Oracle Scorecard and Strategy Management Christian Dunshirn Oracle Austria GmbH Oracle BI11g Launch Event, Vienna, 23.09.2010
What is a scorecard?
Scorecards What Are they? A Structured Management Discipline Extended Business Intelligence Key Performance Indicators Measures Digital Dashboards Management Cockpits Benchmarking
Balanced Scorecard Basics The balanced scorecard is a strategic planning and management system.. to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. originated by Dr. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance...the new balanced scorecard transforms an organization s strategic plan from an attractive but passive document into the "marching orders" for the organization on a daily basis.
Dashboards and Scorecards Complimentary Perspectives Past Future Business results Operational and strategic Root cause analysis Guided navigation Alerting Benchmarking Metrics Graphics Reporting Metadata Strategy deployment People & team Accountability maps Management processes Initiative tracking Cause & effect Collaboration Dashboards Why did I miss my goal? Scorecards How do goals support our strategy?
What is Scorecarding? Scorecarding is a methodology that enables you to communicate strategic goals to your organization and monitor their progress A Scorecard should answer questions like : Where is the organization going? How will we get there? What is critical to my success? How am I doing against my goals? but most importantly! The Scorecard is your communication vehicle
Strategic measuring of performance Four Management Functions : Planning, Organizing, Leading, Controlling If you can t measure, you can t manage If you can t measure, you can t improve What gets measured, gets done Permanent Measurement is core of the Balanced Scorecard 7
Why do I need a scorecard?
Reasons for the Need of a Balanced Scorecard 1. Focus on traditional financial accounting measures such as ROA, ROE, EPS gives misleading signals to executives with regards to quality and innovation. It is important to look at the means used to achieve outcomes such as ROA, not just focus on the outcomes themselves. (Source: Kaplan & Norton, 1996) MBAO 6030 Human Resource Management
Reas 2. Ex suc fina (Source: Kapla
Reasons for the Need of a Balanced Scorecard 3. Some non-financial measures are drivers of financial outcome measures which give managers more control to take corrective actions quickly. (Source: Kaplan & Norton, 1996) MBAO 6030 Human Resource Management
Reasons for the Need of a Balanced Scorecard 4. Too many measures, such as hundreds of possible cost accounting index measures, can confuse and distract an executive from focusing on important strategic priorities. The balanced scorecard disciplines an executive to focus on several important measures that drive the strategy. (Source: Kaplan & Norton, 1996) MBAO 6030 Human Resource Management
Balanced Scorecard Perspectives Financial: What are our shareholders expectations for financial performance? Customer: To each our financial objective, how create value for our customers? Internal Process: What processes must we excel at to satisfy our customers and shareholders? Learning & Growth: How do we align out intangible assets people, systems, and culture to improve the critical processes? (Source: Kaplan & Norton, 1996) MBAO 6030 Human Resource Management
Oracle Scorecard & Strategy Management
Complete. Oracle Business Intelligence 11g Data Integration Scorecards Interactive Dashboards Reporting & Publishing Ad-hoc Analysis Office Integration Search Detect & Alert Collaborate Mobile Embedded Common Business Intelligence Foundation OLTP & ODS Systems Data Warehouse Data Mart Exadata OLAP Sources Packaged Applications (Oracle, SAP, Others) Unstructured & Semi-Structured Excel XML/Office Business Process
OSSM Offers An Environment to Monitor KPIs and Strategy Define KPIs to measure progress and performance over time Graphically communicate strategy & strategic dynamics using Strategy Maps Strategy Trees Cause and Effect Diagrams Custom views Navigate these business relationships seamlessly to expose the root cause of anomalies
OSSM Offers An Interactive, Collaborative Environment Dashboard integration Embed scorecard visualizations into dashboards to foster broad interactive analyses KPI Agents To monitor performance even when you can t KPI & Scorecard Actions Align day-to-day decisions with your corporate strategy Annotations & Overrides Collaborate and document exceptions to prevent future recurrences
OSSM Offers KPI Management Track Performance Define Responsibility Collaborate Assign Actions
KPI Performance
KPI Performance Traffic Lighting
KPI Ownership
KPI Collaboration Threaded Discussions
KPI Collaboration Related Documents
Action Link Types
Strategy Map
Strategy Tree
Cause and Effect
Summary A scorecard helps to define and communicate the vision and strategy of an organization A scorecard includes financial and non financial aspects A scorecard is the extension of Business Intelligence A dashboard is no scorecard but has to be integrated with a scorecard A scorecard needs to be based on the view of the whole organization