This same principle applies to organizational management. A consistent commitment to investing in measurement and feedback systems within the organizations is paramount to good decision making.

But not all investment in data gathering is created equal. Information value inversion is at work. The things that we measure often and fairly precisely, typically have little impact on any crucial decisions. The things we know little about can often net a significant improvement in the decision making by us learning even a little bit more about that information.

Thus, a good Balanced Scorecard can act both as a useful tool and as a waste of money, and unfortunately is often the latter for many organizations.
There are two reasons for it:

1. The Balanced Scorecard is often an after the fact bolt on, it is not part of the core organizational thinking. This is by far the most important problem, since if it is not the key feedback loop but rather one of them, it often serves to create noise rather than reduce it.
2. We tend to measure things that we know how to measure, and more likely than not those are not the right things to measure. There is no scientific approach to determining which things are really worth measuring, we take our best guesses, and typically we are spectacularly wrong. We treat it as an art, yet expect predictably consistently good results, as though it was a science.

What can be done to solve these challenges? Indeed, are they worth solving?
I will start with the second question first. Fundamentally, if you do not solve them with this tool, or some other dashboard, broad multi-variable feedback tool, you are flying blind. While it is dangerous, it does not stand out, since everyone else is too. During the early days of flight, pilots did not have good controls and would often fly along the railroad lines, so that they could rely on the visible landscape and rail station names to navigate. This had lots of problems, but so long as everyone was flying slowly enough, low enough and in familiar enough terrain it worked. However, the circumstances changed, planes fly faster, higher, in more varied weather and can no longer orient themselves in the same way. They have to use gauges on their dashboard and should be able to take off and land without even looking out of the window. This has forever changed the aviation.
In business, until fairly recently we could afford to fly low enough, slow enough and in familiar enough landscape to avoid the need to have useful dashboards. But, not only does this doom your company to continuing to do what you have always done, it may very swiftly obsolete you as others figure out how to do this right. So, ideally, you want to implement the dashboards well because you are aiming for the stars, but if not, implement them well because you don’t want to be left behind.

What about the second question. What can be done so that the Balanced Scorecard becomes the main organizational feedback system and it measures the things that allow the company to safely take off, land, fly and navigate through its difficulties and opportunities, regardless of the outside weather conditions? That sounds like a great topic for the article that will be forthcoming in a week.

—

Oleg Tumarkin, JD, MBA, CSSBB is an Adjunct Professor of Business at Lakeland College and Concordia University of Wisconsin. His firm, FutureWorks, in partnership with Bucket Brigade and AKS-Labs provides business coaching and Balanced Scorecard implementations.  His life’s passion is the development of a universal business measurement and management system that would cause management in to the realm of a repeatable, replicable, yet humane and flexible science.

As known, balanced scorecard measures performance of a company to communicate operational management and strategic goals.  Every business has its own set of KPIs – key performance indicators which are known as values representing the most important aspects in work of a company.  Of course, some KPIs are more important than the others.  At the same time it is impossible to omit some less important KPIs.  Thus, there is an obvious need to set weights for indicators and categories of indicators in balance scorecard.  Weights in BSC represent importance of an indicator and influence its contribution to performance of category of indicators (perspectives), as well as total performance.

Let’s take a random example.  For instance, a call center has assigned three indicators to financial perspective: cost per call, revenue per successful call and conversion rate.  According to company strategy, the management should set weights and decide which indicator is the most important.  Conversion rate is the number of sales for 100 calls.  So, if company is interested in the increased number of sales, this indicator would be given priority.  Without weights it is difficult to balance evaluation process since less important indicators would contribute the same percentage to the total performance as most important indicators that directly influence company performance.

Weights concept in BSC Designer

First of all it needs saying that each category of indicators (perspective) has its own weight.  Indicators inside the category have their values as well.  If a category has only one indicator it doesn’t matter that all what weight it has.  So, using the above example, financial perspective may have weight 4, while the three indicators of the category would have weights 3, 3 and 4 respectively.  It should be noted that it is recommended to set weights in such a way so that their total number equals 10, 100, 1000 etc (3, 3 and 4 in our case).  This is for convenience of users to understand how performance calculation system works.

Weights are shown in a strategy tree

It is possible to amend weights for indicators and categories

Change weight of a category (perspective)

Let’s take another simple example: We have a project with 4 categories: First, Second, Third and Forth.

1) If  all the categories are equal for the project, we need to set their weights  to  be  equal  (by  default it is “1″, but it does not really matter what  number  it  is  -  it  just  needs  to be equal for every category).

2) If some categories are more important, than another ones, we need to set bigger numbers as weight values for the more important categories and  smaller  numbers  for  those  ones, which are less important. For example:

First (5) – The most important one;

Second (3) – The less important, than the First;

Third (1) – not important category, but we still need it;

Forth (1) – not important category, but we still need it.

If we use weight values, sum of which is 10 or 100, 1000  and  so  on,  it  is  easier for user to see how the performance calculation of the parent category is going:

Parent category performance (the whole project in our case) = 0.5 * (First category  actual performance) +  0.3 * (Second category actual performance)  +  0.1  (Third category actual performance) + 0.1 (Forth category actual performance).

2.2) If we use weight values, sum of which is not is divisible by 10, the program will still calculate such a thing properly, but it will be a bit harder for user to understand what every of the values actually mean, referring to the project’s calculation. For example, we have such situation:

First (9)

Second (5)

Third (3)

Forth (1)

In this case, Parent category performance = 0.5 * (First category actual performance) +  0.28 * (Second category actual performance)  +  0.16  (Third category actual performance) + 0.06 (Forth category actual performance).

The formula for a coefficient is (Weight value of the element) / (Sum of all the elements’ Weight values). For the First category it is: 9 / (9 + 5+ 3 + 1) = 9 / 18 = 0.5.

As you can see weight system in BSC Designer allows users to adjust the program and its performance calculation system to company strategy goals, priority tasks etc. Moreover, the weight system in BSC Designer is adjustable.

It is possible to set Maximum Weight limit (go to File-Document properties-Max Weight). This value is set at 10 by default. Some companies prefer to use MW = 100 instead of 10.

Set maximum weight in BSC

If necessary, values for indicators can be amended. The bottom panel contains Weight box where one can change weight value. After that strategy tree can be balanced (go to Strategy Tree-Balance tree) and the total amount of weights in the category where such an indicator weight has been amended will become divisible by 10.

Balance your strategy tree (sum of all weight values in categories will be balanced according to a maximum weight)

Watch total performance and weight value

We have changed value for 1 indicator and total performance value has automatically changed

Weights management algorithm in BSC Designer

1. Set weight for main 4 categories (or any other number of them, if applicable).
2. Set weights for indicators (if there is just one indicator in the category its weight is unimportant) and for sub-categories if any
3. Change weights for indicators and categories if necessary and balance strategy tree after that (if necessary)
4. Check out absolute weights for each element (percentage contributed by each element to total performance value)

Absolute weight chart

Absolute weight chart makes it possible for users to have a look at graphical representation of the Tree elements Weights within their category (perspective) and check out their absolute weights on an entire project’s scale. This graph is available at the side menu under the calendar. Weights chart (just like all other types of diagrams and charts) can be shown in a Strategy Tree (as a part of routine dashboard) as well as in the reports. As a part of Report’s info it visually demonstrates contribution of different elements to the total performance of the project (Scorecard).

Absolute weight chart

Summary of weight concept in BSC Designer

System of weights in BSC Designer is a flexible and well-balanced system that automatically performs necessary calculations whenever any change to an indicator or a category weight has been made. It is very important to be able to introduce amendments to the BSC system through the process of its implementation, and Weight concept offers such an opportunity. Some elements (indicators or categories) may appear more important than the others, and vice versa. Weights show the priorities of business which are individual for each company.

Weight Concept in BSC Designer makes it possible to:

• Set Weights for every element of the Scorecard;
• Change Weights after the review (if needed) and total performance will be automatically re-calculated;
• Set Maximum Weight parameter for each project, allowing to use the particular scale needed;
• Balance Strategy Tree according to Max Weight;
• Visualize the contribution of Strategy Tree elements to the Total performance through the Absolute Weights Chart (can be used both in the program dashboard and in the reports).

It seems like every large company uses some sort of special IT solutions to automate  at least some of the following activities: business management process, evaluate business performance, workout strategic plans and maps, designed response actions etc.  If a competitor learns about your strategic plans, initiatives in the sphere of advertising or marketing, such a company may use this information in their favor.  In the big-time world of business this may mean loss of millions of dollars.

That’s why most software solutions have different systems of protection.  Commercial espionage is very popular now, so it certainly is recommended to use special tools to keep your information safe and confidential.

Balanced Scorecard data is a most wanted one

A common database stored in most of ERP systems, such as accounting data, employees lists and hierarchy, projects appointments and other things are usually considered vital by most of CEOs. Practically this statement turns to be a wrong one, this type of data is important, but it is not really something your competitors are interested to steal. Usually most of information from there can even be found in free access in the Internet, other can be found by examination of your activity in mass media, marketing researches, surveys among primary audience and other market niche participants – all this methods are absolutely legal and in most of cases there is no need for the spies to break through the database and steel anything. Oppositely to this comes your plans, your strategy vision and other data, that determines the FUTURE of your company, such as marketing plans, short- and middle-term operational tasks, unique researches and technologies. These are the examples of the information, which turns to be the best pieces for competitors and certainly it cannot be found anyhow but illegally. A competitor is  interested in what is going to happen but not what has already happened.  Strategic plans and the methods of reaching strategic goals should be always protected. The thing is – if you can find a system that puts together almost all this extremely vulnerable information, it will be the Balanced Scorecard.

Those companies using balanced scorecard system to design strategy maps and evaluate business performance should feel confident that the above mentioned information will not get to third parties, especially to the competitors.  Implementation of Balanced Scorecard System and setting strategic goals is rather an expensive process, and if you know that some important information is lost, you’ll have to redesign strategy maps and introduce amendments to balanced scorecard.  Again, this means you will need even more time and money.

Just imagine that marketing departments of company A is about to launch a new campaign that is aimed at increasing sales and improving customer loyalty. Rival Company B has learned everything about this new campaign in detail and launches it just a few days before Company A does it.  Obviously, company B will not only get competitive advantage but also force company A to suffer losses.

This simple hypothetical example vividly demonstrates how loss of commercial information and especially information on strategic goals and methods, stored in balanced scorecard database can hurt the company well being.

BSC Designer data protection

Balanced Scorecard Designer, as a software solution that supports the concept, provides not only useful and easy to operate tools to set up metrics, link the existing database to your BSC projects, perform the cascading and many other features, but also takes cares of the data protection. Starting with the version of 3.2.0.84 BSC Designer Pro supports password setting, that may allow users to read only the document (BSC Designer Project – *.bsc file), or to read and edit it.

How to set up passwords?

Setting up passwords is not a sophisticated action. Launch BSC Designer Pro, open the project and go to File -> Create Password. The new dialog window will appear. Now set the desired password for reading only and reading  and writing the document if you want to protect the project and press OK.

After the password had been set, the program will not allow users to read or to edit the project without entering it. Please note, the password is set for the project (*.bsc file), not for the BSC Designer program itself. This means anyone will be able to access the projects, where the passwords had not been set yet.

Please stay away from this info!

Price: from $4,195

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

Top 5 Learning Objectives

1 Gain a comprehensive understanding of the latest Balanced Scorecard developments
2 Learn to manage an entire strategic management programme from design to implementation
3 Define and implement appropriate measures for Balanced Scorecard Use Balanced Scorecard effectively as a tool to
translate the strategic goals of your organisation into reality
4 Understand the process of integrating the Balanced
5 Scorecard into your existing organisational systems

More information: IIR ME Website

Price: from $4,195

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

Top 5 Learning Objectives

1 Gain a comprehensive understanding of the latest Balanced Scorecard developments
2 Learn to manage an entire strategic management programme from design to implementation
3 Define and implement appropriate measures for Balanced Scorecard Use Balanced Scorecard effectively as a tool to
translate the strategic goals of your organisation into reality
4 Understand the process of integrating the Balanced
5 Scorecard into your existing organisational systems

More information: IIR ME Website

Price: from $4,195

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

Top 5 Learning Objectives

1 Gain a comprehensive understanding of the latest Balanced Scorecard developments
2 Learn to manage an entire strategic management programme from design to implementation
3 Define and implement appropriate measures for Balanced Scorecard Use Balanced Scorecard effectively as a tool to
translate the strategic goals of your organisation into reality
4 Understand the process of integrating the Balanced
5 Scorecard into your existing organisational systems

More information: IIR ME Website

MS Excel report (“Export to Excel” function) with BSC Designer

This article is aimed to describe the most unusual and unique report, which in some way cannot even be called report, because it contains lots of digits, but no graphs or diagrams. MS Excel Report (or “Export to Excel” function) really has unique structure and the situations, it could be used successfully, might differ from the cases, the other reports (like HTML or MS PowerPoint) could be used. The purposes of Excel Report’s usage might be the following:

How to create MS PowerPoint Report with BSC Designer

Let’s create and explore the MS Excel report with BSC Designer to learn more about this powerful and unique function. A real example of creating MS PowerPoint report will be described and shown.

Launch BSC Designer (Standard or Pro version) and open one of the projects (the default one will be used in our case). Then change some of indicators maximal and minimal values – it will be needed to show the potential of Excel report. The next step to be recommended is filling the project with random values. This function also allows the report to show all its functionality by filing the project with values for the selected period of time. If you already had a chance to use time points in your project (if your project is already filled with values for different dates), it would be better for you to skip this step. Check out the article called “How to manage time points with BSC Designer” to learn more about the calendar function and time points management, it provides. To fill the project with random values, click on “Tools” button on the top menu and select “Fill with random values” sign. That is it, we have just filled our project with values for different time points within the selected period.

Now, when the project is filled up with the different values of the indicators and their parent categories, it could be presented in report. So it’s time to create the MS Excel report. Click on “Reports” button on the top menu and select “Export to MS Excel” sign. Please make sure you have MS Excel program (the part of the Microsoft Office suite) installed on your computer and registered, otherwise BSC Designer will not be able to export the information. After “Generate” button was clicked, MS Excel will be launched and the report, created by BSC Designer, will be opened. Congratulations! The report has just been created! Now every of its features will be shown and described. If you are not BSC Designer user yet and you are not able to create the report, you may download the full version of the report, described in this article.

The top field of MS Excel report with BSC Designer

The top field of the Excel report contains the basic information for the project. First of all it presents the project’s name (it is “Balanced Scorecard” in our case) and its description (in our case it is “The default project filled with random data created to show how to operate with BSC Designer software”). This information could be changed by the user manually while editing Excel file or, but also it could be changed in BSC Designer program, so this information will be exported correctly not only to MS Excel, but also to MS PowerPoint and HTML formats of reports. To change this information, open BSC Designer, click on “File” button on the top menu and select “Document Properties” sign. Then input the author’s name and type correct project’s name (for example, Financial Scorecard) instead of “Balanced Scorecard”. Press “OK” button to apply changes.

Then the report shows the performance values for the main categories and the whole project’s total performance. Please note, oppositely to other reports, showing performance values (Export to HTML, HTML report for selected item, Dashboard report for the whole project and for selected item, exporting to MS PowerPoint) MS Excel report does not ask user to select the reporting period – it shows the value only for the date, which is currently selected on the calendar (read more about the calendar function and time points management in the article: How to manage time points with BSC Designer).

Now let’s move to the “Help” field – it says: You can change the values in “weight” column, the value must be between 0 and 10; You can change the values in “Value” column; That is really one of the most important point of MS Excel report with BSC Designer – it actually could be used as an alternative tool to manage *.bsc projects. Changing the values and the weights, it will automatically recalculate the project’s performance. All the formulas to recalculate the performance already exist in the *.xls / *.xlsx file, created by BSC Designer. So the project might be operated with Excel even without using BSC Designer at all. Certainly, the functionality of using this configuration of Excel project is limited by values for indicators and weight management, but it could be enough in some cases. For example, this file could be shared with colleagues or other people involved (for example, outsourcers), who are not equipped with BSC Designer, but equipped with MS Office with MS Excel in it. Excel version of BSC Designer project, i.e. MS Excel report, does not support management of a time points and that is why the time dynamics cannot be displayed in it. We will show the example of changing values and weights directly in Excel (not BSC Designer) later, after the columns of data will be described.

The left part of the chart (the beginning)

Let’s start describing the chart, presenting one of the categories. All the columns, presented on the image are actually easy to understand: “Perspective” field shows the name of the category, “indicator” field shows the name of the indicators, “Description” field shows description for the categories and for the indicators. “Weight” column shows weight values for the elements: yellow color for the categories and green for the indicators; those values could be changed manually while editing MS Excel project, changes of weight values will cause the changes of their parent items (categories or subcategories) performance values: the more is the weight of the item (the range is from 0 to 10), the more important it appears to be for the parent category. For example, the category with the three indicators in it, having weight values of 1, 2 and 10: the changes of the first two indicators’ (weight = 1, weight = 2) values will have much less effect on the category’s performance, than any changes of the last indicator’s (weight = 10) value. “Value” column shows the values of the indicators and the calculated value of the categories. Changing the values of the indicators will affect the performance values of their parent categories and the whole project. The values, showing on this column are exact values, had been set in the BSC project (without linking to “Min” and “Max” values).

The right part of the chart (the end of it)

Continuing describing the informative chart for the category, we are moving to the right part of it. The picture presents 4 more columns. “Target Value” column shows the goal for the indicator – the ideal number, which is needed to be reached in order for company to achieve the strategic goal (or part of it), measured by the indicator. It could be minimal number for the indicator or the maximal, depending on the optimization direction (read more about optimization direction of the indicator in the article “How to manage indicators and performance values with BSC Designer”). “Target Description” column presents the information from the same field of BSC Designer Project, located on the bottom panel for every of the indicators – this information does not participate in the calculations. “Absolute Weight” column shows the coefficient of weight value of the item, referring to the whole project’s performance. The numbers here depend on both the indicator’s own weight and its parent category’s weight. This column shows technical measuring information, which is not presented in BSC Designer’s project, but it is presented here in Excel Report to give users a possibility to improve the file or to link it to some other database if needed; usually such procedure is performed by technical professionals of the company or outsourcers. One more column, presenting technical information is named “Absolute Performance”. This is an absolute value, which depends on absolute weight value of the item, its current value, minimal and maximal values and the direction of the optimization and the formula of the optimization (read more about customizing formulas for the indicators in the article “ How to build performance formula with BSC Designer ”). For example, with maximizing direction of the optimization and the standard formula of calculation, the formula of calculating Absolute Performance value will be the following: (Absolute Weight) * ( Value – Min ) / ( Max – Min ). The value, opposite to target one is also presented in the chart, it is located under unnamed column, left to “Absolute Performance” column, lettered “M” in our example. This value is minimal when the maximizing direction of optimization is selected and maximal for minimization direction of optimization.

Editing file in MS Excel

We have promised to describe how to manage values of the items and their weights in MS Excel without using BSC Designer. First of all, let’s change the weights values for the indicators of the category called “Education and Growth Perspective”. When the report was created, the weights of the indicators were the following: 2, 7, 1. Their parent category’s value with those settings was “58.13”, % and the whole project’s value was “64.92”, %. Now we will change the weight values for the indicators to 4, 6, 9 directly in MS Excel. After the new weights are input, MS Excel project recalculates the performance of the category into “69.55”, % and the performance of the whole project into: “67.20”, %. The same way we could change the values for the indicators – after new value will be added, MS Excel will recalculate the performance values of the categories and for the whole project.

Editing weights – before changing

Editing weights – after changing

Here you may download the full version of MS Excel report, which had been shown in this article to look through it or it might be even better to create your own report using BSC Designer right now!

Alternatives

As you see, MS Excel report is not just a report but a project, living is own life. BSC Designer does not just transfer its data to MS Excel but also provide users with an opportunity to change weights and values so the project’s value will be automatically recalculated. Certainly, such MS Excel project does not provide users with an important function – time points. That is why it is not going to be easy to see the dynamics of values in time, using only MS Excel. MS Excel report is unique when it comes to creating some huge database on Excel project’s base or integrating data from BSC Designer project to the existing database of the company. It sure needs lots of knowledge referring to database management and SQL computer language and only a high ranking specialist could perform this.

AKS-Labs also provides its customers with one more alternative to paid versions of the tool. The free one is called BSC Designer Light and, oppositely to MS Excel project, it allows to work with time points. This version is limited by functionality but it still could be more useful in some cases, such as: sharing the project’s data with colleagues or other people involved (for example, outsourcers), who are not equipped with paid version of BSC Designer; changing the basic aspects of project’s data and perform simple indicators and categories management (including time points management) functions without paid version of BSC Designer. There is no opportunity in BSC Designer Light to create such informative reports as HTML report, PowerPoint report, Dashboard report, available in BSC Designer Standard and BSC Designer Pro and there are more limitations of functionality (check out the full chart, presenting the difference between functionality of versions on this page).

First of all, when it comes to presentation, the first tool that comes to mind of most of MS Windows OS users is certainly MS PowerPoint, the part of the Microsoft Office suite. PowerPoint is widely used by business people, educators, students, and trainers because of its availability, simplicity and usability.

The second thing is when the tool is determined, it needs to export the information to it and in most of cases, and just copying the data from the dashboard and pasting it to PowerPoint does not make lots of sense. It sure is much better when the dashboard has its own function to export the information to PowerPoint the way, it could already be presented.

That is why BSC Designer allows the function of exporting the information to MS PowerPoint (also called “PowerPoint report”). This function could be really helpful in the following cases:

• To report about the activity’s performance to senior managers;
• To keep the report files in achieves for internal or external inspections needs;
• To make clear and informative presentations of the activity’s performance to the top management, management company as well as to shareholders and investors.

How to create MS PowerPoint Report with BSC Designer

Now let’s try to create MS PowerPoint report to see what it contains. A real example of creating MS PowerPoint report will be described and shown.

Launch BSC Designer (Standard or Pro version) and open one of the projects (the default one will be used in our case). The next step to be recommended is filling the project with random values. This function allows the reports to show all its functionality by filing the project with values for the selected period of time. If you already had a chance to use time points in your project (if your project is already filled with values for different dates), it would be better for you to skip this step. Check out the article called “How to manage time points with BSC Designer” to learn more about the calendar function and time points management, it provides. To fill the project with random values, click on “Tools” button on the top menu and select “Fill with random values” sign. All right, we have just filled our project with values for different time points within the selected period.

Now, when the project is filled up with values of indicators for different dates, the dynamics appeared for the project, so it could be presented in report. Now let’s create the PowerPoint report. Click on “Reports” button on the top menu and select “Export to MS PowerPoint” sign. The new dialog window will appear; select the reporting time period (it will be “last week” in our case) and click on “Generate” button. Please make sure you have MS PowerPoint program (the part of the Microsoft Office suite) installed on your computer and registered, otherwise BSC Designer will not be able to export the information. After “Generate” button was clicked, MS PowerPoint will be launched and the report, created by BSC Designer, will be opened. Congratulations! The report has just been created! Now every important slide of it will be described in details.

What does MS PowerPoint Report contain

Now when the report is ready let’s see what it contains and where does the information come from. Please note, if the report, created by you is not alike the one, that is shown below, it means you have an old version of BSC Designer Program. In this case, it is recommended to download the latest version of the program directly from our site and reinstall the software. The download page could be found here. Now we will start with MS PowerPoint presentation slides.

The first slide shows the general information: the name of the project reporting, the reporting time period and the author’s name. The name of the project and the author’s name could be changed manually in PowerPoint, but also it could be changed in BSC Designer program, so this information will be exported correctly not only to MS PowerPoint, but also to MS Excel and HTML formats of reports. To change this information, open BSC Designer, click on “File” button on the top menu and select “Document Properties” sign. Then input the author’s name and type correct project’s name (for example, Financial Scorecard) instead of “Balanced Scorecard”. Press “OK” button to apply changes and recreate the report (“Reports” -> “Export to MS PowerPoint”), if needed, so it could present correct information.

The second slide of the MS PowerPoint report presents the overview for the project. It actually contains the same image, the Overview Report presents (read more about Overview Report in the article: Reports with BSC Designer: Overview and Dashboard). To be short, both the Overview Report and the second slide of the MS PowerPoint report show the map of the elements (categories, subcategories and indicators), the project contains, mentioning their names and descriptions. This chart does not contain any information concerning performance values (BSC Designer and even the describing report allows several other tools to present the performance values) but shows only the overview for the project to provide better orientation and understanding the reporting project. If you want to change the information presented in this slide (or in the Overview Report), change the names and the descriptions for categories and indicators, your project contains and recreate the report (“Reports” -> “Export to MS PowerPoint”).

The third slide starts the report of the main category (the whole project; it is named “Balanced Scorecard” by default). It contains the general information concerning the performance values presented in textual format, including:

• Start Value – the value, the category had at the beginning of the reporting period;
• End Value – the value, the category had at the end of the reporting period;
• Dynamics – the difference between the Start Value and the End Value (Dynamics = End Value – Start Value).

Also there is a chart presented on the slide, which shows the performance data overview for every of the elements, included in the reporting category.

There are no maximal and minimal values in this slide because all the categories in BSC Designer are calculated within minimal value of ”0” and maximal value of “100” and the measure unit for the them can only be “%”. That does not mean you cannot select measure units at all but the functions, allowing editing performance values’ details, are available for the indicators (read more about editing performance values for the indicators in the article “How to manage KPIs using BSC Designer’s functions”). The categories, on the other hand, are aimed to automatically calculate the performance of the indicators and subcategories they include and show this information in a form of a point in the range from 0 percent to 100 percent.

The next slide continues the report of the main category. It presents the time performance chart for the category within the reporting period. More information about the time chart could be found in the article “How to visualize data with BSC Designer: diagrams and charts”. Time chart clearly shows the dynamics of the category’s performance and looks much more presentable, then just digits.

As for the colors of borders, they could be green, yellow and red. “Good” performance values area is marked with green light, red area is for “bad” performance and yellow area shows that the performance is not “bad” already but is not yet “good”. Certainly both “bad” and “good” terms have their own performance percentage value. By default, green area are covers the graph within the interval of 80 – 100, %%, yellow color is for 21 – 79, %% and red colored area covers the graph within the interval of 0 – 20, %%. Those boarders could be changed by the user, find out how to do this in the paragraph named “Stop Lights” of the article “ How to visualize data with BSC Designer: signal icons ”.

This slide finishes the report for the main category with the second graph, presented for it – the gauge diagram. This slide is also aimed to present the information for the category’s performance value in a form of understandable image, to make it more clear and presentable. Definitely, Gauge diagram shows the percentage of performance value for any item of the tree (both the categories and the indicators). The hand shows current performance value (End Value of reporting period to be exact) comparing to “min” (the left starting point; it is 0 percent in our case) and “max” (the right finishing point; it is 100 percent in our case) values. Read more about Gauge diagram in the article: “Gauge diagram added! HTML reports updated!” The colors boarders of gauge diagram could be managed the same way as it was described above.

This slide is an overview for the part of report, presenting one of the indicators value. Just like the same slide for the category, this one contains Start Value, End Value and Dynamics. But the indicator’s slide also shows: Score (the value of the indicator, measured with its own measure units without referring to determined minimal and maximal values), “Min” and “Max” values (oppositely to categories, indicators might have any minimal and maximal values set by the user), “Parent” field (shows the category or subcategory, which is parent for the indicator), Measure unit (it could be %, Score or any other measure unit added and selected by the user), Optimization method (also called Optimization Direction: shows the direction, the indicator’s value aims to; read more about optimization directions for the indicators in the article “ How to manage indicators and performance values with BSC Designer ”) There are also time performance chart and gauge diagram slides, presented in MS PowerPoint report for indicators. We won’t describe them in detail, because they are almost the same as for the categories.

Here you may download the full version of MS PowerPoint report, which had been shown in this article to look through it or it might be even better to create your own report using BSC Designer right now!

But our program’s development had not stopped on this wide range but created feature to improve the tool’s report functioning even more!

We are glad to introduce you the function of customizing the HTML report! Now with BSC Designer Pro you are available to:

• Set maximal number of characters in description length for Overview report (so even long element’s descriptions will fit to the Overview report);
• Select the location of graphs, presented in HTML report separately for categories and for indicators (select between placing graphs in one or two columns; you can choose different orders for categories and for indicators);
• Select what types of graphs to present in HTML report separately for categories and for indicators (select the order of different types of graphs placement and specify what exact types of graphs you need to present data separately for categories and for indicators).

How to work with Report settings (Report builder)

Let’s see how to set up reports using BSC Designer Pro. A real example of creating HTML reports, which are set up in different ways will be described and shown.

Launch BSC Designer Pro and open one of the projects (the default one will be used in our case). The next step to be recommended is filling the project with random values. This function allows the reports to show all its functionality by filing the project with values for the selected period of time. If you already had a chance to use time points in your project (if your project is already filled with values for different dates), it would be better for you to skip this step. Check out the article called “How to manage time points with BSC Designer” to learn more about the calendar function and time points management, it provides. To fill the project with random values, click on “Tools” button on the top menu and select “Fill with random values” sign. All right, we have just filled our project with values for different time points within the selected period.

When we have got values of indicators for different dates, the dynamics appeared for the project, so it could be presented in report. Now let’s try to create HTML report without changing anything in report settings. Click on “Reports” button on the top menu and select “Export to HTML” sign. The new dialog window will appear; select a time period of one week and make the report advanced. Check out the article called “Reports with BSC Designer” to learn how to work with pre-settings of the HTML report and what every option presented here actually mean. Opening the report, which has just been created, we will see HTML file, which includes information for all the elements starting with Balanced Scorecard (the whole project) and finishing with the indicators. As for graphs, presented in this report, we will see the following:

Diamond diagram, Time chart, Pie diagram and Absolute Weight chart
are presented for the categories

Time chart, Optimization chart, Absolute Weight chart and Gauge diagram
are presented for the indicators

Here you may check out the full report for the default project filled with random values and time points with default HTML report settings.

Opening Report Builder

But using Report Builder, available in BSC Designer Pro, we can now change the order of placement and the types of graphs appeared in the HTML report! To enter the Builder click on “Reports” button on the top menu and select “Report Options” sign. The following window will appear:

Report builder of BSC Designer Pro, default configuration

The configuration, the Report Builder shows when you open it for the first time, is default one. According to these settings, the previous HTML report was created and it also is the only configuration, available in BSC Designer Standard (Standard version does not include this Builder).

Now the builder options will be described and the examples of different configurations will be shown.

“Max description length in Overview Report” option

“Max description length in Overview Report” option does not change HTML report somehow – its purpose is to make an Overview report (find more information about Overview Report in the article “Reports with BSC Designer: Overview and Dashboard”) to present all the text of descriptions for project tree elements (both the categories and the indicators). The number, you will input to this field, will be the maximal number of characters of description, presented in Overview Report.

Let’s try to change max description length in Overview report so such description as “All the financial and accounting related data, showing the financial situation in company. The values of indicators of this category help informing the answer to the question “How do we look to shareholders?” for the category named “Financial Perspective” will fit in Overview report. Our example for description contains 196 characters, when the default configuration is set up to maximum of 80 characters. Input “196” (or bigger number) instead of “80” into “Max description length in Overview Report” field in the Report Options dialog field and click “OK” button to apply changes. Now let’s try to create the Overview report (“Reports” -> “Overview Report”), all the description text should now be presented:

Overview report now presents all the description’s text

Here you may check out the full version of the Overview Report for the project.

1 or 2 columns placement

The choice between 1 column and 2 columns placement is a choice of the order for graphs to be placed in HTML report. By default it is configured for the two columns placement (which could be more convenient to view on a computer’s display) but it could be changed to one column placement (which could be more convenient to view in printing version or in some other cases). As you can see on the image above, there are separated options for categories and for indicators, so you are able to select one column placement for categories but two columns placement for indicators or otherwise. Customize the appearance of graphs, presented for elements in the HTML report the way, you actually want!

Let’s change the order of graphs placement this way: leaving 2 columns placement for the indicators but selecting 1 column placement for the categories. Click on “OK” button in the Report Options dialog field to apply changes and create HTML report (“Reports” -> “Export to HTML”).

Configuration of HTML Report with different orders of graphs placement for the categories and the indicators

Charts placement order for the categories have been changed, it is now 1 columns placement order

Charts placement order for the indicators have not been changed, it is still 2 columns placement

Here you may check out the full version of the HTML Report for the default project, filled with random data and time points, with Report Option configured this way.

Selecting types of graphs and the order of diagrams and graphs appearance

The most useful function, Report Builder provides is selecting types of diagram to appear in reports. Actually at the moment the tool offers 6 diagrams and charts to present different aspects of project’s data. Find more details about any of the diagrams in the articles: “How to visualize data with BSC Designer: diagrams and charts (Part 1 and Part 2)” and “Gauge diagram added! HTML reports updated!”. Here we will just mention the list of the diagrams and charts available in BSC Designer:

• Time chart presents data both for the categories and for the indicators. Available in both Standard and Pro BSC Designer versions;
• Optimization chart presents data only for the indicators. Available in both Standard and Pro BSC Designer versions;
• Pie diagram presents data both for the categories and for the indicators. Available only in BSC Designer Pro version;
• Absolute Weight chart presents data both for the categories and for the indicators. Available only in BSC Designer Pro version;
• Gauge diagram presents data both for the categories and for the indicators. Available only in BSC Designer Pro version;
• Diamond Chart presents data only for categories, which include at least three elements (indicators or subcategories). Available in both Standard and Pro BSC Designer versions.

Now let’s reconfigure the HTML report so it could show some other types of diagrams and charts, than it was with the default settings. Open the Report Builder (“Reports” -> “Report Options”) and select some types of diagrams and charts separately for the ceategories and for the indicators. Let it be Pie diagram, Time chart, Optimization chart and Gauge diagram for indicators and Diamond chart, Time chart, Absolute Weight chart and Gauge diagram for the categories. When the types of diagrams and charts are selected, click “OK” button to apply changes. After the configuration is applied, create the HTML report to see how it looks (“Reports” -> “Export to HTML”).

Configuration of HTML Report with different types of graphs appearance for the categories and the indicators

The HTML report, created with this Builder configuration: graphs for the categories

The HTML report, created with this Builder configuration: graphs for the indicators

Here you may check out the full version of the HTML Report for the default project, filled with random data and time points, with Report Option configured this way.

In a previous article called “Cascading process in company with BSC Designer” it was described how to set cascading using “Imported indicator” function. But now let’s try to perform the same thing using “delegation” function in order to show that it is much easier when upper managers create the task (category with any number of indicators) and just delegate it right away, but not describe how to build an indicator and only after that import it from worker’s project. The introduction of “delegate” function could be found here. Certainly importing function could still be performed in some cases, when it appears to be more convenient.

What is our example company

Our example for company will be the same as in previous article. Its 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. Now we do not need to start with the lowest level (SCs), but CEO as a head of the company will give orders and delegate them to their people. Our example will be created on the only one computer but practically it cascading could be set via local network as well as via the Internet. It seems everything is ready so let’s start!

The plan of cascading

Before starting to perform the linking between the *.bsc projects, it needs a plan of cascading to be created. The management structure of our example for a small company is clear, it goes this way:

The hierarchy of our example company

But in order to show the logic of cascading in detail it needs some kind of dashboard for every unit, linked with each other according to the logic presented above. The following picture will present the example of how could those dashboards be linked with each other: managers have some tasks to be operated on their own and some tasks they are delegating to the lower levels of the hierarchy to perform the control. This example is based on random information but it could be close to real practical examples of company’s activities structure. So here the plan for cascading is:

The linking between dashboards

The plan is ready and the position of every element is determined as well as the directions of linking. The roles and the dashboards (the *.bsc projects) for every unit of this structure will be described one by one in the following paragraphs.

CEO (the highest level)

As a head of the company CEO needs to monitor their VPs’ indicators values and to see the overall statistics and performance values for the whole company’s project. Sure the leader’s role is not to create the detailed tasks for all the hierarchy levels but he or she needs to set the strategic goals to their VPs so they could set up more detailed tasks for the specialists (SCs).

CEO’s project consists of the four elements (categories in BSC Designer). It sure could be the four perspectives (according to the original theory by Kaplan and Norton, read more in the article “What is Balanced Scorecard concept: the four perspectives”) but in our example it will be just numbers of activities to abstract from the system of management and focus on the logic of BSC Designer program. In our example one of the activities CEO will perform by himself, it will be called “SELF” in the dashboard. The three other items will be delegated to their VPs so CEO could receive up to date information of the performance and monitor the dynamics of values. One of the activities will be delegated to VP1 and two of them will be delegated to VP2.

Now let’s create the project for CEO. Open BSC Designer PRO and start a new project (“Ctrl” + “N” buttons on the keyboard). Since the head of the company needs to have the overall view of all the company’s tree, let’s name their BSC project as “The whole company’s scorecard”. Click on “File” button on the top menu and select “Document Properties” sign. Then input the project’s custom name instead of “Balanced Scorecard” in the new dialog window. Here you may also add description for the whole project and author’s name but it is not actually needed for our example. Now it needs the four categories to be added named 1, 2, 3 and 4. Click on “Strategy Tree” button on the top menu and select “New sub category” four times to add the four categories. These categories might also contain indicators. To add indicators, click on “Strategy Tree” button on the top menu and select “New indicator” sign. Now when the categories and indicators are ready it needs them to be delegated to VPs’ projects. To perform delegation, select the category (let’s start with the first one according to our pan) and right click on it. Select “Delegate with indicators” sign in the pop-up menu. The program will ask to select the pass for the *.bsc project, where to delegate the category. If we had VP1’s project ready we could select the path for it and the category would be added to its tree. But in our case, the project does not exist, so it will be created by the program automatically when the name of the file will be input. So let’s input the name VP1 so the new project (VP1.bsc) will be created and will already contain the category delegated from CEO. Then let’s continue setting linking: the categories named “2” and “3” are needed to be delegate to VP2’s dashboard. Perform the similar actions as for the first delegated category, with the only difference in the name of file to export categories – it needs to be VP2.bsc instead of VP1.bsc. The fourth category will be left for CEO and will not be delegated according to the plan. That is it; here is our CEO’s project:

CEO’s project

VPs

VP1

In the hierarchy of our example company VP1 is the head of SC1 and their boss is CEO. That is why, at first, VP1 need to report CEO using the category that has been delegated to their project. The second responsibility of VP1 is to perform the operational activity (item called “SELF” in the dashboard). The third function is giving tasks to specialists (SCs) and performing monitoring of the dynamics of these tasks. While working VP1 could collect and analyze the information from the lower level as well as the data of their own indicators, and then report the overall knowledge to the boss.

According to the plan, VP1 has 4 activities in the dashboard. The first one is the task delegated by CEO, the second one is own operational task and the two last elements are the tasks for the lower level of company’s hierarchy. If the first category in CEO’s project would be the Financial Perspective, VP1 could be a Chief Financial Officer (CFO) and SC1 could be an accountant.

The BSC Designer’s project for VP1 has already been created, when CEO performed delegation of the first category. So now it needs to be opened. Let’s name the project (not file!) somehow, for example “The First Vice President’s project”. Now it needs three categories to be added (the first one already exists). The second category will be named “SELF”, the two last categories – “Task 1” and “Task 2” just like it is shown on the image. The indicators could also be added for every category. Now let’s perform the linking between VP1 and SC1. “Tasks 1” and “Task 2” are needed to be delegated to the file named SC1.bsc one by one. Since the file does not exist, it will be automatically created by the program just like the file, we are working under, had been created when CEO delegated the category called “1”.

VP1.bsc project’s tree

VP2

The role of the second VP is mostly similar to the role of the first one. The only difference is that VP2 has more than one task to perform and more than one delegated activity. Also VP2 has a task to delegate to the lower level (SC2 in this case) just like VP1 does. So this dashboard contains 5 elements: the first two of them are delegated from boss, the second two ones are operation task of their own and the last one needs to be delegated to SC2. According to the image of the planned structure above and the logic of the first VP, the project called VP2.bsc should turn out this way:

VP2.bsc project’s tree

SCs

Specialists as a lowest level of the hierarchy of our example company do not have any tasks to delegate. But they need to perform reporting to the higher levels (VPs). The connection had already been established while creating the projects for VPs. That means, the linking already works and SCs just need to input up to date information into the category, delegated from VPs. Also SCs have their own operational tasks to perform which are called “SELF” in their dashboards.

BSC projects for both SC1 and SC2 already exist and contain tasks, delegated to them from their bosses – VPs (VP1 –> SC1 and VP2 -> SC2). That is why we need to name their projects and fill it with tasks of their own. Three more categories are needed to be added to SC1.bsc and just one category is needed to be added to SC2.bsc. Also several indicators could be added to any of these categories. As a result we should have such BSC Designer’s projects for our SCs:

SC1.bsc project’s tree

SC2.bsc project’s tree

Conclusion

Now the cascading is established and could start functioning at any time. Also, knowing the logic of creating such group of projects and the algorithm of establishing connection between them, it should not be a problem anymore to set up a fast, stable linking between employees according to the structure of company’s hierarchy. Having several copies of BSC Designer it now needs just several clicks to delegate the function and then get up-to-date information of the indicator’s performance value as long as it is needed. Saving time to establishing connection could be a good factor to improve the performance by spending this time to some much more important activity.