Standard dashboard for selected indicators

• Two dashboard types are available – standard and custom. Standard dashboard includes all basic diagrams according to chosen indicator or category and chosen dates on the calendar. Custom dashboard gives more freedom to users. Firstly, it is possible to choose among type of data to be displayed (chart, kpi link, business object link, strategy map link). Secondly, users choose indicators and categories. Thus, the principle difference between standard and custom dashboards is that standard dashboard incorporates the same diagrams with the possibility to switch indicators that feed data, while custom dashboard may contain the exact info in various indicators BSC Designer users might need.

Custom dashboard

• It is possible to close unnecessary diagrams and blocks, change position of diagrams, modify their size and shape etc. In other words, dashboard in fully customizable as per users needs or personal preferences. For example, when there are too many diagrams, users may change their sizes or use overlapping. BSC Designer may also help users arrange diagrams. Currently there are 4 options available: arrange, cascade, horizontal and vertical split.
• For performance and progress charts it is possible to build diagrams for several indicators. There are two ways to select several indicators. The first one is to press and hold Ctrl when selecting indicators. Also, users may add more indicators by pressing + icon on the indicator diagram in the dashboard. As a result, the graphs will have several muti colored curves representing progress of performance of corresponding indicators (below the graphs there will be explanations on which color belongs to which KPI).

Several kpis in one graph

• Business goals and strategy map links are available to complement information on the dashboard.
• It is possible to import dashboard settings from another bsc project which might be useful in teamwork and cascading Balanced Scorecard.

Overlapping in customized dashboard

Text measure units

First off, it is possible to create personalized measure units, in case default units do not meet users’ requirements (such as score, percent, $, risk etc). From time to time it might be necessary to create own measure units, for example complex ratios like $ per m2 or opinion values. Thus, BSC Designer users may easily create new units within several mouse clicks (measure entry-new). Once a new measure unit is created and given name, it is time to create measure values. As already said above, number may not always meet requirements of performance evaluation in certain cases. Let’s review a few usage cases.

Adjust measure settings

1. Often there’s nothing better than answer to Yes/No question. In fact, such questions may vary depending on company goals, structure, scorecard and a number of other factors. “Is organization climate favorable for employees” or “Did planned revenues overpass real figures” are mere examples. In such a case it is recommended to create two new values 0 and 1, with the names “No” and “Yes” accordingly.
2. Evaluation of expert opinion. This approach is similar to grading system in schools. In other words, an expert evaluates KPIs (processes, performance results, efficiency etc) as Poor, Satisfactory, Good, Very Good, Excellent etc. To apply this evaluation method, it is necessary to create the required amount of measure values, for instance from 0 to 5, and assign names accordingly. As a result, KPIs will get text evaluations as per user’s requirements and grading system.
3.  Compliance with rules, guidelines, principles. Sometimes, managers might need to evaluate compliance of employees with company/project guidelines or certain rules. Thus, it is possible to a new measure unit and several measure values, for example Measure Unit – Compliance with guidelines, measure values 3 – Full compliance, 2 – Slight deviation from norms, 1 – Serious deviations from norms, 0 – Incompliance. In fact, this evaluation system can be used for a variety of performance evaluation purposes.

As in case with numerical evaluation, users may set max and min value, baseline, target and weight to optimize evaluation of KPIs to requirements of company BSC.

Available grouping type options

It is important to be able to analyze changes in indicators values over a certain period of time to evaluate performance of company or business unit. BSC Designer offers such an opportunity in form of various graphs/charts created based on indicators values and time points. The latest release of BSC Designer went further – from now on it is possible to choose among different grouping type options. If previous versions of software indicated average values for indicators during a certain time period, now one can choose among:

• Average (average of all values for a given time period)

• First value (the first KPI value for the chosen period. For instance, if Sept 11 – Sept 18 is chosen, value for Sept 11 will be shown)

• Last value (the last KPI value for the chosen period. For instance, if Sept 11 – Sept 18 is chosen, value for Sept 18 will be shown)

• Min value (minimal value for a given time period)

• Max value (maximum value for a given time period)

• Sum of changed (sum of values that where amended by users, but not inherited)

Grouping types options are available in right mouse click menu in the chart panel.

Change calendar view for required frequency of indicators update

New version of BSC Designer PRO offers users possibility to change format of data entry in the calendar. For instance, if all or the majority of indicators need to be updated on a weekly basis, it is more convenient to use calendar in the weekly mode, i.e. dates will not be displayed while users will see enumerated weekly periods with indication of starting and end dates for each week. It does not only simplify the calendar view since unnecessary dates will not be displayed but also facilitates data entry for timely updates of indicators values.

Calendar view can be changed by right mouse click – View: days, weeks, months, quarters, years. Since frequency for updates of indicators values may vary over time, it is possible to switch between various calendar views as per company goals and requirements of BSC.

New functions in BSC Designer PRO to disable and enable indicators

To ignore indicator in the scorecard, it is necessary to click on the chosen indicator with a right mouse button and choose Ignored in formulas. The indicator will be disabled from the selected date. As known, BSC Designer uses inheritance principle, i.e. all values are inherited until changed by users. Thus, to enable indicator and let the software to use its value in calculation of category performance, it is necessary to choose the desired date on the calendar, right click the indicator and choose Enable item for all dates. When ignore function is applied the indicator font becomes bold. Once ignore function is removed the font restores to normal. When disabled indicators or groups of indicators are delegates all disabling settings remain in force in the delegated bsc file.

Indicators formulas

BSC Designer offers an opportunity to create custom made formulas for KPIs

The latest version of BSC Designer has a new helpful feature that makes it possible to obtain customized values for indicators, unlike the previous version where values were either typed in by hand or obtained as values from parent scorecards (in cascading scorecards). Now it is possible to calculate indicator values as based on values of other indicators. For example, Indicator A value may be calculated as sum of Indicator B and Indicator C values. In fact, available operations are not limited by sum or subtraction. BSC Designer formulas support all basic mathematical operations. BSC Designer users, however, need to pay attention to syntax of formulas and bead in mind several rules, namely:

• Put special symbols before and after indicator’s name, for example, [New Indicator] (no spaces)
• Use brackets if you want to use complex formulas, for example, ([New Indicator1] + [New Indicator2]) * 2
• Test formulas before using them. There is an opportunity to test formulas for each indicator. Moreover, if there is an error, the software will identify it, thus helping in locating mistakes.
• Be patient since complex formulas require some time to be processes, so huge scorecards that get data from other scorecards or sql databases may require some time to open or update values.
• Avoid [ ] symbols in the indicators’ names since the software will view them as part of formulas.

Creating own KPI formulas is easy

Categories/perspectives formulas

Choose suitable way to calculate category performance

Sometimes, it is necessary to calculate performance of a category consisting of several indicators in a special way. For example, some users do not want weights to affect final category performance or need to use maximum value of all indicators in the perspective. The latest version of BSC Designer lets users choose the way they want to calculate performance of various categories. There is a default option – weighted average which means average performance of all indicators taking into account their weights. However, users are free to choose from several options: average, weighted average, max, min, sum. Some of the formulas can be effective for various industries that require accumulative but not average data. The same concerns the entire Balanced Scorecard performance which can be calculated, for example, as sum of all 4 categories values.

As known, all projects can be saved as *bsc files, while evaluation results are summarized in reports. Very often it is necessary to access BSC information and share it with business partners, shareholders, top managers etc. For these purposes one can generate a HTML report and immediately publish at the selected FTP server. This feature is particularly popular with organizations when dozens of people work on BSC project. There is no need to send lots of unnecessary emails and clutter up email boxes. Since we at AKS-Labs do not currently offer Balanced Scorecard iPad application, there is still an opportunity to view the software reports on iPad. This device is said to be perfect to be used while on the road. Users can easily access FTP servers to which BSC reports are published. For example, a BSC team regularly publishes a report on company performance one a month. Shareholders and investors may be located in various parts of the world, many of them on the road. iPad is just an ideal device to check email, read news and perform a number of other tasks while not in the office. Thus, lots of people can view the report from their iPads.

Besides, AKS-Labs customers can use BSC Designer Online, a web based version of BSC Designed. No matter what PC or laptop you use it is possible to access your BSC projects online by entering login and password. Although the online version has somewhat limited features as compared with STD and PRO version it is still extremely powerful and helpful for managers in charge of BSC implementation.

Recently, many successful and world famous companies have started looking for strategy management officers. This is a relatively new position, and it mainly appeared due to progress of Balanced Scorecard ideas in the business world. As known, every successful company must have strategy otherwise it has very few chances of retaining competitive advantage in the market. Thus, in simple words, a strategy management officer assumes responsibility for development and implementation of company strategy. Sure thing, he or she is not the only employee in the company who takes charge of all strategic issues on the company. A strategy management officer is rather a coordinator. This person must have profound knowledge in strategic planning but at the same time he or she should be able to use theory in practice, i.e. have some hands-on experience in strategy development and implementation of strategy.

Strategy management officer is mainly responsible for:

• Development and activation of company Balanced Scorecard. It is impossible to list all responsibilities implied by BSC development in one article. It would be fair to say that a strategy management officer should control the entire process: from formation of a BSC team to choice of KPIs and implementation of BSC in the company.
• Alignment of strategies. As a rule, mostly huge companies and corporations make a decision to implement BSC. At that, some of them start implementation process on a department level, while others begin from top to bottom. Naturally, every department should have own strategy which must comply with company strategic goals. In other words, every decision in the company should contribute to implementation of strategic goals. Strategy management office analyzes strategic plans submitted by heads of departments and checks them in the context of compliance with company strategy, values, goals etc. Strategy maps are really helpful here as they display cause and effect ties which make strategy maps easy to read and comprehensive.
• Develop strategy. Well, this is perhaps the most important stage in strategy implementation since if a wrong strategy is chosen the company will drive at nowhere. Strategy development is quite complex process consisting of numerous stages. A strategy management officer has to organize the initial discussion and establish an effective feedback system in order to agree on a unified strategy. Every employee in the company should be given a chance to express his own vision.   Strategy development requires involvement of both top managers and heads of company departments. Strategy must be development taking into consideration company’s strengths and weaknesses, so SWAT analysis is recommended for any company that is on the verge of developing a new winning strategy. Both internal and external factors influence the process of strategy development, and strategy management officer needs to evaluate them in order to develop a well balanced and realistic strategy.
• Strategy review. It is very difficult to make long term forecasts in the modern business world. That is why strategy or strategies of a company sometimes need to be amended, depending on changes in internal and, what is more important, external environment. Appearance of a new rival, changes in market conjuncture or financial crisis are very serious reasons to amend company strategy and Balanced Scorecard. Strategy management officer is responsible for continuous monitoring of markets. He or she should also control situation inside the company, paying a special attention to efficiency of chosen business processes.
• Strategic communication. Implementation of Balanced Scorecard in any company implies the fact that an effective and efficient communication system must be established. What do we mean by strategic communication? Well, this is definitely not a friendly chat between two department chairmen. Strategic communication is provided by an effective feedback system. Analysis of obtained results is very important in BSC maintenance. The sooner evaluation results are analyzed by strategic management officer, the sooner relevant decisions will be made. A feedback system should work in two directions: from bottom to top and vice verse. All initiatives and suggestions from ordinary personnel must reach top management, as well as orders and resolution of top managers should come down to lower management level as soon as possible.
• Strategic initiative management. No strategy is static. As said above, it is constantly evolving. All strategic initiatives must be reviewed and evaluated. Strategic management officer is responsible for review and approval of strategic initiatives.
• Integration of company strategic priorities with its other function. A company strategy should be the reason for company existence. It should not be imposed from the top. Thus, every strategic goal should not conflict with everyday tasks and duties of ordinary personnel. The company develops in a variety of directions, each of them having own representation in a strategic map.

Balanced Scorecard requires sufficient monetary and human resources. The position of a strategy management office is very important, especially if the company made a decision to implement Balanced Scorecard. Use of special software is highly recommended in the work of strategy management officers. As they will have to operate huge volumes of information, BSC software automates processes of gathering information. Besides, it offers a strategy management officer a real picture of what is going on in the company.

AKS-LABS offers strategy management officers efficient BSC software  - BSC Designer. This is a very effective tool that automates the process of BSC creations, choice of key performance indicators, introduction of amendments to set of KPIs etc.

BSC Designer is a simple but very powerful tool used for strategic planning purposes. This software will help strategy management officer have his/her finger on the pulse. BSC implementation is full of pitfalls and hardships, and BSC Designer is a great helping tool that makes this process fast and efficient.

As already said abode, BSC implementation starts with strategy development. Once the strategy is developed a set of key performance indicators in the four (or maybe more) perspectives is developed. With BSC Designer this process takes a few minutes. This software makes it possible to create own indicators or choose templates (if such templates are supplied with the program). Very often, different companies pay different attention to key success factors, and thus some indicators are more important than the others. Strategy management managers can set own weighs for indicators, as well as categories of indicators. Whenever any changes are introduced total performance is automatically recalculated.

Users can switch between strategy tree and strategy map views. A strategy map is a perfect demonstration of what needs to be achieved to implement strategic goals. Strategy maps also show cause and effect ties between measures and KPIs. As strategy management officer is responsible for alignment of company strategy with department strategic goals, BSC Designer can help trace any discrepancies within seconds.

The program provides description to every KPI, so even if a strategy management officer forgets something he or she can always look up definition of a required KPI in the relevant pane. BSC Designer also offers various analytical tools for key performance indicators. It is possible to use different models for tracing changes in KPIs. This helps make necessary decisions before small problems evolve into catastrophes.

In fact, BSC Designer is a collection of helpful tools that make work of a strategy management officer easier and faster. Each category and set of KPIs for various business areas comes with a detailed description. Besides, if BSC Designer is used by several employees, explanation of new indicators and categories can be saved in the program, so that new users can analyze changes and new elements of BSC.

Strategy management officers are always interested in very precise and clear information. They love reports crammer with graphs and figures. Well, BSC Designer is perfect software in this context. Once you have a look at the report generated by BSC Designer, you will understand that this is the most complete report on company BSC that can be ever made. The report displays information on every indicator, category, dynamics of changes, analysis of each perspective etc. A strategy management officer should not waste hours for calculations and making of presentations. BSC Designer report offers the most complete information that can be further presented to company board and top-management.

Unlike similar software, BSC Designer does not require its users to have special IT or financial knowledge. The program is designed in such a way to that even a non IT-savvy person can successfully operate it. Purchase of BSC Designer is like ordering a special operating console which will display company’s progress (or regress) on the way to implementation of strategic goals.

Examples of companies experience in mission development

Development of company strategy and mission can be a daunting task.  Indeed, there is so much literature and studies related to strategic planning and mission development.  Each business guru has his own concepts and methods, so it is really difficult to choose the most effective technique.

Buy Mission Expert:

• Enterprise Edition for $99.95
• Consultants Edition for $249.95

Learn more about the difference between editions;

Mission Expert

The problem is that different experts put different meaning in the same words.  In such a way it is very difficult to get a clear picture of strategic vision and company mission.  That’s why, progressive business owners tend to use automated or semi automated software to develop mission statement.

Statistics show that companies with a well-documented mission statement perform better than those that do not have any.  Moreover, mission statement should be well understood for most of the personnel, and specialized software can greatly assist top managers in this issue.  At the same time, this is a great tool to be used to develop company mission and strategic vision.

One of the market leaders in this area is Mission Expert, which is reliable, efficient and easy to use software that makes the process of mission statement development easier and faster.  The program will be helpful both for small businesses and private entrepreneurs and large corporations.  The size of the business does not really matter.  Everyone needs a mission.

Mission Expert will guide you through the process of mission development.  Even if you have little experience and knowledge and strategy and mission development the program will be still easy to use and you are sure to enjoy positive results.

Let’s make a quick all overview of Mission Expert to discover key program features

High impact with no learning curve.  What does that mean?  Development of mission statement has several stages.  Thus, it is important to go through each step being fully aware of what you’re doing and what results you’re going to achieve.  Mission Expert will guide you through each step and offer you various options and choices.

Modular design.  Depending on what version of the program you’re going to buy, you will have access to different modules which outline basic features of the program, as well as helpful guides, visualizers, presentations etc.

Discover the power of Mission Expert

Presentations.  This is perhaps the most useful part of the program especially for those who have very little experience in the development of mission and strategy for the company.  Even experienced professionals would appreciate looking through presentations and slides which give answers to very important questions like “is it focused for the target audience”, “is it written in clear and simple terms”, “is company mission complies with company strategy”, “is it easy to memorize”, “does everyone in the company understands the mission”, “does the strategy inspire personnel”?

Useful tool kit in Mission Expert

Examples.  What can be better than to study examples of companies that became icons in the world of business?  Without any doubt, small and middle sized companies have something to learn from business monsters like, for example, IBM!  At the same time one needs to remember that something that is good for one company may be harmful for another.  These are just examples, and they are to be used to develop own mission, and own methods and techniques.  These examples will help better understand the process of mission development and significance of every step.

Facilitator guides.  This feature will surely help team leaders who have little or no experience in strategic planning and development of company mission.  With the help of these guides you will surely become a professional in the area of strategic planning.  As a team leader you need to inspire employees who should share their ideas and viewpoints.

Resource kit.  Here you’ll find sample mission statements and core values, as well as tools to create or even find mission statement.  The same concerns company vision.  Moreover, you will be explained the difference between vision and mission.  Users will have access to kickoff meeting invitations, kickoff meeting checklists, online resources, invitation attachments etc.

Wizards.  Rookies in strategic planning and mission development will find this tool extremely helpful.  With the Mission Expert wizard you’ll be guided through the process of mission creation and offered various questions and options.  In such a way, you’ll never miss a single step in the process of mission creation.  Within a short period of time you will be able to create your first draft mission statement which can be discussed with your company.

Mission Expert Wizard will guide you through the entore process of mission creation

Templates.  As already said above Mission Expert contains examples and templates which can be used in creation of an individual mission for the company.  You will see their goal examples, core values examples, case studies of real companies and much other valuable and helpful information.

Developers of Mission Expert make a unique offer.  If you do not like the program after using it within 30 days you are eligible for a full refund.  But once you get fascinated by the power of Mission Expert, there will be no reasons to do so.

Start of implementation process. Who is in charge?

José Ricardo Zea Grayeb is quality team coach that was in charge of implementing Balanced Scorecard in the company through introduction of BSC Designer.  The company made a decision to attract external advisors.  But at the same time they tried to do everything they can do using internal human resources.  So, a special team was formed in order to convey business goals into indicators.  This team was in charge of strategic planning, it set of own goals, and team leader was in charge of transforming those goals into indicators.  As already said above, the company was aided by external consultants to keep focused with an outsider vision.  It should be mentioned that attraction of external advisors in implementation of Balanced Scorecard is quite popular.  In fact, statistics show that there are few companies that really succeeded in implementation of Balanced Scorecard without professional assistance.

As known, implementation of Balanced Scorecard needs proper tech support and software solutions.  Luckily, GB PLUS, S.A. DE C.V.  has own IT department that provided BSC team and company personnel with proper support.  But still, the company has to outsource sometimes.  At the same time, they have own qualified IT specialists that develop softwares of and utilities.

Scope of implementation

It is well known, that some companies prefer to implement Balanced Scorecard on a company level, while others choose to start with the department or business unit. GB PLUS, S.A. DE C.V.  decided to start on a company level.  Implementation of Balanced Scorecard started with CEO and top management.  Then the process comes down to lower levels of organization structure.  Company specialists estimated that they need a month to spread BSC in the entire organization.

GB PLUS, S.A. DE C.V.  use quite an interesting scheme how Balanced Scorecard works.  Most of company employees are field operatives (sales people).  So, they are a major source of information.  Warehouses and other departments also provide company top management with the information that is automatically processed by software solution.  Then, this information enters the BSC system.  It should be noted that this is a very popular way of gathering information, since ordinary employees, front line managers and sales people always have accurate information on internal and external processes, customer needs, problems inside and outside the company etc.

Maintenance of Balanced Scorecard.  Strategic planning.  Roll of Balanced Scorecard in the company

GB PLUS, S.A. DE C.V.  has reported that Balanced Scorecard concept and BSC Designer helps the company to stop just “doing the job ”.  It helped focus on the real deal and find roots of the problems.  With Balanced Scorecard, a strategy is formalized based on current problems and operations.

In fact, this is the best thing Balanced Scorecard can do with the company.  It changes approaches and attitudes.  If the Balanced Scorecard becomes a part of company everyday routine it means that BSC really works.  If strategy becomes everyone’s concern, there is every reason to hope that strategic goals will be achieved.  In such a way Balanced Scorecard is not just a toy in hands of top-managers, but an effective tool for strategic management used by everyone in the company.

Business activity monitoring

As already said above, Balanced Scorecard does not only transfer strategy into action but also helps to collect information about business activities and problems. In GB PLUS, S.A. DE C.V.  BSC is being implemented at its initial stages, so they haven’t got the chance to test it.  At the same time, company top management and personnel is doing everything possible to have balance scorecard work as a tool to collect information and monitor business activity.  One of the key company goals is to provide investors, directors, managers and employees with a visual representation of the management system, linked to all sources of information.

Sometimes, it is very difficult for ordinary employees to understand company strategy.  It happens that investors and company owners always want to know what happens in the company.  BSC is a perfect a solution in this sense, since it provides all users with accurate and reliable information on company internal and external processes, as well as its progress on the way to achieve goals.

Measurement of internal processes indicators

The key goal of GB PLUS, S.A. DE C.V.  Balanced Scorecard is linked with the accounting department to control and follow-up budgets.  The second most important idea is to see how effective internal processes are, and how they can contribute to customer satisfaction, so that the company does everything possible to meet customer demands.

This example explains efficiency of Balanced Scorecard.  Strategy maps consist of measures and goals linked by cause and effect ties.  So, in order to improve customer satisfaction and make them buy more from the company, certain improvements need to be performed the company internal processes.  Sometimes it is necessary to educate personnel, acquire new skills and approaches and change the way business is done. Customers are supreme value for any business.  And it is only through customer satisfaction and loyalty that sales are increased and better financial results are obtained.

BSC Designer used for education and growth processes

GB PLUS, S.A. DE C.V.  managed to use BSC Designer to measure human resource management, efficiency of compensation systems and training sessions.  The company needs much organizational development and GB PLUS, S.A. DE C.V.  intends to use BSC Designer to improve efficiency of personnel, especially in human resource management.  They have to monitor all training processes and compensation policies since they pay commission to sales people.  So, their sales performance should be controlled in order to calculate amount of bonuses.

It should be mentioned that Balanced Scorecard just doesn’t work without personnel being motivated.  Motivation can be different in different companies.  But anyway, a comprehensive reward and bonus system is a must.  People need to understand why they should use Balanced Scorecard and what benefits they get personally.

Expectations as to Balanced Scorecard in the company

GB PLUS, S.A. DE C.V.  managers confess that they are expecting to regain stability, to increase profits and to further develop.  The key company goal is to be able to know what they’re doing in real time.  Since there are able to track performance they can offer such information to investors who love knowing what is going on with the companies they invested.  In such a way investors feel secure and protected.  The companies planning to use web based solutions to offer information to all interested parties.

Experience with Balanced Scorecard and BSC Designer

Timeline

The company set up at 90 days timeline for trials and then another 60 days to link up their sources of information and publish BSC data are on their website. GB PLUS, S.A. DE C.V. is in the set up phase now, so they don’t have the full picture regarding technical needs.  For the same time the company is already using Accounting Software as well as credit evaluation application that will be attached to BSC.  Everything is done with SQL.  The company maintains close relations with suppliers so problems are solved as soon as they occur.

Strategy maps

GB PLUS, S.A. DE C.V.  is about to complete their strategy map and they plan to use BSC Designer to keep track of everything.  The company has developed own indicators, so there are no imported KPIs. All our information is prepared in-demand by the current department responsible, they need to change this because it is a slow and imprecise process and the information is often outdated or somewhat unreliable.

Reports and BSC

GB PLUS, S.A. DE C.V. uses excel and power point reports, but the company management wants improvement in the reporting process.  The company hasn’t used reporting capabilities of BSC Designer and they have no experience in using custom formulas. GB PLUS, S.A. DE C.V. chose BSC Designer because it has this capabilities and that is what they’re looking for.

Company management realizes that Balanced Scorecard will be useless if information cannot be accessed in real time.  BSC Designer has become a good choice for GB PLUS, S.A. DE C.V.  since it offers on-time access to information and has an excellent reporting system.  This makes managerial decision-making much more easier.

To sum it up, from this case study it is evident that GB PLUS, S.A. DE C.V.  clearly understood benefits of Balanced Scorecard and BSC Designer.  The company is only making first steps in BC implementation and has already achieved some positive results.