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Cognos TM1

Performance Scorecard Solutions

Performance Scorecards can be used at both the tactical and strategic levels for performance measurement and management. Scorecard applications quickly adopted concepts like "traffic lighting" (i.e. red, yellow, green) of actual-to-plan variances, relative ranking, and the derivation of Key Performance Indicators from large volumes of transactional data. These summarization and visualization techniques have gained wide acceptance, with numerous scorecard or dashboard applications appearing in many corporations throughout the 1990s, often with a focus on Web-based deployment. The main concept has usually been to provide the users of the application with an "at-a-glance" picture of their business.

Well-designed performance scorecards should enable the users to dynamically access "feeder" applications in order to better understand the reported problems and make decisions on how to improve the situation. Also, as scorecard applications proliferated, they quickly became tied to the performance goals of the individuals using or developing the application. It has become apparent that as people increasingly manage their performance and plan their decisions and activities based on these systems, care must be taken to ensure that scorecard parameters are established to appropriately weigh and reconcile conflicting objectives, and that the entire company is moving in the same direction and toward the same goals.

  

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