Table of Contents Title Page Copyright Page Dedication Foreword Preface to the Second Edition New and Different Sections in the Book Acknowledgments Preface to the First Edition A Path to Pursue Who Should Read This Book PART I - The Landscape for Performance Dashboards CHAPTER - What Are Performance Dashboards? The Context for Performance Dashboards Composition of Performance Dashboards Summary CHAPTER - The Context for Performance Dashboards Business Performance Management Business Intelligence Summary CHAPTER - Assessing Your Organizational Readiness A Clearly Defined Strategy Strong, Committed Sponsorship A Clear and Urgent Need Support of Mid-level Managers Appropriate Scale and Scope A Strong Team and Available Resources A Culture of Measurement Alignment between Business and Information Technology Trustworthy and Available Data A Solid Technical Infrastructure Summary CHAPTER - Assessing Your Technical Readiness Business Intelligence Maturity Model Five Stages Maturity Dynamics Summary Note CHAPTER - How to Align Business and IT Pitched Battles Alignment Tactics Summary PART II - Performance Dashboards in Action CHAPTER - Types of Performance Dashboards Overview Dashboards in Depth Operational Dashboards Tactical Dashboards Strategic Dashboards Summary CHAPTER - Operational Dashboards in Action Overview 1-800 CONTACTS Richmond Police Department Summary CHAPTER - Tactical Dashboards in Action Overview Arizona State University Rohm and Haas Summary CHAPTER - Strategic Dashboards in Action Overview Cisco: A Metrics-driven Organization Kingdom of Bahrain Summary PART III - Critical Success Factors: Tips from the Trenches CHAPTER 10 - How to Launch, Manage, and Sustain the Project Sell the Project Manage the Project Sustain the Project Summary CHAPTER 11 - How to Create Effective Performance Metrics Understanding Metrics Characteristics of Effective Performance Metrics Designing Effective Metrics Summary CHAPTER 12 - How to Design Effective Dashboard Displays Overview Before You Start Guidelines for Creating Displays Guidelines for Designing Charts Summary Notes CHAPTER 13 - How to Architect a Performance Dashboard Display Architectures Data Architectures Types of Architectures Summary CHAPTER 14 - How to Deploy and Integrate Dashboards Where to Start and Finish? Centralized Approach Distributed Approach Cascading Metrics Summary CHAPTER 15 - How to Ensure Adoption and Drive Positive Change Strategies to Ensure Adoption Optimizing Performance through Metrics Summary Notes Index Copyright © 2011 by John Wiley & Sons, Inc All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002 Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books For more information about Wiley products, visit our web site at www.wiley.com Library of Congress Cataloging-in-Publication Data: Eckerson, Wayne W., 1958p cm Includes index ISBN 978-0-470-58983-0 (hardback); 978-0-470-91841-8 (ebk); 978-0-470-91842-5 (ebk); 978-0470-92040-4 (ebk) Management—Evaluation Organizational effectiveness—Evaluation I Title HD31.E294 2010 658.4’013—dc22 2010023270 End-user query and reporting Enterprise, defined Enterprise dashboards Enterprise data warehouse Envisioning Information (Tufte) ETL tools See Extraction, transformation, and loading (ETL) tools Executive dashboard at 1-800-CONTACTS background controls and dashboard cascading deployment and integration of dashboards display and enterprise dashboards at Rohm and Haas Executive information systems (EISs) Extraction, transformation, and loading (ETL) tools Federated approach Few, Stephen “Five Whys,” Flash See Adobe Flash Flash charts Flash visualizations Focus Frost, Bob Goals Governance BI Cisco example committees corporate dashboard data governance KPI governance team reports and Sarbanes-Oxley Act Grassroots initiatives Gulf Help desk Hewlett Packard (HP) Hill, Jim Hsiao, David Hub-and-spoke architecture Incent and motivate dashboards Information consumers Information Dashboard Design (Few) Information producers Information sandbox Information technology (IT), alignment with business See Business-IT alignment In-memory analytics dashboards data processing Insightformation, Inc International Truck and Engine Corporation Java JavaScript Kaplan, Robert Key performance indicators (KPIs) data collection governance team and metrics requirements, gathering standardizing terms steering committee strategic dashboards tactical dashboards targets, setting validating King, Lord Knowledge discovery See Data mining Lagging indicators Law of diminishing returns Layers of functionality Layers of information See also MAD (monitor, analyze, drill to detail) framework Leading indicators Lochrie, John MAD (monitor, analyze, drill to detail) framework analyze and BI platform described double MAD drill to detail and evolution of BI Flash, use of monitoring and NetApp dashboard design and three-tier delivery framework of Rohm and Haas Management scorecards Marketing, and project sustainment Masciandaro, Michael Masdea, Deb Mashboards Mashups Maturity Model for BI Adult stage business value Chasm sticking point Child stage Gulf sticking point insights to action maturity dynamics overview Prenatal/Infant stage return on investment (ROI) Sage stage stages stages, regressing stages, skipping sticking points Teenager stage users and usage Metadata and application development and BI tools Cisco example management properties of, viewing on dashboard repository updating Metrics accuracy actionable activity metrics attributes balancing benchmarks calculating cause-effect relationships characteristics of effective metrics creating data collection described designing displaying driver metrics ecosystems effectiveness goals graphical view of data indicators compared key performance indicators (KPIs) See also Key performance indicators (KPIs) number of objectives operational dashboards outcome overview ownership performance dashboards and performance management architecture predictive ranges relevance requirements gathering See also Business requirements revising risk indicators standardization stoplights See also Stoplights strategic strategic dashboards tactical dashboards targets terms, standardizing time frame types of understandable validating value Mid-level management support Ministry of Works (Kingdom of Bahrain), strategic dashboards Mission Mobile use of dashboards Monitor, analyze, drill to detail framework See MAD (monitor, analyze, drill to detail) framework Mouse-overs Mozilla Scalar Vector Graphics (SVG) NetApp Niven, Paul Norton, David Now You See It (Few) Objectives Office of Strategy Management 1-800-CONTACTS executive dashboard operational dashboards personal data on dashboards Online analytical processing (OLAP) Open source products Operational dashboards 1-800-CONTACTS example action oriented alerts appearance Arizona State University example Cisco example data quality detect-and-respond dashboards incent-and-motivate dashboards information metrics overview prevalence of real time versus right time refresh rates Richmond Police Department example tactical and strategic dashboards compared updating use of users of Oracle Organizational change Organizational culture Organizational readiness See Readiness assessment Organizational restructuring Outcome metrics Ownership Parallel coordinate charts Pareto charts Pareto drill-downs Parmenter, David Performance dashboards, overview applications architecture balanced scorecards See also Balanced scorecards benefits of build versus buy and business intelligence (BI) characteristics of composition of dashboard displays See Dashboard displays defined described historical background integrating as layered delivery system layers metrics and organizational change overview and performance management See also Business performance management (BPM) performance management architecture prevalence of project failures, reasons for scorecards compared success factors three threes types of See also Operational dashboards; Strategic dashboards; Tactical dashboards users of Performance management See Business performance management (BPM) Performance management system Performance metrics See Metrics Performance reviews Preattentive processing Predictive analytics See also Data mining Principle of proximity Project adoption, ensuring failure, reasons for overview performance optimization strategies for success factors Project launch funding mid-level management support overview sponsorship staff buy-in Project management dashboard development KPI team overview project champion starting point steering committee sustainment See also Project adoption, ensuring teams, creation of technical team Prototypes creating data federation, use of and KPI design metrics performance dashboard testing use of Purple people Ranges Rappé, Jim Readiness assessment balanced scorecards business and IT alignment criteria for culture of measurement data availability and reliability mid-level management support need overview scale and scope sponsorship strategy team and resources technical infrastructure technical readiness Real-time and complex event processing and data marts and detect-and-respond dashboards and forecasting intraday updates material events near-real-time operational dashboards and readiness assessment right time compared strategic dashboards Refresh rates, operational dashboards Regulatory compliance Reporting ad hoc tools Rich Internet applications (RIAs) Richmond Police Department, operational dashboards “Right time” data Risk indicators Risk metrics Road maps Rohm and Haas centralized approach executive dashboard tactical dashboards three-tier delivery framework Rome, John SAP Sarbanes-Oxley Act of 2002 Scale and scope of project Scatter plots (bubble charts) Scorecards cascading dashboards compared strategic dashboards See also Strategic dashboards Self-service BI Semantics Service-oriented architecture Show Me the Numbers (Few) Silverlight Sparklines Spatial maps Speed of thought Sponsorship readiness assessment role of sponsors Stewardship Stoplights Strategic dashboards alignment appearance balanced scorecards See also Balanced scorecards cause-effect linkages Cisco example collaboration corporate scorecard example key performance indicators (KPIs) management scorecards metrics Ministry of Works example (Kingdom of Bahrain) navigation operational and tactical dashboards compared overview prevalence of strategic expenditures strategic reviews strategy strategy management targets types of updating use of Strategy, readiness assessment Strategy management Strategy management office Strategy maps Summerhayes, Martin Superusers Surveys of users Tactical dashboards See also Enterprise dashboards; Mashboards access control alerts analytical dashboards appearance Arizona State University example BI platform BNSF Railway data enterprise dashboards key performance indicators (KPIs) mashboards metrics operational and strategic dashboards compared overview portal based prevalence of refreshing Rohm and Haas example types of updating use of visual analysis tools Targets Technical architecture Technical readiness assessment Templates Testing and agile development dashboard development dashboard display data and incremental delivery metrics off-the-shelf components test assumptions Visual Display of Quantitative Information (Tufte) Themes Thermometers Thin clients Three threes Top 10 lists Top-down approach Training Tree maps Tufte, Edward R Updating operational dashboards strategic dashboards tactical dashboards Usability labs Usage monitoring User mantra Users accountability buy-in empowering end-user adoption focus operational dashboards Values Variance charts Virtual mashups Vision Visual analysis Visual Explanations (Tufte) What-if modeling BI environment dashboard functionality data marts and MAD framework performance dashboard applications Whipsawing Williams, Neal ... Performance Dashboards? The Context for Performance Dashboards Composition of Performance Dashboards Summary CHAPTER - The Context for Performance Dashboards Business Performance Management Business. .. sections Part I, “The Landscape for Performance Dashboards, ” provides the framework and context for understanding performance dashboards Chapter defines performance dashboards and describes their... Align Business and IT Pitched Battles Alignment Tactics Summary PART II - Performance Dashboards in Action CHAPTER - Types of Performance Dashboards Overview Dashboards in Depth Operational Dashboards