balance scorecard - an effective tool
TRANSCRIPT
-
7/28/2019 Balance Scorecard - An Effective Tool
1/33
10/4/03 NYS Leadership Conference 1
The Balanced
Scorecard
A Strategic Implementation Tool
for your Organization, HRDepartment, Chapter and StateCouncil
-
7/28/2019 Balance Scorecard - An Effective Tool
2/33
NYS Leadership Conference 210/4/03
Todays Agenda
Overview of the Balanced Scorecard
Why the Balanced Scorecard will helpexecute strategy
Strategy Map and Balanced Scorecard
OutcomesDiscussion Ideas for scorecards
-
7/28/2019 Balance Scorecard - An Effective Tool
3/33
NYS Leadership Conference 310/4/03
Executing Strategy...
Is the greatest challenge for o rganizat ion s
Vision - only 5% of workforce gets it!
People 25% of managers have incentives linked to strategy
Management
85% of executive teams spend less than 1 hour/modiscussing strategy
Resource60% of organizations dont link budgets to strategy
-
7/28/2019 Balance Scorecard - An Effective Tool
4/33
NYS Leadership Conference 410/4/03
Strategic Execution
Bad execu t ion , no t bad strategy is the
cause of 70% o f CEO fai lures
Execution is not just tacticsit is a
discipline and a system
Source: Execution: The Discipline of Getting Things Done, by Larry Bossidy, and FORTUNE Magazine, Why CEOs Fail
-
7/28/2019 Balance Scorecard - An Effective Tool
5/33
NYS Leadership Conference 510/4/03
Challenges in Executing Strategy
Financial Management
ToolsBalance Sheets
Income Statements
Statement of Cash Flow
People Management
ToolsMBO
Training Programs
HRIS
360 Feedback
Customer Management
Tools
C R MCustomer Segment Analysis
Customer Surveys
Process Management
ToolsSix Sigma
Supply Chain ManagementTQM
Strategy ManagementTools
???
-
7/28/2019 Balance Scorecard - An Effective Tool
6/33
NYS Leadership Conference 610/4/03
Train and Communicate Strategy
The Balanced Scorecard
Set goals, select performance measures and linkmeasures to incentives
Set target for each goal and re-deploy resources to
activities and initiatives to achieve targets
Provide feedback on performance and
learn from results
Feed
Forward
Learning
-
7/28/2019 Balance Scorecard - An Effective Tool
7/33
NYS Leadership Conference 710/4/03
The Balanced Scorecard
A robust tool but keep it simple!
Makes strategy tangibleeveryones job!
Tracks whats important hits and misses
Measurement-lead management
Provides feedback for short-term coursecorrections and long-term learning
-
7/28/2019 Balance Scorecard - An Effective Tool
8/33
NYS Leadership Conference 810/4/03
Balanced Scorecard Perspectives
A. Financial
How do we succeed financially?
B. CustomerHow do we appear to our customers?
C. Internal ProcessAt what processes must we excel?
D. Learning and Growth
How do we sustain our ability to change and grow?
-
7/28/2019 Balance Scorecard - An Effective Tool
9/33
NYS Leadership Conference 910/4/03
Government / Non-Profit Perspectives
Financial taxes, donations, grants, maintain bond rating, sound fiscal
management, long-term growth
Customer reduce crime, increase community safety, provide economic
opportunity , involved parents, chapter resource
Internal Process promote business mix, streamline customer interaction, effective
instructions, nutritious meals, website management
Learning & Growth close skills gap, achieve satisfaction levels, tenure, volunteer
development
-
7/28/2019 Balance Scorecard - An Effective Tool
10/33
NYS Leadership Conference 1010/4/03
Balanced Scorecard Perspectives
How do we Objectives Measures Targets Initiatives
appear to our
Stockholders?
Financial
How do we Objectives Measures Targets Initiat ives
appear to our
Customers?
CustomerAt what internal Objectives Measures Targets Initiatives
processes must
we excel?
Internal Business ProcessVision&
Strategy
How do we Objectives Measures Targets Initiat ives
sustain our
ability to change
& grow?
Learning and Growth
-
7/28/2019 Balance Scorecard - An Effective Tool
11/33
NYS Leadership Conference 1110/4/03
Government & Non-Profits
The Mission
To succeed, how should we look to
our funders?
To satisfy our funders and recipients,
and achieve our mission, at what
processes must we excel?
To achieve our vision, how must ourpeople learn, communicate and work
together?
To achieve our mission, what
benefits do we deliver to our
recipients,
The mission, rather than financial/shareholder objectives, drive the organizations
strategy
-
7/28/2019 Balance Scorecard - An Effective Tool
12/33
NYS Leadership Conference 1210/4/03
Cascading Scorecards
to Build AlignmentOrganization
Business
Unit
Business
Unit
Business
Unit
Teams
Individual Contributors
-
7/28/2019 Balance Scorecard - An Effective Tool
13/33
NYS Leadership Conference 1310/4/03
FinancialSound
Fiscal
Mgmt
Budgeting
Long-Term
Investment
Strategy
Customer The Value
Proposition
Internal Process
Learning & Growth
The Value Proposition
Product/Services
Price Selection
Quality Availability
Relationship
Partnership
Services
Brand
Image
Innovation
New learning
Partnerships
Future needs
Operational Excellence
Admin excellence
Network of supplier for
Products & services
Adaptability
Customer Mgmt
Deepen Knowledge
about customer
Attract
Retain
Grow Relationship
Climate for Action
Personal Growth
Competencies
Functional Excellence
Leadership Skills
Strategic Readiness
-
7/28/2019 Balance Scorecard - An Effective Tool
14/33
NYS Leadership Conference 1410/4/03
Scorecard Information
Information Type Are. Example is
Strategies High Level Goals Increase Market Share
Objectives Measures of action
plans
Increase Customer
Satisfaction
Measures Indicates success or
failure
Average Customer Rating
(scale of 1-10)
Targets Desired level ofperformance for a
measure
Achieve 9.9 of 10 AverageCustomer Rating
Initiatives Management actions
taken to achieve target
Train CSR Staff in Problem
Resolution Skills
Perspective: Financial / Customer / Internal Process / Learning&Growth
-
7/28/2019 Balance Scorecard - An Effective Tool
15/33
NYS Leadership Conference 1510/4/03
Financial Strategy M Strategy Map Objectives
Initiat ive/Owner Budget
Grow Revenue Grow Revenue JF
Increase Profit Margin xx% JF
Customer The Value Proposition
Product/Services Customer Satisfaction 9.0 SPS Overall Bette Francis $xxIntegrity BeyondReproach Innovation Partnership Image Ivoice Available 10 Sites by 11/1/03 MT
Availability Service Communicate value
Customer Profitability
Internal Process Operational Excellence
Integrity BeyondReproach Maximize efficiency Competitive Positioning 2 Replace/Qtr CP
Designs/Quote 5/Quote-Complex MT
Customer Profitability
Create Awareness
Learning & Growth Sustaining Our Ability to Change & Grow
Platinum Certification Recertify as Platinum B. Francis
Technical Expertise Information is Available
Certify TechnicalKnowledge Increase Certifications
Employer of Choice Tools to do the job Make application to EOC Submit 2 applicationsB. Francis N/A
Live the SPS ValuesGreat People
SPS Strategy and Balanced Scorecard
Our Purpose for Being is to Provide Our Customers with the Finest Communications Value in the Marketplace.
Improve Profitability
Customer Satisfaction Repor
Action Plan
Financial ResponsibilityIntegrity BeyondReproach
Profit Margin
Balanced Scorecard
Measurement Target
Understand thestrategy and whatneeds to be done
Enhance externalrelationships
Value of the IndividualIntegrity BeyondReproach Human Capital
Acquire new relationshipsGrow/broaden existingrelationships
Maximize quality ofbusiness processes
Organizational
Readiness
Excellent ServiceExceptional CustomerValue
Manage Customer
Relationships MarketsManage Operations
Our vision is to be the leading integrator of communications equipment and services for voice solutions and data networking
Excellent ServiceExceptional CustomerValue BrandRelationship
$xxxMRevenue Attainment
-
7/28/2019 Balance Scorecard - An Effective Tool
16/33
NYS Leadership Conference 1610/4/03
Human Resources Mission Statement:
The Human Resources Team will lead by example working to build a culture of high-energy,
committed professionals who understand that continuous improvement and customer service
are primary value competencies integrated into every position while developing SPS as a
recognized employer of choice.
Learning & Growth Sustaining Our Ability to Change & Grow
Platinum Certification Recertify as Platinum B. Francis
Technical Expertise Information is Available
Certify Technical
Knowledge Increase Certifications
Employer of Choice Tools to do the job Make application to EOC Submit 2 applicationsB. Francis N/A
Live the SPS Values
Great People
Value of the Individual
Integrity Beyond
Reproach Human Capital
Organizational
Readiness
Understand the
strategy and what
needs to be done
Coordinate BP Certification
Process
Platinum Certification Achieved Lead: BF
Target: 9/1/03
Develop matrix; assign
responsibilities; conduct
regular checkpoints
Objective Result/Deliverable Target & Lead Initiative
-
7/28/2019 Balance Scorecard - An Effective Tool
17/33
NYS Leadership Conference 1710/4/03
Sample HR Measures
Lagging Measures
Impact ofPriorDecisions
Budget varianceEmployee relationship results
Executive coaching
Employee productivity
Cost per hire by job class
People expense/Revenues
Leading Measures
Guide FutureOutcomes
Employee strategic focusExecutive retention
Retraining/re-skilling
Internal promotion rate
Exit Rate of C Players
Employee relationship factor
-
7/28/2019 Balance Scorecard - An Effective Tool
18/33
NYS Leadership Conference 1810/4/03
So Why Consider the BSC?
As an HR Professional --
Strategic Thinker
Business Leader
As an organization --
Welcomes change vital culture today
Achieves strategic objectives
-
7/28/2019 Balance Scorecard - An Effective Tool
19/33
NYS Leadership Conference 1910/4/03
Keys to Success
Educate your Executive and Teams
Devise the right metrics
Follow through to completion
Start smal l! Report immediately
Dont over measure
-
7/28/2019 Balance Scorecard - An Effective Tool
20/33
NYS Leadership Conference 2010/4/03
Getting Started Customize Your BSC
1. Describe the strategy burningplatform?
Strategy Map2. Measure the strategy
Develop the measures; critical data points
3. Manage the strategy Gather detailed information about the
measure and initiative
-
7/28/2019 Balance Scorecard - An Effective Tool
21/33
NYS Leadership Conference 2110/4/03
The Successful Scorecard
Is a dynamic process
continues to set higher targets and achieves them
Define jobs strategically from the perspective of where it fits in with the
strategic business goals
Supports joint decision
making about what you do/dont do based on
strategic goals
-
7/28/2019 Balance Scorecard - An Effective Tool
22/33
NYS Leadership Conference 2210/4/03
What we did in NJ
The Balanced Scorecard Clarified
What we wanted to accomplish
What we are notgoing to do
Volunteer roles
Resources needed
Outcomes expected
-
7/28/2019 Balance Scorecard - An Effective Tool
23/33
NYS Leadership Conference 2310/4/03
Chapter/State Council Scorecard
Serve the Professional STP
Provide comprehensive information and tools
Help HR professionals develop their knowledge, skills and careers
Build HR communities to exchange ideas, develop professional relationships, and increase
HR knowledge
Advance the Profession ATP
Set the agenda for the HR profession
Ensure HR is recognized for its contribution to business success
Enhance the capability and credibility of the HR profession
Building communities for the exchange of leading-edge business ideas and
The development of professional relationships
Source: SHRM
-
7/28/2019 Balance Scorecard - An Effective Tool
24/33
NYS Leadership Conference 2410/4/03
Serve the Professional (STP) Is:
Seminars such as Fundamentals of HR, most
white papers, most articles in HRMagazine,
majority of activities and sessions held atAnnual Conference & Exposition and most
other SHRM conferences, certification, most
surveys and most of what the Information
Center responds to currently
Source: SHRM
-
7/28/2019 Balance Scorecard - An Effective Tool
25/33
NYS Leadership Conference 2510/4/03
Serve the Professional (STP) Is Not
Messages about the value and
contributions of HR to a general businessaudience, articles/activities/information
geared toward the strategic leader
Source: SHRM
-
7/28/2019 Balance Scorecard - An Effective Tool
26/33
NYS Leadership Conference 2610/4/03
Advance the Profession (ATP) Is:
Helping HR professionals understand their leadershipcapabilities and potential contributions to their organizations,provide them the tools to enable them to fully engage in thebusiness process, and help them advance in their careers.Advance the Profession is also about helping the businesscommunity (and the public broadly) understand thecontributions HR can make to organizational success.
ATP is designed to elevate HR professionals to be or becomebusiness leaders who significantly contribute to organizationalsuccess and are perceived by their non-HR colleagues
especially those in the C-Suiteas such.
Source: SHRM
-
7/28/2019 Balance Scorecard - An Effective Tool
27/33
NYS Leadership Conference 2710/4/03
Advance the Professional (ATP) Is Not:
Intended to teach HR professionals
about HR fundamentals. It is not to
help or educate HR professionals abouthow to effectively handle day-to-day HR
responsibilities or compliance issues.
Source: SHRM
-
7/28/2019 Balance Scorecard - An Effective Tool
28/33
NYS Leadership Conference 2810/4/03
Garden State Council
Mission Statement
The Garden State Council serves the professional (STP) and advances the humanresource profession (ATP) in New Jersey by:
Being a chapter resource(Customer - chapters)
Promoting HR Excellence and Standards
(Customer HR Professionals;business community)
Creating opportunity for HR professionals to learn and succeed(Customer HR community current and potential members)
Providing training and development opportunities for chapterand council volunteer leaders(Customer volunteers)
Advocating the value of SHRM membership(Customer chapters, allmembers, potential, business community, volunteers)
Demonstrating the highest ethical professional standards ofoperations(Customer all)
-
7/28/2019 Balance Scorecard - An Effective Tool
29/33
NYS Leadership Conference 2910/4/03
The GSC Strategy Map
CustomerTo achieve our
vision, how
should we appear
to our customers
Internal
Process
To satisfy our
customers, which
operational
processes must
we excel?
Learning &
Growth
How will we
sustain our abilityto change and
improve?
Financial
To financially
sustain our
Mission, on what
must we focus?
Perspective Strategy
Chapters Members
current/potentialVolunteers
Business
Community
Resource
ToChapters
Resource
ToProfessionals
Resource
ToBusiness
Community
Technology Alignment Recognition Knowledge
Budgeting
Sound
Fiscal
management
Long-Term
Investment
Strategy
-
7/28/2019 Balance Scorecard - An Effective Tool
30/33
NYS Leadership Conference 3010/4/03
Scorecard Exercise
Information Type Are. Example is
Strategies High Level Goals A TP or STP
Objectives Measures of action plans Write 1 objective
Measures Indicates success or
failure
Identify a measure; is it a
leading or lagging measure?
Targets Desired level ofperformance for a
measure
Set a target
Initiatives Actions taken to achieve
target
May or may not be required
Perspective: Financial / Customer / Internal Process / Learning&GrowthCirc le one
-
7/28/2019 Balance Scorecard - An Effective Tool
31/33
NYS Leadership Conference 3110/4/03
Scorecard Exercise
Information Type Are. Example is
Strategies High Level Goals
Objectives Measures of action plans
Measures Indicates success or
failure
Targets Desired level ofperformance for a
measure
Initiatives Actions taken to achieve
target
Perspective: Financial / Customer / Internal Process / Learning&Growth
-
7/28/2019 Balance Scorecard - An Effective Tool
32/33
NYS Leadership Conference 3210/4/03
Resources
The Balanced Scorecard, Kaplan & Norton
Balanced Scorecard Collaborative, Lincoln, MA, www.bscol.com
The Strategy-Focused Organization, Kaplan & Norton
www.BetterManagement.com
The HR Scorecard, Becker, Huselid, Ulrich Measure Like You Mean It, Michael Hammer
The Balanced Scorecard Step By Step: Maximizing Performanceand Maintaining Results, Paul R. Niven
The Human Resources Scorecard, Measuring the Return on
Investment, Jack J. Phillips, Ron D. Stone, Patricia Pulliam Phillips Company Case Studies
Networking
-
7/28/2019 Balance Scorecard - An Effective Tool
33/33
10/4/03 NYS Leadership Conference 33
Questions?
Bette Francis, SPHR
Strategic Products & Services
973-656-4607