What are Performance Dashboards?

Let’s starts are some formal definitions of dashboard:

• A user interface that organizes and presents information in a way that is easy to read. The name refers to the fact that it can sometimes look like the dashboard of a car. Also known as cockpits or scorecards. (See also Balanced Scorecard)
• In computer user interfaces, a dashboard is a floating, semi-transparent window that provides contextual access to commonly used tools in a software program

The History

The trend started among executive who come up with idea of having an “executive dashboard” with which to drive their companies from their boardroom perches. These systems known as executive Information Systems (EIS) actually date back to 1980s.These systems never gained much traction, because has used from a very few people in each company. Moreover thy where build on mainframes or minicomputers that made them costly for customization and maintenance.

During the 1990s, organizations began experimenting with ways to give business users direct and timely access to critical information, an emerging field known as business intelligence. New performance management disciplines where appeared: Balanced Scorecard, Six Sigma, economic Value Added, Activity Based costing, etc. essentially, executives recognized that everyone, not just executives, needs an EIS. And the show has begun. At the down of the 21^st century, business intelligence converged with performance management to create performance dashboard.

Dashboard versus Scorecards

Dashboards allow monitoring of events generated by key business processes. Dashboards display performance visually, using charts or simple graphs (e.g. gauges and meters)

Scorecards, on the other hand look more like performance charts used to track progress toward achieving goals. Scorecards usually displays monthly snapshot of summarized data for executives tracking strategic and long-term objectives or daily or weekly snapshots for medium or operational level of managers. Like dashboards, scorecards also make use of charts and visual graphs to indicate performance state, trends and variance against the goals.

In general, it does not important which term you are use as long as the tool helps to focus users and organizations on what really matters.

Mix of Applications

Performance Dashboards are composed from three parts: monitoring, analysis and management.

Monitoring part enables business users to monitor performance against metrics aligned to corporate strategy. At one operational level user monitor processes that drive the business on daily bases such as sales, shipping, etc. In general organization uses dashboards to monitor operational processes and scorecards to monitor tactical and strategic goals.

Analysis part allows business users to explore large volumes of historical data, across many dimensions an down to details. This kind of content enables users to evaluate the origins of exception conditions highlighted by the monitoring application and identify the root cause of a problem or issue. The analysis part leverages a variety of technologies such as OLAP, parameterized reporting, statistical modeling, free form reporting, etc.

Management part supports a variety of business processes, formal and informal, that guide users to share performance information. Their purpose is to help executives to drive business in the right direction. Management features are typically embedded into monitoring and analysis applications.

Performance Dashboard Layers

Summarized Graphical view provides a summarized view, which is usually graphical, of the status of KPI’s and exception conditions. Any disturbance of thresholds causing alerts on dashboard interface. These alerts can be if form on pop up on the screen or arrive via e-mail, pager or another channel. In essence this layer is where user monitors information.

Multidimensional view provides the data behind the graphical metrics and alerts. Using multidimensional analysis tools, users navigate their data by dimensions and hierarchs. This tool allows user to make “slice and dice”, “drill down or up”, “drill through” an “pivot” data to view exceptions and trends from any perspective they want. Different kind of analysis is available such as “what if”, “stress testing” and “back testing”.

Detailed reporting view allows users view detailed reports and transaction records. There is need for that very often in order to understand root cause of problem. The resulting reports usually displayed in a separate window, which users can view or print.

Performance Dashboards Types

Operational dashboards monitor core operational processes and are used primary by front-line workers and their superiors.  Operational dashboards primarily deliver detailed information with light summarization.

Tactical dashboards track departmental processes and projects that are interest of segment of the organization or a limited group of people. Business professionals use tactical dashboards to compare performance of their actual data with the budgeted one. Tactical dashboards are usually updating daily or weekly.

Strategic dashboard monitor the execution of strategic objectives and are frequently implemented using a Balanced Scorecard approach, Six Sigma, Total Quality of Management or some other methodologies. The objective of strategic dashboards is to align organization around strategic objectives. Strategic dashboards usually updating weekly or monthly and emphasize management more than monitor and analysis.

Principles Of Performance dashboard design and development

1. Simple: Dashboards must be highly intuitive to use, requiring no end user training.
2. Ease of use: This visual technology is end user led. Power users must update or introduce new metrics without IT intervention.
3. Tailored View: Roles-based dashboards enable the business to set performance metrics by role or preference with correct security settings.
4. Visualization: Dashboards must support a visual display of information that reflects specific user requirements.
5. In Depth: Integrated analysis and reporting ensures users can drill down through the dashboard to detailed reports that explain trends and issues.
6. Trusted Data: Metadata providing context for each metric and demonstrating how it has been calculated and original data source provides end user confidence and clarity.
7. Anytime, Anywhere: Users must be able to access the dashboard from any location - via the web, in the company portal, on Blackberry, via email, or displayed in Microsoft tools such as PowerPoint or Adobe Acrobat.
8. Complete View: Dashboards must provide access to any data source, SAP or non SAP, OLAP or SQL, to provide a complete 360 degree view.
9. Personalization: My layout allows users to display information and design the dashboard layout to meet their own requirements.
10. Monitoring and Alerts to Drive Action: By tracking metrics and providing alerts when thresholds are breached, a dashboard allows management by exception.