Cascading process in company with BSC 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.
