BI Program Business Mistake 4 - Dashboard Blindness
A favorite response to BI from exectuvies is "I Only
Need A Dashboard"
Busy executives and business managers constantly demand quick feedback
on corporate performance, and see dashboards as the quick hit wonder
to provide that visibility.
Balanced Scorecard, which is in simple terms a dashboard enhanced
by CPM methodology is commonly perceived by executives as taking
too long and being too complex to manage. Hence, once they have
their dashboards they become blinded to the real need for anything
further. Yet nothing could be further from the truth.
Yes, dashboards as the quickest, most effective means to provide
visibility to performance on key indicators. However they provide
little value, and at times lead to incorrect assumptions uness:
- they reflect the actual drivers of business performance, linked
to key corporate objectives
- they are dynamic with drill-through to the underlying data
for further analysis
- the insights gained can be fed back into these dashboards and
acted on in a closedloop
With this capability, the dashboard becomes a true performance
BI Business Solution
An effective performance management system is one where:
- Consistent information is availalbe, and tailored to specific
- Definitions, targets, and thresholds are commonly shared and
understood by everyone.
- Dashboards and scorecards are connected to the underlying performance
data and share consistently defined targets.
- Strategy maps define strategic objectives and illustrate how
key processes link, and metrics used.
- People at any level of the organization can gain a clear understanding
performance is on-target and where corrective action is needed.
- Each metric has an assigned owner to ensure that poor performance
is not overlooked or does not go unaddressed.
- Guided analysis features place metrics in their proper context
and lead users to the
answers more quickly.
- Embedded initiative tracking features help people inform or
collaborate with others on a solution, or make the right decision
on their own.
- Executives can deploy dashboards, scorecards, strategy maps,
and any related information consistently, across the organization
to ensure people work from the same definitions and to the same
BI IT Solution
If you have implemented a solid data warehouse infrastructure,
then a performance dashboard or even a complex scorecard is relatively
easy to create.
- Ensure that data and metrics required for strategy maps used
in conjunction with scorecard or dashboard is available as a priority.
If such mapping isn’t completed, the scorecard offers little
more than a collection of unrelated metrics.
- Ensure ownership, accountability, consistency, and collaboration
are adopted as key attributes of an effective performance management
system. This requires that dashboards and scorecards are connected
to the underlying performance data.
Next: BI Program Business
Mistake 5 - KPI
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