· Score cards arrange KPIs in to hierarchies, strategies etc..,
· Administrator defines objectives and initiatives and associates KPIs with them.
· Visualized through strategy trees, strategy maps, Cause - and - Effect maps.
· Analyzed through interactive points of view.
· Kaplan & Norton's balanced scorecard book suggested four perspectives:
1) Financial: The stake holders view, the financial performance of the organization.
2) Customer:How you treat your customers or other stake holders.
3) Internal Process: Efficiency of internal processes.
4) Learning and Growth: How do you sustain success over the longer time?
Strategy Tree:(Most commonly Used):
· A strategy tree is formed from one or more objectives. Each objective then consists of one or more child objectives or KPIs.
· KPIs are used to determine the overall score of an objective, which then contribute to score of any parent objectives and the overall strategy tree.
Cause Of Effect Maps:(Fish bone Diagrams):
· Cause and effect maps are used to communicate how objects can affect each other. In example : "100% customer satisfaction and Employee satisfaction have an effect on "Continued Revenue Growth" and "100% customer satisfaction and Employee satisfaction are caused by "Streamlined Operations".
· A strategic map shows how the objectives that have been defined for a scorecard and the KPIs that measures their progress are aligned by perspectives.
· It also indicates cause and effect relationship between object and other objectives or KPIs with connecting lines.
· First we have to save the scorecard.
· From left hand side, strategy pane, click on create objective and name it a s improve overall performance.
· Click on save.
· Just now we have created high level objective below that we will create two sub objective.
· Click on create objective and name it as Improve Financials.
· Save it.
· Again by selecting the main objective create one more sub object and name it as Quality maintain.
· Save it.
· Select maintain Quality tab, select perspective as customer and save it.
· Select improve overall performance tab and select assessment formula as "Weighted". Provide 70 for financial and 3o for Maintain quality.
· Select improve financials tab, from the catalog drag and drop two KPIs amount to target and margin to target and select defaults.
· Save it.
· Go to maintain quality tab, bring staff satisfaction, customer satisfaction KPIs.
· On the left hand side strategy pane, click on strategy tree and you will be able to see the strategy tree with main, sub objectives and KPIs.
· Try to create new dashboard and bring the strategy tree on to the dashboard.