Examining your options between dashboards and scorecards?
A scorecard is a strategic framework that helps align your organizational strategy with your company objectives. A dashboard is a business intelligence (BI) structure that gives you a visualization of a large set of data.
Both are excellent tools to have in your strategic toolkit, and they have quite a few similarities. They both need a process of data acquisition, data storage, and data management. They both need a process for generating insights, so you can make changes going forward. But, they also have quite a few differences, which we’ve outlined below.
Let’s take a closer look at the similarities and differences between these two business intelligence solutions and how you should consider putting each of them to work.
Unfortunately, there isn’t a simple formula that will help you understand which of these you should use. That being said, there are some guidelines you can follow to be sure you’re selecting the right method. Let’s look at a few examples:
Our first example deals with the number of KPIs your organization has. Actually, this isn’t the best determinant of which method you should use, but it will help you gain better insight into the strengths and weaknesses of dashboards and scorecards.
The next example deals with control.
Dashboards and scorecards are both excellent business strategy tools. But if you implement the wrong one, you may be doing yourself a huge disservice. If you are a smaller organization and are enamored by ad hoc analysis, it may be tempting to look at a dashboard without even thinking through that decision. You could end up implementing a $250,000 solution for a $25,000 problem. Spend some time reviewing both of these frameworks so that you select the best tool for your organization.
A big thanks to Stephen Stone, the Vice President of Financial Management at Method 360, for offering his valuable insights for this article.
Joseph is the Vice President of Customer Success at ClearPoint