Measuring Performance: A Balanced Scorecard Approach

1. Measuring Performance: A Balanced Scorecard Approach Lazarski University May, 2011 Edward T. Jennings, Jr. University of Kentucky Martin School of Public Policy and Administration

2. Projekt : „Odpowiedź na wyzwania gospodarki opartej na wiedzy: nowy program nauczania na WSHiP”. Projekt współfinansowany ze środków Unii Europejskiej w ramach Europejskiego Funduszu Społecznego.

3. Types of measures • Inputs • Outputs • Outcomes • Intermediate outcomes • Final outcomes

4. Inputs—health example • Budget of the health system • Number of health providers

5. Outputs—health example • Surgeries conducted • Patients seen • Pills provided • Pregnant women seen, counseled, treated

6. Intermediate outcomes—health example • Patients cured • Diseases prevented • Conditions improved • Higher infant birth weights

7. Extended outcomes-Health Care • Improved quality of life • Reduced mortality rate • Increased length of life

8. Translating in the Scorecard • Financial: • Input: new revenue dollars received • Output: allocations to units • Outcome: cost per person served

9. Translating in the Scorecard • Financial: Input: new revenue dollars received Output: allocations to units Outcome: cost per person served • Employee learning and growth: Input: number of new staff • Internal process: Output: number of presentations delivered • Customer: Outcome: satisfaction • Mission: Outcome: number of healthy babies

10. Translating in the Scorecard • Financial: Input: new revenue dollars received Output: allocations to units Outcome: cost per person served • Employee learning and growth: Input: number of new staff • Internal process: Output: number of presentations delivered • Customer: Outcome: satisfaction • Mission: Outcome: number of healthy babies

11. Lag and Lead Indicators • According to the literatrue • Lag indicators tell us what we have accomplished • Lead indicators are predictive of what we will accomplish in the future

12. From the Balanced Scorecard Perspective • Customer perspective • Finance perspective • Employee learning and growth • Internal Process perspective • Mission perspective

13. Customer/client/citizen perspective Measures of how well clients, citizens, customers are served by the organization • access, timeliness, selection (of products/services or choices offered), efficiency (from the client or customer perspective) • Customer satisfaction: accuracy, availability, partnership, advice, • Customer outcomes: improved status or conditions

14. Translating in the Scorecard • Mission: • Outcome: number of healthy babies

15. Finance Perspective • net income, gross income, net assets, budget variance, earned income, diversification of income streams, budget or forecast accuracy • Do these work for public and nonprofit? • What else might be relevant?

16. Process perspective • Process quality, process effectiveness, process efficiency • Does this work for public/non-profit?

17. Employee Learning and Growth • Recruitment—quality (competence) of new employees • Retention rates • Trainings held • Improved competencies • Employee satisfaction

18. Mission • Measures of desired results

19. Niven’s standards for PM • Linked to strategy • Easily understood • Link in a chain of cause and effect • Updated frequently • Accessible • Quantitative • Functional

20. Alternative standards • Valid • Reliable • Controllable

21. Projekt : „Odpowiedź na wyzwania gospodarki opartej na wiedzy: nowy program nauczania na WSHiP”. Projekt współfinansowany ze środków Unii Europejskiej w ramach Europejskiego Funduszu Społecznego.