Balanced Scorecards 2010

7/30/2019 Balanced Scorecards 2010

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BALANCED SCORECARDS ANDPERFORMANCEPOINT 2010

Michael Nemtsev,

Senior Consultant, Gen-I



AGENDA

• Introduction

• Overview of Balanced Scorecard methodology

•

What is KPI / Scorecard / Dashboard /• Performance Point 2010 – KPI & Scorecards

• Building Scorecards with Open XML



WHO AM I?

• Senior Consultant in Information Management, Gen-I

• Microsoft MVP [SharePoint Server] 2009 - to date

•

Microsoft MVP [.NET/C#] 2005-2009• Certified: ITIL v3, SCRUM Master, MCTS

• Blog: http://msmvps.com/blogs/laflour

• SP Tips: http://sharepoint-sandbox.com

• Twitter: @laflour

http://msmvps.com/blogs/laflour

http://sharepoint-sandbox.com/




http://msmvps.com/blogs/laflour



INTRODUCTION



PROBLEM STATEMENT

• Problem domain - “I have several piles of data, and I

want to get some value out of them”

• Issues – what to measure, how to measure, how to

get/apply/analyze data



SOLUTION

• Business Intelligence Applications - a category of methodologies and technologies for gathering, storing,analyzing and providing access to data to helpenterprise users make business decisions.

• Actions:

• Visualize

• Aggregate

• Report

• Drill / Slice



TRADITIONAL SYSTEM OUTBACK

Financial systems based upon financial indicators target:

• - Outcome focus: turnover, profit

•

- Past events: number of items

Drawbacks – no indication when things may go

right/wrong



TRADITIONAL SYSTEM SAMPLE

Airline company monitors the following data:

- Sold tickets

- Cargo items- Number of serviced aircrafts



TRADITIONAL SYSTEM SAMPLE

Airline company should monitor the following data:

- Sold tickets quality

- Cargo items volume- Number of serviced aircrafts duration of service



BALANCED SCORECARDS



BALANCED SCORECARDS

• Invented by by Robert Kaplan and David Norton in

1992

• Focus off the balance sheet (profit/loss)

•

Pay attention to factors that are indicative of the health of the company.



BALANCED SCORECARDS

• Inverting approach to monitor the process, not results

• Identify factors that are critical to the business success,

before they become critical problem

• Example: decreased customer satisfaction will

eventually show up in increased loss and lower profit



CLASSIC BALANCED SCORECARDS

• Perspectives

• Financial : profit-and-loss

• Customer : satisfaction

• Processes (internal, business):

health of processes

• Learning and growth:

employee’s quality and satisfaction

• Issue – measures can be irrelevant to the strategy



IMPROVED BALANCED SCORECARDS

• Strategy maps - is a visual representation of the strategy

of an organization.

• Goals:

• plan or competitive strategy to achieve increased profitability

(commercial)

• improve performance (government)

• cause-and-effect relationships between different strategic

objectives and their measures



BALANCED SCORECARD PROCESS

1. Review and clarify strategy

2. Agree which capabilities required to pursue the strategy

3. Build a map how business works4. Design / Select measures

5. Assign teams to come up with measures

6. Build Scorecard application



BUILDING BLOCKS



KPI

• KPI (Key Performance Indicator) a measure of performance in actual/target values

• KPIs are data driven values

• The KPIs are aligned to organization's strategy

• KPIs are usually used to "value" difficult to measureactivities: leadership, quality, satisfaction

• Example:



IDENTIFYING KPI

• KPI differ from business drivers & goals

• KPIs rely on:

- predefined business process & requirements- strategy maps

- quantitate measure of results



SELECTING RIGHT KPIS

• 12 Steps process to select KPIs (http://tinyurl.com/23jnham)

• KPIs measure the relevant values across entire

company

• Good KPIs: students failure rate in school, percentage

of income from return customers

• Dangerous KPI: employee retention

http://tinyurl.com/23jnham

http://tinyurl.com/23jnham



SCORECARDS

• Scorecard tracks the

collection of KPI for

particular goal

• A scorecard measuresperformance against goals

• Tracked KPI may be

aggregated with scores• Audience – executives



DASHBOARD

• A dashboard is a container

for various types of reports,

including scorecards

• Provide high level of interactivity, and others

display static images

•

Audience - Supervisors



SCORECARDS VS DASHBOARD

© Wayne Eckerson

Scorecards are strategic – represent long term goals on

weekly/monthly basis

Dashboard is tactical – real time data (charts, graphs)



TOOLS



MICROSOFT 2010 BUSINESS INTELLIGENCE

STACK

• SQL Server 2005, 2008, 2008 R2

• SharePoint Technologies 2007, 2010

• WSS / SharePoint Foundation

• MOSS / SharePoint Server

• Performance Point 2007 / Services 2010

• Office Clients and Web Apps



SHAREPOINT 2010 BI TOOLS

HTMLDashboard

Chart WebParts &

Indicators

SQL Server Reporting

Services

Excel Services

Visio Service

Performance

Point ServicesOpen XML



SHAREPOINT BUILDING BLOCKS

Technology Benefits Constrains

HTML Dashboards Doesn’t require any special tools Not easily manipulated by end

user, only reports against

SharePoint lists (JS in CQWP)

Data Form Web PartDashboards Сan build DFWPs against external data Requires SPD skill set, notmaintainable by end user

Charts Web Part &

Indicators

Professional quality graphs Hard to customize and modify.

SQL Server Reporting

Services

Professional quality graphs, drill-down

reports, SharePoint Integration, canreport against external data

Requires Business Intelligence

Design Studio (BIDS) or ReportBuilder, SSRS skill set, not easily

maintained by end user;

Limited HTML support



SHAREPOINT BUILDING BLOCKS (CONT)

Technology Benefits Constrains

Excel Services

Visio Services

Can be maintained by end user, client doesn’t

require Excel, offloads Excel calculations

Limited Functinality, additional

hardware (best practice)

Performance Point

Services

Provides most BI capabilities: graphs, KPIs,

some configurable by Information Workers

Requires Performance Point

Designer, additional hardware(best practice), scorecards

provides values only

Open XML HTML rendering; can be maintained by end

user, especially with Web Apps

Only for Scorecards – a lot of low

level development; no animation



PERFORMANCE POINT SERVICES 2010

• Context-driven dashboards across systems

• Provides transparency and accountability

• Interactive access using browser

•

Functionality:• Business Analytics

• Financial Reporting

• Consolidation

• Planning

• Budgeting & Forecasting

• Scorecard Management



BUILDING BLOCKS DEMO



OPENXML SCORECARDS



MOST POPULAR BUSINESS PROCESS

• Some content about cool stuff





BUSINESS CHALLENGES

• Users want Rich Formatting capabilities of KPI

• Information is represented as HTML with images andstyles

• Users want collaborate around KPIs

• Approval process for KPI is required

• Scorecards must render HTML content of KPIs

• Executives manages require “printable” version of Scorecard



WHY CUSTOM SOLUTION?

• Lack of collaborative functionality for business solution

• Lack of reporting functionality with HTML content

• No tools to build “offline” version of the Scorecard

(dependency on images urls)



WHAT IS OPENXML?

• International standard for document formats

• Designed to enable interoperability

• Open Specifications enable broad access to technology

Open file formats

• ZIP compression reduces file sizes

• Segmented data storage improves data recovery and programmatic access

• Full accessibility support

The future of file format technology

• Standardized file formats supporting 100% of Microsoft Office functionality

• Supported in Microsoft Office OpenOffice.org, Corel WordPerfect, IBM Lotus Symphony

• Document conversion, deployment and migration tools available

Compatible file formats



OPENXML SOLUTION

• KPIs are represented as SharePoint Lists with Rich

Text Editor Field

• Three-state approval Workflow is attached to KPIs

• Users are subscribed to KPI changes via Alerts

• Scorecards Report represent



MODIFIED PROCESS



SCORECARDS BOARD

REPORT DEMO (OPEN XML)



LINKS

• “Balanced Scorecards: Translating Strategy

into Action”

• “Pro Performance Point Server 2007”

Apress

• www.openxml.org

• http://blogs.msdn.com/b/performancepoint/

http://www.openxml.org/

http://blogs.msdn.com/b/performancepoint/







Q&A

Balanced Scorecards 2010

Documents

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