One of the ways I assess customers' satisfaction with the Doe & Ingalls experience is by reviewing their scorecards. A lot of scorecards have come across my desk over the years and they come in a variety of formats. Some are very short, some long. Some come as letters and others as spreadsheets. Whatever the form, the most effective scorecards I see have three things in common: there are clear goals, the scorecard criteria themselves are clear and they are part of a larger process.

Clear goals

For any project, starting with goals creates a strong framework for success. Clear goals help you determine what should be measured and prioritize which metrics are most important. Asking broader questions like these can help you determine what content should be on the scorecard:

• What is my organization trying to accomplish?
• How does my department fit into the overall picture and what are our key objectives?
• How does managing supplier relationships fit into this scope?
• What am I hoping to achieve with the scorecard?
• What actions do I want the supplier to take based on the data?
• What actions am I willing to take based on the scorecard results?

Clear statements

Second, the scorecard criteria themselves should be well-defined and clear. Many companies have different meanings associated with the same statement. On-time delivery is a good example. When I look at scorecards, I see a wide variation in the interpretation of on-time: 0 days early, 0 days late; 2 days early to 2 days late; 5 days early, 0 days late; 3 days early, 0 days late; etc. While it is challenging to deal with different standards, suppliers can do so as long as they know what customers are expecting. For criteria with countable data, such as on-time delivery and quality incidents, defining the acceptable range of performance on the scorecard makes the scorecard more usable.

What about important, but more qualitative measures? Scorecards can also successfully incorporate qualitative statements and use a simple rating system to evaluate them. Think of a 3 or 5 point rating scale such as an Always, Frequently, Sometimes, Rarely, Never or an Excellent, Very Good, Good, Neutral, Poor. Service statements are often measured in this way. Here are a few examples of clear, actionable statements that can be acted upon by your supplier:

• Supplier meets expectations for resolving quality issues quickly
• Supplier actively participates in continuous improvement with the customer
• Supplier proactively communicates about orders and day-to-day supply chain issues

A means, not an end

Finally, the most effective scorecards are used as a tool to support a bigger conversation about continuous improvement. Sharing the scorecard and then discussing it in either a formal quarterly review or a special meeting is one way to engage your supplier in the process. When Doe & Ingalls receives scorecards, we dive into the data, investigating differences from our own information and examining our score for each criterion. Dialogue on performance, particularly on qualitative metrics where your supplier may need guidance on how to improve, sets the stage for meaningful improvement to the customer-supplier partnership.

What else do you think goes into creating a strong scorecard? If you’d like to talk about your scorecard with us, please reach out to your account manager or me. I can be reached at bmcintyre AT doeingalls DOT com.