BALANCED SCORECARD Annual Report - FY2013

1. BALANCED SCORECARD Annual Report - FY2013 Using Performance Measurement to Align Goals, Strategy, and Budget Decisions “Value gained & value expected”

2. What is the Balanced Scorecard • A group of measures used to implement and test an organization’s strategy. • Communicates the actions and results by which the organization will achieve its mission and vision.

3. If It’s Not Broke, Why Are We Fixing It?

4. If It’s Not Broke, Why Are We Fixing It? • It’s easier to make changes if you can identify problems, issues, and concerns early enough while they are still manageable. • “Excellent firms don’t believe in excellence – only in constant improvement and constant change.” • How do you know if you are being successful if you don’t “keep score.” • What’s more dangerous – good news or bad news? Good news, it risks complacency and inaction. Bad news can alert you to potential problems and motivate action. Both make you aware of opportunities for progress. • Some things are indeed broke and need fixing!

5. Connecting Goals & ActionTo Performance Measurement Town-Wide Strategy Map Departmental Strategy Map Departmental Scorecards Objective Action Measure Target

6. Better Decision-Making Through The “Strategic Learning” Cycle “What’s Next:” Mayor & Board provide direction during 1) review of Balanced Scorecard Report at October/November workshop, 2) Annual budget planning retreat February or March, and 3) budget review & adoption in May through June. Implementation: Strategy and ideas are operationalized during the budget year (i.e., hypotheses tested). Post-Game Analysis: Information shared in annual report. Staff, board, public, and others question/debate results at October/November workshop.

7. Values Gained & Expectedfrom Scorecard & Annual Review • Triage: Focus on Priorities • Reduce time and effort wasted on distractions and lower priority items • Align time, money, and resources with top priorities • Motivation/Accountability • Leadership & Communication: Linking Goals, Actions, Measures, & Targets • Less time “in the weeds” (simple format & everyone has same information) • Policy deliberation and decisions are based more on facts than perception • Improved Operations • Encourage experimentation & innovation (“fail forward”) • Early warning system • Flexibility: better able to adjust to changing conditions • Easier to manage – expectations are clearly established at the beginning of the cycle, then evaluated at the end during the annual report review • Highlights importance of running efficient and effective operations • Credibility & Confidence • Follow-through: identify/debate successes, failures, and “grey” areas • Publicly report and discuss scorecard results • Welcome community participation and feedback (use Citizen Survey results, etc.)

8. Future Challenges • Focus on top priorities, avoid spreading resources too thin • “Weed-out” non-contributing measures & initiatives • Finding the right measures • Targets: Fair yet motivational • Organization-wide understanding (i.e., cascading) • Effectively use annual report to ignite analysis/adjustments • Maintaining acceptance of “trial & error” strategy