9/23/2016

We will start shortly!

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Welcome!

BSC

Cracking the Balanced Scorecard Code!

Juliette Bastian, BSI Senior Associate & Business Development Manager

©1997-2016 Balanced Scorecard Institute.

We will start shortly!

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Welcome!

BSC

Cracking the Balanced Scorecard Code!

Juliette Bastian, BSI Senior Associate & Business Development Manager

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Welcome

Juliette Bastian
BSI Senior Associate &
Business Development Manager

Certified Balanced Scorecard Master Professional,

Senior Associate and Consultant

www.balancedscorecard.org/bsp
Discount code “BSC Code” for a BSP Boot Camp in the U.S. before end of October 2016 and save $500.

©1997-2016 Balanced Scorecard Institute.

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Balanced Scorecard is a Commonly Used Management Tool

Source: Bain & Company Management Tools & Trends 2015

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Balanced Scorecard is Used By Almost 40% of Organizations Surveyed

Source: Bain & Company Management Tools & Trends 2015

©1997-2016 Balanced Scorecard Institute.

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

CAESAR and the Balanced Scorecard?

Communicate
Strategy

Code

Vision / Mission /Strategic Themes & Results

Measures Targets Initiatives
Financial
Customer
Processes Clarity
Organizational
Capacity

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

What is a Balanced Scorecard?

An integrated strategic planning and performance management system that:
• Communicates with clarity an organization’s vision, mission, and strategy to
employees and other stakeholders
• Aligns day-to-day work to vision and strategy
• Provides a framework for prioritizing programs, projects, services, products
and resources
• Uses strategic performance measures and targets to measure progress

Mission/Vision/Values/Strategic Themes/Results

Strategy Map/ Objectives Measures Targets Initiatives

Financial

Customer

Process
Organizational
Capacity

©1997-2016 Balanced Scorecard Institute.

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

A Strategic Management System Connects the Dots

Between Strategy and Action
Strategic Objectives Are Measures are used to Strategic Initiates
Continuous track organizational are projects that
Improvement Activities performance. help you reach
that we have to your targets.
implement for success Targets are the
desired level of
High Level Strategy Maps visualize performance for each
Strategy strategy measure.
Elements
provide high Mission/Vision/Values/Strategic Themes/Results
level context Strategy Map/ Objectives Measures Targets Initiatives

Financial

Customer

Process
Organizational
Capacity

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Align the Organization to Mission, Vision & Strategy

Vision and Mission

Actions
Strategy
Strategic
Objectives

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Strategic Performance Should be Monitored

From Different Perspectives

Financial or • Financial Performance

Stewardship • Effective Resource Use

• Customer Value
Customer &
• Satisfaction and/or
Stakeholder Retention

• Efficiency
Internal Process • Quality

• Human Capital
Organizational Capacity
• Infrastructure & Technology
or Learning & Growth • Culture

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

GovernmentStrategic Planning and Management System Example

Vision: Be a world-class model for a successful urban community
Mission: Provide effective and fiscally responsible services in a manner that promotes high standards for community life
Strategic
Themes: Government Reform Nurturing Children and Families Public Safety Economic Abundance
Maintain an ethical and transparent Create a safe, thriving and engaged community Create and maintain a safe, Offer abundant opportunity for
Strategic government that engages its constituents so families can flourish through achievement of secure community-oriented financial stability and
Results: and provides effective and efficient social, mental, pyshical and cultural well-being. city that is clean and vibrant. advancement for all socio-
services. economic levels.

Strategic Objectives and Strategy Map Measures Targets Initiatives

Constituent/ • Livability satisfaction score • >90% this year • Green Space program
Stakeholder Increase • Program satisfaction score • >85% this year • New business startup
Improve Quality of Improve program
Program Life Awareness and • Per capita service utilization • 65% this year
Outcomes Accessibility • Community engage
• Per capita income • 3% this year committee
• Tourism revenue • 6% this year • Partnering program
Financial • Controllable expenses • 5% this year
Improve Land • Simplify tax payments
Stewardship Reduce • Asset value • 8% this year
and Asset • Asset resale program
Waste Management
• Strategic projects on time and budget • 95% this year • Energy savings program

Business • Index of program results • 85% this year

Processes • 35% this period; 50% • Partner recruitment
• Shared systems
this year program
Improve Improve Improve city • City marketing program
Delivery Efficiency and Promotion/ • Response time changes • 5% this period
Services Effectiveness Marketing • Satisfaction surveys
• Audit score of communication
• >90% this period
effectiveness
Organizational • Recruitment effectiveness • > 80% this period • Customer service training
Capacity Improve • Retention effectiveness • 92% this year • Individual development
Increase Staff Utilization of
Quality plans
Technology • Training effectiveness • >93% this period
• Porgram evaluation
• Employees use of appropriate technology • 45% process

 Integrity-Based Leadership  Ethics  Accountability  Commitment to Excellence  Citizen-Centered  Mutual Respect

©1997-2016 Balanced Scorecard Institute.

Communicate WEBINAR: CRACKING THE BALANCED SCORECARD CODE

GovernmentStrategic Planning and Management System Example
Vision, Mission &
Strategy

Vision: Be a world-class model for a successful urban community

Mission: Provide effective and fiscally responsible services in a manner that promotes high standards for community life
Strategic
Themes: Government Reform Nurturing Children and Families Public Safety Economic Abundance
Maintain an ethical and transparent Create a safe, thriving and engaged community Create and maintain a safe, Offer abundant opportunity for
Strategic government that engages its constituents so families can flourish through achievement of secure community-oriented financial stability and
Results: and provides effective and efficient social, mental, pyshical and cultural well-being. city that is clean and vibrant. advancement for all socio-
services. economic levels.

Strategic Objectives and Strategy Map Communicate

Measures Targets Initiatives
Strategy Map is Your
• Livability satisfaction score • >90% this year
Constituent/ • Green Space program
Stakeholder Story of Value Creation • New business startup
Increase • Program satisfaction score • >85% this year
Improve Quality of Improve program
Program Life Awareness and • Per capita service utilization • 65% this year
Outcomes Accessibility • Community engage
• Per capita income • 3% this year committee
• Tourism revenue • 6% this year • Partnering program
Financial • Controllable expenses • 5% this year
Improve Land • Simplify tax payments
Stewardship Reduce • Asset value • 8% this year
and Asset • Asset resale program
Waste Management
• Strategic projects on time and budget • 95% this year • Energy savings program

Business • Index of program results • 85% this year

Processes • 35% this period; 50% • Partner recruitment
• Shared systems
this year program
Improve Improve Improve city • City marketing program
Delivery Efficiency and Promotion/ • Response time changes • 5% this period
Services Effectiveness Marketing • Satisfaction surveys
• Audit score of communication
• >90% this period
effectiveness
Organizational • Recruitment effectiveness • > 80% this period • Customer service training
Capacity Improve • Retention effectiveness • 92% this year • Individual development
Increase Staff Utilization of
Quality plans
Technology • Training effectiveness • >93% this period
• Porgram evaluation
• Employees use of appropriate technology • 45% process

 Integrity-Based Leadership  Ethics  Accountability  Commitment to Excellence  Citizen-Centered  Mutual Respect

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

GovernmentStrategic Planning and Management System Example
Vision: Be a world-class model for a successful urban community
Mission: Measure
Provide effective and fiscally responsible services in a manner that promotes high standards for community life
Strategic Strategic Progress –
Themes: Government Reform Nurturing Children and Families Public Safety Economic Abundance
Strategy Execution
Maintain an ethical and transparent Create a safe, thriving and engaged community Create and maintain a safe, Offer abundant opportunity for
Strategic government that engages its constituents so families can flourish through achievement of secure community-oriented financial stability and
Results: and provides effective and efficient social, mental, pyshical and cultural well-being. city that is clean and vibrant. advancement for all socio-
services. economic levels.

Strategic Objectives and Strategy Map Measures Targets Initiatives

Constituent/ • Livability satisfaction score • >90% this year • Green Space program
Stakeholder Increase • Program satisfaction score • >85% this year • New business startup
Improve Quality of Improve program
Program Life Awareness and • Per capita service utilization • 65% this year
Outcomes Accessibility • Community engage
• Per capita income • 3% this year committee
• Tourism revenue • 6% this year • Partnering program
Financial • Controllable expenses • 5% this year
Improve Land • Simplify tax payments
Stewardship Reduce • Asset value • 8% this year
and Asset • Asset resale program
Waste Management
• Strategic projects on time and budget • 95% this year • Energy savings program

Business • Index of program results • 85% this year

Processes • 35% this period; 50% • Partner recruitment
• Shared systems
this year program
Improve Improve Improve city • City marketing program
Delivery Efficiency and Promotion/ • Response time changes • 5% this period
Services Effectiveness Marketing • Satisfaction surveys
• Audit score of communication
• >90% this period
effectiveness
Organizational • Recruitment effectiveness • > 80% this period • Customer service training
Capacity Improve • Retention effectiveness • 92% this year • Individual development
Increase Staff Utilization of
Quality plans
Technology • Training effectiveness • >93% this period
• Porgram evaluation
• Employees use of appropriate technology • 45% process

 Integrity-Based Leadership  Ethics  Accountability  Commitment to Excellence  Citizen-Centered  Mutual Respect

©1997-2016 Balanced Scorecard Institute.

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

GovernmentStrategic Planning and Management System Example
Vision: Be a world-class model for a successful urban community Prioritize
Mission: Initiatives/Projects
Provide effective and fiscally responsible services in a manner that promotes high standards for community life
Strategic
Themes: Government Reform Nurturing Children and Families Public Safety Economic Abundance
Maintain an ethical and transparent Create a safe, thriving and engaged community Create and maintain a safe, Offer abundant opportunity for
Strategic government that engages its constituents so families can flourish through achievement of secure community-oriented financial stability and
Results: and provides effective and efficient social, mental, pyshical and cultural well-being. city that is clean and vibrant. advancement for all socio-
services. economic levels.

Strategic Objectives and Strategy Map Measures Targets Initiatives

Constituent/ • Livability satisfaction score • >90% this year • Green Space program
Stakeholder Increase • Program satisfaction score • >85% this year • New business startup
Improve Quality of Improve program
Program Life Awareness and • Per capita service utilization • 65% this year
Outcomes Accessibility • Community engage
• Per capita income • 3% this year committee
• Tourism revenue • 6% this year • Partnering program
Financial • Controllable expenses • 5% this year
Improve Land • Simplify tax payments
Stewardship Reduce • Asset value • 8% this year
and Asset • Asset resale program
Waste Management
• Strategic projects on time and budget • 95% this year • Energy savings program

Business • Index of program results • 85% this year

Processes • 35% this period; 50% • Partner recruitment
• Shared systems
this year program
Improve Improve Improve city • City marketing program
Delivery Efficiency and Promotion/ • Response time changes • 5% this period
Services Effectiveness Marketing • Satisfaction surveys
• Audit score of communication
• >90% this period
effectiveness
Organizational • Recruitment effectiveness • > 80% this period • Customer service training
Capacity Improve • Retention effectiveness • 92% this year • Individual development
Increase Staff Utilization of
Quality plans
Technology • Training effectiveness • >93% this period
• Porgram evaluation
• Employees use of appropriate technology • 45% process

 Integrity-Based Leadership  Ethics  Accountability  Commitment to Excellence  Citizen-Centered  Mutual Respect

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Private Sector Strategic Planning and Management System Example
Vision: Be a world-revolutionizing provider of energy products
Mission: Efficiently deliver the highest standard of service providing energy products and expertise to our customers
Strategic
Themes: International Growth Operational Excellence Energy Leadership
Increase in size and shareholder value through Process and services are executed in a timely, Worldwide recognition for thought leadership and
Strategic
acquisitions, organic growth and asset accurate, value-added and cost-effective manner that energy services expertise.
Results:
optimization. exceeds stakeholder expectations.

Strategic Objectives and Strategy Map Measures Targets Initiatives

Financial Increase • Profit • 15% per year
Reduce Increase Revenue in • Implemented new financial
• Operating costs • 7% per year
Costs Profits Targeted system and benchmark
Markets • Revenue in targeted markets • 5% per year results

Customer Improve Increase • Customer experience score • 5% next period • Marketing campaign in new
Customized Awareness • % of customers with CK charter • 87% next period target markets
Customer as Industry
Experience Leader • Awareness and leadership score • 98% next period • Develop customer
• References in media • 15 new references knowledge (CK) charter

Internal • Efficiency index • 15% per year • Est. acquisition integration

Process • EBIT from aquisitions • $15M this year team
Increase Improve
Improve Increase Consulting Product/ • Est. Business Process
Internal • Time to post • 5 business days
Acquisitions Knowledge Service Reengineering (BPR) team
Efficiency • % of transactions in CRM • 65% next period
Sharing Offerings • Formalize new product
development cycle
• New products/SVCs as % of sales • 14% this year • Formalize CRM qualification
process
Organizational • % empl. development plans in • CRM system training
• 70% this year
Capacity place • Redesign employee
Increase Optimize Improve certification process
Employee Optimize Human Thought • % ststems automated • 72% this year
Expertise Technology Capital Leadership • Est. thought leadership
• Operating cost/FTE • $3,350/person
committee
• Articles published • 125 this year • Formalize research expertise
strategy
 Integrity  Commitment to Excellence  Customer Focused  Diversity of Knowledge  Honesty  Teamwork/Collaboration  Entrepreneurial  Thirst for Knowledge

©1997-2016 Balanced Scorecard Institute.

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

BioBridgeGlobal Wanted a Systematic Framework

• Get everyone using the same

language
• 'Connect-the-dots' between
activities and strategy & vision
• Manage strategy
o Strategy formulation and
planning
o Execution
o Measurement
o Follow through and evaluation

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

A Strategy Map Communicates How Your Strategy Works

Financial
Lower Increase Increase
Cost Profitability Revenue

Customer/
Lower Improve
Stakeholder Customer
Wait Time
Retention

Business
Increase Lower
Processes Process Cycle
Efficiency Time

Organizational
Improve Improve
Capacity Knowledge Tools and
and Skills Technology

©1997-2016 Balanced Scorecard Institute.

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Fluor Used BSC to Communicate Strategy

• Communicate Strategy
• Align project work to strategy
• Track organizational
performance against targets

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Organizational Strategy Can Be Aligned
By Cascadingto Different Tiers
Mission/Vision/Values/Strategic Themes/Results

Tier 1: Strategy Map/ Objectives Measures Targets Initiatives

Organization-wide
Financial
Tier 1 Scorecard:
Customer Strategy defined in a
Process
top-level strategy map
and scorecard
Organizational
Capacity

Strategy Map/ Objectives Measures Targets Initiatives

Tier 2: Tier 2: Tier 2:
Departments Business Units Support Units Financial
Tier 2 Scorecards:
Customer Aligned strategy
defined in business
Process and support unit
scorecards
Organizational
Capacity

Personal Objectives Measures Targets Initiatives

Tier 3: Tier 3 Scorecard:

Teams and Individuals Aligned personal
objectives defined by
job descriptions and
work assignments

©1997-2016 Balanced Scorecard Institute.

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

When Strategy is NotEveryone’s Job

“This is not in my Job Description…

I draw lines; I don’t remove trees”

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

National Marrow Donor Program® / Be the Match® Used BSC to

Cascade Strategy, Prioritize, and Focus

• Prioritized based on expected

strategic impact
• Measured only what matters
• Focused on the right initiatives
and projects
• Evaluated whether or not they
were making a difference

©1997-2016 Balanced Scorecard Institute.

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Using BSC Produces Results

• Federal Ministry of Health in • Veolia Water NA used BSI’s

Ethiopia (Bill & Melinda Gates
Foundation) used BSC to:
• Transition 74% of their
existing hospitals to meet
reform standards,
• Reduce in-patient mortality
from 5.8% to 4%,
• Reduce waiting time from
140 minutes to 75
minutes, and more
• AMEDD Center & School used framework to drive significant
BSC to: improvements in:
• Improve alignment, focus, • Operating Cash Flow
and data-driven decision
• Backlog of Industrial
making
Business Portfolio
• Use performance data to
• Revenue of Bids Submitted
identify root causes of
poor academic • # of Preventable
Environmental Excursions,
performance
and more
• Save the Army $26M by
reducing training attrition
from 34% to below 20%

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Critical Success Factors For Long-Term Sustainability

Engaged Leadership

Change Management Incorporated

Fact-based Decision Making

Strong Project Management Discipline

Long-term Commitment

Motivated Behaviors

©1997-2016 Balanced Scorecard Institute.

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

How to Implement: Get BSP Certified

BSI’s Nine Steps to
Success methodology

Los Angeles, CA Oct. 17 – 21, 2016

Atlanta, GA Nov. 14 – 18 , 2016

www.balancedscorecard.org/bsp
Discount code “BSC Code” for a BSP Boot Camp in the U.S. before end of October 2016 and save $500.

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

Balanced Scorecard Institute International

©1997-2016 Balanced Scorecard Institute.

WEBINAR: CRACKING THE BALANCED SCORECARD CODE

How to Implement: Get BSI Consulting Help

BSI consulting services are tailored to your

needs, such as:
• Implementing a system from scratch
• Assessing and improving existing systems
• Ensuring cascaded scorecards are aligned
to enable corporate strategy
• Helping develop and implement
meaningful KPIs
• Designing dashboards and reports to
enable data-driven decision making
• Ensuring programs/projects are
prioritized and aligned to strategy

For more, visit http://balancedscorecard.org/Consulting/Consulting-Overview

©1997-2016 Balanced Scorecard Institute.

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WEBINAR: CRACKING THE BALANCED SCORECARD CODE

BSC

Any Questions?
Visit www.balancedscorecard.org for more information.

©1997-2016 Balanced Scorecard Institute.

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