Linking Quality to Strategy: Benefits of Balanced Scorecards in the Public Sector

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Seminar on Quality Manager in the Public Sector Romania, 10-20 March 2008

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Origin of Balanced Scorecards

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The original Balanced Scorecard (Kaplan and Norton, 1992) was focused on reporting performance and very privatesector oriented Now, it is a tool for strategy development and testing and is applicable for public and nonprofit sectors, as well
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A GOAL SETTING TOOL+

A DEVICE TO BUILD CAUSE AND EFFECT WITHIN YOUR BUSINESS

Financial

Financial

Customer Operational and process Learning and innovation

Customer

STRATEGY

Operational and process

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Learning and innovation

Figure 3.2 General flow of the Balanced Scorecard. (SOURCE: The Balanced Scorecard, David Norton, Renaissance Strategy Group, Lincoln, MA, and Robert Kaplan, Harvard Business School).

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Community First

Customer First

Funding the Future

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People Matter

Performance Counts

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Developing the Scorecard

What are we trying to achieve? (Community Priorities) What key things do we need to get right to achieve them? (Strategic Objectives)
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How do we know if we are getting there? (Measures and Targets)

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The Barking and Dagenham Balanced Scorecard Strategy Map

Raising Pride Community First Meeting Customer Needs First Customer First Redesign Processes & Empowering Performance Programmes Decisions, & to put Informing Accountability Customers Choice First Performance Counts - Organisational Processes Perspective Building Confidence, Enhancing Reputation Embed the Core Competencies Building Project Management Skills Providing Accessible, Local Services Allocating resources to support priorities Developing Rights & Responsibilities Promoting Equal Opps, Celebrating Diversity Improving Health, Housing, Social Care Cleaner, Greener, Safer Better Education & Learning for all Regenerating Local Economy

Improving Standards

Community Leadership Role

Every Pound Counts

Investment through Partnerships

Funding the Future- Financial & Resource Perspective Integrated Financial & Service Planning

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Excellence through Partnerships

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Providing Strategic Leadership

Supporting Innovation, Risk & Reward

People Matter - Learning & Growth Perspective

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The Scorecard Performance Indicators

Community % of residents with a positive perception of the Borough The level of the Equalities standard for local government to which the Council performs First The level of the Equalities standard to which B&D public sector bodies perform Numbers of citizens involved in Council consultations Number of deaths by Heart Disease in B&D % of homes that meet the decency standard as a percentage of total public & private stock % of residents with a positive perception of public safety % of residents with a positive perception of the overall appearance of the Borough % of education & learning indicators at above national average % of education & learning indicators at or above top quartile Average income of B&D citizens Funding the Future Customer First % of cost indicators in best quartile % of residents satisfied with the quality of services % of Capital schemes delivered on time & within % of access indicators at or above top quartile budget % of quality & service outcome indicators at or % of overall budget which is re-directed to priorities above top quartile % of capital funding generated from external % of community strategy actions delivered on time sources & as planned % of revenue funding generated from external People Matter sources Performance Counts 1-10 rating by key stakeholders against reputation % of interactions with the public that are delivered drivers electronically e.g. by telephone, internet. % of staff satisfied with the quality of their appraisal % of staff who are set performance targets as a & personal development planning result of appraisal/appointment % of managers trained in project management % of reports to members that are appropriate & of techniques good quality % of staff who are satisfied that the leadership of % of Balanced Scorecard actions implemented on their manager enables them to place their work in the context of the Community Priorities and/or time and as planned strategic objectives % of partnership strategies/action plans delivered % of BV inspections that indicate confidence in the on time & as planned Councils ability to make improvement

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Service Scorecards
Each of the 29 Service Heads produce a scorecard, which translates the corporate scorecard to the service level and takes account of specific service pressures e.g. from government departments.
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Each Service Scorecard sets out:

strategic service objectives and measures an implementation plan of how the targets will be delivered.

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Example of a Balanced Scorecard in a UK hospital

Patients and Community
Objectives Measures Targets

Service Delivery
Objectives Measures Targets

Organisational Development
Objectives Measures Targets

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Financial
Objectives Measures Targets

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Group exercise
Strategic objective Customers Staff Financial resources Performance
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Performance Target indicator

[Your choice]

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