Corporate Governance - Governance, Risk, and Compliance Topic for Oracle Applications - page 20

The main components and how they are related
The following logical data model diagram shows the major components of the
balanced scorecard system, and how those components are related:

Mapping of

Is Accountable For

SCORECARD STRATEGY MAP

ACCOUNTABILITY
HIERARCHY

ACCOUNTABILITY
HIERARCHY
MEMBER

Is Accountable to

meets

Is represented
on

Responsibility of

Is met by

Enters Targets
For

PERSON OBJECTIVE STRATEGY HIERARCHY

MEMBERSHIP

STRATEGY HIERARCHY

Enters Results For

The key entities are explained as follows:

• Scorecards : A collection of scores against a set of objectives typically
aggregated and weighted to a total possible score of 100.
• Objectives : Objectives are grouped under a scorecard. Some strategic goal
against which the enterprise wishes to measure progress.
• Strategy Hierarchy : A way of organizing objectives to express how the
results of one objective contribute to the results of another.
• Strategy Hierarchy Membership : Breaks-down an objective into smaller
objectives and scorecards that contribute to the overall objective.
• Strategy Map : Displays a scorecard using the cause and effect relationships
implicit in the hierarchy.
• Accountability Hierarchy : A collection of accountability elements that are
typically departments, business units that have managers that will be held
accountable for results.
• Accountability Hierarchy Member : The departments or business units that
are assembled into a hierarchy.
• Person : Employees can have responsibility for an accountability hierarchy
member, and therefore responsibility for the objectives in its scorecard. The
manager of a department or business unit may be responsible for setting
targets for his managers. The finance staff may be responsible for collecting
results for the objectives.