Real Case Analysis on Volero Energy-Fact Based Decision Making

Topics: Balanced scorecard, Decision theory, Decision support system Pages: 6 (1898 words) Published: April 4, 2013
Kathmandu University School Of Management (KUSOM)

Valero Energy, Elkay Manufacturing, J&J , and : The Move Toward Fact – Based Decision Making

Submitted To:
Mr. Sandeep Timsina
Course Instructor

Submitted By:
Alisha Shah (12327)
MBA – Term III,
Date : 20th November, 2012

Valero Energy, Elkay Manufacturing, J&J , and : The Move Toward Fact – Based Decision Making Case Synopsis
Data driven decision making or the fact based decision making is the typically adopted approach by many organizations. Organizations have been able to adopt it by synthesizing and sharing the key performance indicators, drawing insight from the information and developing culture for fact based decision making. Among the many companies Valero Energy has been able to capitalize on it by utilizing Refining Dashboards. To achieve “Commitment to excellence” and “reduced energy consumptions” it has been able to collect real time data of plant and equipments. Dashboards and Scoreboards are the tools utilized by the organizations to collect real time data and take corrective actions to improve performance. Elkay Manufacturing have adopted the approach of fact based decision making by utilizing softwares like “Host Analytics” software- performance management system, Acron Performance Analyzer – costing software, etc..J&J have utilized scoreboards in its various business units and SKU like pharmaceuticals, consumers, medical device etc .It has used various matrices to assess the performance in these business units. E-commerce based companies like have utilized the fact based approach to make sound financial and operational decisions. Hence there is ongoing trend of companies for adopting fact based decision making.. Questions

1. What is the Difference Between a “dashboard” and a “scoreboard”? Why is it important that the managers know the difference between the two? What can they learn from each? Dash board and scoreboards both are decision support tools and measurement systems built on integrated data. Since both of these tools are used in viewing business performance they are often used interchangeably. However there is some significant difference between the two. A scorecard measures performance against goals. Typically, a scorecard displays graphic indicators that visually convey the overall success or failure of an organization in its efforts to achieve a particular goal. The scorecard is based on a collection of key performance indicators (KPIs), each of which represents an aspect of organizational performance. A dashboard is a container for various types of reports, including scorecards. It might consist of one or more pages, and it might have more than one module on each page. The modules are called Web Parts. A typical dashboard might contain a scorecard, an analytic report, and an analytic chart, but many variations are possible Some of the major difference between the two can be analyzed as follows: Basis of difference| Scoreboards | Dashboards|

Meaning| Scorecard is a Business Performance Measurement (BPM) used mostly at seniorManagement level to view the business performance through indicators. This helps theorganization do a pulse check to see how the business is performing towards achievingthe strategic goals in different units of business which are operating as per the strategymap.| Dashboard is a Business Activity Process Monitoring (BAM) or Business ProcessMeasurement (BPM) used most by the operational managers to monitor the day-to-day operations through visualization| Users/ Used by | It is used in the strategic/ Corporate level by the executives to align operational execution with business strategy,| Usually it is used by the operation managers (department level) to make operational decision. It is less strategic and tied to operational goals.| Business use| It is used to measure performance by...

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