Keeping Score
Performance scorecards and dashboards have the potential to make actionable intelligence available throughout the enterprise -- at both executive and operational levels. Rather than lining up for reports produced by IT analysts, performanace management solutions of this kind make the insights and analysis available on-demand, according to Wayne Eckerson, director of Research and Services for the Data Warehousing Institute and the author of Performance Dashboards: Measuring, Monitoring, and Managing Your Business.
"Dashboards and scorecards can help transform underperforming organizations into high fliers," he writes in Intelligent Enterprise. "They help you focus on the key objectives and provide timely alerts so you can fix problems or exploit opportunities before it's too late. As the name suggests, dashboards provide controls that executives can use to change the direction of an organization and get everyone headed in the same direction. "
Eckerson sees multiple layers in a performance management system:
Monitoring layer -- uses dashboards, scorecards or alerts to notify users of material changes in the performance of processes and activities.
Analysis layer -- lets users drill down into exception conditions and explore a problem's root cause using multidimensional analysis.
Reporting layer -- provides users with detailed operational data (such as a list of defective parts and the customers who received them) so they can take prompt action.
Planning layer -- lets managers employ the output of their analyses to create plans, models and scenarios, which are then fed back into the monitoring layer and encoded as targets and thresholds.
Eckerson warns us that there are "pseudo performance dashboards" on the market today. The key weaknesses to watch out for: too flat (inadequate data or analytic capabilities); too manual (requiring too much manual data collection and massaging); and too isolated (misaligned with the strategic objectives of the enterprise).
As he concludes, "Performance dashboards and scorecards are part of a layered set of analytical applications running on a common set of BI services; they let users measure, monitor and manage the processes and activities for which they are accountable. Don't forget that the system is dependent on a robust data management architecture that delivers actionable information to users on demand. Dashboards and scorecards should translate the organization's strategy into objectives, metrics, initiatives and tasks customized to each group and individual in the organization."
Read the whole piece here.