Difference Between Dashboard and Scorecard

Among the main factors that must be closely monitored in a business include performance indicators. These measure the performance of an organization towards attaining the set goals, while also identifying key areas that need improvement.  Analytical tools have been widely adopted as reports based on numbers should be supported by answers as to why and how certain goals will be attained. Some of the most widely used key performance indicators include dashboards and scorecards. Despite the differences between the two, some of the advantages associated with these two include;

• Increased accountability, communication, and prioritization in an organization
• Ensures performance is aligned with goals, targets, and objectives
• Ensures constant up-to-date of company data
• Eases the process of decision making

Dashboard

Derived from the automobile dashboard, a dashboard is a real-time graphical user interphase which provides the key performance indicators in a business, project or process. They are used in gauging the performance of an organization as well as individual departments. A good dashboard should be informative, simple and easily accessible hence should take into account various design practices such as:

• The medium such as mobile, desktop or laptop.
• Visuals including graphs, bar charts, and line charts
• Use of different colors and shapes on visual presentations

Dashboards are classified in accordance with the role played, and include:

• Strategic dashboards- These provide a quick overview of an organizations performance.
• Analytical dashboards- These include more data in terms of history, comparisons, performance evaluators and history.
• Operational dashboards
• Informational dashboards

The benefits of using dashboards as key performance indicators include:

• Measure organizations parameters
• Determination of organizational goals and strategies
• The generation of detailed reports
• It enables the management team to gain complete visibility of all systems
• Identification of negative trends
• Align organizational goals and strategies set

Dashboards also improve employees efficiency by reducing the number of reports required, enabling them to concentrate on facts as opposed to norms as well as understand strategy measures.

Scorecard

This is a framework that is used to align an organization’s strategies with its objectives by monitoring major metrics based on customer information, desired growth, financial information, and business processes. It is important in the integration of points of control, revising strategies as well as sharpening processes.

A scorecard is ideal in instances where organizations need to:

• Track the progress of set strategies
• Measure departmental or team effectiveness
• Detail frequent snapshots of various reports

A scorecard, however, is not ideal for real-time updates, automatic analysis and viewing detail levels.

Similarities between Dashboard and Scorecard

• Both are used as a measure of business performance

Differences between Dashboard and Scorecard

Definition

A dashboard is a real-time graphical user interphase which provides the key performance indicators in a business, project or process. On the other hand, a scorecard is a framework that is used to align an organization’s strategies with its objectives by monitoring major metrics based on customer information, desired growth, financial information, and business processes.

Measurement tool

A dashboard uses metrics as a measurement tool. On the other hand, a scorecard uses metrics and targets as a measurement tool.

Goal period

While a dashboard focuses on short term goal, a scorecard focuses on long term goals.

Measures

A dashboard measures performance. On the other hand, scorecards measure progress.

Nature of decisions

While a dashboard offers tactical decisions, a scorecard offers strategic decisions.

Performance indication

A dashboard provides a clear picture of business performance. On the other hand, a scorecard shows changes and trends of business activities over a given period.

Users

While dashboards are commonly used to make decisions by middle and low-level management, scorecards are commonly used in making strategic decisions by top management.

Information updates

While a dashboard updates data on real-time basis, a scorecard updates data periodically.

Dashboard vs. Scorecard: Comparison Table

Summary of Dashboard vs. Scorecard

While both dashboards and scorecards are business tools that measure performance and progress respectively, a dashboard is a real-time graphical user interphase which provides the key performance indicators in a business, project or process while a scorecard is a framework that is used to align an organization’s strategies with its objectives by monitoring major metrics based on customer information, desired growth, financial information, and business processes. It is hence important to analyze and understand the problem in the organization before settling on either of the two approaches. 

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