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The Balanced Scorecard

The Balanced Scorecard. What is the Balanced Scorecard?. The Balanced Scorecard is a methodology by which operational procedures are aligned with strategic vision.

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The Balanced Scorecard

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  1. The Balanced Scorecard

  2. What is the Balanced Scorecard? The Balanced Scorecard is a methodology by which operational procedures are aligned with strategic vision. It is a framework that helps organizations translate strategy into operational objectives that drive both behavior and performance.

  3. Procedure A brief background of strategic planning processes How we chose the Balanced Scorecard methodology Process of implementation - timeline

  4. Primary Goals Draft a strategic planning document including the mission statement and value statements with specific goals, measurable outcomes, and resource requirements. Outline a more effective process for linking all campus planning and budgeting processes and activities. Develop a process for ongoing strategic thinking. Propose a series of activities and Continuous Quality Improvement (CQI) initiatives as well as a means of sustaining and growing these initiatives.

  5. + + Adj./Adverb Verb Noun Action Description Result OBJECTIVES Objectives are action statements that clarify how we will implement the strategy.

  6. Objectives Employee Success Research Differentiation Communications Information Technology Standards

  7. MEASURES Measures give a concrete link to the strategic goal.

  8. MEASURES ARE: • focused in the strategic goal • quantifiable, repeatable and reliable over time • measures of progress over a specific time period • updated at defined intervals • useful for settingtargets • useful for establishing accountability

  9. FORMS OFMEASURES • absolute numbers • indices • percentages • ratings or rankings • ratios

  10. TWO TYPES OF MEASURES Lead Measures: drivers - measure intermediate processes, activities, and behaviors Lag Measures: outcomes - measure performance results at end of time period or activity

  11. GUIDELINES FOR SELECTINGMEASURES • Usually 1 measure for each objective • Assign a second measure only if the first measure by itself cannot adequately track completion of the objective

  12. RULE OF THUMB: • Use existing measures when possible. • Do not spend valuable time inventing measures.

  13. TARGETS • Set/Communicate the expected performance level. • Focus the organization on improvement. TARGETS ARE USED TO MOTIVATE - NOT TO CONSTRAIN OR CONTROL

  14. TARGETS SHOULD: • Match a measure, one for one • Be quantifiable • Clearly communicate the expected performance

  15. STRETCH TARGETS ARE ASPIRATIONAL • Set long-term (3-5 years) performance goals • Help focus the organization on long-term strategy while working on short-term goals • Can identify areas which may require dramatic change and/or improvement

  16. TARGETS VS. STRETCH TARGETS Targets: What you can achieve WITHOUT an initiative Stretch Targets: What you can achieve WITH an initiative (requires new funding commitment)

  17. Path for Change • Three year time lines • Specific goals and objectives • Direct link between planning and budgeting • Measurable outcomes • Targets reevaluated annually • Continuous evaluation

  18. Why Do BSC It ties decision-making directly to budget. It requires data driven decision-making. It has built in assessment. It is flexible.

  19. Why Do BSC It provides quality control. It establishes shared leadership. It allows every person in the institution to know how and why they are. It has no hidden agenda.

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