Analysis Shows 92% of Organizations Prefer Aligned Scorecards Architecture Over Monolithic Approach

BSC Designer conducted an analysis of over 8000 users of strategic planning software. The study found that 92% of users implemented an aligned scorecards architecture, while only 8% used a monolith architecture. This indicates a significant shift from 2019, where only 64% of users utilized an aligned approach.

Sampling Technique

In January 2023, BSC Designer conducted an internal analysis of over 8000 users of strategic planning software using stratified random sampling technique. The study included users who subscribed to both the free and business plans offered by BSC Designer.

The strata used in the sampling process were based on the factors of:

• the number of the users in account considered reliable proxy indicator of the size of the company,
• the level of engagement with the software as quantified by active sessions frequency.

Users who were trying the software, as defined by their sign-up date and activity thresholds, were included as a separate stratum in the sampling process and were excluded from the analysis to ensure that the final data focused on actual practitioners.

Data Collection

The data was collected automatically through the analysis of user accounts, including the number of scorecards in each account, the levels of strategy decomposition in each scorecard, the number of connections between the scorecards. This method allowed for a more objective and reliable assessment of user behavior and practices.

Findings of Analysis

The results of the analysis showed that 92% of the accounts used an aligned strategy and functional scorecards architecture, while only 8% used a monolith architecture.

• Monolith architecture was defined as a single scorecard with multiple levels of goals and KPIs, while
• Aligned scorecards architecture was defined as more than one scorecard with at least one connection between each scorecard.

The requirement for the number of connection between each scorecard was included to ensure that the scorecards were not backup scorecards or scorecards that don’t form overall strategy.

Trend Analysis

A similar analysis was conducted by BSC Designer using the older dataset from 2019, the results showed that only 64% of the accounts used the aligned scorecard approach. The difference between the two percentages was statistically significant, indicating shift in the preferred strategy architecture over the past four years.

Validating the Results

These results were determined to be statistically significant using a validation set method, which involved comparing the results from the stratified random sampling of 8,000 users to a separate set of data from the same users base. Additionally, to further validate the findings, interviews were conducted with a selection of customers. The validation method ensured the accuracy and reliability of the findings, providing confidence in the observed differences in strategy architecture.

While the results of the analysis provide evidence of a significant shift in the use of aligned scorecards, there are some limitations to the study.

• The sample may not be entirely representative of the organizations engaged in strategic planning., as it only includes those who use BSC Designer software.
• Additionally, the analysis did not take into account qualitative feedback from users, which could provide more in-depth insights into their experience with the software.

The impact of any changes in the software itself or marketing since the 2019 analysis is estimated to be not statistically significant.

The findings of the analysis provide valuable insights into the current trends in the use of aligned scorecards as a strategy architecture in comparison to monolith strategy.