If, on the other hand, the company is producing
only 75 expensive products a day and 50 fail the quality control check, there is
likely a serious issue that needs to be addressed. The idea behind scorecards is not
to necessarily display the number, but to provide an icon that indicates whether the
number is good or bad. This icon can take the form of colored indicators (green/
yellow/red), smiley faces, gauges, dials, and so forth. This way, at a glance, an
individual can determine whether things are good (or not) for each particular KPI
without having to see the exact number or translate a number into an indicator of
overall health.
C h a p t e r 1 : T h e C a s e f o r B u s i n e s s I n t e l l i g e n c e 11
In addition to the health of a KPI, many KPIs also have a trend indicator, showing
whether they are improving or slipping. In the case of the number of items failing
a quality control audit, lower numbers are better, so a decline in the number would
actually be a positive trend. Because the trend and the health of a KPI are tracked
separately, the health might be good but show a downward trend, or a KPI with poor
health might be holding steady, indicating that efforts to improve it are not having
any impact. Figure 1-2 shows a sample scorecard in PerformancePoint Server.
The name scorecard also implies some form of score. Many organizations do
not go through this process, but KPIs can be weighted so that an overall score is
generated.
Pages:
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41