Economy of Communion in EA Part VII: The Rainbow Scorecard

The rainbow score is a management tool based on balance score card approach. The balance scorecard is a strategic performance management tool – a semi-standard structured report, supported by proven design methods and automation tools that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions. The balanced scorecard by definition is not a complex thing – typically no more than about 20 measures spread across a mix of financial and non-financial topics, and easily reported manually. The following figure summarizes the balanced scorecard method

 Rainbow score goes beyond the financial dimension and those of the balanced scorecard by taking into account other strategic aspects of the company and measuring the outcome of each. The company and its basic dimension are viewed as a rainbow, i.e. a unique and rich phenomenon. Through the seven color frame; we describe seven patterns of rainbow scorecard business.

Red:  It explains the economic and financial dimension that indicates a company’s health and is the combined product of commitment, professional competence and the skills of the entrepreneur and employees.

Orange: the second aspect orange is relational capital. Here we highlight a basic dimension for the company-the customer and supplier network which could also be considered in three ways

Direct relational capital: basically the need in trade exchange.

Indirect relational capital: basically the public solidarity actions.

Relational goods: basically refers to the contents of human relationships, independent from any immediate financial benefit such as in friendship between colleagues.

Yellow: refers to the defined set of principles which guide the company’s activities. The key issues including:

Defines distinctive strategic and operative elements of corporate culture.

Attention to substantial transparency and legality

Training people involved in company life

Green: it represents elements referring to the social and environmental quality.  It examines what contributes to well being in the company and in some ways represents both welfare and well being health index. Its purpose is to create a responsible and less stressful work place.

Blue: it defines the human capital and working community the ultimate purpose is to harmonize them.

These are:

Infrastructure and organizational process

The corporate image

Work place, context settings and facilities

Working community composition and the way it grows

Indigo: this refers to the intellectual capital and the innovation process to develop, and improve and continuously upgrade the basic asset. Its linked to talent exploitation and spontaneous structured training activities.

Violet: the last dimension refers to both external and internal communication which means communication is more than just exchange of information. It means speaking the same business language.

Conclusion

When a company decides to run Rainbow score, it needs to:

Define business strategy into the seven aspect frame work

Define objectives for each color and stake holder and select those to be prioritized

Chose actions to achieve objectives and guarantee periodic time.

Paul Kisolo: Executive Consultant KARDS

Millicent Agutu: Administrator KARDS

Francis Owino: Administrator REG

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