Spider Strategies Inc. Corporate Management Suite

Organization Node A structural unit in the hierarchy of an organization (may be business units, divisions, teams, etc.) Example Acme Corp –Human Resources –Finance Billing –Manufacturing Philadelphia Plant

Calendar A sequence of divisions of time in which data may be viewed or recorded Examples: Daily Weekly Monthly Yearly Fiscal Quarters

Calendar Periods Periods of time that collectively make up a calendar Examples: May 8, 2006 May 7 – May May April – June 2006

Scorecard A simple color-based view of performance of an organization node A scorecard is associated with a single organization node Not all organization nodes have scorecards

Scorecard Tree A hierarchical collection of information used to score an organization The root node of a scorecard tree is also sometimes referred to as the Scorecard (e.g. Philadelphia Plant Scorecard)

Example Scorecard Tree Philadelphia Plant Scorecard –Employee Training # of employees attending training this month Certifications earned this month –Production Widgets Produced per week –Customer Satisfaction Customer Complaints per week –Finances Revenue per quarter Expenses per quarter Profit per quarter

Scorecard Nodes A node in a scorecard tree Standard scorecard node types (defined by BSCOL) –Key Focus Area –Perspective

Metrics A quantifiable measure of a company’s performance over a period of time Metrics are the leafs in a scorecard tree Metrics are associated with a single calendar period

Example Scorecard Tree Philadelphia Plant Scorecard –Employee Training # of employees attending training this month Certifications earned this month –Production Widgets Produced per week –Customer Satisfaction Customer Complaints per week –Finances Revenue per quarter Expenses per quarter Profit per quarter

Regular, Non-Calculated Metrics Metrics with associated data Metric data is collected and entered into the system for each calendar period in the metric’s native calendar Example: Widgets Produced per week

Owners One or more people with responsibility for the performance of a scorecard node Owners may be assigned for any scorecard node

Updaters One or more people who have the ability to update a metric’s actual values Updaters may only be assigned for non- calculated metrics, since there is no data to enter for other types of scorecard nodes

Scoring Different node types are scored differently 3 main types of nodes, for scoring purposes –Non-calculated metrics –Calculated metrics –Other scorecard nodes Multiple methods possible for scoring –Goal/base scoring –4-color scoring –Six sigma

Scoring Basics A score is a normalized value between 0 and 10 0 indicates very poor performance (red) 10 indicates excellent performance (green) Actual values are compared to defined threshold values (e.g. goal, base) to determine a score

Goal/Base Scoring Breaks up score into 3 regions: red, yellow, green An actual value equal to the base is assigned a score of 10/3 = 3.33 An actual value equal to the goal is assigned a score of 2*10/3 = 6.67 Scores between 0 and 3.33 are red Scores between 3.33 and 6.67 are yellow Scores between 6.67 and 10 are green

4-color scoring 5 different thresholds: –Worst, score = 0 –Red flag, score = –Warning, score = –Goal, score = –Best, score = 10

Non-calculated metrics Metrics with associated data Metric data is collected and entered into the system for each calendar period in the metric’s native calendar Example: Widgets Produced per week To arrive at score, compare actual value to goal and base In the database, the value is stored on the last day of the period (more on this later)

Calculated Metrics Administrator sets an equation for the metric that is used to calculate its value Example: Profit = Revenue – Expenses To arrive at score, compare actual value to goal and base

Scorecard Nodes No actual value Score and color is determined based on doing a weighted average of the scores of the children

Score Aggregation Scores are aggregated when viewing a calendar period larger than the scorecard node’s native calendar (e.g. viewing a monthly metric in the quarterly calendar) Actual values in the native calendar are aggregated together in different ways –Sum aggregation type means add all the values in each period together –Average aggregation type means average the actual values in each period –None aggregation type means just use the last value from the native period as the value for the larger period

Forward-Effect Scoring Used when viewing a calendar period that is smaller than a scorecard node’s native period (e.g. viewing a monthly metric in weekly mode) Basic idea is to just take the value from the metric’s native period and use that for the period that is being viewed.

Forward-Effect Scoring Example Jan 1-7 pulls its value from Dec 2005 Jan 8-14 pulls its value from Dec 2005 Jan pulls its value from Dec 2005 Jan pulls its value from Dec 2005 Jan 29-Feb 3 pulls its value from Jan 2006 The value for Jan 2006 isn’t know until the last day of the period (Jan 31), so the value for each week is pulled from the previous month (Dec 2005)