how to create a simple balanced scorecard

Balance Scorecard: Step-by-Step Creation of a Simple Scorecard

Applies to: SAP BPS and SAP BI. For more information, visit the Business Intelligence homepage.

Summary Scenario: The head of the Finance department and you are currently evaluating SEM-CPM Strategy Management as a solution to implement and monitor the overall strategies throughout your enterprise.

Author: Sandeep Kumar

Company: Accenture Services

Created on: 23 September 2008

Author Bio He has been working on SAP BI from last 4 years and is a certified NetWeaver 2004s consultant

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Table of Contents Balance Scorecard Overview .............................................................................................................................3 Step-by-Step Creation of a Balance Scorecard..................................................................................................3 Relationship between Scorecard Elements........................................................................................................4 Related Content................................................................................................................................................22 Disclaimer and Liability Notice..........................................................................................................................23



Balance Scorecard Overview SAP Strategic Enterprise Management (SEM) aims to fill the strategic gap between the corporate vision and its resultant strategies on the one hand, and between operational target setting and budget/resource allocation processes on the other hand.

There is a need in today’s competitive environment to think quite different from the financial measures in understanding, analyzing, and deciding the activity or health of an organization. Balanced Scorecard is one of the most sought-after analyzing methods in use. The classic, view of the Balanced Scorecard includes four perspectives:

• Financial Perspective

• Internal Perspective

• Customer Perspective

• Learning & Growth Perspective

The integration of the strategies of all the business units is provided by the strategic objectives and, not necessarily by the measures. Every business unit assigns measures to its strategic objectives.

A scorecard is time depended and shows the indicators for the chosen period.

Balance scorecard uses the same data basis as SEM BPS (BW Integration)

After completion of this presentation, you will be able to use the Balanced Scorecard by carrying out a detailed and analyzing strategies, objectives, and key figures in detail.

Step-by-Step Creation of a Balance Scorecard The Balanced Scorecard is a performance management methodology. An organization first needs to have a developed strategic plan with objectives, the projects to reach those objectives, and the indicators to monitor that shows whether you are reaching those goals.

The sequence to create Balanced Scorecard is –

1. Create Measure Catalogue in Design tab of SEM.

2. Create Measure: MEASURES are assigned to each objective to track performance...

3. Create Strategy: Many Individual strategies exist which refer to the improvement of strategic values.

4. Create Perspective: Objectives are assigned to the perspectives

5. Create Objective. Every strategy consists of a specific number of OBJECTIVES, which all have defined targets and whose value is measured using one or more measures

6. Create Scorecard

7. Assign strategies to Scorecard

8. Assign perspectives to strategy.

9. Assign objectives to perspective.

10. Assign measures to objective.

11. Specify the values in Value field tab of measure.

12. Specify the Attributes.

13. Specify the display format in Graphics tab.

14. View the result in Balanced Scorecard.



Relationship between Scorecard Elements

Perspective

Perspective Perspective

Objective

Objective

Objective Objective

Objective

Objective

Measure

Measure Measure Measure

Measure

Strategy

Vision

Measure

Objective

Measure

Select Design tab –

SAP Menu->Accounting-> Strategy Management-> Design



Screen 1

Screen 2

You will get the following screen of Strategy Management Design.

Click on Measures in Measure Definition



Screen 3

Now we will see a screen with Measure Catalog to be created:

Screen 4

First create a measure catalog. Give the name and description



Screen 5

Let’s create a measure

Screen 6

Specify the technical name & description of measure.



Screen 7

Data source Tab – Specify the entry in the RFC destination:

BW Query. You need to have a query created on an Info cube. It’s a prerequisite in Balanced Scorecard.

Assign key figures to measure. Drag it from the right side into the “datasource for measure”

Specify further details in Attribute tab. SAVE

Screen 8



Screen 9

Create Strategy. UMC_CPM_STRAT (Strategy management under SEM under /n)

Screen 10

Specify the Strategy of organization in editor screen.



Screen 11

Create perspective & specify the perspective of organization in editor screen. UMC_CPM_STRAT (Strategy management under SEM under /n)

Screen 12

Create objective. (UMC_CPM_STRAT (Strategy management under SEM under /n))



Screen 13

Screen 14

Create Scorecard in transaction: UMC_CPM_STRAT or (Strategy management under SEM under /n)



Screen 15

Create a Hierarchy node & assign Scorecard to it, which was previously under the unassigned node.

Screen 16

Screen 17



Screen 18

Now Assign Strategy to Scorecard.

Screen 19



Screen 20

Screen 21




Screen 22

Screen 23

Assign perspectives to strategy.


Screen 24

Assign objectives to perspective

Screen 25



Screen 26

Assign measures to objective.

Screen 27



Screen 28

Screen 29

Specify the details (Actual & Plan value) in value fields tab of measure.



Screen 30

Here, the filter values are needed.

Screen 31

Define formula in formula tab. You can provide the range for values to be displayed.



Screen 32

In Graphics tab, you can specify the format in which you want to display your results.

Screen 33

To view the result, click on Balanced scorecard.

SAP Menu->Accounting->Strategy Enterprise Management->Balanced Scorecard



Screen 34

Select the Hierarchy node & Double click on Balanced Scorecard in right panel.

Screen 35

You will get the following screen as Output.



Related Content Using Balanced Scorecard to Support a Business Process Architecture by Paul Harmon

http://help.sap.com/saphelp_nw70/helpdata/EN/42/8e683892bf409d974566ffc5cd02ac/frameset.htm

For more information, visit the Business Intelligence homepage.

Books

• Paul Niven’s “Balanced Scorecard: Step by Step”

• Bob Paladino's "Five Key Principles of Corporate Performance Management".

• Dr. Marco Sisfontes-Monge "CPM and Balanced Scorecard with SAP"


https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/uuid/404ef095-4043-2b10-969b-db063f18a5d4

http://help.sap.com/saphelp_nw70/helpdata/EN/42/8e683892bf409d974566ffc5cd02ac/frameset.htm

https://www.sdn.sap.com/irj/sdn/nw-bi



Disclaimer and Liability Notice This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.

SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document, and anyone using these methods does so at his/her own risk.

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how to create a simple balanced scorecard

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