To control and analyze enterprise activity indicators, use the Financial result and controlling – Target indicators – Target indicator dashboard report.
Target indicator dashboard can also be called an indicator panel.
With target indicator dashboard, you can:
- Quickly detect issues on any enterprise management stage.
- Analyze performance of key enterprise processes using indicators.
- Analyze connection and influence of indicators on one another.
- Top managers can make optimal management decisions concerning key processes based on the data of enterprise target indicators.
This functionality helps to generate the structure of enterprise targets and target indicators and helps to track them.
You can take advantage of the following:
- Use various analysis options of target indicators (filter methods and information presentation options).
- Indicate positive and negative variances from target indicator values.
- Analyze any indicator in detail using reports.
- Set up summary report components (target indicators) and send the report by email.
To use a target indicator dashboard, click Master data and settings – Master data and sections – Financial result and controlling – Target indicators – Target indicator monitoring.
To view a target indicator dashboard, use the Participant of management by targets access group profile.
To add, edit, and view targets, target categories, and analysis options of target indicators, use the Administrator access group profile.
Target categories are also called "perspectives" of Balanced scorecard.
To configure groups (perspectives), you can use the Financial result and controlling – Target indicators –Target categories list.
When you fill in the infobase for the first time, several target categories are created:
- Internal business processes
- Employees and development, etc.
The basic set of target categories can be expanded according to the enterprise needs.
Structure of targets
Target indicators are described as a hierarchical structure – Structure of targets. The highest level contains the targets that must be achieved in correspondence with the management and development strategy used in the enterprise. Company owners and managers set high-level targets. Any target can be divided into a required amount of sub-targets whose achievement will lead to achievement of the superior target.
The Structure of targets list item not only symbolizes the target but also defines a calculation algorithm for the target indicator to achieve the target (the Target indicator calculation template field).
The type of work performed to achieve the target indicator is defined by the selected strategy (the Target trend field in the Target list item form):
- Value maximization
- Value minimization
- Deduction within the allowed range
You can set logical or mathematical dependence among the indicators in the Structure of targets list. Place not interconnected indicators on different branches of the highest hierarchy level.
In general representation, each list item corresponds to the Key Performance Indicator (KPI) entity.
During initial infobase filling, 25 basic target indicators are created. Their list can be further extended by users. Creation of new indicators is possible if it can result in significant achievements.
To simplify creation of target indicators, use a partially configured calculation template (data composition system template) that requires data set filling for analysis. You can create indicators by copying the existing items with further modification of the calculation template.
Analysis options of target indicators
You can specify an unlimited number of analysis options. You can set them in Financial result and controlling – Target indicators – Analysis options of target indicators.
With analysis options, you can quickly set variance analysis for the indicators supporting planned values, analyze indicator structure in dynamics, and set a standard view for the indicator on the dashboard.
When you create a new infobase, the supplied indicator model is imported automatically. To import a new supplied model of target indicators to the previously created infobase, click Master data and settings – Master data and sections - Financial result and controlling – Target indicators – Restore supplied indicator model. Once you restore default settings, settings of supplied target categories, target indicators, analysis options, and target values are created or rewritten.
A new supplied model is imported in a separate Supplied indicator model indicator group. Existing indicators not included in the supplied model remain unchanged.
The list of analysis options of target indicators is divided into two parts:
- The structure of targets is displayed on the left side of the list.
- The list of analysis options for each target (target indicator) is displayed on the right side. To create an analysis option for a target indicator, click Create analysis option.
You can set up an analysis option for a target indicator in the Target indicator analysis option form on the corresponding tabs.
Specify the following on the Indicator value calculation tab:
- Analysis type depending on the target indicator:
- Change dynamics is applied if you need to analyze indicator changes over a certain period. Specify the following for this analysis type: period over which change dynamics is to be analyzed, calculation frequency, a target indicator value.
- Component-wise comparison (structure) is applied if you need to carry out data comparative analysis by analysis objects (a company, a partner, a manager, a product kind, etc.) or various indicator values. Specify the following for this type: analysis period, target indicator value, analysis object or additional indicator value.
- Component-wise comparison (dynamics) is applied if you need to carry out comparative analysis of data changes throughout time by analysis objects (a company, a partner, a manager, etc.) or various indicator values. Specify the following for this type: analysis period, calculation frequency, target indicator value, analysis object.
- Comparison with previous period is applied if you need to compare state of a target indicator for the current period with data of the previous period (previous month, the same period of the previous year, etc). For this analysis option, specify the current analysis period and the period to which the data will be compared. The same calculation frequency is used to analyze data for the current and previous periods.
- Measure current state shows the current indicator state, i.e. closeness of the current state to the set target. The arrow on the scale is clearly shown for the indicator: the variance degree from the set target (positive or negative variance).
- Period and frequency. You can specify a data analysis period to calculate the target indicator in the Period field. If an analysis type requires comparison with the previous period, then specify the period, for which you need to analyze data to calculate the target indicator for the previous period (the Comparison period field). The comparison period is set arbitrarily. To receive data, make sure the main period and the comparison period do not overlap, and the comparison period is earlier than the main period. To identify the target indicator change tendency (increased indicator value, decreased indicator value, the same indicator value), set a calculation frequency (the Calculation frequency field). The value is compared to the previous one calculated according to the set frequency. You need to set calculation frequency for each target indicator depending on the specific indicator.
It is reasonable to carry out analysis of cash balance in cash registers every day (Calculation frequency – "Daily"). Comparative analysis in remote retail stores should be carried out with the "Weekly" frequency, since stores send reports on sold goods weekly. During cash balance analysis, cash increase will be compared to the previous day. During data analysis by stores, good sales will be compared to the sales data of the previous week. Calculation frequency defines a period between data calculations if the Change dynamics and Component-wise comparison (dynamics) analysis types are used.
- Value source:
- Value – indicator value determining the option used for indicator calculation. You can use various calculation options for the same indicator. When you create a new indicator analysis option, you need to specify the indicator value only if several value calculation options are used for the indicator. If there is only one indicator value calculation option, the Value field will be filled in automatically.
- Additional value – an additional value of a target indicator used when different calculation options are used for the same indicator, and the Component-wise comparison (dynamics) and Component-wise comparison (structure) analysis options are selected. Additional value is available in the Value with add. value comparison mode.
- Analysis object is used to compare data broken down by various objects, i.e. to determine a share of each object in the target indicator. You can select an analysis object when the Component-wise comparison (structure) or Component-wise comparison (dynamics) analysis types are selected and in the Analysis object values comparison mode.
- Calculation method. You can use one of the following calculation methods for a target indicator (the Value calculation method field):
- Amount – the indicator value is determined in each calculation point according to the set calculation frequency.
- Cumulative amount – the indicator value is determined considering previously accumulated values. This calculation option is available for the limited number of indicators, where accumulation is reasonable. For example, it is not reasonable to use cumulative amount for the Cash balance amount indicator, but it may be reasonable for the Number of sold product items amount indicator.
On January 1, goods to the amount of 100 thousand rubles were sold. On January 2, goods to the amount of 200 thousand rubles were sold. If you use the Cumulative amount calculation method, the revenue amount on January 2 will be 300 thousand rubles.
- Calculation accuracy:
- Value multiplier – if a number (amount) is great, it is recommended that you specify indicator values in thousands and millions.
- Fractional part – allows you to determine a number of digits after decimal (0, 1, 2, 3).
You need to display 120 million 140 thousand rubles on the dashboard. In this case, set the In millions value in the Value multiplier field, and set 2 digits after decimal in the Fractional part field. The amount on the target indicator dashboard will be displayed as 120.14 million.
When creating an indicator value calculation template, you can limit the volume of data used in the calculation and also enable access to target indicators to the users having limited access to the data based on which the value is calculated. You can open the list of possible filter fields by clicking configure of the Filters attribute.
For example, a filter by manager allows you to calculate a personal indicator for a particular manager and display it on the personal dashboard. A separate analysis option based on the data on all managers is used to display information on the dashboard of enterprise's CEO.
You can set an analysis option availability for a specific user. Only options with configured access parameters will be available on the dashboard. You can configure them in the Availability setting form. To access the form, click Change availability.
The dashboard performance depends on the number of displayed analysis options. To significantly increase the speed of information visualization, use the algorithm for temporary storage of calculated data. The storage duration is determined for each analysis option in the Calculation relevance period field.
Specify the following on the Appearance and forecast tab:
- Chart type – graphical representation of target indicator data. There are various chart types.
- Appearance setting – color settings of a target indicator, a chart, and a value scale. You can change the visual indicator representation until you achieve an optimal result (click Set appearance).
- Demo data settings – indicator value data used for displaying in the "Target indicator dashboard" demo mode. You can not only use demo data for modeling, but also enter arbitrary data in the table. In such case, the displayed chart will be automatically changed. Click Fill in by infobase data to evaluate how the indicator will be displayed based on real data from the infobase.
- Forecast – allows you to forecast probable target indicator values for the selected number of calculation periods. It is available if the Change dynamics and Comparison with previous period analysis types are selected. To calculate forecast values:
- Select the Calculate forecast check box.
- Specify a number of calculation periods for which data will be analyzed to create a forecast (Depth).
- Specify a number of periods multiple of the calculation frequency, for which the application calculates probable forecasted indicator values (Horizon).
You need to create a forecast for tomorrow sales volume by analyzing the current day data. The calculation frequency is "Daily". In this case, set "30 days" (a month) in the Depth field, and "1" (day) in the Horizon field.
The forecast accuracy depends on the period for which data is analyzed. The greater the forecast depth compared to the horizon the more accurate the forecast will be. The forecast of probable indicator values is carried out based on the data dynamics for previous periods. Forecasts are based on mathematical models that turn actual data to one of the following mathematical functions: polynomial (1 and 2 degree), exponential, and logarithmic.
Forecast accuracy is measured in percents – from 0 to 100%.
If model adequacy is higher than 80-90%, the modeling quality is considered satisfactory. Otherwise, it is recommended that you reconsider the analysis period, calculation frequency, and forecast parameters for the selected analysis option.
Setting up reports to interpret analysis options
Generate a list of reports to interpret an analysis option for the target indicator when you fill in "Target indicator analysis option" (click Set up reports on the Indicator value calculation tab in the Target indicator analysis option form). When you click the link, a dialog box appears. It contains standard report options in the infobase (the Set up reports for explanation form).
The reports with the selected check box will be available for additional data analysis by target indicators.
When setting a list of reports to interpret, you can take advantage of the following:
- View selected reports (click Only selected reports).
- Enable/disable access of separate reports.
You can interpret an indicator analysis option using reports in the "Target indicator dashboard" (click Reports).
Data in a report for interpretation will be displayed for the period that corresponds to the period specified for an analysis option of the target indicator.
The filters and indicators set for the analysis option are transferred to the report only if the fields in the report for interpretation and in a calculation template of the analysis option match.
Setting target values of indicator analysis options
Target values of analysis options are used to specify the target indicator value range within which the achievement of set targets is planned.
You can set target values (ranges) in the target indicator analysis option (click Target values (ranges) in the Target indicator analysis option form).
Filling of indicator values depends on the target trend (target achievement) set for the indicator (the Target trend field in the target form).
The target value type (value or range) and its filling methods are determined according to that:
- If your target is to get a maximum or minimum value, specify a certain target value (the Target value field).
- If your target is to keep the value in a certain range (the Maximum target range and Minimum target range fields), specify positive variance (the Positive border variance field) for a maximum range value and negative variance (the Negative border variance field) for a minimum range value.
You can specify both absolute and relative (as percent) variances – the Kind of variance from target value field in the target value (range) form.
For example, an enterprise revenue can vary from 100 to 200 thousand rubles during a week. Revenue drop to 40 thousand rubles is critical and requires corresponding measures. To solve this task, you need to fill in the target value (range) parameters:
- Kind of variance from target value – Absolute.
- Maximum target range – 200.
- Minimum target range – 100.
- Positive border variance – specify a value greater than the maximum target range, for example, 500.
- Provided variance – calculated automatically. Value 700 will be set (200 + 500).
- Negative border variance – specify a value less than the minimum target range, for example, 60.
- Provided variance – calculated automatically and defines a critical value that will be controlled. Value 40 will be set (100 - 60).
You can control the target achievement in Target indicator dashboard.
Target achievement marker is displayed for each target indicator if target values are specified:
- If the current target indicator value corresponds to the entered value (range), the Target is achieved state will be displayed and the marker will be green (by default).
- If the current target indicator value is within the variance range specified for the indicator, the Acceptable value state will be displayed and the marker will be orange (by default).
- If the current target indicator value has negative variance greater than the acceptable one, the Unacceptable value state will be displayed and the marker will be red (by default).
- If acceptable or current target indicator values are not defined, the State is not defined state will be displayed.
Setting up arbitrary indicators
The application contains a DCS template based on which new indicators are created.
Let us show you how turnover indicators (sales volume, delivery volume, etc.) are created using the example of the Revenue growth indicator and the Predefined revenue supplied schema.
Specifics of turnover indicator creation (typical example):
- The Period table data set is the "leading" one.
- Create the Data for analysis data set in the template to select data from the application (it may be a query or a query combination).
- The data set must be connected to the Period table data set by period parameters.
- One resource is (usually) enough for one indicator.
- The resource must be described in the constructor for two options:
- For period – Calculate by Period.
- For dimension (component-wise comparison) – Calculate by <Dimension>.
- Add the resource to the selected fields.
- The structure must have the following nesting:
- Any of available dimensions – Period.
Before calculation the application checks the following:
- Whether there is the PeriodTable data set.
- Whether there is the TargetValues data set.
- Whether there is the DataForAnalysis data set.
- Whether there are connections among PeriodTables and TargetValues and DataForAnalysis sets.
- Whether the following service fields are selected: target value and service dimensions (Period and some others).
- Whether there is at least one non-service dimension for analysis (for example, Company).
- Whether there is at least one non-service resource (for example, Revenue).
Setting up and mailing target indicator dashboard
Graphical representation of target indicator analysis options is implemented in Target indicator dashboard.
To set up the target indicator dashboard according to your preferences, click More actions – Configure in the Personal settings form in the target indicator dashboard form. Personal settings allow you to do the following:
- Set indicator grouping (on the Settings tab):
- By enterprise target categories
- By state. The application analyzes indicator values in terms of target achievement and groups them by state. All indicators will be divided into the following groups: unacceptable state, acceptable state, target is achieved, state is not defined, calculated with an error.
- Specify a number of dashboard columns (the Display indicators in... field).
- Define the chart size (the Size of charts and tables field).
- Set auto update period – frequency with which open dashboard indicators will be checked for required updates. Only the indicators with obsolete data detected during the check are updated (the Auto update period field).
- Specify a unique set of used analysis options in accordance with the access rights provided to a user (on the Analysis options tab).
- Select an indicator output format (text, table, or chart).
To model appearance of the target indicator dashboard, you can use Demo mode.
You can use demo data:
- In the beginning of the application deployment, when there is not enough data to display but you need to make a decision whether to use the target indicator subsystem or not.
- If you develop own calculation templates and design the target indicator dashboard components. You can discuss the indicator appearance with relevant users before development of calculation templates.
- If you want to learn more about analysis option settings. In particular, if you want to study analysis types and possibilities of indicator visualization.
Demo mode allows you to assess the target indicator dashboard without entering any information beforehand. To enable the demo mode, click More actions – Demo mode in the target indicator dashboard form.
To display and analyze detailed information on every target indicator, click Indicator analysis. Once you click it, the report on target indicator data is generated (target, analysis parameter, responsible person, etc).
With the Target indicator dashboard print form, you can:
- Analyze a great number of target indicators displayed on one page: target indicators with summary results are displayed on the first page of the print form. For each indicator presented in the print form, you can open the page where you can view detailed description of indicator state and its chart.
- Analyze detailed information on each enterprise indicator, i.e. information on set targets, actual values, and responsible persons is displayed.
- Save the print form in one of the following formats: PDF, Excel, Word, etc. (click Save document).
- Send a report by email (click Send now) – the email will be sent to the specified email address. You can send a report as PDF, Excel, Word files, etc.
- Combine details of target indicators (KPIs) with other management reports. To send the report together with other management reports, click Include in the existing report bulk mail that will provide you access to the existing report mailings. You can add the target indicator dashboard report to already existing mails and edit bulk mails if required (change a schedule according to which emails are sent, change email addresses of the key indicator recipients).
- Configure settings to automatically send summary report indicators (click Create report bulk mail):
- Add a report on the target indicator dashboard and/or any other management report (click Select on the Reports tab).
- Configure received information using corresponding filters on the Reports tab of the Report settings section.
- Configure a schedule (on the Schedule tab) according to which key indicators will be automatically sent by email. That will allow you to timely provide a top manager with enterprise key indicator data. For example, you can set a schedule according to which the report will be emailed daily at 7:30.
- Set recipient addresses on the Delivery (email) tab. Specify a sender name on the tab. The sender can be a user (for example, a manager on whose behalf target indicator data is sent). Also specify recipients to whom key indicators of the summary report will be sent. Users, companies, partners, counterparties, and individuals registered in the infobase can be recipients. These users should have specified email addresses to which emails will be sent.
- Change the report data format on the Additional information tab (the default format is HTML).
The setting scheme of regular bulk mails of the target indicator dashboard is shown in the diagram:
You can set components of sent target indicator analysis options. For that, open the Analysis options report settings of the target indicator dashboard in the Report bulk mail form and edit target indicator analysis options (gross profit, sales, variance cash write-off, etc).
You can select target indicator analysis options from the Target indicator analysis options list. Each target has its own list of options.
With the Target indicator analysis options form, you can:
- Disable all analysis indicators.
- Enable all indicators.
- Enable an arbitrary indicator set.