As companies continue to invest in business intelligence, analytical tools are becoming more commonplace. Performance reports (both financial and non-financial) are no longer enough. For effective performance management, the numbers need to be accompanied by how and why so that managers know what to do next.

Dashboards and scorecards are analytical tools that allow you to focus on the measurements that are important to your business. But, what exactly do these tools do? If you ask most people to give you an off-the-cuff definition of either one, you will likely get the same response for both terms – a customizable view of key performance indicators (KPIs) that give you actionable information. The true meaning of these terms goes beyond that simple definition. Before you implement either of these tools, you need to understand the differences between them to determine which one is most appropriate for your needs.

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