By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    data science anayst
    Growing Demand for Data Science & Data Analyst Roles
    6 Min Read
    predictive analytics in dropshipping
    Predictive Analytics Helps New Dropshipping Businesses Thrive
    12 Min Read
    data-driven approach in healthcare
    The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas
    6 Min Read
    analytics for tax compliance
    Analytics Changes the Calculus of Business Tax Compliance
    8 Min Read
    big data analytics in gaming
    The Role of Big Data Analytics in Gaming
    10 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: Board of Directors’ Dashboards – Navigation or naiveté?
Share
Notification Show More
Latest News
ai in automotive industry
AI Is Changing the Automotive Industry Forever
Artificial Intelligence
SMEs Use AI-Driven Financial Software for Greater Efficiency
Artificial Intelligence
data security in big data age
6 Reasons to Boost Data Security Plan in the Age of Big Data
Big Data
data science anayst
Growing Demand for Data Science & Data Analyst Roles
Data Science
ai software development
Key Strategies to Develop AI Software Cost-Effectively
Artificial Intelligence
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Analytics > Board of Directors’ Dashboards – Navigation or naiveté?
AnalyticsBusiness Intelligence

Board of Directors’ Dashboards – Navigation or naiveté?

GaryCokins
Last updated: 2012/06/27 at 9:27 AM
GaryCokins
5 Min Read
SHARE

Have you ever wondered about how well boards of directors do their job? I have. And I do not have a good answer. But I was stimulated by an article written by Donald Delves, President of The Delves Group, titled “Dashboards for Boards.”

Have you ever wondered about how well boards of directors do their job? I have. And I do not have a good answer. But I was stimulated by an article written by Donald Delves, President of The Delves Group, titled “Dashboards for Boards.”

Ever since the Enron meltdown and numerous other companies with governance problems, my perception is that being a board member is no longer a ceremonious job where you simply show up for a board meeting and receive a nice paycheck. I believe that boards are now much more activists in defending the interests of shareholders and investors.

More Read

embedded bi tools

Embedded BI Tools Bring Huge Benefits to Business Applications

The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas
How IoT Can Be Connected to Business Intelligence
14 Brands Using Mobile Apps Instead of Ads to Build Customer Loyalty
5 Vital Business Intelligence Tips All Companies Should Embrace

By accepting this perception, I presumed boards have their act fully together. But Delve’s article introduced some doubt with me.

 

Confusion between scorecards and dashboards

Delves’ observation is that younger board members are more shrewd and comfortable with using and deploying information, and they desire access to deeper and more robust information to perform business analytics. However, he states “Truly enlightening dashboards are still a rarity.” To complicate matters, there is confusion about what the difference is between a balanced scorecard and a dashboard. There is similar confusion differentiating key performance indicators (KPIs) from normal and routine measures that we can refer to as just performance indicators (PIs). Both types of measures are important, but they serve different purposes. The adjective “key” of a KPI is the operative term.

When an organization proudly proclaims they have three hundred KPIs, one must ask them the question, “How can they all be a K?” To use a radio analogy, KPIs are what distinguish the signal from the noise – the measures of progress toward strategy execution. As a negative result of this confusion, organizations are including an excessive amount of PIs in their balanced scorecard that should be restricted only to KPIs.

The difference between a scorecard and dashboards comes from the context in how they are applied. Here are some guidelines and definitions for understanding the differences:

  • Scorecards monitor progress toward accomplishing strategic objectives. A scorecard displays periodic snapshots of performance associated with an organization’s strategic objectives and plans. It measures organizational activity at a summary level against pre-defined targets to see if performance is within acceptable ranges and favorable or unfavorable relative to the targets. 
  • Dashboards monitor and measure processes. A dashboard, however, is operational and reports information typically more frequently than scorecards and usually with measures. Each dashboard displays PIs which are reported with little regard to their relationship to other dashboard measures. Dashboard measures do not directly reflect the context of strategic objectives.

In summary, a scorecard serves as a feedback mechanism to allow everyone in the organization, from front-line workers up to the executive team and board directors, to answer the question: “How are we doing on what is important?” More importantly, the scorecard should facilitate analysis to also know why. The idea is not to just monitor the dials but to move the dials.

 

Board members and business intelligence and analytics

Delves writes this: “Board members do not have to limit themselves to the 30,000 ft. view of the company. Vast amounts of data can be assembled on a regular basis to provide meaningful insight quickly. Given the size and highly complex nature of so many companies, board members have a responsibility to dig deep, be curious, and satisfy that baby boomer urge for the truth.”

But this raises the issue of how easily and flexible is the access to the data and the ability to manipulate it. This is the same conundrum of experienced business analysts. Board members need much more than “drill-down” capabilities. So do managers and employees of the companies that board members provide oversight for.

The problem is many organizations have disparate data sources, “dirty” data quality, and allegedly effective data warehouses. Until these obstacles are fixed, dashboards for boards will remain an elusive goal.

tags: analytics, balanced scorecard, business intelligence, dashboards
 

TAGGED: analytics, business intelligence, dashboards
GaryCokins June 27, 2012
Share this Article
Facebook Twitter Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

ai in automotive industry
AI Is Changing the Automotive Industry Forever
Artificial Intelligence
SMEs Use AI-Driven Financial Software for Greater Efficiency
Artificial Intelligence
data security in big data age
6 Reasons to Boost Data Security Plan in the Age of Big Data
Big Data
data science anayst
Growing Demand for Data Science & Data Analyst Roles
Data Science

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

embedded bi tools
Business Intelligence

Embedded BI Tools Bring Huge Benefits to Business Applications

5 Min Read
data-driven approach in healthcare
Analytics

The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas

6 Min Read
internet of things and business intelligence
Internet of Things

How IoT Can Be Connected to Business Intelligence

6 Min Read
businesses using mobiles app for success
Big Data

14 Brands Using Mobile Apps Instead of Ads to Build Customer Loyalty

19 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
Chatbots
giveaway chatbots
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?