Balanced Scorecard Initiative Implementing a Work-Unit BSC

The Kaplan-Norton model (1/2)

To achieve the vision of our Work-Unit, we should continuously deliver our customers needs and expectations To deliver continuously and reliably our customers needs and expectations, we should have effective and up-to-date internal processes To implement our internal processes successfully, our workforce should be competent, skilled and motivated To sustain all the above, we should be financially healthy

The Kaplan-Norton model (2/2)

Therefore, the strategy is articulated through objectives that focus on:
Customers Internal Processes Learning and Growth (people) Finances

that are linked by cause-and-effect relationship And through measures, targets and initiatives related to those objectives
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Objectives, measures, targets and initiatives

Objectives: Describe the desired outcomes Measures (KPIs): The tools we use to indicate how well we are achieving our objectives Stretch Targets: Describe the desired value we would like the measure to reach within 3-5 years Initiatives: The actions we are planning to take in order to reach those targets

Implementing the Balanced Scorecard is to focus on

Mission/ Values/ Vision Objectives Measures Targets Initiatives

during BSC Review Meetings and in between meetings

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Work Unit BSC Review Meetings

The Purpose: Monitor the actual performance of the measures (against targets) Monitor the progress of strategic initiatives Discuss implications and resolve strategic issues The Tools: A Report Card for each measure A Microsoft Excel file containing all the data required The Dates: Suggested every month on a recurring day (e.g 3rd Wed at 10 am) At least once a quarter The Duration: At least 1 hour each meeting. Initially longer.

Generic membership of the BSC Implementation Team

Work Unit Manager (one per Work Unit) Performance Owner (one per Measure) Measure Leader (one per Measure) BSC Coordinator (one per Work Unit)

Role of the Work Unit Manager

Approves the strategy Issues the agenda of the BSC Review Meetings Chairs the BSC Review Meetings Approves corrective actions as required Reviews the minutes of the BSC Review Meetings Identifies the BSC Coordinator for the Work Unit

Role of the Performance Owner

Reports on performance of his/her measures during the BSC Review Meetings Advocates changes in strategy, initiatives and targets Identifies the Measure Leaders for the measures that he/she is responsible for Reviews the report card prepared by the Measure Leaders

Role of the Measure Leader

Finalizes the measure details (e.g. formulae, data sources, frequency of update, method of calculation, etc.) Prepares the report cards for measures assigned Briefs the Performance Owners prior to the BSC Review Meetings Suggests revised targets and initiatives when necessary

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Role of the BSC Coordinator

Keeps the process of implementing and updating the BSC moving forward Coordinates all activities related to the BSC Review Meetings with the work unit manager, the performance owners and the measure leaders Drafts the agenda of the BSC Review Meetings Drafts the minutes of the BSC Review Meetings

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Attend the BSC Review Meetings

Work Unit Manager

Staff

Executive

Coordinator
Co o rd in a

Performance Owner
ti o

Staff

Measure Leader

Do not attend the BSC Review Meetings

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Initial Presentations by Performance Owners

The Purpose:
Performance Owners to take ownership of the Work Unit BSC measures Consolidate the work done by the Work Unit BSC Coordinator and the Measure Leaders Identify major gaps in the objectives and/or measures Complete any element missing from the report cards, e.g.:
Calculation method Targets Initiatives Management Review frequency and dates

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Initial Presentations by Performance Owners

The Tools:
A Report Card for each measure A Microsoft Excel file containing all the data required

Requirement:
Frequent communications between the Work Unit BSC Coordinator, the Work Unit Performance Owners and the Work Unit Measure Leaders Frequent communications between the Work Unit Measure Leaders and the Work Unit Performance Owners

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Tips and recommendations

Dont look for perfection. Momentum is critical Make participation in the BSC review meetings mandatory for all team members Complete and distribute report cards one week prior to meeting Focus discussions on problem areas and strategic issues Discussions should not drift to operational minutiae Share some of the outcomes from these meetings with a larger audience

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Quality Management processes

Plan

ustomers

Assess

Do

Check

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BSC Roll-out Plan

Assign a Project Manager if different than WU manager Revise/Develop the Mission statement Revise/Develop the Vision statement Assign the BSC Coordinator Identify the Strategic Themes Identify the Strategic Objectives Draw the Strategy Map Develop the Measures Identify Performance Owners and Measure Leaders Obtain Senior Management approval
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BSC Roll-out Plan

Identify Stakeholders Obtain stakeholders buy-in Collect actual data for each measure Set Targets for each measure Identify Initiatives for each objective Obtain senior management approval (targets & initiatives) Develop reporting system (Who, where, what, when) Hold regular Management Review Meetings

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Completion levels of a BSC

10% 20% 30% 40% 50% 60% 70% 80% : : : : : : : : Mission and Vision statement exist Objectives and Strategy Map exist Measures exist BSC Coordinator, Performance Owners and Measure Leaders assigned Actual data exist for more than half of Measures Targets set for more than half of Measures Initiatives articulated for more than half of objectives Targets and Initiatives discussed with advisory committee and approved by higher-level management Report Card exist for more than half of Measures Minutes of three Management Review Meetings exist
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90% : 100%:

Details of the the Work Unit BSC file

Microsoft Excel workbook file Contains most of the information needed for the Work Unit BSC All Measure Leaders of the Work Unit BSC will receive the same file from the Work Unit BSC Coordinator. Each measure leader will use the section (s) relevant to him/her 3 types of worksheets
The Strategy_Map worksheet The Measures_&_Targets worksheet The Report Card worksheets

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Details of the Measure Leaders role

Data Fields to Update:
On the Measures_&_Targets worksheet:
Management review frequency Month (of management review) Actual (figures) Target (figures)

On the Report Card worksheets:

Calculation method Comments on measures Comments on initiatives

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Details of the Measure Leaders role

Use the Work Unit BSC File to:

Update the data fields required Communicate with Work Unit Performance Owner or designee on all the elements of the report cards Send the updates to the Work Unit BSC Coordinator ten days prior to the date of the BSC review meeting

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File Naming Convention

Concatenate the following elements:
Work_Unit_Name_BSC Your Name: Firstname_Lastname Date of last update: YYYY_MM_DD Separate the elements by an underscore _ Example:
UNIVERSITY_LIBRARIES_BSC UNIVERSITY_LIBRARIES_BSC _Helen_Bikhazi_2004_02_25

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