The Balanced Scorecard…
IPRA’s New Approach
By: Dean Comber, Director of Operations/Project Management

Agenda
1. Overview of the Balanced Scorecard
1. Overview of the Balanced Scorecard
2. Benefits of using the Balanced Scorecard
2. Benefits of using the Balanced Scorecard
3. Lunch/Break
3. Lunch/Break
4. How IPRA will use the Balanced Scorecard
4. How IPRA will use the Balanced Scorecard
5. Questions
5. Questions

What is the Balanced Scorecard?
• A concept for measuring a company or organization’s activity in
terms of its vision and strategies, to give directors/managers a
comprehensive view of the performance of a business.
• Introduced in 1992 by Robert Kaplan and David Norton.
• Many of the largest and most profitable companies and
organizations use this methodology as part of their business
protocol.

Who uses the Balanced Scorecard?
• BMW
• AT&T
• IBM
• Pfizer
• Sears
• Etc.

The Four Corners
• Financial
• Member
• Internal Processes
• Learning and Growth

Financial Perspective
“If we succeed, how will we look to our members?”
• Measures whether strategic goals and objectives fit into short/long
term financial plans.
• Ensures items such as net operating income, cash flow, and costs
are adjusted accordingly and reported in a timely manner.
• Incorporates three stages: rapid growth, sustainability, and
harvesting.

Financial Perspective
• Rapid Growth: How is the organization growing to obtain increased
revenue, membership, and partnership opportunities?
• Sustainability: What measures do we use to monitor and modify
our current financial strategies for short/long term growth?
• Harvest: How do we as an organization use financial data and
models to measure current and future financial success (or even
failure)?

Financial Perspective Model
Long Term Association Value
Cost Efficiency Revenue Growth
Improve Cost Structure Expand Revenue Opportunities
Increase Utilization Increase Member Value

Member Perspective
“To achieve our vision, how must we look to our members?”
• Without our members, what is IPRA?
• Ensures that elements such as acquisition, retention, and satisfaction
are measured.
• Strives to meet operational excellence.

Member Perspective Model
Acquisition Retention Satisfaction
Price Quality Service Value

Internal Process Perspective
“To satisfy our members, what processes must we excel at?”
• Focuses on processes and protocols that should be modified and/or
optimized to in order to meet the needs of our members.
• There are four main objectives in this perspective:
– Operations Management
– Member Management
– Innovation Process
– Regulatory and Social Process

Internal Process Perspective Model
Operations Member Innovation Reg. & Social
Management Management Processes Processes
Process that Process that Processes that Processes that
produce and enhance create new improve
deliver member value objectives and communities
objectives and services and the
services environment
•Staffing •Acquisition •New Ideas/Goals •Environment
•Customer Service •Growth •Change Mgmt. •Safety/Health
•Training •Retention •Communication •Community
•Satisfaction

Learning & Growth Process Perspective
“To achieve our vision, how must our organization learn and
improve?”
• Focuses on the intangible assets of the organization, primarily on the
internal skills and capabilities that are required to support the value-
creating internal processes.
• There are three main objectives in this perspective:
– Human Capital
– Information Capital
– Organization Capital

Learning & Growth Perspective Model
Human Capital Information Capital Organization Capital
•Skills •Systems •Culture
•Knowledge •Databases •Leadership
•Attitude •Networks •Development

The Four Corners Together
Long Term Association Value
Cost Efficiency Revenue Growth
Financial
Price Quality Service Value
Member
Operations Member Innovation Reg. & Social
Management Management Processes Processes
Internal Processes
Human Capital Information Capital Organization Capital
Learning and Growth

IPRA’s Mission
Advocacy Community Collaboration Education Inclusion Innovation
IPRA’s Vision
Outcomes
Financial
F1 F2 F3 F4 F5
Member
M1 M2 M3 M4 M5
Learning and Growth
L1 L2 L3 L4 L5
Internal Processes
I1 I2 I3 I4 I5

Key Performance Indicators (KPI)
• In order to measure any objective, goal, or aspect of the Balanced
Scorecard, an indicator or metric must be identified and used to
determine performance.
• Measures of success should be clear and concise, explained in
detail, and costs should not outweigh the expected outcome value.
• KPI’s have five specific guidelines:
– Relevance
– Controllable
– Actionable
– Simple
– Credible

KPI Guidelines
• Relevance: Do the KPI’s have a linkage to strategic objectives?
• Controllable: Are KPI achievements still under control?
• Actionable: Can any action be taken to improve performance?
• Simple: Is the KPI easy to explain?
• Credible: Are the KPI’s not easy to manipulate?

Benefits of the Balanced Scorecard
• There are four main perspectives: financial, member, internal
processes, and learning and growth. Each of these perspectives
exist in any organization or company.
• Each perspective ultimately drives performance and should increase
value to the member.
• In theory, the Balanced Scorecard is similar to project management;
however, goes much further to identify, monitor, and change any
objective or goal of a strategic plan.
• KPI’s are used as metrics to monitor how performance is being
driven and where changes can be made.

Current IPRA Organizational Assessment
• IPRA is a two-tier functional organization. Currently, there are six
directors and six assistants that report to the CEO.
• IPRA has specific business departments, however, these usually
only encompass one director and one assistant. In essence, a
department consists of one (or two) staff members.
• Over time, the culture of IPRA (internally) has created
communication silos that in some cases lead to decreased
communication and disorientation of project objectives and goals.

Current IPRA Organizational Assessment
• In 2006, IPRA initiated a Project Management Office (PMO).
• While successful, many issues were determined and no measures
of performance were identified in order to apply change
management techniques or innovation aspects.
• The implementation of project management was used in a simple
format: tasks, milestones, and collaboration.
• Unfortunately, usage of project management techniques didn’t allow
for performance indicators and thus many objectives were
completed without determining true value of the outcome.

IPRA and the Balanced Scorecard
Benefits of IPRA using the Balanced Scorecard :
• Reduction of communication silos.
• Removal of wasted resources and allocations.
• Increased team collaboration.
• Finite and detailed performance metrics.
• And most importantly, MEMBER VALUE!

IPRA’s Usage of the Balanced Scorecard
Board of Directors/CEO
Education
Marketing
Professional
Services
S taff
IP RA
Technology
Development-
Sponsorships
Finance/HR
IPRA Members & Constituents

Usage Overview
CONCEPT IMPLEMENTATION PERFORMANCE REVIEW
Identify the Insert Define metrics Constantly
Balanced objectives from and review the
Scorecard the strategic performance scorecard to
principles to plan into the indicators to apply any
Board of Balanced constantly change
Directors, IPRA Scorecard and monitor current management
staff, and IPRA define projects objectives and protocols and to
members. and related related projects. strive for
sub-projects. innovation for
new services
and programs.

Sample Scorecard Item
Outcome
Restructure and simplify the current IPRA website to
increase usability while extending and expanding online
resources available to the membership that will assist in
a member’s professional career and agency.

Sample Scorecard Item
• Financial Perspective: How much will it cost to meet the outcome?
What tangible/intangible financial resources exist? What needs to
happen for this outcome to be completed and make financial sense?
• Member Perspective: What steps need to be completed in order for
this outcome to provide value to members? How will we identify if
satisfaction is met while quality is increased?
• Internal Process Perspective: What resources will it take to complete
the outcome? How will each staff member be affected and what is
their role?
• Learning & Growth Perspective: What aspects will derive the
outcome and what will we learn? What do we do with the information
and how do we use it in the future?

Sample Scorecard Item
• Using the Balanced Scorecard will allow us to define projects to
complete the outcome and define metrics to measure every aspect
of each perspective.
• No matter what the outcome is, each staff member is involved and
the ultimate goal is providing member value.
• Communication is constant and no confusion or collusion exists.
Thus, the outcome is completed on-time, at or under budget and
provides exceptional value.

Proposed Outcomes
• “Less is more” – IPRA will complete objectives of the strategic plan
according to proposed outcome, timeline, and budgetary allocations.
• Internal operations will take on a more cyclical approach versus a
functional design.
• CEO will only be involved when needed and allowed to conduct
typical CEO objectives.
• Innovation factor will increase. More programs, services, and value
while using less resources and reducing costs.
• A more methodical and proven approach to conduct business
operations while increasing member value.

Conclusion
Question/Answer Session