Create a Balanced Scorecard

Balanced Scorecards are great BUT....


How Does Your Balanced Scorecard solution cope with

  • highly variable data 

  • seasonal data 

  • non numeric data or events 

  • correlate one measure with another 

  • with lead and lag measures 

Here is the answer...Use the POWERFUL Tableau Software


The "Balanced Scorecard" (introduced by Kaplan and Norton) links four perspectives of a company performance - financial, customer, internal processes and learning/innovation.


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 strategies.


The 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 perspective.


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 perspectives.


Balanced Scorecard Model


Here is a simplified model with some possible performance measures.


Balanced Scorecard Model



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 financial.


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.


Problems with 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 effect. 

  • it is difficult to correlate measures - see the cause and effect. 

  • 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.



 Balanced Scorecard Example

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