The project involved developing a new database system for a retail/service industry company. The existing operational systems were failing and causing high error costs. The balanced scorecard approach was used to identify key performance indicators (KPIs) like ease of use, accuracy, and report reliability. A proactive component called fuzzy cognitive mapping was added to illustrate relationships between KPIs and allow for continuous improvement. The new system improved key metrics like sales, costs, capacity, and turnover.

1. Project Retrospect
Proactive Balanced Scorecard Applied to
Database Development
Jessi McGehee - 02.13.2014
Wednesday, February 12, 14

2. Project Leadership
Jessi McGehee, St. Paul, MN
St. Catherine University, BA Business Management and Marketing
National Scholar Athlete, Alexandria Scholar, 3D Design, philosophy
University of St. Thomas, MSSyE Systems Engineering/Engineering Tech Management
Background in Analytics and Project Management
Project Management Intern, Process Analyst, Inventory Analyst, Project Lead, Operations
Manager
Emphasis on client services and customer satisfaction
Wednesday, February 12, 14

3. The Project
Service/retail Industry
Operational systems are failing, case study provided:
Sales 12k to 20k weekly, error pay out $250-3000
Database operational labor hours 2-5 per 1000k
Database reports are produced with very little accuracy and stored
information is difficult to access.
Wednesday, February 12, 14

4. Retrospect Summary
What is the Balanced Scorecard?
How can we make it proactive?
How does it apply to this situation?
Did it work?
Wednesday, February 12, 14

5. Balanced Scorecard
Learning and Growth: Impeded
Financial: Incomplete
Strategy: Sales, Sales, Sales
Business Process: Omitted
Customer Base: Declining
Communication: Declining
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6. Proactive Component
Creating systems to learn why and how effects have come
about
Strategy Maps
Illustrating that not all pathways are equal
Fuzzy Cognitive Maps
Creating an information management system that supports
all inputs and outputs needed** Critical Success Factor
Wednesday, February 12, 14

7. Fuzzy Cognitive Maps
“C” represents KPI’s,
influencing factors, and major
resources
Linguistic relationships can be
converted to numeric values
Relationships can be positive or
negative
Wednesday, February 12, 14

8. Stages of Proactive Scorecards
1. Establish mission, vision, strategic objectives, perspectives
and Critical Success Factors (CSFs)
2. Identify Key Performance Indicators (KPIs)
3. Establish targets
4. Define relationships among KPIs
5. Assign linguistic variables to weight concepts (i.e. KPI)
6. Continuous Improvements
Wednesday, February 12, 14

9. Database KPI’s and Targets
KPI’s
Ease of use
Accuracy/Duplicates
Help Desk tickets
Report reliability
Targets
Any employee can be trained
95%/10% respectively
<1 week, resolved <24 hrs
100%
Wednesday, February 12, 14

10. Relationships
Ease
of Use
Accuracy Duplicates
Help Desk
Tickets
Report
Reliability
.8 +
.9 +
(.45) -
(.75) -
.6 +
.85 +
(.25) -
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11. Continuous Improvements
Process Evaluation
Facility/Operations Overhaul
Customer Service Department Launch
Instructional Design
Wednesday, February 12, 14

12. Retrospect Summary
What is the Balanced Scorecard?
How can we make it proactive?
How does it apply to this situation?
Did it work?
Wednesday, February 12, 14

13. Did it Work?
Sales:
Comps:
Capacity:
Turnover:
Facilities
After
$18K - 25K
$0 - 100
$36K+*
24%
3+ facilities locally
Before
$12K - 20K
$250 - 3000
$18K
92% (6 months)
3 nationally
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14. Questions
Wednesday, February 12, 14

15. Chytas, Glykas, Valiris, (2000). A Proactive Balanced Scorecard, International Journal of Information Management.
www.elsevier.com/locate/ijinfomgt
Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard—measures that drive performance. Harvard Business
Review, January–February, 71–92.
Kaplan, R. S., & Norton, D. P. (1996b). The balanced scorecard—translating strategy into action. Boston, MA: Harvard
Business School Press.
Kaplan, R. S., & Norton, D. P. (2004). Strategy maps: Converting intangible assets into 19 tangible outcomes. Boston,
MA: Harvard Business School Press.
Gleason (2000), Managerial Accounting and Performance Management. St. Paul, MN: University of St Thomas.
Wednesday, February 12, 14