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

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

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

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 todays 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.

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

Relationship between Scorecard Elements

Vision
Strategy

Perspective

Objective

Objective

Perspective

Objective

Perspective

Objective

Objective

Objective
Measure

Objective
Measure

Measure

Measure

Measure

Measure

Measure

Select Design tab

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

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

Screen 1

Screen 2
You will get the following screen of Strategy Management Design.
Click on Measures in Measure Definition

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

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

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

Screen 5
Lets create a measure

Screen 6
Specify the technical name & description of measure.

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

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. Its 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

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

Screen 9
Create Strategy. UMC_CPM_STRAT (Strategy management under SEM under /n)

Screen 10
Specify the Strategy of organization in editor screen.

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

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))

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

Screen 13

Screen 14
Create Scorecard in transaction: UMC_CPM_STRAT or (Strategy management under SEM under /n)

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

Screen 15
Create a Hierarchy node & assign Scorecard to it, which was previously under the unassigned node.

Screen 16

Screen 17

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

Screen 18
Now Assign Strategy to Scorecard.

Screen 19

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

Screen 20

Screen 21

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

Screen 22

Screen 23
Assign perspectives to strategy.

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

Screen 24
Assign objectives to perspective

Screen 25

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

Screen 26
Assign measures to objective.

Screen 27

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

Screen 28

Screen 29
Specify the details (Actual & Plan value) in value fields tab of measure.

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

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.

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

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

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

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

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 Nivens 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"

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

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.
SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or
code sample, including any liability resulting from incompatibility between the content within this document and the materials and
services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this
document.

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