Transforming data into meaningful insight is a crucial function for virtually any company today. From cash flow, sales and marketing, to profits and customer services, there are vast amounts of information that must be collected, stored, organized and analyzed for businesses to make strategic decisions in fast-moving times. Traditionally, spreadsheets were the main tools for organizing and analyzing data, however, modern C-level staff don't have the time to look through multiple reports and spreadsheets to understand what’s happening in their business. We live in a fast-paced world, and the time it takes to make important business decisions can affect your bottom line. Making decisions when you don’t have the right data in front of you can undermine your ability to achieve the strategic intent of your organisation That’s why scorecards are so important to today’s decision makers.
Scorecards are visual representations of often vast quantities of information from various sources that allow C-level professionals to make confident decisions backed by real-time data.
Scorecards are used extensively in business and industry, government, and nonprofit organizations to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. Scorecards transform an organization’s strategic plan into actionable KPI’s for the organization. They provide a framework that not only provides performance measurements, but also helps planners identify what should be done and measured. Scorecards tend to be made up of about 20 to 25 of the most strategic KPI’s. These KPI are split into 4 domains: Corportate contribution, Customer Service, Operations and innovation. They are meant to provide a holistic model of strategy execution.
Let’s take a look at six reasons business decision-makers prefer scorecards vs spreadsheets:
- Scorecards focus on the KPI’s that matter: Data can be visualized and combined from any source—including Excel—and displayed in one central scorecard. Having a focus on the KPI that really matter will save you time and allow you to make informed strategic decisions quickly.
- Real time data means better decision-making:. Sourcing KPI’s from real time or near real time data ensures the most up-to-date information is available at any given moment. With spreadsheets, new data is often manually entered, or calculations and formulas are edited, which can take time and be the cause of unnecessary errors. This is a major drawback when it comes to working with spreadsheets as finger-errors very often require staff to backtrack to prior versions to rectify mistakes. With automated reporting, key metrics will update automatically to provide insights in real time.
- Mobility: Spreadsheets aren’t always easy to view and manage on smart devices. With a scorecards , you can see your key metrics on any device from any location at any time of the day. This is perfect for busy executives who need to make important decisions on the fly.
- Improves end-to-end business visibility: Business leaders who use scorecards have better visibility and insight into all aspects of their business, which means they are able to monitor their employees, understand process bottlenecks or identify opportunities to elevate business performance. When employees know management is monitoring their work, they tend to work harder and kick it up a notch or when information is easily shared across the business, tighter collaboration tends to be a natural result thereof.
- The ability to drill-down through files: Executives can drill down to get the exact information they want. This makes it easier to make strategic decisions quickly as the data is easy to access. What makes scorecards so ideal, is that they perform much of the complex and process-heavy functions such as organizing, analyzing and storing data in the background, while executives concentrates on gaining new business insights.
- Makes data more useful: Being able to view the KPI’s that matter in easy-to-understand visual formats makes it easier for C-level staff to quickly identify problems and establish a course of action before it becomes a major issue. Scorecards allow for ongoing improvement by increasing transparency and accountability, which in turn helps to motivate the
In today’s increasingly demanding, competitive and fast-changing world, it’s become increasingly important for C-level staff to understand how their companies are performing in real time. Business Value Scorecards streamline the decision-making process and help decision-makers apply the information in timely and meaningful ways.