Do you use business intelligence tools in your company? If you do, you probably know what a dashboard is. A real-time dashboard is an essential part of BI software today. What about scorecards, though? You may know all about dashboards, but do you know how scorecards work? While they sound like they perform the same task, they’re actually quite different to each other. You need both for your company to function efficiently, but you have to use them to their strengths. Here are some of the ways in which scorecards differ from dashboards.
What are They Used for
This is the first difference between KPI scorecards and dashboards. You use dashboards to measure the performance of your company. This is either by evaluating the performance metrics of your individual departments or the company as a whole. Dashboards help you and your managers monitor your company as it goes through daily operations. Scorecards, on the other hand, are meant to manage the overall progress of your company towards its goals. It isn’t meant to monitor daily objectives, but to measure how well the company is doing in the grand scheme of things.
The Type of Measurement Used is Different
As the name KPI scorecards may already have told you, scorecards use KPIs to measure progress. You define a target for your company, whether a certain sales volume or turnover rate. The metrics for that same factor are measured by your dashboard and used by the scorecard to compare the result to your target. Your dashboard simply measures company performance. Scorecards compare this performance to the targets you set for the company. In a dashboard, this measurement isn’t related to your business’ goals.
When Are They Updated
When you think about your Business Intelligence dashboard, what words would you use to describe it? Most people would go with “real-time”. Dashboards exist to give you better operational control. Using the data collected and presented in them, you can make better decisions for your company. This can boost your company’s profitability in time. A scorecard is different because it measures long-term progress. The updates to the information on your scorecard don’t happen until a certain period of time has passed. This is usually a month, although it can vary based on how your company measures success.
What Does Each Focus On
There are two types of goals a company can have. Some call this the vision and the mission. Others call them objectives and goals. The most common term in the business world is “operational” and “strategic” goals. A business dashboard focuses on measuring and achieving the operational goals of your company. These are the short-term objectives you have for it. Scorecards help you push your business towards its strategic goals or the long-term goals you want to achieve.
How Can You Use Each
Dashboards are used way more often than KPI scorecards because of their short-term usage. You use dashboards every day to get information about your company and what is happening in it. With your level of access to your BI software, you can view the statistics and measurements of your company at a high level. With a scorecard, you gain the ability to use measured data to identify problems in your company’s processes. You can use this data to work towards a solution to the problems your business faces.
Both dashboards and scorecards must be used together in the industry today. If you want to get an idea of both your long and short-term goals as well as varied types of measurements, you need both. Scorecards measure your long-term goals and compare them to your KPIs. They update periodically and give you strategic advantages. Dashboards focus on short-term work and present raw, real-time data. Both are crucial to your company’s success.