Cascaded Scorecards & KPI Measurement Engine

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Cascaded Scorecards & KPI Measurement Engine within SmartERP.

At the operational core of the platform is the Cascaded Scorecard Engine. Based on the foundational methodology developed by Dr. Robert Kaplan and Dr. David Norton, SmartERP provides a balanced, multidimensional view of performance that prevents short-term financial optimization at the expense of long-term organizational health.

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{screenshot:cascaded-scorecards-and-kpis-overview-dashboard}

2. Prerequisites & Security Access Groups#

• Required Modules: smarterp_balanced_scorecard, smarterp_strategy
• Security Groups:
  • Strategy Officer (Technical ID: smarterp_balanced_scorecard.group_bsc_user)
  • Strategy Director (Technical ID: smarterp_balanced_scorecard.group_bsc_manager)
  • Executive Committee Member (Technical ID: smarterp_balanced_scorecard.group_bsc_executive)
• Master Data Dependencies: Strategic themes, 4 BSC perspectives (Financial, Customer, Internal Process, Learning & Growth), corporate KPIs, and quarterly appraisal periods.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the Strategic Execution app icon.
4. From the top navigation bar, open Strategic Execution → Perspectives → Strategic Objectives / KPIs / Action Plans.

{screenshot:cascaded-scorecards-and-kpis-app-switcher-navigation}

Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Objective / KPI Name (Mandatory): Precise strategic outcome statement
   • Perspective (Mandatory): One of the 4 balanced perspectives with mandated weighting
   • Weight (%) (Mandatory): Percentage allocation contributing to overall perspective score
   • Target Value & Baseline (Mandatory): Quantifiable numerical goal and historical starting point
3. Configure optional operational parameters and localized tags as required:
   • Calculation Formula (Optional): Automated SQL query or module model metric extraction
   • Initiative Champion (Optional): Department head or senior manager accountable for result
   • Review Frequency (Optional): Monthly, quarterly, or annual appraisal cadence
4. Click the Save icon in the control bar to commit the record.

{screenshot:cascaded-scorecards-and-kpis-record-creation-form}

Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (Draft → Active Target → Mid-Term Review → Final Appraisal → Locked).
• Ledger & System Impact: Financial perspective KPIs dynamically read General Ledger balances, revenue growth metrics, and cost ratios directly from the accounting engine.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

{screenshot:cascaded-scorecards-and-kpis-transaction-processing-state}

The Four Classic Perspectives#

Every scorecard evaluates progress through four interconnected perspectives:

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Multi-Tier Cascading Architecture#

Strategy fails when employees cannot see how their daily responsibilities connect to the company's annual goals. SmartERP BSC V3 provides a four-tier cascading hierarchy:

graph TD
    A["Corporate Master Scorecard (Tier 1)<br/>Owned by: Board of Directors & CEO"] --> B["Commercial Division Scorecard (Tier 2)<br/>Owned by: VP Sales & Marketing"]
    A --> C["Engineering & Cloud Ops Scorecard (Tier 2)<br/>Owned by: Chief Technology Officer"]
    A --> D["Finance & Shared Services Scorecard (Tier 2)<br/>Owned by: Chief Financial Officer"]
    B --> E["Enterprise Sales Team Scorecard (Tier 3)"]
    C --> F["DevOps & Platform Team Scorecard (Tier 3)"]
    E --> G["Individual Account Executive Scorecard (Tier 4)<br/>Owned by: Senior Account Rep"]
    F --> H["Individual Cloud SRE Scorecard (Tier 4)<br/>Owned by: Senior Infrastructure Engineer"]

• Parent-Child Linkage: Every subordinate scorecard links to its governing parent_id scorecard.
• Weight Rollup: Departmental results aggregate upwards into the corporate master score based on configured weighting parameters.
• Individual Employee Attribution: Individual scorecards link directly to the employee's hr.employee record, allowing performance reviews to draw directly from verified system measurements rather than subjective memory.

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Weight Balancing & Mathematical Integrity#

To ensure balanced strategic focus:

• Each perspective within a scorecard is assigned a Perspective Weight % (e.g., Financial 25%, Customer 25%, Processes 25%, People 25%).
• The sum of all active perspectives must total exactly 100%.
• Within each perspective, individual KPIs are assigned weights that must also total 100%.
• If a planner enters weights that total 200% or 80%, the system's @api.constrains validation prevents saving until the perspective is properly balanced.

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KPI Scoring Mechanics & Directional Modes#

A Key Performance Indicator (bsc.kpi) defines a quantitative target. Performance is computed based on one of three directional scoring modes:

1. Increasing Mode (Higher is Better)#

Used for revenue, subscriber count, uptime %, or customer satisfaction:

$$\text{Achievement Score \%} = \left( \frac{\text{Actual Value}}{\text{Target Value}} \right) \times 100$$

2. Decreasing Mode (Lower is Better)#

Used for incident response time, defect rates, customer churn %, or cost overruns:

$$\text{Achievement Score \%} = \left( \frac{\text{Target Value}}{\text{Actual Value}} \right) \times 100$$

3. Range Mode (Target Within a Band)#

Used for inventory turnover days, working capital ratios, or temperature tolerances where both overshooting and undershooting carry operational penalties.

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RAG Performance Status Thresholds#

Every measured KPI and scorecard is classified into an intuitive visual traffic-light status:

• 🟢 Green (On Track): Achievement $\ge 90.0\%$. Target is met or exceeded.
• 🟡 Amber / Yellow (Needs Attention): Achievement between $70.0\%$ and $89.9\%$. The metric is drifting off course; corrective operational intervention is recommended.
• 🔴 Red (Critical / Off Track): Achievement $< 70.0\%$. Significant strategic failure or operational breakdown.

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Critical Data Integrity & Calculation Safeguards#

SmartERP BSC V3 includes five built-in mathematical safeguards:

1. Missing Data Integrity Protection: If a KPI's target is zero, or if data has not yet been recorded for a period, the system scores the metric as $0.0\%$, never defaulting to a false $100\%$ green score.
2. Future-Period Guard: When measuring monthly or quarterly periods across an annual cycle, future unelapsed periods are protected from being recorded as "measured zeros." They remain in an unmeasured pending state until their calendar period ends.
3. Automated Escalation Guard: The system's automated escalation cron checks only periods where actual_is_measured = True and date_end <= today, ensuring employees are never penalized for unelapsed quarters.
4. Odoo 19 Aggregator Compatibility: Uses native Odoo 19 aggregator parameters rather than deprecated Odoo 17/18 .group_operator attributes.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • BSC: Calculate quarterly KPI achievements (smarterp_bsc.ir_cron_compute_kpi): Runs quarterly on the 5th to compute composite achievement scores
  • BSC: Issue appraisal cascade reminders (smarterp_bsc.ir_cron_appraisal_alert): Runs monthly to remind objective champions to update progress
• Custom Print Templates & Reports:
  • Institutional Balanced Scorecard Executive Dashboard
  • Departmental Strategic Cascade Matrix
  • KPI Performance Variance & Trend Analysis
  • Corporate Strategy Execution Summary
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#