Harnessing the forces of an enterprise, applying them effectively and directing activities strategically are key roles of executive leadership. The business scorecard is specifically suited for aligning people, assets and ideas to strategic and operational objectives.
Key performance indicators (KPI) that alert managers to problems and opportunities are what make business scorecards effective. Reported outcomes are important, but scorecards predict outcomes while there is still time to change them. It is not the format that makes a scorecard; it is the potential effect on current operations.
Business scorecards can be aimed at operational effectiveness or strategic objectives depending on the priority of their executive owner.