Scorecards are great BUT....
How Does Your Balanced Scorecard solution cope with
highly variable data
non numeric data or
correlate one measure with
with lead and lag
Here is the
answer...Use the POWERFUL Tableau
Scorecard" (introduced by Kaplan and Norton)
links four perspectives of a company performance - financial, customer, internal processes and
Using the Balanced
Scorecard, businesses create a holistic view of the whole of their business, developing
specific measures or indicators which describe and communicate their
Balanced Scorecard was developed as an improved performance measurement system. Each perspective feeds the other. Sometimes it can take several years
for the innovations introduced to show their effect in the financial
Firstly you set your
objectives for your company derived from your strategies and then work back down the Balanced
Scorecard cascade working out what you must do and hoe to measure progress in each of the
Balanced Scorecard Model
Here is a simplified model
with some possible performance measures.
The trouble is
that financial measures happen after the event. They are lag measures.
What you need to do is concentrate on the lead measures. Mostly these lead measures are non
For example, the amount of training you do can be measured in days per staff
person. The benefit of this training might not be seen for many months - therefore this measure
is a lead measure.
measures or indicators can make tracking
performance difficult e.g.
highly variable from
month to month or are seasonal - it is hard to
determine if a real change has occurred or not.
it is difficult to
match the lead and lag effects of measures - the cause and
it is difficult to
correlate measures - see the cause and
actions taken or
events happening e.g. important training, are
hard to measure.
it can take many years
to see the effects of your improvement actions or strategies.
Now using Tableau software you
can overcome these limitations using moving averages to remove month to month variations. Using
annotations you can highlight lead and lag times to show cause and effect.
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