Aggregate Efficiency Scorecard

Aggregate Efficiency Scorecard (AES) – see here - has been designed to measure, analyze and maximize the aggregate performance of the corresponding corporate object. There are two ways to do that: (1) by analyzing values – benchmark, planned and actual – of object-related KPI; and (2) by performing the performance audit of the object in question using the Comprehensive Object Audit (COA) questionnaire. The first approach is executed using Object KPI Scorecard which I will cover in detail later; the second – using the AES.

COA questionnaire is essentially a hybrid of a due diligence questionnaire used by investment banks and venture/direct equity investors to analyze potential investment targets and a questionnaire used by strategic management consultants to measure and maximize the performance of the business entity in question.

AES consists of three key sections – the AES proper (COAQ section); performance improvement plan section and the documents section.

COAQ section contains a comprehensive list of object performance analysis questions. Each question covers a certain aspect of object performance which is measured on a scale of 0 (aspect/function is not implemented at all) to 10 (top performance). Based on this score (assigned by either internal performance analyst or an external management consultant), AES computes a Performance Index (PI) for the corresponding object performance aspect.

Using these PI, AES then computes Aggregate Efficiency/Performance Index (AEI) for the whole object in question. Full commercial version of CBAW allows its user to compute – from AEI of individual objects – the AEI for object portfolios (e.g. brands, products, assets, etc.) and for the whole business system (see the AEI computation diagram).

In addition to the questions, scores and PI, COAQ section contains a so-called ‘ACRC section’. This section allows for a dynamic description of each corporate object as it contains the Analysis, Conclusions, Recommendations and Comments subsections for each aspect of object performance covered by the corresponding question.

For the purposes of object performance measurement, analysis and maximization, ACRC section is much more important and useful than the still arbitrary PI and AEI. Although the latter to give a rather good understanding of aggregate object or company performance.

Performance improvement plan section is essentially a simplified project management module that contains a combined financial and operational plan for maximizing the aggregate performance of the object in question. This plan contains specific activities assigned to specific employees; their start and finish dates and expenses/costs required to complete these activities within the required time frame.

The documents section contains links to documents (documents proper and SQL or Data Mining queries) related to the corresponding question/performance aspect or the object in general. This section allows to develop a comprehensive corporate knowledge as all corporate documents will be connected to the right objects and assist in maximizing their individual performance and the synergy between corporate objects. Which is the fundamental objective – the ‘Holy Grail’ of corporate information and knowledge management. 

You can view a brief PDF presentation on AES here.