June 30 2014

As we address the Surviving to Thriving chapter on “Habit of Reflection and Intentionality,” one of the most frequent questions I am asked is about the difference between dashboards and scorecards. In brief, dashboards are more often used to track ongoing, short-term operational data. Scorecards, on the other hand, are more often used to track select data that is closely aligned with organizational strategy. The following provides more detail on the subject. For this discussion, I am drawing on the excellent work of Gary Cokins. First of all, we can see that (balanced) scorecards and dashboards have several things in common. Both typically:
  • Track results
  • Use visual aids like dials and sliders
  • Compare targets with actuals
Cokins continues to highlight the differences as he describes:
  • "Dashboards as 'dumb' reporting and scorecards as 'intelligent' reporting. . .Dashboards do not communicate why something matters, why someone should care about the reported measure or what the impact may be if an undesirable declining measure continues. In short, dashboards report what you can measure...scorecards report what you should measure.”
  • “Scorecards chart progress toward strategic objectives. A scorecard displays periodic snapshots of performance associated with an organization’s strategic objectives and plans. It measures organizational activity at a summary level against pre-defined targets to see if performance is within acceptable ranges. Its selection of strategic objectives or KPIs (Key Performance Indicators) helps executives communicate strategy to employees and focuses users on the highest priority projects, initiatives, actions and tasks required to execute plans. The adjective “key” differentiates strategic objectives or KPIs from the PIs (Performance Indicators) reported in dashboards. Scorecard KPIs ideally should be derived from a strategy map rather than just a list of important measures that executives have requested.”
  • “Dashboards monitor and measure processes. A dashboard, on the other hand, is operational and reports information typically more frequently than scorecards and usually with measures. Each dashboard measure is reported with little regard to its relationship to other dashboard measures. Dashboard measures do not directly reflect the context of strategic objectives."
In summary, we see these contrasts:
  • Balanced scorecards are rooted in the strategic planning process and context.
  • Balanced scorecards link high-level mission, vision, values, and themes with strategic objectives and measures (targets and actuals).
  • Dashboards tend to be a more ad-hoc collection of measures.
  • Dashboards indicate levels of activity and outputs.
  • The visible portion of the balanced scorecard is like the tip of iceberg.  The portion that you see represents just a portion of the total mass

Follow-up Questions:

  1. What is the history of your organization with scorecards and dashboards?
  2. Could you explain to others the differences between a balanced scorecard and a dashboard?
  3. Are your measures and data connected with your strategy?

Internet Resources

How are balanced scorecards and dashboards different? (Excellent overview by Gary Cokins)http://www.information-management.com/news/10001076-1.html?zkPrintable=1&nopagination=1 There are significant differences between balanced scorecards and dashboards (a 4-minute YouTube video that highlights the key scorecard vs dashboard differences. Very easy to understand): Dashboards and Scorecards

References

Niven, P. (2008). Balanced Scorecard: A Step by Step for Government and Nonprofits. Hoboken: Wiley.

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