Dashboards and scorecards are tools that allow companies to easily absorb large volumes of information by delivering that information in an intuitive format. This gives management the ability to respond quickly to critical, time-sensitive events, and to explore issues and trends without having to contend with masses of paper or electronic reports.

What's the Difference Between a Dashboard and a Scorecard?

The terms "dashboard" and "scorecard" are often used interchangeably, and while both are used to measure the performance of all or part of an organization, there are distinct differences between the two, including who should use them and what they measure.

Dashboards

Dashboards are online graphical representations of data used to monitor individual or group performance against targets and thresholds defined by managers. They provide a customized view of select key performance indicators, or KPIs. Dashboardd can be customized to include drill-down capabilities, and can be integrated into an autmoated workflow system.

Dashboards integrate multiple data elements into graphical display for quick absorption.

Dashboards are generally used by managers and supervisors, since they provide a snapshot of information reflecting the current state of a process, piece of equipment, or business metric based data supplied in real-time (or near real-time).

Scorecards

A scorecard is a report card, consisting of summary-level data, of how a given business unit, location, or even an entire organization has performed with respect to certain goals over a given time period (usually monthly or quarterly). Scorecards measure performance against specific goals, and are used as part of a broader management discipline or corporate methodology.

The information presented on a scorecard may consist of any combination of financial or operational metrics, such as order fulfillment lead-time, cost of goods sold, return on assets, or sales growth.

Scorecards keep managers focused on progress and status of KPIs against goals.

Scorecards measure an organization's performance in relation to strategic objectives and plans, and evaluate business activity against predefined targets. Its selection of key performance indicators helps executives communicate strategy and focuses users on the highest priority tasks.

When Should I Use a Dashboard or a Scorecard?

As general rule of thumb, dashboards are more valuable to those close to line work, as they provide rolled-up, aggregated data on what is happening right now.

What Issues Should I Be Aware Of When Implementing Dashboards or Scorecards?

To be truly effective, dashboards and scorecards must be designed and developed in such a way that they promote accountability, and make the job of their target audience easier.

Most importantly, scorecards must be developed with your company's strategic goals and objectives in mind - and this is where Tydak Consulting comes in.

Tydak Consulting has helped some of Southern California's most prestigious companies save millions of dollars in operating costs by implementing processes that align each department's goals with corporate objectives.

Until the different departments and/or business units that make up your company are in alignment, you will not recognize the full return on your investment in any tool, technology, or methodology. Tydak's experts can show you how to implement processes, and, if necessary, design tools (such as scorecards and dashboards) to align the organization and have everyone working toward the same goals.