This presentation introduces analytic scorecards and butterfly diagrams, which visualize business performance data in multiple dimensions. Scorecards typically display important metrics needed to achieve objectives, but can be improved. Analytic scorecards apply concepts like the Pareto principle to provide deeper insights and focus attention on high-impact areas. Butterfly diagrams visualize data across five dimensions in a compact two-dimensional view, helping users develop skills to frame scorecards effectively and drive better business decisions.

1. Analytic ScorecardsA new way of visualizing business performanceKarl R. HaberlEngineering ExcellenceMicrosoft Corporation

2. AgendaThe purpose of this presentation

3. AgendaThe purpose of this presentationWhat is a scorecard?

4. AgendaThe purpose of this presentationWhat is a scorecard?Raising the bar

5. AgendaThe purpose of this presentationWhat is a scorecard?Raising the barThe power of Pareto and Pareto2

6. AgendaThe purpose of this presentationWhat is a scorecard?Raising the barThe power of Pareto and Pareto2Final thoughts

7. The purpose of this presentationTo 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 presentationTo 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”

14. What is a Scorecard? visual display

15. most important information

16. to achieve one or more objectives

17. consolidated

18. arranged on a single screen

19. information monitored at a glanceWhat if we raise the bar? A scorecard is a visual display of the most important informationinsight needed to achieve one or more objectives, consolidated and arranged on a single screen so the information can be monitored ataction can be taken from a glance.

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

21. From Monitoring to Action

22. What is a Scorecard? visual display

23. most important insight

24. to achieve one or more objectives

25. consolidated

26. arranged on a single screen

27. action taken from a glanceûû

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

29. The power of ParetoThe 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 effectSorted descending

32. Pareto provides a focusing effect80%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 focusMore information…Team 1Brian, AdamTeam 2John, EvelynTeam 3 Alan, - , GeorgeTeam 4Jennifer

36. Adding a dimension of business structure

37. And evaluating each structure by impact

38. Pareto2provides an even stronger focusSorted descendingSorted descending

39. Pareto2provides an even stronger focus80%20% 79%25%

40. Pareto2provides an even stronger focusNotice:Pareto = ( 80 : 20 ) or ( 4 : 1 ) ROI80%20% 79%25%

41. Pareto2provides an even stronger focusNotice:Pareto = ( 80 : 20 ) or ( 4 : 1 ) ROIPareto2 = ( 80 x 80 ) : ( 20 x 20 ) or( 16 : 1 ) ROI80%20% 79%25%

42. Pareto2provides an even stronger focusNotice:Pareto = ( 80 : 20 ) or ( 4 : 1 ) ROIPareto2 = ( 80 x 80 ) : ( 20 x 20 ) or( 16 : 1 ) ROIAt left = ( 80 x 79 ) : ( 20 x 25 ) or( 11.2 : 1 ) ROI80%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 ImpactA five-dimensional visualization for a two-dimensional display.

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

46. Final ThoughtsUp-level the value of your scorecarding efforts.

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

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

49. Final ThoughtsUp-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 ThoughtsUp-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.