More and more companies are using the balanced scorecard as a management tool to improve business results measured as profits in the private sector and as productivity and service in the public sector. This trend has spawned balanced scorecard software, an analytic application that automates collecting and displaying performance measurement information in relation to strategic, tactical or operational targets within four subject areas: financial performance, performance for customers, internal operating performance and organizational learning performance. The adoption of balanced scorecard software raises the question of how such software should fit within the broader business-centric BI architecture.1 Organizations that get this wrong will have deployed a stovepiped business intelligence (BI) application that provides performance measurement information that conflicts with that provided by other analytic applications - such as financial analytics or supply chain analytics. Organizations that get this right will have aligned the deployment of balanced scorecard software with a broader business-centric BI architecture. With such alignment comes the opportunity to leverage existing data and technology assets and thereby ensure a lower cost, lower risk path to a successful balanced scorecard deployment.
Over the past decade, business performance management (BPM) frameworks such as the balanced scorecard have been adopted by a growing number of major organizations.2 A 1999 Bain & Company survey of adoption of management tools revealed that almost 44 percent of firms in the survey used the balanced scorecard and that the mean satisfaction rating among users was 3.85, with 5 being the highest rating.3 While a number of other management tools had higher adoption rates and higher satisfaction rates, the data suggests that BPM frameworks such as the balanced scorecard will be a staple within large organizations for the foreseeable future.
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