Managing Performance: Creating an IT Balanced Scorecard

1. Managing Performance:  Creating an IT Balanced Scorecard Phil Watson Senior Consultant ProActive Services

2. Agenda • Caveats and Approach • The Balanced Scorecard • Quality Management Frameworks • Linkage to ITIL • Benefits • The Balanced Scorecard Process • Develop the SPUSC University IT Balanced Scorecard • Workshop Review

3. Development of the Strategy and Balanced Scorecard is lots of work This workshop is a run through the process/steps Focus is on understanding and working the process not achieving the Balanced Scorecard itself It is not a substitute for doing it properly and tailored to your needs We will need to compromise quality for speed (only have 90 minutes to explain BSC and work through a virtual example Questions as we go with a wrap up at the end Caveats and Approach

4. Translates Strategy into Action Four perspectives: Customers Financial Internal [business] processes Learning And Growth [people] Focus on measuring Performance Balance should exist between these four perspectives The Balanced Scorecard

5. The Balanced Score Card Perspectives Organisations Vision, Mission, Values and Behaviours Customer Perspective To achieve our strategies how must we look to our customers? To be seen as successful what do we need to deliver? Financial Perspective To satisfy our customers, what business processes must we excel at? Internal Processes Perspective To achieve our strategies how must our organisation develop? Learning & Growth Perspective

6. European Framework for Quality Management (EQFM ) Australian Business Excellence Framework (ABEF) Baldridge Awards Total Quality Management (TQM) Quality Management Frameworks Organisational Profile: Environment, Relationships and Challenges 2. Strategic Planning 5. Human Resource Focus 1. Leadership 7. Business Results 3. Customer & Market Focus 6. Process Management 4. Information and Analysis

7. QM, BSC and ITIL (& PRINCE2 etc) are all complementary Linkages to: Customer with ITSM and SLM Internal (business) processes with ITSM as a process framework Financial with ITSM and Financial Management Learning and Growth with People and Continuous Improvement The Balanced Scorecard and ITIL

8. Assumptions Values and Behaviours Business Model Customer Segmentation Stakeholder Identification Vision/Purpose and Strategic Intent/Mission Objectives and Priorities Map Objectives to BSC Perspectives The SPUSC IT Service Chain Select and design measures for each objective Produce Measurement Plan to collect data and link to databases and MIS Produce DIS-SR Strategic Intent Brochure Produce the Change (Implementation) Management Plan The Process

9. We will struggle to win support from all areas (business and IT) no matter what we do We will never have enough resources to do everything we need to do IT is not central to the thinking or planning of the business – the focus is on ribbon cutting and sod turning Business demands on IT will always be varied and difficult to prioritise The ‘existing’ will always be in competition with the new and exciting (keeping it going vs keeping it growing) We can get Business IT representatives to understand and support IT requirements Customers will expect us to commit to (and deliver on) specific service levels Central IT and faculty IT – can work together and fulfill our parts Assumptions

10. We are one team – we have one voice We are punctual and always report back to people quickly We respect our customers and our fellow team members We see Requests, Incidents, Problems, Changes etc from the customer’s perspective We take pride in the quality of our work and our technical expertise We are a learning organisation – we aim to continuously improve We always complete all of the job to all of the standard We will never backstab! Values (Belief)

11. A sense of urgency Clear thinking and intent Courtesy and loyalty Ownership and Accountability Honesty, integrity, ethical and pride Adaptability Clear, concise customer driven communication Attention to minor detail Proactive Vs reactive Behaviours (Act)

12. Resolve Incidents and Problems Manage Systems Availability Manage IT&T Assets Liaise with Customers ………………………….? ………………………….? Teaching Learning Research Admin/Support External Agencies …………….? …………….? Business Model CUSTOMER PROCESSES CUSTOMER SEGMENTS Support Functions • Facilities (accommodation) • Fleet Management • Service Delivery Support • …………………..? • …………………..? • Information Services • Personnel Services (staffing, training) • Security (accreditation, advice, investigation & enforcement) • Infrastructure • Finance

13. Customer Segmentation Which location has priority? Which customer has priority? Needs to link in with the Service Catalogue This is indicative only

14. SPUSC University Stakeholders Accreditation Authorities Students Government Unions Staff ………? Community Employees

15. SPUSC Vision To be one of the finest universities in the world IT Purpose As an integral part of SPUSC, IT is committed to delivering on the technology aspects of the University Business Plan Vision and Purpose

16. SPUSC Strategic Intent The University will be an internationally recognised thought and practice leader in the field of teaching, learning and research IT Mission To be the preferred technology partner in the achievement of the University’s teaching, learning and research objectives Strategic Intent and Mission

17. B1 - implement a Service Improvement Plan based on ITIL L1 - involve and develop staff C1 - prompt response & resolution of customer concerns F1 - produce well researched and justifiable financial plans L2 - foster and develop a customer focused culture B1 C2 - engage the customer proactively and regularly L3 - recruit, train and retain only the right people B2 - implement and sustain a responsive and effective Service Desk L1 F2 - develop a culture of good financial management practices C1 F1 C3 - market SPUSC IT to customer and stakeholders L2 B3 - implement SPUSC policies, practices and procedures C2 L3 F3 - develop financial competency B2 F4 - capture resource usage against specified activities B4 - continuously improve activity plans based on review processes F2 C3 B3 L4 - develop staff to maintain capability F3 F4 B4 L4 B5 B5 - benchmark against best practice Example Objectives and Priorities 1. Identify Objectives 2. Prioritise – impact, urgency, cost/benefit analysis

18. B1 – Implement a Service Improvement Programme based on ITIL L1 – Recruit, train and retain only the right people C1– Support specialist faculty IT F1 – Develop 3 year technology development plan L2 - …………………………………….. B1 C2 - Staff and student retention (and growth) L3 - …………………………………….. B2 - …………………………………….. L1 F2 - …………………………………….. C1 F1 C3 - …………………………………….. L2 B3 - …………………………………….. C2 L3 F3 - …………………………………….. B2 F4 - …………………………………….. B4 - …………………………………….. F2 C3 B3 L4 - …………………………………….. F3 F4 B4 L4 B5 B5 - …………………………………….. SPUSC IT Objectives and Priorities 1. Identify Objectives 2. Prioritise – impact, urgency, cost/benefit analysis

19. SPUSC University Map Objectives to BSC Perspectives Customer C1 - prompt response & resolution of customer concerns C2 - engage the customer proactively and regularly C3 - market SPUSC IT to customer and stakeholders Financial F1 - produce well researched and justifiable financial plans F2 - develop a culture of good financial management practices F3 - develop financial competency F4 - capture resource usage against specified activities Business Processes B1 - implement a Service Improvement Plan based on ITIL B2 - implement and sustain a responsive and effective Service Desk B3 - implement SPUSC policies, practices and procedures B4 - continuously improve activity plans based on review processes B5 - benchmark against best practice Learning and Growth L1 - involve and develop staff L2 - foster and develop a customer focused culture L3 - recruit, train and retain only the right people L4 - develop staff to maintain capability

20. Learning & Growth PerspectiveCause & Effect Customer Satisfaction Attitude of obtaining results for Customers External Service Value Employee Retention Employee Productivity Employee Satisfaction Learning & Growth L1 - involve and develop staff L2 - foster and develop a customer focused culture L3 - recruit, train and retain only the right people L4 - develop staff to maintain capability

21. Business Processes PerspectiveCause & Effect Customer Satisfaction Services designed and delivered to meet Targeted Customers Needs External Service Value Employee Retention Employee Productivity System Productivity Employee Satisfaction Business Processes B1 - implement a Service Improvement Plan based on ITIL B2 - implement and sustain a responsive and effective Service Desk B3 - implement SPUSC policies, practices and procedures B4 - continuously improve activity plans based on review processes B5 - benchmark against best practice

22. Financial PerspectiveCause & Effect Stakeholder Advocacy Funding preference Standard setting Reputation for Best Practice Stakeholder Loyalty Stakeholder Satisfaction Financial Customer Satisfaction External Service Value F1 - produce well researched and justifiable financial plans F2 - develop a culture of good financial management practices F3 - develop financial competency F4 - capture resource usage against specified activities

23. Customer PerspectiveCause & Effect Customer & Stakeholder Advocacy Retention Repeat business Referral Customer Loyalty Customer Customer Satisfaction External Service Value C1 - prompt response & resolution of customer concerns C2 - engage the customer proactively and regularly C3 - market SPUSC IT to customer and stakeholders

24. TheSPUSC IT Service Chain Purpose Strategic Intent Customer & Stakeholder Advocacy Customer & Stakeholder Loyalty Customer Satisfaction Stakeholder Satisfaction Customer Financial External Service Value Learning & Growth Business Processes

25. Select and Design Measures for each objective Learning & Growth L1 - involve and develop staff L2 - foster and develop a customer focused culture L3 - recruit, train and retain only the right people L4 - develop staff to maintain capability Measures Performance Outcome Driver Staff Development (vs Plan) Percentage of staff trained in customer service Employee satisfaction Staff Retention Staff trained as a percentage of Succession Positions identified

26. Objectives & Measures Business Processes B1 - implement a Service Improvement Plan based on ITIL B2 - implement and sustain a responsive and effective Service Desk B3 - implement SPUSC policies, practices and procedures B4 - continuously improve activity plans based on review processes B5 - benchmark against best practice Measures Performance Outcome Driver Service Desk problem resolution percentage System Productivity (measures to be developed) Customer satisfaction with having needs understood Service Desk customer satisfaction Standards compliance Critical processes benchmarked as a percentage of critical processes identified Comparisons with world class Service Desk Operations

27. Objectives & Measures Financial F1 - produce well researched and justifiable financial plans F2 - develop a culture of good financial management practices F3 - develop financial competency F4 - capture resource usage against specified activities Measures Performance Outcome Driver Funding Authority Level of Satisfaction Achievement of expenditure against specified activities Achievement of the endorsed budget plan Accuracy and compliance of financial transactions Percentage staff completed financial competency training Staff financial competency (self and audit assessment)

28. Objectives & Measures Customer C1 - prompt response & resolution of customer concerns C2 - engage the customer proactively and regularly C3 - market SPUSC IT to customer and stakeholders Measures Performance Outcome Driver Customer Liaison Schedules developed and achieved Customer Satisfaction Value of SPUSC IT as provider of choice Customer understanding of SPUSC IT services

29. 10. Select and Design Measures for each Objective and Measurement Plan - Business perspective example

30. Financial Customer People (learning and growth) goals performance indicators goals performance indicators goals performance indicators goals performance indicators How will we know when we have arrived? Quality of IT services Availability of IT services (in IT users’ perception) Compliance to SLAs Reliability of IT services Number and severity of IT service interruptions Performance of IT On-time IT service delivery services (defined by the customer) Ability to control costs Accuracy of IT forecasts Economy of IT Competitiveness of IT costs to the business Value of IT Costs of IT used in value adding business activities vs costs of IT used in overhead activities Business (internal) Business productivity Annual business turnover vs cost of running business Improvements in business turnover ascribable to IT Reduction in business costs ascribable to IT Service culture Number of business improve- ments initiated by IT provider Change control Percentage of ‘first time right’ IT changes Manageability Hours spent on IT matters by non-IT managers vs total hours of IT use by non-IT staff Security number of reported security violations