Put critical information at your fingertips  

        Executive  Dashboards give managers a window into the organization to proactively identify  and address issues before they become problems.

       By Richard  Slack, Bolo Systems

anagers who want to have an accurate pulse on the host of variables  impacting an organization’s bottom line need an  Executive  Dashboard. A dashboard is Web-based software tool that takes complex company  data commonly buried inside accounting, land and operational software silos and  transforms it into instantly accessible and useful information to help  executives make faster, more accurate and informed decisions. Executives are  able to first identify the specific data that would be most beneficial in  evaluating the health of its organization, and the completely customizable  dashboard then combines those meaningful key performance indicators (KPIs) into  a high-level graphical display.

Most  dashboards include a few “out of the box” KPIs used most often by executives in  information-intense industries such as the oil and gas business. These KPIs  include:

＆#8226;     Outstanding accounts payable;

＆#8226;     Outstanding accounts receivable — both joint interest billing (JIB) and revenue  receivable;

＆#8226;    Lease  status (expirations, obligations, etc.); and

＆#8226;    Daily and  monthly production volumes.

Fully  configurable, the immediate and sustained benefits of an Executive Dashboard are  best

Figure 1. This  diagram illustrates how an Executive Dashboard fits into the system  configuration of a typical user.   

achieved when the  dashboard is customized to detail the specific components defined by the user,  such as AFE Budget to actual reporting, lease operating statements, and lease  operating expense reports.

By visually  pointing out anomalies within the KPIs that might need further review, Executive  Dashboards allow decision-makers to drill down to more detailed information when  needed, enabling exception-based review of the data. When looking at detailed  transaction data, dashboards also may include the ability to examine the  electronic document used to create the transaction.

The  at-a-glance format of a dashboard identifies “need-to-know” information using  graphs and tables rather than rows and columns of numbers. In this way, when one  or more KPIs underperform, what is happening is almost immediately clear, so the  user can instantly drill down to the root cause of the problem and take  immediate action to rectify the situation. By continually identifying and  resolving problems before they become issues, management can achieve overall  operational excellence.

One of the  best features of dashboards is that they are accessed using any standard Web  browser. While most executives are using a Windows OS, dashboard applications  are equally available to anyone running a client workstation running other  operating systems such as Linux, Macintosh or Sun. This means that the  information can be available from anywhere, at anytime, without the need for  special equipment or technology.

As with any  application containing sensitive company data, security protocols are essential.  Typical security surrounding web-enabled dashboards includes two tiers of  security: dashboard-layer security and application-layer security, including  user access restrictions. For example, if an engineer manages operations for the  Gulf Coast District, the data available on the dashboard he views would be  limited to that district, with the dashboard’s security protocols prohibiting  him from running reports for other areas.

Fueling  efficiency and productivity

Dashboards  are especially helpful for companies competing in challenging regulatory  environments such as the oil and gas industry. Not only do these companies need  to stay on top of financial and management data, they also need a system that  helps them follow the many compliance requirements of Sarbanes-Oxley  regulations. As a company staffed and operated by accounting, land and  production professionals, Bolo Systems understood the advantages dashboard  technology could provide to this demanding industry. Working with its customers,  Bolo created a solution that equips users with real-time data assembled from  across multiple internal databases as well as from a variety of external  sources.  

 Oil and gas  companies are often beleaguered by software systems with closed platforms    

 Figure 2. The  Executive Dashboard takes the information from the database and converts it into  a customized visual display that is conveniently accessed from any web-based  application. that keep  vital information decentralized, disorganized and diffused, which means that  data must first be gathered from multiple sources and painstakingly combined to  be used effectively. This drains user productivity and can limit a company’s  ability to grow. To help organizations overcome these challenges, Executive  Dashboards pull information traditionally stored in separate systems, creating a  way to make decisions without having to first sort through numerous reports and  combine data manually.

First, an  application server sits on top of department-specific solutions such as  accounting, land, production and finance (Figure 1). The database layer then  accesses the information and provides the engine for gathering and analyzing the  user-requested data. Finally, the Executive Dashboard takes the information from  the database and converts it into a customized visual display that is  conveniently accessed from any Web-based application (Figure 2).   Turning data into  decisions

The  industry-specific dashboard can be used to monitor changing business conditions.  The use of the dashboard increases the ability to easily access crucial  financial and production data. This information now forms the foundation for the  bottom-line intelligence executives refer to when making calculated company  decisions. In addition, managers, armed with up-to-the-minute knowledge of the  business, are able to provide more relevant, thoughtful service, resulting in  higher levels of customer satisfaction.

Executive Dashboards  improve efficiency by first helping executives determine measurement criteria  for the success of its organizations and then by providing easy access to the  data necessary for evaluating its goals. In real time, dashboards put the  appropriate information into the right hands, so management can avoid surprises, quickly react to business changes and proactively make smart decisions that lead  to organizational excellence.

For example, one  business executive configured his Executive Dashboard with a Cost Center report  that displayed the various revenue and expenses generated on properties. In the  past, this manager had to review manual summary reports for each property,  identify data that is outside the normal parameters and then request a detailed  report for each property.

Once the reports  were received, a further analysis needed to be completed to identify anomalies.  Now, instead of reviewing multiple reports looking at each property  individually, the information encompassing multiple properties is presented  using a graphical format to determine which properties do not meet  pre-determined thresholds.  He was able to then use the information to focus on  improving the operations that did not meet the company’s criteria, thus  increasing profitability and improving the company’s overall balance sheet.  

Uncovering and  displaying vital company data in real time allows management to make smarter and  more powerful decisions that will serve to continually improve operations. The  monitoring of a company’s KPIs encourages proactive identification of problems  and helps management develop effective corrective measures before challenges or  problems ensue. Finally, the continual snapshot overview of the business that  dashboards provide keep managers up to speed with detailed, accurate and timely  information that contributes significantly to the overall health of the  organization, the bottom line and shareholder value.