (for example, for vendor evaluation), stakeholder satisfaction, procurement, and the evaluation of training and innovation efforts.
Evaluation Scorecard.In this article, we discuss the key challenges of creating an evaluation scorecard:
- Prepare an evaluation scorecard with subjects and criteria for evaluation.
- Capture quantitative (scores) and qualitative (feedback) evaluation data over time.
- Visualize performance over time, based on criteria and evaluation subject.
- Align the evaluation scorecard with the overall strategy.
We will use the “Performance Evaluation Template” available in BSC Designer to showcase how these challenges can be automated in practice.
Evaluation Template: Preparing Evaluation Criteria and Subjects of Evaluation
A typical evaluation scorecard relies on a fixed set of evaluation criteria/factors defined for each evaluation subject. To ensure comparability of evaluation results both internally and with other scorecards, we normalize evaluation criteria based on the measurement scale and optimization function.
Creating a Structure of Criteria
In BSC Designer, we start by creating a structure of indicators that we’ll use for evaluation.
- Use the Add button to include a subject of evaluation (referred to as “Team 1” in the template).
- Select “Team 1” and click Add to specify evaluation criteria inside (Factor 1..n).
Evaluation Scorecard.- If necessary, create sub-factors for the factors.
- Use the Description field to define measurement standards and upload relevant guiding policies.
The criteria can be quantitative (numbers) or qualitative (natural choice):
- For qualitative criteria, set up custom measurement units via the General tab > Unit of Measure > Edit Properties. For example, use rating according to the Likert scale.
- For quantitative criteria, go directly to the Value field on the Data tab.
Configuring Update Period
By default, the evaluation factor is configured for monthly updates. To customize the update interval:
- Select an evaluation factor.
- Click on the Values Editor.
- Use the Update interval control.
Evaluation Scorecard.Normalization of Factors
There might be different measurement units and measurement scales for the factors, for example:
- Customer satisfaction factor, measured in % on a scale from 0 to 100%.
- Response time factor, measured in hours on a scale from 0 to 48 hours.
We need to make these factors comparable by normalization. The software will do this automatically using information about the measurement scale (see the Data tab) and optimization function (see the Performance tab).
Evaluation Scorecard.Additionally, on the Performance tab, we can specify the relative weight of a certain factor in calculating the overall score.
Propagate Evaluation Criteria
We created an index of factors that is now used for evaluation. We need to propagate the same index for other subjects of evaluation. To do this:
- Select “Team 1” and copy it (Tools > Copy indicator).
- Select the root element (“Performance Evaluation Template”) and paste the item.
- Rename the created item from to “Team 2.”
- Repeat the steps for more evaluation subjects.
The main structure for the evaluation scorecard is now ready.
Ongoing Assessment: Capture Evaluations and Feedback Over Time
In the next step, we use the scorecard to capture evaluation data date by date. In addition to the scores assigned to the evaluation criteria, it’s crucial to capture feedback and improvement ideas.
Evaluation Score Date by Date
In BSC Designer, we can evaluate the subjects according to the evaluation factors date by date.
- Select an update period in the interval calendar.
- Choose the factor to update.
- Switch to the Data tab and enter a new evaluation score into the Value field.
Alternatively, click on the Values Editor and enter new data into the data table there.
The software will calculate the evaluation scorecard automatically using the current evaluation scores for the factors and the weight of the factors.
Capture Feedback and Improvement Ideas
We can also document feedback and improvement ideas within the context of evaluation factors.
- Follow the previous steps to update the evaluation score for a specific date.
- Use the Comment button next to the Value field.
Evaluation Scorecard.The ultimate goal of performance evaluation is to come up with a development plan.
- Select the subject of evaluation (for example, Team 1).
- Click on the Initiatives button.
- Choose an appropriate type of record (Initiative, Risk, Hypothesis, etc.).
- Add the details of the development plan (upload documents, specify budget, timeline, owner).
Input via Excel Template
One effective method for automating assessments is to distribute a questionnaire. For instance, when conducting a vendor risk assessment, you can provide vendors with relevant questions using an Excel template.
To create an Excel template in BSC Designer:
- Navigate to Tools > Export data
- Click Next
- Select the Export as template option
You can later import the questionnaire back into the tool using Tools > Import Data.
Performance Dashboard: Visual Tool for Evaluation Scorecard
A visual representation of the progression of evaluation scores over time helps in understanding trends and facilitates decision-making.
Evaluation Scorecard.Add New Diagrams
Use the Dashboards in BSC Designer to visualize evaluations by subject, by factors, and observe their dynamics over time.
To add a new diagram:
- Switch to the Dashboard tab.
- Click on the Add button.
- Select the data source, type of the diagram, and configure its settings.
Overall Evaluation Performance
The first diagram visualizes overall performance month by month according to the evaluation scorecard:
- The diagram uses the root element (“Performance Evaluation Template” as a data source).
- The options “Show annotations” and “Show trend” are activated.
- The option “Show subitems” is deactivated as we are interested in seeing overall performance.
- A custom title was defined for the diagram to better capture its function.
Evaluation Scorecard.Performance of Evaluation Subjects
The diagram on the right is similar, but in this case, we activated the Show subitems option, so the diagram features the performance of specific evaluation subjects (Teams) by months.
Current State of Evaluation
Below, we added a Series diagram that shows the current performance by evaluation subjects (Teams) and evaluation factors.
Development Plans
The Initiatives diagram on the right lists all the relevant data for evaluation captured in the form of Initiatives, Risks, Success Factors, or Expected Outcomes.
Diagrams for Specific Factors
The diagrams below feature the performance of specific factors and evaluation subjects.
Alignment: Connect Outputs of Evaluation with Other Scorecards
With the evaluation scorecard, we assessed the current state of the subject of evaluation based on the established criteria/factors. To enhance decision-making and strategy execution in general, it is crucial to integrate the evaluation results into both strategy and functional scorecards.
For example, we can create an evaluation scorecard to validate that all third parties (subjects of evaluation) comply with certain compliance requirements (evaluation factors). The overall score of such a scorecard can be used as input for the “Overall Partner Compliance Score” indicator on the Compliance scorecard.
To align two scorecards:
- Select the source item and copy it to the clipboard.
- Switch to the destination scorecard; select the parent item and paste from the clipboard.
The software will offer several options to align two scorecards.
Conclusions
We discussed how to automate performance evaluations in BSC Designer. The process can be presented in these key steps:
- Create the evaluation scorecard with subjects of evaluation and evaluation factors.
- Capture quantitative (scores) and qualitative (feedback, improvement plans) data over time.
- Visualize evaluations on the dashboard.
- Use the outputs of evaluation for other scorecards.
- Follow our
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