A scorecard is a business intelligence tool used to record an organization's strategic business model and implement it into the daily agenda. The scorecard sets the stage for future business goals and lays out a plan of attack to reach them.
First and foremost, to be a useful, a scorecard must track the right key performance indicators. The ultimate goal of creating a scorecard is to identify a select number of business metrics and assign objectives to them. When referred to later on it should be possible to reach a solid conclusion regarding performance versus expectations.
Methods for creating a scorecard have evolved many times since they became a popular BI tool. Today there are four main components to consider before creating one:
Once these four elements have been carefully considered and laid out by management, one can begin creating a scorecard.
The destination statement defines the final goals that an organization is attempting to reach by creating a scorecard in the first place..
The strategic linkage model is a cause-and-effect outline of how an organization will ultimately reach an end goal. This is typically a strategy map that links activities to their hypothesized results.
InetSoft's Style Intelligence software offers unique capabilities for data mashup, enabling data from disparate sources to be combined for a unified view of corporate performance. This is especially important for management scorecarding since the key performance goals span multiple departments and operational systems.
Copyright © 2023, InetSoft Technology Corp.