Key Difference – Dashboard vs Scorecard
The key difference between dashboard and scoreboard is that dashboard refers to a data visualization tool that consolidates and displays various financial indicators of the business including metrics and numbers on a single screen whereas scorecard is a performance management tool that compares strategic objectives with results obtained. Both dashboards and scorecards assist organizations to manage performance by measuring progress against predetermined objectives, however, their purposes differ from one another, thus it is important to understand the difference between the two.
CONTENTS
1. Overview and Key Difference
2. What is Dashboard
3. What is Scorecard
4. Side by Side Comparison – Dashboard vs Scorecard
5. Summary
What is Dashboard?
Dashboard refers to a data visualization tool that consolidates and displays various financial indicators of the business including metrics and numbers on a single screen. This provides up-to-date information on the current status of the company and is very user specific.
This tool is mostly used for managing hourly and daily performance and is generally used by low and middle level managers and employees who need to acquire data on a real time basis. Since dashboard shows a significant amount of data in a simplified manner, the users can grasp information of increased quantities at a glance through a dashboard.
Figure 01: Dashboard is a data visualization tool that assists decision making
What is Scoreboard?
The scorecard is a performance management tool that compares strategic objectives with results obtained. This serves as a strategic yardstick for top management to measure organizational performance with objectives. Scorecard takes a top down approach to measure periodic results (e.g. weekly, monthly and annually) against predetermined objectives, allowing users to analyze how well the performance is gauged.
The balanced scorecard is one of the most widely used management tools built with the use of a number of performance metrics referred to as key performance indicators (KPI). Balanced scorecard operates with four perspectives where objectives are set for each perspective. KPIs are used to measure whether the objectives are achieved or not, as well as to what extent they have been realized.
| Balance scorecard perspective | List of KPIs |
|
Financial Perspective |
Profitability of assets
|
|
Customer Perspective |
|
|
Internal Business Perspective |
|
|
Learning and Growth Perspective |
|
Figure 02: Balanced Scorecard has four perspectives
What is the difference between Dashboard and Scorecard?
Dashboard vs Scorecard |
|
| Dashboard refers to a data visualization tool that consolidates and displays various financial indicators of the business including metrics and numbers on a single screen. | Scorecard is a performance management tool that compares strategic objectives with results obtained. |
| Time Period | |
| Dashboard indicates the status of the company at a specific point in time. | Scorecard depicts the progress over time towards specific objectives. |
| Objectives | |
| Use of dashboards is appropriate for achieving immediate objectives. | Scoreboards are focused on achieving long-term strategic objectives. |
| Use | |
| Dashboards are usually used by low and middle level management to make decisions on a daily basis. | Scorecards are an important tool used by top management to make strategic decisions. |
Summary – Dashboard vs Scorecard
The difference between dashboard and scorecard depends on a number of factors such as the purpose and the time period that they are used for. Dashboards can be utilized for effective short-term decision making and scorecards are used as strategic management tools. Use of dashboards and scoreboards enables access to information for better decision making, improve communication and serve as a useful analytical tool. Thus, companies can use both dashboards and scoreboards since they are not mutually exclusive.
References
1. Wise, Lyndsay. “A Closer Look At Scorecards And Dashboards.” Dashboard Insight. N.p., n.d. Web. 16 Apr. 2017.
2.”What is business intelligence dashboard? – Definition from WhatIs.com.” SearchBusinessAnalytics. N.p., n.d. Web. 16 Apr. 2017.
3. “Perspectives.” Balanced Scorecard Institute. N.p., n.d. Web. 17 Apr. 2017.
4. “What is performance scorecard? – Definition from WhatIs.com.” SearchBusinessAnalytics. N.p., n.d. Web. 17 Apr. 2017.
Image Courtesy:
1. “Executive Dashboard” by CTSI-Global (CC BY 2.0) via Flickr