Module 1 Post -- Scorecards, Schemas and Dashboards. Oh my!

I've having one of those moments where I feel like we have covered so much in this module but at the same time it's all very synthesizable to a few major take-aways. I think that is what is making this course so enjoyable. It is easy to bring together the different concepts not only through the coursework but in examples, at least for me, at work. 

In this module we began by examining the balanced scorecard and looked at ways that it could be applied to a business case such as Southwest. The balanced scorecard helps companies focus their attention on the things that will take them to the next level by breaking down KPIs in four categories. 

We then moved on to data warehouse design and worked with a practice case for the star schema. What is the optimal way to store your data? How do you want to access it? And how is this structure likely to change in the future. 

Finally we covered dashboards and how to create easy to understand visualizations that can be used to inform decisions and take action. 

For me the balanced scorecard and dashboards fit together really nicely so I'll fist start with the Star Schema. 

The Star Schema is something that I've only ever worked with in school. I have no real world experience working with data modeling but I have had to run queries which can be very slow, likely because of an inadequate or outdated design. 

The aspects of this module that were more interesting to me were those around the Balanced Scorecard and the Dashboards. While it is clear the value of both when used properly, I feel that these are two of the most regularly misused tools in the business world. To have them implies some semblance of a strategy but if not implemented correctly, they may be doing more harm than good. 

When it comes to the Balanced Scorecard, and the example from Southwest, I felt it made a lot of sense. it was clear and easy to follow the path to success. However I'm doubtful about this approach for one clear reason: communication. 

I feel that typically organizations fail to properly convey the vision they seek to achieve with the Balanced Scorecard approach. Its benefits can only be realized when everyone through the organization understands what they need to do to contribute and those actions add value to their daily tasks.  

Often the Balanced Scorecard approach is not properly mapped out but a few KPIs are created that employees throughout the organization are unsure to act upon. 

As Wright (2019) states in his post on Executivestrategy.net, "The Balanced Scorecard is not a series of equally weighted perspectives. It is rather a process whereby, starting at the bottom, you work your way upwards through each perspective with a view to delivering the topmost".

I think this is pitfall that most organizations come across. I myself have been presented with KPIs for my team which no one knew how to act on. Rather than focusing on valued added work, members of the team tried to figure out how they could scale these KPIs down to the individual level so that they could report they were achieving them. I'm sure others have felt this way as well. 

Related to this, I think leaders can get to caught up in their dashboards and meticulously monitoring a select sub-set of metrics. As Ryan (2015) writes in Forbes, executives can get their heads stuck in the numbers and not see the water rising all around them. Sometimes we become so fixated on the numbers we lose some common sense. 

We could stop obsessing about KPIs and talk about the mission, instead -- the organization's mission and our own personal missions bound up with it (Ryan, 2015). I think that really sums up how a feel about the tools that we use to guide us. There is a place for them if they supported a shared purpose that is understood. 

The question that I now have (which I would love to hear your thoughts on in the comments) is do the organizations that we admire spend lots of time creating Balanced Scorecards, KPIs and dashboards for their organizations? When is the right time to focus on these elements? During high growth stages or when business may be slowing down and a revitalization is needed? 

References: 

D2L Materials. How Southwest Airlines developed its balanced scorecard analysis. Adapted from Institute of Management & Administration Report on Financial Analysis Planning and Reporting, July 2002. 

Ryan, L. (2015) KPIs and Corporate Stupidity. Forbes. Retrieved from: https://www.forbes.com/sites/lizryan/2015/12/07/kpis-and-corporate-stupidity/#2418fdf94aeb. Accessed on September 27, 2020. 

Wright, T. (2019). How to Implement the Balanced Scorecard (2019 Update). Retrieved from: https://www.executestrategy.net/blog/how-to-implement-the-balanced-scorecard. Accessed on September, 27, 2020.