Chapter 5: Building an Overall Tactical Scorecard

After completing this lesson, you will be able to: Reference results of other tactical scorecards to another tactical scorecard. Change stretch targets and weights for different periods. Add period dependant commentary. Refresh and display comments.

Creating an Overall Tactical Scorecard

Creating an Overall Tactical Scorecard

Creating an Overall Tactical Scorecard

In this example the Warehouse/Service Centers executive officers would like to a view of the organization that includes Inventory Management and Customer Service. Currently they want a scorecard view that displays relative importance (weighting) between the companys two primary areas and assign commentary. This scorecard could be used later if an organizational strategy diagram needs to be created. The individual tactical scorecards have already been built in chapter 3, now you will need to create the overall scorecard to view how one area of the company affects another. One scorecard could be created which contains all the inputs and results, but typically scorecards are built by separate people/departments and they will need to be linked together. The two areas currently defined for the organization are Inventory Management and Customer Service. For the entire year of 1998 the primary function of the Warehouse/Service Center was to supply and monitor inventory and not to concentrate highly on Customer Service. As the year ended the company noticed that the Service Centers manager was very successful at monitoring inventory and that inventory management in one of the primary warehouses needs assistance. So, management decided that the inventory will eventually be phased out of the center and the Service Centers manager will be relocated to the primary warehouse to increase performance levels. The new manager for the Service Center is customer service oriented and will introduce performance plans to bring all the tech reps up to planned KPI performance. Due to the organizational change, in January and February 1999 you will need to edit the weighting of Inventory Management and Customer Service to reflect this change. Customer Service will be 92% and Inventory Management will be 8% of the Overall Performance score. When evaluating the Warehouse/Customer Service for 1998 Inventory Management is twice as important as Customer Service. To summarize 1998, the following business functions and weights will be assigned:

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Create a New Scorecard

Creating an Overall Tactical Scorecard

Create a New Scorecard

You will build this scorecard similar to the two created in chapter 3, except the inputs have already been defined from the separate tactical scorecards. The first step in creating the overall tactical scorecard is defining the periodicity and setting up the results. Complete the following steps to create the overall tactical scorecard: 1. Select the Create New Scorecard icon from the toolbar. Since the Inventory Management and Customer Service scorecards have the date frequency of Calendar Month you will use the same. 2. Click the Date Frequency drop down box and select Calendar Month. 3. Click OK to continue. Remember the inputs have already been added to each tactical scorecard, you will need to start this scorecard by adding one result, Overall Performance. 4. Select the Result button from the tool bar. 5. Rename the result Overall Performance. 6. Select OK to continue. Your scorecard should look similar to the one below:

CorVu Corporation 2000

Creating an Overall Tactical Scorecard

Creating an Overall Tactical Scorecard

Referencing the Results

In this section you will specify the results for the Scorecard. The Inventory Management and Customer Service scorecards have already been built, now you need to reference these results to bring in the data from each tactical scorecard. Complete the following steps to specify the reference results: 1. Right-mouse click on the Overall Performance result in the scorecard pane. 2. From the speed menu select Add Referenced Result. Your speed menu option should look similar to the one shown below:

You will need to reference a different scorecard file to attach the result. 3. Select the Reference Scorecard File option. 4. Select the File button. 5. Choose the Inventory Management.pmm that you created in chapter 3. 6. Select the Result of Inventory Management.

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Create a New Scorecard

Creating an Overall Tactical Scorecard

Your scorecard should now look similar to the one below:

The referenced result is identified by the

icon in the left hand corner.

7. Repeat steps 2-6 to reference the Customer Service result from the Customer Service.pmm. Your scorecard should now look similar to the one below:

CorVu Corporation 2000

Creating an Overall Tactical Scorecard

Creating an Overall Tactical Scorecard

Assigning Weights for Individual Results to Overall Performance

Now that the results have been linked you will need to assign weights to the two results. 1. Double click on the Edit Stretch Targets/Weights in the Check List. 2. Change the weighting to 66.7 for Inventory Management and 33.3 for Customer Service. 3. Double-click on the Select Period check list option and select January 1998. 4. To populate the scores from the referenced scorecards you will need to select the calculate button on the toolbar. Your scorecard should look similar to the one shown below for January 1998:

Tip You can modify the icon colors to display 3 levels. Refer to pages 3-17 to 3-21 to set up color levels. Changing Stretch Targets and Weights The scorecard is accurate through the year 1998, but since the organization went through a management change starting in January 1999 and decided to eventually phase out inventory. You will need to reflect the organization change by modifying the weights of Inventory Management result to 8% and Customer Service to 92%. Assigning commentary indicating the change also needs to be added to note and document the changes.

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CorVu Corporation 2000

Create a New Scorecard

Creating an Overall Tactical Scorecard

Complete the following to modify the weighting of Inventory Management and Customer Service: 1. Select the Period|Edit Stretch Target/Weights from the scorecard menu. 2. Select January and February of 1999. Note: Do not right-mouse click on Overall Performance in the Scorecard pane to change the weights, unless you only want to change the weighting for that specific period. Note: Do not double-click Edit Stretch Targets/Weights in the Check List unless you want to change the weighting for all periods. Your Select Periods dialog box should look similar to the one shown below:

3. Select OK to continue. 4. Change the Inventory Management weight to 8.00 and Customer Service to 92.00. 5. Select OK to continue. The score for January and February of 1999 will have changed. For January 1999 the score should be 3.26, which now reflects the change of importance between the two departments.

Drilling into Referenced Results

Now that the results have been linked and weighting assigned you will drill down to the referenced results. Complete the following to drill down to the referenced tactical scorecards: 1. Double click on the score for Inventory Management to open the Inventory Management scorecard for the same period. 2. Close the Inventory Management scorecard to return to the Overall Performance scorecard.

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Creating an Overall Tactical Scorecard

Creating an Overall Tactical Scorecard

Adding Commentary
The commentary that you will add to the scorecard will be period dependant; since the organization change took place in January 1999 you will add the notes to this specific period. The management change note will be added similar to a post it note and the note specifying what values were changed in the scorecard, due to the change in management, will be added as a note which displays similar to an e-mail. Complete the following to add the post it note type commentary: 1. Change the period to January of 1999 if this period is not being currently viewed. 2. Right-mouse click in the scorecard pane and select Add Note Here. Your speed menu option should look similar to the one below:

3. Type in Management Changed for the note. 4. Select OK to continue. Tip The note icon properties can be changed by right-mouse clicking on the note and by choosing Edit Icon.

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CorVu Corporation 2000

Create a New Scorecard

Creating an Overall Tactical Scorecard

Your scorecard should look similar to the one shown below:

The note of Management Changed has been added. You will now add the commentary that explains what scorecard changes were made to during the change in management. Complete the following to add descriptive commentary: 1. Select the Period|Add Commentary scorecard menu option. 2. Enter Management Change for the comment subject. Your new comment dialog box should look similar to the one shown below:

Note: Simple Text is being used since you are typing your comment into the scorecard. You could use the OLE Object option to attach Word documents, .avi files, and other information that you think is important to display in the scorecard. 3. Select OK to continue.

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Creating an Overall Tactical Scorecard

Creating an Overall Tactical Scorecard

4. Type in the following Text: The weighting values are now 8 percent Inventory Management and 92 percent Customer Service. The original weighting was two-thirds Inventory Management and one-third customer service. Inventory will eventually be phased out from this service center. 5. Select OK to continue. A new pane will display in your scorecard containing the name of the user login ID of the person that entered the text and the subject. To display the comment you will need to double mouse click on the text. The commentary pane should look similar to the one shown below:

Double-click here to display commentary

Commentary Pane

The comments button is now available on the vertical toolbar. This button is used to refresh the commentary pane once a comment has been displayed or to indicate that commentary exists for the period, but it has been hidden. Complete the following to view and refresh the commenatary pane: 1. Double-click on the added comment in the commentary pane. The commentary is displayed. 2. To refresh the commentary pane select the Comments button from the vertical toolbar.

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Create a New Scorecard

Creating an Overall Tactical Scorecard

CONGRATULATIONS! You have completed this lesson on creating an overall tactical scorecard by referencing results, changing stretch targets and weights, and adding commentary.

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