Table Of Content

Create Balanced Scorecards and Person B operational dashboards that drive success Balanced a l a Balanced Scorecards help organizations clarify their strategy, translate strategy n into action, and successfully execute their strategy. Operational dashboards are c critical for monitoring and managing high performance. e Scorecards d This book is a guide for those who defi ne and build these business performance tools: executive sponsors, operational managers, facilitators, and Excel developers. S c Based on years of experience, these step-by-step methods will help you develop o Balanced Scorecards and operational dashboards that drive strategic execution r and operational performance. e & Operational Dashboards c a (cid:127) Write a strategic Destination Statement that clarifi es your vision r (cid:127) Build a Strategy Map illustrating strategic objectives and the causal links d with Microsoft® Excel® that drive success s (cid:127) Map operational processes to identify leverage points with the greatest impact & (cid:127) Identify the “critical few” metrics that drive and measure success O (cid:127) Gain buy-in with Tactical Action Plans and Implementation Plans p (cid:127) Build impressive, dynamic Excel scorecards and dashboards using only e spreadsheet functions r a (cid:127) Build powerful charts and analyses that aid business decision making t i o (cid:127) Develop portable Balanced Scorecards that are secure and easy to maintain wn i ta h Companion Web site l Download free Excel sample fi les at www.wiley.com/go/scorecardsanddashboardswithexcel. You can also fi nd MD additional resources on Balanced Scorecards and operational dashboards at www.torconsulting.com i c a r os Ron Person is Managing Director of Tor Consulting, Inc., a fi rm passionately dedicated to helping organizations execute sh their strategy and build measurable high performance. He is certifi ed as a Balanced Scorecard consultant through the o b Balanced Scorecard Collaborative founded by Drs. Kaplan and Norton, founders of the Balanced Scorecard, and he is a f t member of the California Awards for Performance Excellence™ Board of Examiners, 2008 (California’s Malcolm Baldridge ®o Award). Ron’s clients span a wide range of industries in the U.S. and internationally. Ea x cr ed l ®s Visit our Web site at www.wiley.com/compbooks Desktop Applications / Spreadsheets $49.99 US Ron Person $54.99 CAN 86811ffirs.indd 2 11/12/08 6:04:51 AM Balanced Scorecards and Operational Dashboards with Microsoft® Excel® 86811ffirs.indd 1 11/12/08 6:04:51 AM 86811ffirs.indd 2 11/12/08 6:04:51 AM Balanced Scorecards and Operational Dashboards with Microsoft® Excel® Ron Person 86811ffirs.indd 3 11/12/08 6:04:59 AM Balanced Scorecards and Operational Dashboards with Microsoft® Excel® Published by Wiley Publishing, Inc. 10475 Crosspoint Boulevard Indianapolis, IN 46256 www.wiley.com Copyright © 2009 by Tor Consulting, Inc., Santa Rosa, California Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada ISBN: 978-0-470-38681-1 Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1 Library of Congress Cataloging-in-Publication Data is available from the publisher. 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 Sections 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, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. 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. 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All other trademarks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book. XL Cubed © 2009 Microcharts Xcelsius © SAP AG. All rights reserved. SAP and the SAP logo are trademarks and registered trademarks of SAP AG in Germany and several other countries. Business Objects and its logo and Crystal Reports are trademark or registered trademarks of Business Objects, S.A., an SAP Company. SmartDraw © with SmartDraw Reproduced with permission from SmartDraw.com, http://www.smartdraw.com Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. 86811ffirs.indd 4 11/12/08 6:04:59 AM About the Author Ron Person helps his clients create a competitive advantage in strategic execution and a culture of high-performance. Ron’s firm, Tor Consulting, works with small- to mid-sized organizations with revenues of $25 to $500 million. His clients in the United States and internationally include hospitals, banks, biotech companies, medical device manufacturers, and financial services firms, spanning a diversity of organizations such as: ■■Medtronic CardioVascular ■■Bethanie Group (Western Australia’s largest elder care and hospital system) ■■Wells Fargo Center for the Arts ■■Palladeo (retail strategy, design, and construction) ■■U.S. Army Corps of Engineers ■■U.S. Naval Undersea Warfare Center Prior to founding Tor Consulting, Ron has been: ■■A manager of competitive analysis for a Fortune 500 corporation ■■One of Microsoft’s first twelve consulting partners ■■The founder or co-founder of four companies, two of them high-tech ■■The author of more than 20 business and computer books, including four international bestsellers with almost 4 million copies in print He has personally conducted workshops for thousands of businesspeople and has spoken before conferences and groups such as Vistage (the world’s lead- ing Chief Executive organization), Microsoft technical conferences, the American Society for Quality, APICS (the Association for Operations Managers), the Project Management Institute, PIHRA (the Professionals in Human Resources Association), and the American Association of Homes and Services for the Aging. v 86811ffirs.indd 5 11/12/08 6:04:59 AM vi About the Author Ron’s education and credentials include: ■■Certification by the Balanced Scorecard Collaborative, the educational division of the founders of Balanced Scorecard, Drs. Kaplan and Norton. Only a few independent consultants each year pass this rigorous training and examination. ■■Member of the California Awards for Performance Excellence™ Board of Examiners, 2008 (California’s Malcolm Baldridge award for excellence in organizational performance) ■■A Six Sigma Black Belt ■■An M.B.A. in marketing and finance with highest honors ■■An M.S. in physics ■■Training as a facilitator for strategic planning by the Institute for Cultural Affairs and the Center for Strategic Facilitation For additional information on how your organization can create a competitive advantage through strategic execution and accelerated performance, contact Ron Person at: [email protected] (707) 568-6976 www.torconsulting.com 86811ffirs.indd 6 11/12/08 6:04:59 AM About the Technical Editor Doug Holland, a “blue-badge” software engineer at Intel Corporation since March 2007, holds a master’s degree in software engineering from Oxford University, has received the Microsoft MVP award within the Visual C# cat- egory, and is also an Intel Black Belt Software Developer. Outside work, Doug enjoys spending time with his wife and four children and is an officer and aircrew member in the Civil Air Patrol/U.S. Air Force Auxiliary. vii 86811ffirs.indd 7 11/12/08 6:04:59 AM Credits Acquisitions Editor Vice President and Katie Mohr Executive Publisher Joseph B. Wikert Development Editor Adaobi Obi Tulton Compositor Craig Johnson, Technical Editor Happenstance Type-O-Rama Doug Holland Proofreaders Production Editor Corina Copp and Josh Chase, Melissa Lopez WordOne Copy Editor Indexer Publication Services, Inc. Jack Lewis Editorial Manager Cover Image Mary Beth Wakefield © Jupiter Images/Goodshoot Production Manager Cover Designer Tim Tate Michael E. Trent Vice President and Executive Group Publisher Richard Swadley viii 86811ffirs.indd 8 11/12/08 6:04:59 AM