参考说明讲稿balanced scorecard

BalancedScorecardWorkshopPresentedby:MattH.Evans,CPA,CMA,CFMPublicSectorRetreatonMalcolmBaldrigePerformanceExcellencePurposeoftheWorkshopIntroducetheBalancedScorecardtotheOrganizationMakesureeveryoneunderstandshowthescorecardworksCommunicatehowtheBalancedScorecardfitswiththeMalcolmBaldrigeModelofperformanceexcellenceTableofContentsBalancedScorecardBasicsCreatingtheStrategyMapGoodPerformanceMeasurementsTheFinalScorecardComponentsCaseStudyExerciseSomeFinalPointsTheOrganizationwillemore“strategicallyfocused”overthenexttenyearsgiventherecentpolicydirectiveissuedbyBSP(Budget&StrategicPlanning).Peopleatalllevelshavereliedheavilyontacticalperformancemeasurements,suchasnumberofmapssubmitted,numberoflandstructuresinflow,and%ofsupplyvendorcontractsinplace.Needmorebalancedapproachtolookingatperformance,bothtacticalandstrategic.Only5%ofaworkforcetendstounderstandtheircompany’sstrategy.86%ofexecutiveteamsspendlessthanonehourpermonthdiscussingstrategy.WhytheBalancedScorecard?TheOrganization’sInformationResourcePlanningSystem(IRPS):Enterprisewidesystemforhowwewillevaluatesuccess–divisionreadouts,dataturnarounds,globalpartnerships,etc.Mustbeintegratedintoallagencycomponents(suchasregionandglobaloutletoffices)DesignedaroundtheBalancedScorecardframeworkTheBalancedScorecardwillbethestrategicviewofperformancefortheagency,balancingoutourcurrenttacticalviewofperformancewhichisalreadyinplace.AMajorDriveris...GovernmentPerformanceResultsActRequiredtodeveloplong-termStrategicPlans("SP")SpecifygeneralGoalsandObjectivesDevelopAnnualPerformancePlans("APP")Specify

measurable

performancegoalsAnnualPerformanceReport("APR")Demonstrateactualresults

APPgoalsshouldshowtheexpectedprogresstowardmeetingthelong-termgoalsoftheSPPublicSectorOrganizations–

MoreStrategicFocusIntroducedin1992,byRobertKaplanandDavidNorton,theBalancedScorecardisthemostcommonlyusedframeworkforensuringthatagenciesexecutetheirstrategies.Today,about70%oftheFortune1,000companiesutilizetheBalancedScorecardtohelpmanageperformance.BalancedScorecardsareusedastheroadmapforcreatingthe“StrategicManagementSystem”orourIRPS.Andthiswilldriveoverallorganizationalperformanceforourentireagency!Whereitstarted...SomeBasicPrinciplesQuantifiestheAgencyStrategyinmeasurabletermsStrategyissummarizedonaStrategyMapoverfourviewsofperformance(perspectives).Mustcaptureacause-effectrelationshipbetweenstrategicobjectivesoverthefourperspectivesontheStrategyMap.CriticalComponentsinclude: -Measurements -Targets -InitiativesEverythingmustbelinked:GoalstoObjectives,ObjectivestoMeasurements,MeasurementstoTargets.FourViewsofPerformanceStrategycanbedescribedasaseriesofcauseandeffectrelationships.Providesa“lineofsight”fromstrategictooperationalactivityworkingonthe“right”things.“Ifwesucceed,howwillwelooktoourstakeholders?”StakeholdersStrategicObjectives“Tosatisfyourcustomers,atwhichprocessesmustweexcel?InternalProcesses"Toexecuteourprocesses,howmustourorganizationlearnandimprove?"Learning&Growth“Inordertosucceed,whatinvestmentsinpeopleandinfrastructuremustwemake?”AgencyInvestmentsStrategyAgencyDepartmentTeam/IndividualMeasuresObjectivesCompleteFrameworkforIRPSTheImportanceofAlignmentAlignmentalltheWayThroughImproved"CauseandEffect"KnowledgeInnovationBusinessProcessesImprovedEnvironmentalAssessmentReportsManagementJustifiedInitiativestoImproveWaterQualityInvestmentsAvailabletobeAllocatedtoOtherCriticalAreasEnvironmentalHealthImprovedWaterQualityRelationshipManagementEnhancedPublicConfidenceIncreasedInvestmentAccountabilityFinancialManagementDecreasedLitigationCostsResourceInvestmentGoal:ImproveenvironmentalhealthInitiative:DataMiningPerformanceGap:LessthanOrganizationwatershedwaterqualityInordertobesuccessful,theAgency’sIRPSshould...Becomprisedofabalancedsetofalimitedvitalfewmeasures;Producetimelyandusefulreportsatareasonablecost;Displayandmakereadilyavailableinformationthatisshared,understood,andusedbytheAgency;andSupportstheorganization’svaluesandtherelationshiptheorganizationhaswithcustomers,suppliers,andstakeholders.Getdowntoasetofquantifiablestrategicobjectives:

Toovague

MorepreciseMakesureyourobjectiveshaveadirectrelationshiptoyourgoalsandyourgoalshaveadirectrelationshiptoyourmissionandvalues.Beforewecanmapyourstrategy...ImproveCustomerServiceReduceaveragecustomerwaittimesby30%byyearendTableOfContentsBalancedScorecardBasicsCreatingtheStrategyMapGoodPerformanceMeasurementsTheFinalScorecardComponentsCaseStudyExerciseSomeFinalPointsInternalProcessStakeholderLearning&GrowthReduceRe-ActivitiesthruABC/MEstablishWebBasedSelfServicesKnowledgeManagementHumanCapitalImprovedReturnsonInvestmentsMorerapidandaccessibleservicesLeadershipDevelopmentInvestmentsStrategyMap:CaptureaCauseEffectRelationshipfromtheBottomUpITInfrastructureFacilitiesandFixedAssetsEconomicModelProcessExpandGlobalFacilityReachTwoSpecialTechniques

forBuildingStrategyMapsThe4to5RuleSplittingthePerspectiveGeneralRuleofThumbtoensurestrategymapisdevelopedbothverticallyandhorizontallyWayofpullingoutbothdriversandesthatmatchupagainstthecorecompetenciesofthebusinessmodelCustomerGrowthCustomerSatisfactionRetentionRateTimelyDeliveryPricingQualityServiceReputationCustomerPerspectiveesDriversWeakStrongArticulateshowtheorganizationcreatesvalueforitsconstituentsandlegitimizingauthorityDisplayskeyprioritiesandrelationshipsbetweenes(the"what")andperformanceenablersordrivers(the"how")Providesaclearviewof"howIfitin"forsub-organizations,teams,andindividuals"Cascadingthescorecardthroughouttheorganization,andclearlymappingthevariousunitsandfunctionsbacktotheorganizationoragency-widemapiscriticaltoleveragingandensuringalignment"KeyBenefitsofStrategyMapsExecutiveconsensusandaccountability:

Buildingthemapeliminatesambiguityandclarifiesresponsibility.EducateandCommunicate:

Buildawarenessandunderstandingoforganizationstrategyacrosstheworkforce.EnsureAlignment:

Eachsub-unitandindividuallinktheirobjectivestothemap.Source:"UsingBalancedScorecardTechnologytoCreateStrategy-FocusedPublicSectorOrganizations",RobertS.Kaplan,April21,2004,pg.20PromoteTransparency:

Communicatewithandeducateconstituents,partners,oversightbodies,andthegeneralpublic.StrategyMaps–

ABetterWaytoCommunicateStrategyMultipleChoiceQuestion–

CauseEffectonStrategyMapThetopperspectiveoftheBalancedScorecardisthefinalendresultsoreswewanttoachieve.Thisperspectiveiscalled:a. InternalProcessesb. Stakeholder/Customerc. Learning&Growthd. AgencyInvestmentsMultipleChoiceQuestion–

andtheansweris...b–“Stakeholder/Customer”arethosewhoweultimatelyserveandwemustmeettheirneedsandrequirements.Thisisourfinalendresultwithinthescorecardmodel.BalancedScorecardstellyoutheknowledge,skillsandsystemsthatyouremployeeswillneed(learningandgrowth)toinnovateandbuildtherightstrategiccapabilitiesandefficiencies(internalprocesses)thatdeliverspecificvaluetothemarket(customer)whichwilleventuallyleadtohighershareholdervalue(financial).–“HavingTroublewithYourStrategy?ThenMapIt”byRobertS.KaplanandDavidP.Norton-HarvardBusinessReviewOnceyouhavecompletedyourstrategymap,makesureitalignswithagenciesordivisionsyoureportupto.ThisoverallalignmentofscorecardsthroughouttheentireOrganizationformstheStrategicManagementSystemwithinIRPS.BestBusinessPracticesExpandGlobalReachExpandtheSkillBaseLeanProcessesOrganizationScorecardImproveAsianFootprintDeveloptheWorkforceGOGScorecardProcessEfficiencyGrowGlobally

HighlySkilledWorkersAgencyScorecardStreamlineProcessesContinuetoExpandRangeImproveEmployeeCompetenciesOutletScorecardIRPSAligningtheScorecardsDetailedstatementofwhatiscriticaltosuccessfullyachievingthestrategyHowsuccessinachievingthestrategywillbemeasuredandtrackedKeyactionprogramsrequiredtoachieveobjectivesThelevelofperformanceorrateofimprovementneededObjectiveDescriptionTarget2persetuppermontheachOutletOfficeInitiativeMeasureNumberofReworksStrategyMapStakeholderInternalProcessL&GFasterServiceAccessSelfServiceApplicationsWebEnableTechnologiesProcessandValueMapAnalysisLeanProcessesInvestmentsInvestinITExtendtheMapintoMeasurements,

TargetsandInitiativesLean/SixSigmaEliminatewaste,reworks,andothererrorsinourprocessesMakesurethecomponentsofyourscorecardfittogether.Wewanttocreateatightmodelfordrivingexecutionofyourstrategy.GoalObjectiveMeasurementTargetInitiativeAchieveAgencyoperationalefficiencieswithbestpracticesintheprivatesectorReduceOperationalServiceCostsby50%overthenext5yearsCostperOutletOffice,CostperRegion,CostperFTE5%-Year110%-Year215%-Year3ActivityBasedCosting/ManagementReduceidentifiedre-activitieswithinprimaryprocessesby80%overthenext3yearsWasteVolumeCharts,ReworkTracking,CycleTimeEndtoEndinS-LX(5of7Regions)Wastestreamreductionsof5%eachyear,Reworkscutinhalffornext3years,cycletimecutby75%Lean/SixSigmaAlignmentofScorecardComponentsMultipleChoiceQuestion–

CreateaTightModelTheBalancedScorecardprocesscapturesacauseandeffectrelationshipbasedonhavingallpartslinkedtogether.Strategicgoalslinkdowntoobjectives,objectiveslinkdowntomeasurements,andmeasurementslinkto:MissionGoalsBudgetsTargetsMultipleChoiceQuestion–

andtheansweris...d–Measurementsshouldbelinkedtotargets.Wewantaone-to-onerelationshipsothatmeasurementsareactionabletotheAgency.TableOfContentsBalancedScorecardBasicsCreatingtheStrategyMapGoodPerformanceMeasurementsTheFinalScorecardComponentsCaseStudyExerciseSomeFinalPointsPerformanceMeasurementisaprocessbywhichanagency/program/function/outletofficeobjectivelyassessesandevaluatestheextenttowhichitisplishingaspecificobjective,goal,ormission.Performancemeasurementaloneisplete.PerformanceManagementisasystemiclinkbetweencompanystrategy,Investments,andprocesses.PerformanceManagementisacomprehensivemanagementprocess.TheContextofMeasurementEnablesdecisionmakingManagebyresultsPromoteaccountabilityDistinguishbetweenprogramsuccessandfailureAllowfororganizationallearningandimprovementJustifybudgetrequestsOptimizeInvestmentsProvidemeansofperformancecomparisonFulfillmandatesEstablishcatalystsforchangeAndsoon…WhyMeasurePerformance?KnowingwhatisgoingonintheirenterpriseEffectivelymakingandsupportingdecisionsregardingInvestments,plans,policies,schedules,andstructureSpecificallycommunicatingperformanceexpectationstosubordinatesIdentifyingperformancegapsthatshouldbeanalyzedandeliminatedProvidingfeedbackthatcomparesperformancetoastandardIdentifyingperformancethatshouldberewardedWithoutMeasuring,DecisionMakers

HaveNoBasisFor:LeadingDefinitionLaggingInputOutputeObjective/QuantitativeExampleIntermediateesthatpredictsordrivebottom-lineperformanceresultsMeasureTypeBottom-lineperformanceresultsresultingfromactionstakenAmountofInvestments,assets,equipment,laborhours,orbudgetdollarsusedUnitsofaproductorservicerendered-ameasureofyieldResultingeffect(benefit)oftheuseorapplicationofanoutputEmpiricalindicatorsofperformanceSubjective/QualitativePerceptionsandevaluationsofmajorcustomersandstakeholdersEmployeeturnoverrateEmployeesatisfactionratingNumberofValueMealordersfulfilledCustomersatisfactionratingWaittimeCustomercomplaintsreceivedasa%oftotalcustomersservedNumberofcashiersTypesofMeasurementsStakeholder/CustomerInternalProcessesLearningandGrowthInvestments%offacilityassetsfullyfundedforupgrading%ofITinfrastructureinvestmentsapproved#ofnewhirepositionsauthorizedforfilling%ofrequiredcontractsawardedandinplacePercentageemployeeabsenteeismHoursofabsenteeismJobpostingresponseratePersonnelturnoverrateRatioofacceptancestooffersTimetofillvacancyNumberofunscheduledmaintenancecallsProductiontimelostbecauseofmaintenanceproblemsPercentageofequipmentmaintainedonscheduleAveragenumberofmonthlyunscheduledoutagesMeantimebetweenfailuresCurrentcustomersatisfactionlevelImprovementincustomersatisfactionCustomerretentionrateFrequencyofcustomercontactbycustomerserviceAveragetimetoresolveacustomerinquiryNumberofcustomercomplaintsExamplesofMeasurementsbyPerspectiveMultipleChoiceQuestion–

AppropriateMeasurementThemeasurement,%ofemployeesfollowingasupervisorapprovedcompetencymodel,wouldmostlikelybeplacedinwhichperspectiveoftheBalancedScorecard?

a. Stakeholder/Customerb. LearningandGrowthc. AgencyInvestmentsd. InternalProcessesMultipleChoiceQuestion–

andtheansweris...b–thismeasurementrelatestohelpinggrowtheworkforceandthiswouldmostlikelyfitwiththeLearningandGrowthperspectiveoftheBalancedScorecard.Youshouldhaveatleastonemeasurementforeachobjective.Measurementsdefineorexplainobjectivesinquantifiableterms: Vague=>Wewillimprovecustomerservice Precise=>Wewillimprovecustomerservicebyreducingresponsetimesby30%byyearend.Measurementsshoulddrivechangeandencouragetherightbehavior.Shouldbeabletoinfluencethee.SomeBasicGuidelinesfor

GoodPerformanceMeasuresSelectionCriteriafor

PerformanceMeasurementsMEANINGFUL-relatedsignificantlyanddirectlytoorganizationsmissionandgoalVALUABLE–measurethemostimportantactivitiesoftheorganizationBALANCED–inclusiveofseveraltypesofmeasures(i.e.quality,efficiency)LINKED-matchedtoaunitresponsibleforachievingthemeasurePRACTICAL–affordablepricetoretrieveand/orcapturedataCOMPARABLE–usedtomakecomparisonswithotherdataovertimeCREDIBLE-basedonaccurateandreliabledataTIMELY-useandreportdatainausabletimeframeSIMPLE--easytocalculateandunderstandRelevantAddressesanoperationalorstrategicperformanceissueIsresults-ore-focusedProvidesusefulinformationtoenabledecisionmakingMeasurableQuantifiableandObjectiveFacilitatesAnalysisCanbedoneinatimelymannerwithhighaccuracyDataareavailableandcollectableActionableCanbetrackedtoanappropriatepersonorteamresponsiblefortheactivitymeasuredMeasurerelatestoprocessinputsthatcanbecontrolled/adjustedtoaddressconcernsThreeCriteriaUsedforAgencyScorecardMeasurementRelevantMeasurableActionable%ofGlobalOutletsthatfollowtheendtoendprocessdefinedinIRPS312Numberofscorestudiescompleted323%ofRegionCentersusingABCModelstomanage65%oftheirallocationcosts323%ofeligibleemployeeswhoareparticipatingintheCompetencyModelDevelopmentProgram322%ofmappointsloadedandoperationalinGPSTracking322A“0”or“1”inanycolumnindicatesthatyouneedtorevisitthismeasurementbeforeimplementation.0=Doesnotapply1=Poor2=Acceptable3=Good

ScoringMeasurementsAgainst

theThreeSelectionCriteriaMultipleChoiceQuestion–

MatchtheObjectivetotheMetricAssumetheAgencyPlanhasanobjective:Improvetheproductivityofdockingservicesatallstations.Whichofthefollowingmeasurementswouldbemostappropriateforthisobjective?

a. Numberofrerunsrequiredtocompletethedockingserviceb. %ofvendorcontractsexecutedin90daysc. Numberofpeoplecompletingtheoff-shorewarrantytrainingprogramd. %ofsupervisorswhosubmittedbudgetactionplanswithin60daysofclose-outsMultipleChoiceQuestion–

andtheansweris...a–Ifwemeasurere-runs,thisprobablywillgiveussomebenchmarkbywhichwecanmeasuredockingstationefficiencyandproductivity.ACloserLookatHowThingsLinkMission:ProtectpeopleandpropertyStrategicGoal#1:ReducedamagecausedbymotorvehicleaccidentsAnnualperformancegoal1A:Reducedeathspercrashesto1.10per100mmilestraveledby2005Measure:Fatalityrateper100mmilestraveledTransportationSafetyExampleTheMeasurementPyramidGoalePerformanceMeasuresProgramProgramPerformanceMeasuresProgramComponentsProgramComponentPerformanceMeasuresActivitiesActivityPerformanceMeasuresStrategic/GPRAGoalsesLonger-TermIntermediateesShorter-TermIntermediatees&OutputsOutputs&InputsSomeToolsforDetermining

WhattoMeasureInputsProcess/SystemOutputIntermediateesEndeProgramLogicModelDesiredeCausalAnalysisProcessFlowResultsOfTestingNotAcceptableAcceptablePrototypeProductBacktoLaboratoryToMarketOutputs/ProductProgramInputsFinancialIndicatorsWork/ActivitiesTimelinessofServicesInternalMeasuresofQualityOperatingRatiosesofProductsorServicesExternalCustomerServiceEquityofServicestoUsersSource:GAO-GGD-92-65“AgencyUseofPerformanceMeasures”TopTenMetricsinthePublicSectorTableOfContentsBalancedScorecardBasicsCreatingtheStrategyMapGoodPerformanceMeasurementsTheFinalScorecardComponentsCaseStudyExerciseSomeFinalPointsPastperformancetrendsperhistoricaldata.Performancelevelsofsimilarorganizationalunitsatacomparablelevelthatfacilitatesbenchmarking.Bestpracticesacrosstheagency,thepublicsectorortheprivatesector.Mustbeatapre-existinghighlevelofperformancebeforeyouusethisapproach.Fornewlylaunchedservices,mayhavetoestablishabaselineperaprototypetestandextendoutfromthispointforward.Formajorstrategicshifts,mayhavetosetdirectlypertheplanitselfwithoutregardforharddata.HowtoSetTargetsTargetsmatchupwithmeasurements,onetoone.

Targetsrequireimprovingcurrentlevelsofperformance.

Targetsareastretch,butachievable:theymayrequireimprovementstoexistingprocesses.Targetsarequantifiablesothatthetargetcommunicatesiftheexpectedperformancewasmet.Long-termtargetsareestablishedbeforeshort-termtargets.Financial/Budgetrelatedtargetsareestablishedbeforenon-financialtargets.ChecklistforSettingTargetsAverageTurnaroundTimesatDockingSites8daysFY057.5daysFY066.8daysFY07UtilizationRateforSelfServeWebPortal10%FY0518%FY0625%FY07RotationInternshipParticipationRates1,800FY052,500FY063,900FY07Gliderintegrationmappingtoolusedforgeo-setsEstablishbaseline8persets10persets%ofagencySESLevelsfollowingIRPSfromendtoendfortheentireyear30%FY0540%FY0565%FY05%fundingthroughSEPCOforspacemapping30%FY0535%FY0645%FY07ExamplesofTargetsLeaderSponsoredRequiresInvestments–people,funding,technology,etc.HasdesignatedownersIncludesdeliverablesormilestonesUsuallyhastimedeadlinesMaybedifficulttolaunch–notresourcedCouldencounterobstacles–peopleareconfused,conflictswithotherfunctionsCharacteristicsofInitiativesInitiativesGoalsorObjectivesValueMappingProjectImproveidentificationanddeliveryofallagencyservicesacrossthefullstakeholderspectrumEmployeeRotationProgramImprovetheemployeeturnoverandsatisfactionscoresWebSelfServicePortalReduceagencycostsandstreamlineourservicesformoredirectservicedeliveryCommonKnowledgeCenterExpandtheoverallknowledgebasesothatinter-functionscanlearnfromoneanotherCustomerSurveyandAnalysisToolProgramDevelopamoresystematicprocessacrosstheentireagencytobetterconnecttoourcustomersSharedServiceCenterTrackingSystemReducereworksandoverlapsbetweenoursevensharedservicecentersInitiativesshouldenablestrategicexecutionWhenyoufirstlaunchyourInitiative,youprobablywanttouseanOutputMeasurement.OncetheInitiativeisupandrunning,changeyourmeasurementtoanetoseeiftheInitiativeisreallyhavingstrategicimpact.InitiativeOutputMeasurementeMeasurementLeanProcess/SixSigmaNumberofProjectsDefinedbyRegionOverallreductionsinerrors,reworks,andcycletimesActivityBasedCosting/Management(ABC/M)%ofServiceCenterOutletswithABCModelsinplaceforAllocationCostsReductionsinidentifiedre-activitiesperprocessstudyEmployeeCompetencyModels%ofEmployeeswhohaveaCompetencyModelinplaceHigherskilllevelsofemployeesusingthemodelsGoingfromOutputtoeDescribesanoverallstrategicdirectionCanimprovethecommunicationeffectivenessoftheStrategyMapExamplesofthemes: InnovativeServices LeanProcesses AdaptiveOrganization RealignourCoreCompetencies ReachtheStakeholderGroupcommonsetofobjectivesaroundathemeStrategicThemesMultipleChoiceQuestion–

SequenceOfStepsThebasicstepsforcreatingaBalancedScorecardinclude: A=AlignyourstrategymaptootherorganizationalunitsB=Createyourstrategicplan–includinggoalsandobjectivesC=ExtendyourstrategymapintomeasurementsandtargetsD=MapyourstrategyoverfourperspectivesThesequenceororderofthesestepsis(lefttoright):

Step1

Step2

Step3

Step4A C B DC A D BB D A CC B A DMultipleChoiceQuestion–

andtheansweris...c–Step1orB–Startwithyourstrategicplan Step2orD–Mapyourstrategicplan Step3orA–Alignyourstrategymap Step4orC–ExtendthestrategymapintomeasurementsandtargetsTABLEOFCONTENTSBalancedScorecardBasicsCreatingtheStrategyMapGoodPerformanceMeasurementsTheFinalScorecardComponentsCaseStudyExerciseSomeFinalPointsCaseStudyInstructionsThefollowinghandoutisanexamplestrategicplanfortheWesternAgencyRegionOffice(WARO).YourteamhasbeenassignedtheresponsibilityofmappingtheWAROPlanintoasinglestrategymap.Eachteamwillbeassignedtoabre