Company-wide goals are usually broken down into departmental goals. Departmental goals are then analyzed and key performance indicators (KPIs) are used to track those goals. KPIs are quantifiable measurements of the key success factors for an company. A SharePoint Dashboard is a tool that helps organizations track and share measurements of KPIs to determine whether or not they are on-target to achieve department goals.
The key advantage of Dashboards are that they can be automated to collect relevant, summary data on a regular basis over time. This provides an organization with the ability to identify trends and take corrective action if trends are not moving in the right direction.
A great place to start learning about this valuable resource is Microsoft's page "Getting started with Dashboards."
Here is another article on using dashboards for Business Intelligence (BI). Here is a You Tube video with a nice tour of dashboards. If you really want a detailed look how you can use dashboards (and scorecards) to create great reports we have a class in November that specifically deals with this other of BI .
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