Performance Measurement: Linking Balanced Scorecard to Business Intelligence

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Most tool can be evaluated for a few months at no cost. A number of ERP vendors, recognizing the balanced scorecard popularity, created their own balanced scorecard tools.

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These firms want their customers to use the ERP directly without another piece of software between the customer and the ERP. Although, there are some free tools, most are simply PowerPoint or Excel templates that allow data collected elsewhere to be displayed as a balanced scorecard or a strategy map. Unfortunately, the free tools rarely do much else.

However, they provide the individuals accountable with the necessary information to make informed decisions and take appropriate actions.

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What is the balanced scorecard? A framework for organizational success

Latest Insider. Check out the latest Insider stories here. More from the IDG Network. Balancing Scorecards With Reality. Balanced Scorecard Definition and Solutions. What is the balanced scorecard?

Balanced scorecard perspectives The balanced scorecard relies on four perspectives to monitor enterprise health. Specifically: Financial: The financial health of any enterprise is critical to long-term survival.

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Typical measures used by for-profit companies include revenue growth, operating income, return on equity, and other measures of interest to owners. Specific metrics vary by industry but most focus on time, quality, and service levels. Metrics common to most industries include customer satisfaction and enterprise responsiveness.

Other metrics are more industry-specific. Cellular telephone companies track customer growth and churn. Manufacturing companies track on-time delivery, and percent of orders delivered as ordered i. Consumer products companies monitor percent of repeat customers and percent of sales from products introduced in the past five years. Internal process: This perspective helps the enterprise understand the efficiency and effectiveness of internal business processes and supporting technologies. Many companies focus on the time to take an order, on-board a new hire, or complete other internal processes.

Manufacturing companies often track setup time, cycle time, first pass yield, and the time to introduce a new product. Companies attempting to streamline internal processes track the percent of paperless processes and the number of self-service processes. This perspective considers the degree to which the enterprise can evolve and improve the way it supports its goals.

Organization capacity monitors people, culture, organization, and the infrastructure to support them.

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Benefits of the balanced scorecard The balanced scorecard helps enterprises in several ways. Success with the balanced scorecard Implementing the balanced scorecard is a great deal of work with some implementations being abandoned before completion. They all have: Robust operational systems The balanced scorecard needs a great deal of high-quality data from the ERP and other foundational systems.

Culture of measurement Enterprises that are grounded in one of the STEM disciplines normally make decisions based on data and analysis.

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Executive support In the absence of strong executive support, the necessary resources to collect and monitor the required information are unlikely to be available. A seminal article on how to implement the balanced scorecard.

Balanced Scorecard Bibliography

Sequel to A Balancing Act -- an article. Corporate Headquarters Regency Pkwy. Suite Cary, NC Contact Electronically. Saturday , September 28 , Get the Book. Some users, including executives, really wanted a tabular, scorecard style of KPIs. With the latest version, 2.

While we developed it primarily for our own team and purpose, it has also been made available for free to the public. Power KPI Matrix comes in handy as it serves as a balanced scorecard which perfectly captures our entire list of metrics in one single visual and enables drilling further into trendlines without moving away from the visual — a very unique feature.

Below is a screenshot of the drilldown feature mentioned by Richa:. Beyond balanced scorecards, Kaplan and Norton have also focused on strategy map visuals, which are akin to flowcharts that tie together strategy with measurement. For those interested, the Visio visual preview custom visual offers a great option for lighting up strategy maps based on data.

The custom visuals shown here also work well within the mobile Power BI applications. Using Android or iOS mobile devices, end users are easily able to look up the latest information and interact with the data, at any time, from anywhere. Kaplan, Robert and Norton, David. Keeping Score , The Drucker Institute. Management Top , WSJ. Visio visual preview , AppSource.