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From a simple excel dashboard to a fully integrated enterprise reporting suite, the Business Dashboard is being quickly adopted as the new face of Business Intelligence. It has a rapidly growing role in BI reporting and analysis.

An enterprise dashboard allows at-a-glance visualization of company health and monitoring of key performance indicators. Simple to understand and high in ROI, these executive dashboards are becoming "must-haves" for all enterprises. Easy-to-use by business users and fun-to-implement by the IT department, BI dashboard projects are quickly funded and politically popular.

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Difference between Balanced Scorecard and Enterprise Dashboard

A Dashboard Spy reader who is getting involved in a balanced scorecard reporting project asked me the difference between enterprise dashboards and balanced scorecards. He was getting confused between all the different approaches that his team could take. We had an interesting conversation with a couple of interesting screenshots that we passed back and forth. I thought it valuable enough to share with you today.

An interesting webpage on the difference between balanced scorecards and enterprise dashboards can be found here: Dashboards vs. Scorecards. The page states correctly that the difference lies in the degree of “balanced scorecard formality”, that is, the balance scorecard approach has strict elements:

Components of a True Balanced Scorecard: While both Balanced Scorecards and Dashboards display performance information, a Balanced Scorecard is a more prescriptive format; a true Balanced Scorecard should always include these components: Perspectives (groupings of high-level strategic areas), Objectives (verb-noun phrases pulled from a strategic plan), Measures (also called Metrics or Key Performance Indicators/KPIs), and Stoplight Indicators (red, yellow, or green symbols that provide an at-a-glance view of a Measure’s performance). These specific components help ensure that a Balanced Scorecard is inherently tied to the organization’s critical strategic needs.

They provide the following example of a balanced scorecard dashboard:

Balanced Scorecard Dashboard

This is contrasted against the more loosely defined standard of an enterprise dashboard:

Dashboards – More Loosely Defined. The design of Dashboards, on the other hand, is much more open to interpretation. Most Dashboards are simply a series of graphs, charts, gauges, or other visual indicators that a user has chosen to monitor, some of which may be strategically important, but others of which may not. Even if a strategic link exists, it may not be clear to the person monitoring the Dashboard, since the Objective statements, which explain what achievement is desired, are typically not present on Dashboards.

As an example of a dashboard, the company took a subset of the above balanced scorecard and presented it as a more high-level KPI dashboard. It focuses on presenting a manufacturer’s sales KPIs.

Manufacturing sales KPI dashboard

Tags: Balanced Scorecard vs. Enterprise Dashboard, Manufacturing KPIs and Metrics, Enterprise Dashboard Design, Balanced Scorecard Methodology, Difference between scorecards and dashboards

Dashboard Spy Reader bonus link: Download article from the Harvard Business Review - The Balanced Scorecard - Measures That Drive Performance

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One Response to “Difference between Balanced Scorecard and Enterprise Dashboard”

Humbertop picardi Said on June 3rd, 2008 at 8:51 pm quote
very good. few articles dealing with the differences have screenshots

Last Modified: Monday, August 6th, 2007 @ 11:03

This business intelligence dashboard blog entry was posted on Thursday, April 5th, 2007 at 1:33 pm and is filed under Dashboard Screenshots. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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"Dashboards By Example - BI Dashboard Samples" is the theme and mission statement of this blog. We salute the Dashboard Spy in the field - those business users, project managers, IT executives, application designers, business intelligence experts, analysts, coders and subject matter experts who are on site creating this exciting and new "face of BI". Your business intelligence dashboard can go by many names - performance dashboard, executive dashboard, business dashboard, balanced scorecard, KPI metric summary, enterprise dashboard, bi dashboard, corporate dashboard. Whatever we call it, we believe that the at-a-glance visual approach is the key to user-centric design. Let's learn from each other's dashboard examples and continue to increase the level of usability and usefulness.

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