The Contract Scorecard

by Sara Cullen

Smart organizations know that the success of an outsourcing deal is dependent on many factors. They also know that outsourcing is not an end goal in itself, but rather is a way to achieve any number of strategic objectives. Accordingly, organizations are now recognizing the value of applying a balanced scorecard approach to outsourcing arrangements, called the contract scorecard. Derived from the concepts in the balanced scorecard developed by Robert Kaplan and David Norton, the contract scorecard is a method used to design and evaluate the success of outsourcing arrangements in a holistic and balanced manner, thus encouraging organizations to think more strategically about their outsourcing deals.

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The Contract Scorecard1 December 2005