Descriptive Analytics II: Business Intelligence and Data Warehousing - Balanced Scorecards

5 important questions on Descriptive Analytics II: Business Intelligence and Data Warehousing - Balanced Scorecards

What is a balanced score card (BSC)? Where did it come from?

Is a performance management system.
It comes from a methodology designed by Kaplan and Norton, 1992.  "Measures that drive performance" in 1992 and later in 1996; "Translating strategy into Action", that documented how companies were using BSC als for communicating and implementing their strategies.

What are the 4 perspectives that BSC suggests to view organizational perspectives?

  1. The customer perspective: metrics for satisfaction
  2. The financial perspective: financial, risk assessment, cost-benefit data
  3. The learning and growth perspective: "to achieve our vision, how will we sustain our ability to change and improve?" Metrics focusing on training funds, mentors, tutors..
  4. The internal business process perspective: focus on importance of business processes. Allow the managers to know how well their internal business processes and functions are running.

Why do we need to define separate objectives, measures, targets, and initiatives for each of these 4 BSC perspectives?

To overcome the limitations of being financially focused only.

What is meaning and motivation for balance in BSC?

Because the combined set of measures is supposed to encompass indicators that are:
  • Financial and non/financial
  • Leading and lagging(achterblijvend)
  • Internal and external
  • Quantitative and qualitative
  • Short term and long term

What are the differences and commonalities between dashboards and scorecards?

both are measurement systems
but sorecards are also a management methodology

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