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Application Developer's Guide
Developing Balanced Scorecard applications : Understanding the Balanced Scorecard

Understanding the Balanced Scorecard

The Balanced Scorecard methodology provides a performance management approach for organizations. By definition, the Balanced Scorecard approach provides a high-level view of enterprise accounting for all business areas. Using this approach, top level executives can assess the company's potential to reach the set targets and take note of any changes in performance.
In addition, Balanced Scorecard enables clear communication between top-level management and middle-level management. Realization of this approach requires knowledge of the following:
*Identification of key performance indicators (KPIs). You can use standard, predefined KPIs or the Balanced Scorecard Designer to create customized KPIs. For more information on using Balanced Scorecard and on defining Balanced Scorecard applications, see Business Process Portal Manager’s Guide.
*Defining a process for monitoring and collecting relevant data from different data sources in the organization.
*Along with proper monitoring of KPIs, you can use detailed KPIs to measure the contribution business processes are making in achieving business objectives and corporate strategies.
* Focus on four perspectives
* Key performance indicators (KPIs)
* Estimating relative importance of KPIs
* Performance data collection and monitoring