At this level KPIs are getting quite granular and are
more difficult to distinguish from measures, but companies that closely monitor their
total salary expense may well provide incentives to managers to keep salaries in their
departments to a minimum. Recall that if a manager finds part of his or her bonus
based on a particular item, that item is an excellent candidate to be a KPI.
Given this information, scorecards are a collection of multiple KPIs, often broken
down into perspectives, and sometimes the KPIs allow the users drill down to lower
level KPIs. There is generally one overall scorecard for the entire business, and
then many additional scorecards for different functional areas or even individual
managers. Scorecards are often used by business decision makers because they
provide the high level picture without the need for the person to assimilate large
quantities of data, but scorecards can be useful for nearly anyone who wonders how
the business is performing.
Another concept that is often mentioned along with scorecards is that of
dashboards. In fact, many organizations use the terms more or less interchangeably.
Technically, a dashboard is more than a scorecard because it may contain multiple
scorecards or items in addition to scorecards. So while a scorecard is usually
displayed as a part of a dashboard, the dashboard might also show reports, charts,
company news, and so forth. In other words, a dashboard is like a personalized
portal, and the terms dashboard and portal certainly do become blurred.
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