Balanced Scorecard Designer

Intro

Business organization is a complex structure with its own hierarchy, strategy and plan. It is certain that the linking process between management and specialists is required to be performed perfectly. Business intelligence concept aims to optimize process of company’s management so any BI corporation software should perform the linking process between its users. BSC Designer allows the cascading via one of it tools called “Import Indicator”. A common description of this instrument could be found in the article “How to manage data sources with BSC Designer”.

Basic project

Let’s see how the linking process could be executed in a company. As an example a simple project with few categories and indicators will be needed. Those who had read all ours “how to…” articles may take the project created (and filled with data) there as an educational supply element. But also this project could be created manually.

Basic project’s tree

What is our example company?

Our company’s structure consists of Chief Executive Officer (CEO), two Vice-Presidents (VPs) and two Specialists (SCs). Every company’s member has their own BSC project as well as BSC Designer licensed copy installed on their computer. In order cascading to work properly users’ projects will be filled with info and set starting with the lowest level (SCs) and finishing with the highest level (CEO).

Specialists

Each of two specialists in our company will be responsible for one indicator. Let it be “Number of products manufactured” KPI in category of “Internal process perspective” for the first specialist (SC1) and “Cash flow” KPI in category called “Financial perspective” for the second specialist (SC2). It is no need for the specialists to have other indicators and categories in their projects so everything they are not responsible for will be deleted.

SC1’s BSC project

In order to build the project for SC1 open (“File” -> “Open” or type Ctrl + “O” buttons) the basic BSC project and delete everything except “Internal process perspective” category with the only indicator in it called “Number of products manufactured”. That will be the project for SC1. Save it as “SC1.bsc” file by clicking on “File” -> “Save as”.

SC1’s proect’s tree

SC2’s BSC project

For the second specialist their project will be created using the same logic. After opening the basic BSC project find “Cash flow” performance indicator located in “Financial perspective” category. Now delete every category and indicator except those that noticed before. Remember that SC2 does not hare its responsibilities with SC1 so “Number of products manufactured” KPI should be deleted as well. Save the file as “SC2.bsc”.

SC2’s proect’s tree

Vice-Presidents

Vice-presidents being managers have not only key performance indicators they are responsible for, but also have to perform monitoring process. Our example company has two VPs. Let each of them be responsible for several indicators and monitor one of the specialists. To make it simple VP1 will monitor SC1 and VP2 will monitor SC2. Also VP1 will be responsible for “Complains number” KPI in “Customer perspective” category and VP2 will be responsible for “Illness rate” KPI in “Innovation and learning perspective” category.

VP1’s BSC project

The logic here is a bit more sophisticated than in previous projects. As it was done before the basic project needs to be opened and all the elements except “Complains number” KPI in “Customer perspective” category should be deleted. BUT! Since VP1 is monitoring SC1, the SC1’s indicator should be imported to VP1 project. Surely the indicator is coming along with category it is related to. Now import “Number of products manufactured” KPI into “Internal process perspective” category. After that all the changes had been applied to SC1.bsc will be shown in manager’s project. Save the project’s file as “VP1.bsc”.

VP1’s proect’s tree

VP2’s BSC project

The second Vice-President is monitoring SC2’s project and has his own responsibility named “Illness rate”. That is why the base project should be configured this way:

• “Internal process perspective” and “Customer perspective” categories should be deleted;
• “Innovation and learning perspective” category with “Illness rate” KPI in it should be left;
• Indicator called “Cash flow” in “Financial perspective” category should be replaced by the same indicator imported from “SC2.bsc” file;
• “File” – “Save as”. Input “VP2.bsc“.

VP2’s proect’s tree

CEO

At least CEO as a head of executive managers needs to monitor all the values and to see the overall statistics and performance values for the whole company’s project. But sometimes CEO needs to perform some tasks. Let it be “Return on investment” calculation indicator in “Financial perspective” category that CEO is directly responsible for.

CEO’s BSC project

In order to create CEO’s BSC project open basic file and perform the following actions:

• In “Financial perspective” category leave “Return on investment” indicator as it actually is;
• Replace all other KPIs by the same name indicators from VP1.bsc and VP2.bsc files;
• “File” – “Save as”. Input “CEO.bsc“.

CEO’s proect’s tree

Conclusion

That is how projects’ linking works in a company with BSC Designer installed. When SCs are updating their indicators this information comes to upper level (VPs) and VPs corrections and own indicators values are coming into CEOs project to be viewed by the head of the company.

Our example is very simple but it could be a good educational supply element helping our clients to understand and perform the logic of balanced scorecard project’s linking within the organization.

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Date Sources

An important feature to be described is data sources management. It is common for a company to have several documents and databases for every corporate strategy direction. BSC Designer software product aims to be the main instrument for business management so it allows several ways of information from different sources to be imported. This article will present a few common ways of data import but it is also possible to add some more features for some specific request from our current and potentional users. We would like to get feedback and answer all of your questions. You could contact us using this page.

This how-to article is related to:

• “Fill with random values” function;
• “Import Indicator” feature.

Also there is one more tool aimed to manage data sources with BSC Designer called “SQL indicator”. But it will be described in special article that is coming soon.

“Fill with random values” function

While the process of study is being processed “Fill with random values” function could be helpful. It fills the project with random values including time points and performance values. The project filled with those values could be a good educational supply element to study how to work with BSC Designer. Browsing functions and features of such powerful software it is much easier to perform this simple function instead of filling the project with some values manually.
In order to perform “Fill with random values” function click on “Tools” button of the top menu and select “Fill with random values” sign. Congratulation! We have just filled our project with values!

“Fill with random values” function

“Import Indicator” feature

One of the best instruments to manage data is “Import Indicator” feature. This function is used to import indicators from some other BSC Designer’s project. With help of this function also linking projects between each other could be performed. It is an easy to use function that opens other project’s tree and allows selecting the proper indicator to be imported. Since both files are *.bsc there will be no problem with syntax of data.

In order to import indicator from other BSC Designer project click on “Strategy Tree” button on the top menu and select “Import Indicator” sign. New dialog window will appear with 3 tabs in it: “From File”, “HTTP”, “FTP”. Now select *.bsc file’s location by clicking on “Select” button using the tab you need. After that look at “Step 2” field and click on “Select” button there in order to choose the proper indicator to be imported. After the indicator is selected press “OK” button to finish the process of importing. Here it is! New indicator is added and it is written with italics font.

Imorting indicator dialog window

Selecting indicator to be imported

Projects linking process is performed automatically. When exporting balance scorecard project file is changed by its owner, the importing project will be updated as well. Surely the only imported indicators will be changed. The process of projects’ linking in company will be fully described in future articles using examples and screenshots.

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BSC Designer Online is a web-based online KPI system that provides business professionals with balanced scorecard concept support from with any web-browser.

The overview shows how to manage with KPIs (Key Performance Indicators), metrics, BSC. BSC Designer Online is available as a SaaS providing customers with opportunity. Access your dashboards online from any point in the Wold.

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Intro

This is the second part of the article “How to visualize data with BSC Designer: diagrams and charts”. The beginning might be found here.

The following part will describe three charts and diagrams:

• Pie Chart
• Absolute weights chart
• Diamond diagram

Pie Chart

As it is known pie chart is a circular graph divided into sectors, illustrating percents. In BSC Designer pie chart performs visualization of such information as current performance values. This simple circle graph shows the performing percentage for the whole project as well as for categories. Viewing this chart it becomes right clear what exactly component makes business project stronger and weaker. Such factor as weight value does not have influence on pie chart. The only message of pie diagram is to show the current performance. In order pie chart to be shown select “Pie” tab of diagrams and charts dialog field.

Pie diagram for the whole project

Absolute weights chart

Every category and indicator in the project’s tree has its own weight. While new data is coming into the BSC project (like indicator values updating) it calculates performance values automatically but sometimes it could be helpful to look at the elements weights visualized in graph. Absolute weight chart shows categories and indicators weight values according to the project. For the whole project this graph will show exact categories values were typed by the user but for the category indicators values will be shown according to their influence on the project. For example the indicator with weight value of “5” located in the category with value of “8” will have an absolute weight value of [ ( 5 x 8 ) / 10 ] which equals “4”. This instrument could help managers to analyze business strategy, to understand and sometimes change company’s priorities.

Absolute weight chart for one of the categories

Diamond diagram

One of the most interesting diagram is a Diamond one. Oppositely to other charts and diagrams it works only with elements that contain at least 3 sub elements inside. Certainly it could not be shown for any indicator. Diamond diagram in BSC Designer is based on radar chart method. A radar chart is a graphical method of displaying multivariate data in the form of a two-dimensional chart of three or more quantitative variables represented on axes starting from the same point.

Diamond diagram presents current performance values comparing to minimal and maximal values. In a way it shows a model that looks even like 3D. This diagram aims to make it easier for the user to manage the most important measure in Balanced Scorecard concept – performance.

Diamond diagram for one of the categories

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Intro

Data visualization is an important feature aimed to help managers monitoring company’s project in BSC concept. That is why not only special icons are presented but also more complex data visualization ways are allowed with BSC Designer software product – diagrams and charts. Program offers wide range of chart’s instruments that might be set by the user according to their needs and convenience.

Diagrams and charts dialog field is located in down right corner of the program’s interface right under the calendar. By default it shows the only one small chart’s type called “Time” Chart. Let’s turn on the other types so it could be shown as well. In order to perform this run BSC Designer and click on “Chart Options” button right under chats dialog field. After a new dialog window appears mark every diagram type. Now click “OK” button to save changes. That is it! Now all the diagram types are turned on and might be selected to be shown. But what all those diagrams mean? Let’s find it out.

Turning all the types of charts on

Time Chart

Time chart is the only diagram presented by default in BSC Designer. Surely it could be seen as visualization for KPIs’ values dynamics as well as categories’ performance value and the whole project performance dynamics in time. The term “time” here means some dates when indicators changed its values (read more in the article “How to manage time points with BSC Designer”). Certainly categories and the whole project had automatically updated as well. That is why “Time” chart is able to visualize any item’s performance dynamics: project’s graph, categories’ graphs and indicators’ graphs.

This chart is a simple but very important instrument. It could help manager to monitor company’s performance, to look for any weaknesses to be fixed and strong sides to become a good example, to prepare business forecasts and sometimes even business plan and strategy.

In order time chart to be shown run BSC Designer program and select “Time” tab of diagrams and charts dialog field. Those simple graph shows time dynamics of any tree element currently selected. For example select one of the indicators, then one of the categories and at last Balanced Scorecard sign which means the whole project’s value. Every element will have its own graph. Measure unit for vertical line is score or percentage of en element while horizontal line shows number of changes had been made to the element. That is how that graph is actually built.

Time chart for the whole project

Optimization Graph

Optimization graph does not show dynamics oppositely to the “Time Chart”. This diagram aims to visualize the optimization direction (read more in the article “How to manage indicators and performance values with BSC Designer”) of KPIs also pointing the current value with its percentage for the indicator. Surely optimization graph does not work with such tree elements as categories and the project – just indicators’ data could be visualized with its help.

Since there are two optimization directions allowed in BSC Designer optimization graph could be of two different kinds: “minimizing” graph (a line from down right corner to top left corner) and “maximizing” graph (a line from top right corner to down left corner). Horizontal line shows indicator’s values starting with minimal number and finishing with maximal number. Vertical line shows an interval from “0” to “1” meaning an interval of “0%” – “100%” performance value of the indicator with percentage as measure unit. It is important that the percentage value showed on the vertical line is calculated automatically be the program and always mean “100%” as the best value for the project’s performance no matter what optimization direction is selected. In order optimization graph to be shown select Optimization tab of diagrams and charts dialog field and then select one of the indicators in project’s tree.

“Minimizing” optimization graph

“Maximizing” optimization graph

Click here to read the second part of this article

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Event:Balanced Scorecard Seminar
Date: Sunday January 10, 2010, 09:30AM – : Thursday January 14, 2010, 03:00PM
Where: Cairo, EG
Price:
EURO 2500 without Accommodation
EURO 3375 with Accommodation(bed only)

Who should attend: All Managerial and Executive levels.

Topics:

• What is BSC?
• How to prepare the scene to implement an effective BSC system?
• How BSC will lead to the organization success?
• Why BSC should be Quantifiable? And how?
• Good BSC Vs Bad
• How to select the right BSC?
• What do I do with BSC?

More information: SETTEC Website

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Event:Balanced Scorecard 2009
Date: Monday, December 7, 2009 8:30 AM – Wednesday, December 9, 2009 4:00 PM Eastern Time Zone
Where: Arlington, Virginia
Price: $1,799.00,

Who should attendManagers in BFSI sector with titles ranging from Chairman to General Manager to Vice President, Strategy and Change Consultants, Strategy Advisories, Managers in KPOs, Academics, HR Executives
Topics:
• Streamline Strategic Planning with Strategy Mapping
• Develop strategic initiatives to ensure smooth Balanced Scorecard execution
• Communicate Balanced Scorecard Performance Effectively
• Monitor progress to accurately report performance and improve decision making capabilities
• Match the Appropriate Performance Measures to Each Employee
• Identify measurable performance indicators based on job function for improved performance
• Identify the Next Steps after Balanced Scorecard Implementation
• Learn how to evaluate and modify Balanced Scorecard initiatives after the initial implementation

More information: ASMI Website

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Event: Kaplan & Norton Balanced Scorecard Certification Boot Camp March
Date: March 15-19
Where: Ottawa, ON Canada

Price: $5995

Who should attend:Balanced Scorecard Directors, Managers and Co-ordinators, Executive Directors, Managing Directors, Vice Presidents, Chief Executive Officers, General Managers, Quality Managers, Financial Directors and Managers, HR Directors and Managers, Operations Managers, Corporate Planners, Marketing Managers, Strategic Managers, Strategic Planners, Performance Analysts

Topics:

• The Kaplan and Norton Strategy System
• Balanced Scorecards and Dashboards
• Strategy Development
• Recap of Stages
• Test & Adapt
• Executive Leadership
• Strategy Translation
• Organizational Alignment
• Human Capital Alignment
• Linking Strategy & Operations

More information: Palladium Website

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Event: Kaplan & Norton Balanced Scorecard Certification Boot Camp February
Date: February 8-12
Where: San Diego, CA

Price: $5995

Who should attend:Balanced Scorecard Directors, Managers and Co-ordinators, Executive Directors, Managing Directors, Vice Presidents, Chief Executive Officers, General Managers, Quality Managers, Financial Directors and Managers, HR Directors and Managers, Operations Managers, Corporate Planners, Marketing Managers, Strategic Managers, Strategic Planners, Performance Analysts

Topics:

• The Kaplan and Norton Strategy System
• Balanced Scorecards and Dashboards
• Strategy Development
• Strategy Translation
• Organizational Alignment
• Human Capital Alignment
• Linking Strategy & Operations
• Recap of Stages
• Test & Adapt
• Executive Leadership

More information: Palladium Website

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Relative weights chart

Relative weights chart in BSC Designer shows relative weight of each indicator in selected category.

Indicators in this chart are sorted by decreasing of relative weight.

From this chart user can learn what indicator is the most influential in this category, e.g. to what indication attention should be payed to.

• Read more about how to visualize data with BSC Designer

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