Building A Balanced Scorecard

Lou DiBeradinis, CIH, CSP

Director, EHS Office
MIT

What gets measured and

rewarded gets done.
On the folly of rewarding A, while hoping for B,
Academy of Management Executive, 1996, Kerr,
Steve

MIT EHS Office

7/25/2004
jh

When you can measure what you are speaking about, and express it in
numbers, you know something about it; but when you cannot measure it,
when you cannot express it in numbers, your knowledge is of a meager and
unsatisfactory kind
Lord Kelvin,1824-1907

Noteverything
everythingthat
thatcan
canbe
becounted
countedcounts,
counts,and
andnot
not
Not
everythingthat
thatcounts
countscan
canbe
becounted
counted
everything
AlbertEinstein
Einstein
Albert

MIT EHS Office

7/25/2004
jh

What is the Balanced Scorecard?

Performance management tool used to:
1. Translate strategy to operational terms
MIT EHS Policy
2. Link and align EHS Office around strategies
3. Make strategy everyones job
4. Make strategy a continuous process
Communicate change agenda

EHS-MS, EHS organizational refinements

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MIT EHS Office

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Balanced Scorecard and the

Strategy Map

Think:
EHS Office
EHS@MIT

Balanced Scorecard:
measures EHS performance from four perspectives
Learning and Growth
Knowledge, skills and abilities needed to
Internal Processes
build capabilities and efficiencies to
Financial
cost effectively deliver needed services
Client
to clients

The Strategy Map:

shows how EHS will convert assets to desired outcomes
depicts EHS objectives within the four perspectives in visual
framework
illustrate how roles are linked to EHS objectives
show cause-and-effect links
serves as tool for communicating strategy
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Terminology
Mission defines purpose of EHS Office
Vision describes what EHS Office would like to accomplish
or become in the future
Policy states high-level overall general goals
Guiding Principles provide direction to achieving goals
Values beliefs that guide an organization
Strategy the integrated approach to developing and using
resources to achieve vision, mission and goals

MIT EHS Office

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jh

Terminology
Strategic Planning developing a structural theme or method
for effectively achieving a specific goal or objective
Operations performance of practical work
Tactic an activity for accomplishing an end

MIT EHS Office

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Operational vs. Strategic Activities

Operational: Mission focused Strategic: Vision focused
Respond to Requests

Anticipate future needs

Provide Training

Develop new training

Pick-up waste

Improve waste management

Make Measurements

Forecast needs

Conduct Inspection

Respond to trends

Implement corrective actions Implement preventive actions

MIT EHS Office

7/25/2004
jh

Terminology
Objectives - action statements that clarify how the
strategy will be implemented
Initiative tasks and activities undertaken to achieve
objective; a project.
Multiple initiatives (projects) may be undertaken to achieve an
objective

Measures - allow for assessing progress in achieving

objective
Targets - used to set and communicate expected
performance level
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Initiative
Is a specific project to achieve strategic objectives
Not operational

Accountability at leadership level

Clearly defined start, milestone and end dates
Clearly defined deliverable, budget and resources
commitment
Multiple initiatives (projects) may be undertaken to achieve
an objective
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Measures
Repeatable and reliable
Quantifiable useful in benchmarking MIT against
others
Type absolute numbers, ratios, percentages, ratings
Lag measures outcomes; % waste recycled
Lead measures drivers; amount of products purchased

Frequency of update monthly, quarterly, annual

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MIT EHS Office

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Targets
Purpose
To set and communicate expected level of performance
Use to motivate not control/constrain
Focus on improvement

Provide linkage to personal goals

Set long term targets - 3 years
Focus on long term w/ intermediate goals to keep momentum
Set stretch targets
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MIT EHS Office

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EHS Office Strategy Map

Draft
September, 2004

Values

Trusted Professionals, Collaborate to Achieve Excellence

Vision

Proactive, Integral, and Effective Part of MIT Community

Mission

Provide Services and Partnership to Continually Improve EHS Performance

Minimizing Adverse
EHS Impacts
~ Sustainability

Learning
& Growth

Internal Processes

Financial

Client
Stakeholder

Policy

Complying with
Regulations
and Good Practices

Achieving Institutional Accountability

while Maintaining independence
of Research & Teaching

Improve
Performance

Enhance
Accountability

Manage
to Budget

Increase Value
of Services

Client Focus

Implement Best
Practices

Optimize Operations
Develop New
Processes

Measuring & Continuously

Improving EHS
Performance

Increase
Collaboration

Services

Operational Excellence

Develop Measures

Providing
Educational
Opportunities

Improve Access
Improve Existing
Processes

Enhance Professionalism
Develop
Staff

Strengthen
13
Organization

Build
Knowledge Tools

MIT EHS Office

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Draft
Perspectives
Client-Stakeholder

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Initiative
Develop Waste Measures
Develop Ergo Measuress
Develop Injury & Illness Measures Measures
Develop Training Measures
Develop Inspection Measures, Level II
Optimize Waste Review
Improve BSP Review Protocol
Improve RPP Authorization Review
Improve Reactor Data Access
Implement EHS Request Tracker
Enhance skills
Develop Web Courses
Implement Inspection Process, Level III
Implement Awareness Plan
CP3O
Improve Construction Design Review
Apply MS-Project
Implement Customer Survey
Budget Management Process
Organizational Refinement
Polution Prevention

Financial
Internal Processes
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Key:
Green is primary
Objective of initiative
Red is other
Objectives also met

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Objective:
Initiative:
Goal:

Start:

End:

Approach / Tasks:

Description:

Success Criteria / Deliverables:

Benefits:

Risks/Issues:

Resource Needs:

Responsibilities:
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MIT EHS Office

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Initiative

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MIT EHS Office

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EHS Office Strategy Map

Draft
September, 2004

Values

Trusted Professionals, Collaborate to Achieve Excellence

Vision

Proactive, Integral, and Effective Part of MIT Community

Mission

Provide Services and Partnership to Continually Improve EHS Performance

Minimizing Adverse
EHS Impacts
~ Sustainability

15

EHS Budget
Management
Process

11

Achieving Institutional Accountability

while Maintaining independence
of Research & Teaching

CP3O

Manage
to Budget

Optimize Operations

Waste - EMP
Ergo IHP
Injury & Illness SP
Training STL
Inspection Audit STL

Providing
Educational
Opportunities

10 Awareness Plan

16

2 Waste Review

- EMP

Implement Best
Practices
Pollution
Value
17Increase
Prevention
of Services

Measuring & Continuously

Improving EHS
Performance

Increase
Collaboration

9 Inspection

EHS
Organization
Refinement

Services

Develop New
Processes

Develop Measures

Enhance
Accountability

Increase Value
of Services

Operational Excellence

1
Learning
& Growth

Complying with
Regulations
and Good Practices

Improve
Performance

Internal Processes

Financial

Client
Stakeholder

Policy

Client Focus

5 Reactor Data

4 Authorization
Review-RPP

Improve Existing
Processes

Access

Improve Access

3 Protocol Review - BSP

4 Authorization Review - RPP

6 EHS Requests
Tracker

14 Customer Survey

12 Design Review - SP
Develop
Staff

13 Apply MS-Project - All

Enhance Professionalism

8 Web Courses
Training STL

Strengthen
17
Organization

Build
Knowledge Tools

EHS Office
Enhancement
7 Skills MIT

7/25/2004
Org
STL
jh

Balanced Scorecard Roll Out Plan

Develop Talking Points on the BSC
Develop FAQs on the BSC
Finalize BSC and Strategy Map
Prepare Resources Site
DDs, STLs, and Director in Alignment
Lou to Present to All Staff on 9/15/04
Lou to meet with All Program Staff

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MIT EHS Office

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Balanced Scorecard Roll Out Plan

contd
Each DD & STL to discuss with their
programs and Service Teams and clarify
questions or collect questions and potential
barriers
Lou to present high level overview at Coordinators/
Lead Contact meeting on 9/22/04
DDs and STLs to re-enforce at regularly scheduled
meetings with staff or team members
Bi-monthly reports to be submitted to Director on the status
of the initiatives and adjustments needed
BSC to be an agenda item at all All Staff Meeting
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MIT EHS Office

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EHS Office Balanced Scorecard

Coordinated and Consolidated

Contingency Planning and
Operations (C3PO)

Enhanced Accountability

Awareness Plan

Increase Value of EHS Services

EHS Organization
Refinement

Develop Measures

Waste
Ergonomics

Improve Access

Customer Survey

Improve Existing Processes

RPP Authorization Review

Build Knowledge Tools

Skills Enhancement

Develop Staff

Web-based Training

Financial

Improved Performance

Internal Processes

Initiative

Learning& Growth

Client Perspective

Strategic Objective

Measure

20

Target

Status

MIT EHS Office

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