1. Analytic ScorecardsA new way of visualizing business performance Karl R. Haberl Engineering Excellence Microsoft Corporation

2. Agenda The purpose of this presentation

3. Agenda The purpose of this presentation What is a scorecard?

4. Agenda The purpose of this presentation What is a scorecard? Raising the bar

5. Agenda The purpose of this presentation What is a scorecard? Raising the bar The power of Pareto and Pareto2

6. Agenda The purpose of this presentation What is a scorecard? Raising the bar The power of Pareto and Pareto2 Final thoughts

7. The purpose of this presentation To share a new visualization technique and scorecarding method that has promise to dramatically improve the value your business can derive from the scorecarding process.

8. The purpose of this presentation To share a new visualization technique and scorecarding method that has promise to dramatically improve the value your business can derive from the scorecarding process. Audience: business leaders and BI capability providers focused on performance improvement for their organization

9. What is a Scorecard? A scorecard is a visual display of the most important information needed to achieve one or more objectives, consolidated and arranged on a single screen so the information can be monitored at a glance. www.issel.co.uk/resources/pm_glossary.htm

12. “How to Handle a Poor Report Card”

15. most important information

16. to achieve one or more objectives

17. consolidated

18. arranged on a single screen

20. From Information to Insight Data = Record of fact Information = Record of fact + Context for meaning Insight = Record of fact + Context for meaning + Change in understanding

21. From Monitoring to Action

23. most important insight

24. to achieve one or more objectives

25. consolidated

26. arranged on a single screen

27. action taken from a glanceû û

28. What understanding do we have? What action should we take?

29. The power of Pareto The Pareto Principle (also known as the 80 / 20 rule) states that often 80% of the benefit comes from 20% of the effort. Note: 80% from 20% provides a 4:1 ROI ratio

30. Pareto provides a focusing effect

31. Pareto provides a focusing effect Sorted descending

32. Pareto provides a focusing effect 80% 20%

33. What understanding do we have now? What action should we take? 80% 20%

34. But wait, there’s more!

35. Pareto2 can provide an even stronger focus More information… Team 1Brian, AdamTeam 2John, Evelyn Team 3 Alan, - , George Team 4 Jennifer

36. Adding a dimension of business structure

37. And evaluating each structure by impact

38. Pareto2provides an even stronger focus Sorted descending Sorted descending

39. Pareto2provides an even stronger focus 80% 20% 79% 25%

40. Pareto2provides an even stronger focus Notice: Pareto = ( 80 : 20 ) or ( 4 : 1 ) ROI 80% 20% 79% 25%

41. Pareto2provides an even stronger focus Notice: Pareto = ( 80 : 20 ) or ( 4 : 1 ) ROI Pareto2 = ( 80 x 80 ) : ( 20 x 20 ) or( 16 : 1 ) ROI 80% 20% 79% 25%

42. Pareto2provides an even stronger focus Notice: Pareto = ( 80 : 20 ) or ( 4 : 1 ) ROI Pareto2 = ( 80 x 80 ) : ( 20 x 20 ) or( 16 : 1 ) ROI At left = ( 80 x 79 ) : ( 20 x 25 ) or( 11.2 : 1 ) ROI 80% 20% 79% 25%

43. What understanding do we have now? What actions should we take now?

44. Analytic Scorecards | Butterfly Diagrams (1) Structure (3)Performance (2)Strategy (4)Priority (5)Size of Impact A five-dimensional visualization for a two-dimensional display.

45. Analytic Scorecards | Butterfly Diagrams For the article…karlha@microsoft.com A five-dimensional visualization for a two-dimensional display.

46. Final Thoughts Up-level the value of your scorecarding efforts.

47. Final Thoughts Up-level the value of your scorecarding efforts. Experiment with butterfly diagrams for visualizing 5 dimensions.

48. Final Thoughts Up-level the value of your scorecarding efforts. Experiment with butterfly diagrams for visualizing 5 dimensions. Develop skill in ‘framing’ scorecards.

49. Final Thoughts Up-level the value of your scorecarding efforts. Experiment with butterfly diagrams for visualizing 5 dimensions. Develop skill in ‘framing’ scorecards. Focus attention on highest impact, highest priority areas.

50. Final Thoughts Up-level the value of your scorecarding efforts. Experiment with butterfly diagrams for visualizing 5 dimensions. Develop skill in ‘framing’ scorecards. Focus attention on highest impact, highest priority areas. Share your experiences.

51. Thank you!karlha@microsoft.com

52. © 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.