Balancing a Tree in a Balanced Scorecard

Introduction - Functions Overview - Purchase Program

Balancing Tree

The idea behind tree balancing is the balancing of indicator and category weights.

The weight allows specifying the relative importance of the indicator or category.

• For instance, if indicator A has a weight of 3 and indicator B has a weight of 7, then we know that B is two times more important than A.

Another rule is that the sum of all weights on the same level and within the same category must be 10. Of course, it might be 100 or 10000 or 5, but it has been found that to get the best results in representing the relative importance of the items, it is better to specify weights on a 0-10 scale.

Changing weights

If you click on any category or indicator, you will see the setting panel below. You can change the weight from 1 to 10.

What if you have tree indicators - A (weight 2), B (weight 5) and C (weight 7) - within the same category? The sum of the weights is more than 10.

If the sum of the weights is more than 10 (or if it is less than 10), you should change the weights to comply with the weight sum rule. You have two options to do this:

• You can change the weights manually;
• You can select the Balance Tree command in the Strategy Tree menu.

In fact, you have a third option: you can leave the weights as-is, but in this case, the total performance value might be more than 100%.