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Balanced Scorecard René Ewing Governor’s Special Assistant for Management and Quality Improvement October 1999
The  Governor’s  Vision . . . ake Washington a great state to live, work and raise a family M
Make state government as innovative,  efficient, and customer-friendly as the best  private enterprises in our state. Rest...
Fundamental Objective  . . . o improve the performance  of state government by increasing the value received by citizens  ...
Primary   Strategy  . . . o change the culture of state  government from a focus on process  to a focus on results T
Quality Initiatives <ul><li>Sub Cabinet for Management and Quality </li></ul><ul><li>Quarterly Reporting System </li></ul>...
Next Steps . . . <ul><li>Create Customer focused organizations </li></ul><ul><li>Establish performance management systems ...
Customer Focus . . . <ul><li>Citizen Survey of service expectations </li></ul><ul><li>Establishment of customer service st...
Basic Tool for Performance Management  . . . A “balanced scorecard”  of performance measures to link  strategy and action
What is the Balanced Scorecard? <ul><li>A performance management system </li></ul><ul><li>Aligns and focuses organizationa...
Public Sector Balanced Scorecard . . . Mission Internal Processes Learning: Skills, Knowledge, Data, People Value and Bene...
Translating Vision and Strategy: Five Perspectives . . . LEARNING and GROWTH To achieve our vision, how will we sustain ou...
Benefits  . . .  <ul><li>Deploys the strategic plan  </li></ul><ul><li>Focuses and aligns agency efforts </li></ul><ul><li...
Building Existing Performance Management Efforts . . .  <ul><li>Quality improvement </li></ul><ul><li>Regulatory improveme...
Leadership Business  Results Strategic Planning Customer   Focus HR  Focus Process   Management Information and Analysis R...
Highly Successful Balanced Scorecard Initiatives . . . STRATEGY Formulate Leadership from the Top Communicate Strategy is ...
Formulate . . . <ul><li>1. Leadership From the Top </li></ul><ul><li>Create the climate for change </li></ul><ul><li>Creat...
Communicate . . . <ul><li>2. Make Strategy Everyone’s Job </li></ul><ul><li>Comprehensive communication to create awarenes...
Execute . . . <ul><li>3. Unlock and Focus Hidden Assets </li></ul><ul><li>Create the climate for change </li></ul><ul><li>...
Navigate . . . <ul><li>4. Make Strategy a Continuous Process </li></ul><ul><li>Strategic feedback that encourages learning...
Use of Performance Measures . . . <ul><li>Compare </li></ul><ul><li>Learn </li></ul><ul><li>Motivate </li></ul><ul><li>Rew...
Chase’s Law . . . Wherever the product of a public organization has not been monitored in a way that ties performance to r...
In other words . . . What gets measured gets done or Inspect what you expect and it will happen
Ask Ourselves These Six Questions . . . 1.  Did you do what you planned? 2.  What happened? 3.  Why do you think that happ...
Our Challenge . . . To implement our wonderful plans To measure our plans and the ability to achieve our purpose and missi...
Thank You
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Balanced scorecard ( apresentação )

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  • Since that time, there has been a flurry of activity and learning as we discover what the Balanced Scorecard is, and what it means for what we do in state government. The Balanced Scorecard is a performance management system that: Aligns and focuses the efforts and resources of the organization Builds on existing performance management practices that we are already using To create long-term value. The scorecard is not just a different way of displaying performance measures -- it’s all about using them for decision making. The Balanced Scorecard was originally developed for the private sector by Bob Kaplan and David Norton at Harvard University. Bob Kaplan, and another Harvard professor, Dutch Leonard, led study sessions on the Balanced Scorecard for Executive Cabinet directors this past July. They are sharing their expertise with us as we implement the Balanced Scorecard, and, in return, we are their next Harvard Business School case study.
  • Since that time, there has been a flurry of activity and learning as we discover what the Balanced Scorecard is, and what it means for what we do in state government. The Balanced Scorecard is a performance management system that: Aligns and focuses the efforts and resources of the organization Builds on existing performance management practices that we are already using To create long-term value. The scorecard is not just a different way of displaying performance measures -- it’s all about using them for decision making. The Balanced Scorecard was originally developed for the private sector by Bob Kaplan and David Norton at Harvard University. Bob Kaplan, and another Harvard professor, Dutch Leonard, led study sessions on the Balanced Scorecard for Executive Cabinet directors this past July. They are sharing their expertise with us as we implement the Balanced Scorecard, and, in return, we are their next Harvard Business School case study.
  • Many of you are familiar with the Balanced Scorecard model developed by Norton and Kaplan, and know that it was originally created for private sector organizations. They were concerned that US businesses were unduly focused on short-term financial results, to the detriment of long-range competitive capabilities. And those of you who have seen the Balanced Scorecard model in books or journal articles know that it is made up of four perspectives: Learning Results Process Results Customer Results Financial Results While this four-part model has been used by public-sector organizations (most notably the City of Charlotte, North Carolina), Norton and Leonard have proposed a five-perspective model for use in state government composed of: Learning Results Process Results Financial and Social Cost Results Value and Benefit Results Customer and Constituent Results Results in all these perspectives lead to attainment of the mission and vision.
  • This slide shows, at a macro level, how the Balanced Scorecard is created and used. By answering the questions noted for each perspective, an organization can identify the goals, measures, targets, and initiatives of strategic importance that are necessary to ensure attainment of the mission and vision. Ideally the scorecard is composed of a combination of leading indicators that can show variation in the short-term (less than one to two years), as well as longer-term indicators that typically relate to an agency’s public purpose. The next series of slides will review the five perspectives and show how they relate to strategic planning elements and performance measures that agencies are already using.
  • What are the benefits of using the Balanced Scorecard? It makes the strategic plan “real” by pointing our agency efforts toward attaining the high-level mission and vision of the agency. It posits, and constantly tests, cause-and-effect relationships that link activities to high-level results. The Balanced Scorecard is a communication tool, for both internal audiences (to align and focus employee activities) and the outside world (to tell the agency’s story). By tracking a variety of measurement types, we can reduce the risk of unintended side-effects that can result from narrowly pursuing a single target. (You may recall news accounts of the federal Internal Revenue Service’s relentless pursuit of collections, with no thought given to customer service.) Finally, the Balanced Scorecard provides a way for agencies to enhance their ability to using performance measures systematically for decision making -- the area most in need of improvement, according to the most recent round of agency self-assessments.
  • You may be wondering if the Balanced Scorecard is an entirely new management initiative that replaces or overlays the performance management practices we already have in place. The answer is, “No”. The Balanced Scorecard builds on what we are already doing in such areas as quality improvement, strategic planning, and performance measurement, and focuses them to achieve strategic results. For those of you who appreciate analogies, think of all the management practices on this slide as components of a house, and located on a single job site. The Balanced Scorecard helps us unite these components for a result they cannot achieve as separate parts: safe and comfortable housing. In addition, the Scorecard as an organizational learning tool will provide information that will inform our use of all these approaches.
  • Our state’s quality initiative is based on the Malcolm Baldrige National Quality Award model, so you may be wondering about the relationship between the Balanced Scorecard and quality management. This slide puts the two models side by side to show the relationships and strong compatibilities. Leadership drives the organization. Strategic planning sets the goals, measures, targets, and links to activities and initiatives. The Business Results category of the Baldrige corresponds to both the Value and Benefit and Financial and Social Cost perspectives of the Scorecard. Measures from the Customer Focus section of the Baldrige correspond to the Customers and Constituents perspectives of the Scorecard. Measures from the Process Management section of the Baldrige correspond to the Internal Business Process perspective of the Scorecard. Finally, measures from the the Information and Analysis and Human Resource Focus sections of the Baldrige correspond to the Learning and Growth perspective of the Scorecard. While the roles played by the Baldrige criteria and the Balanced Scorecard differ, you can see that they have drawn similar conclusions about what factors contribute to a well functioning organization.
  • Transcript of "Balanced scorecard ( apresentação )"

    1. 1. Balanced Scorecard René Ewing Governor’s Special Assistant for Management and Quality Improvement October 1999
    2. 2. The Governor’s Vision . . . ake Washington a great state to live, work and raise a family M
    3. 3. Make state government as innovative, efficient, and customer-friendly as the best private enterprises in our state. Restoring Trust in State Government
    4. 4. Fundamental Objective . . . o improve the performance of state government by increasing the value received by citizens as a result of our work T
    5. 5. Primary Strategy . . . o change the culture of state government from a focus on process to a focus on results T
    6. 6. Quality Initiatives <ul><li>Sub Cabinet for Management and Quality </li></ul><ul><li>Quarterly Reporting System </li></ul><ul><li>Governor’s Quarterly Quality Awards </li></ul><ul><li>Performance Agreements </li></ul><ul><li>Self Assessment </li></ul>
    7. 7. Next Steps . . . <ul><li>Create Customer focused organizations </li></ul><ul><li>Establish performance management systems </li></ul>
    8. 8. Customer Focus . . . <ul><li>Citizen Survey of service expectations </li></ul><ul><li>Establishment of customer service standards </li></ul>
    9. 9. Basic Tool for Performance Management . . . A “balanced scorecard” of performance measures to link strategy and action
    10. 10. What is the Balanced Scorecard? <ul><li>A performance management system </li></ul><ul><li>Aligns and focuses organizational efforts and resources </li></ul><ul><li>Builds on existing performance management elements </li></ul><ul><li>Creates long-term value </li></ul><ul><li>Promotes and explains </li></ul><ul><li>Not merely a list of performance measures </li></ul>
    11. 11. Public Sector Balanced Scorecard . . . Mission Internal Processes Learning: Skills, Knowledge, Data, People Value and Benefit Customers and Constituents Financial and Social Cost
    12. 12. Translating Vision and Strategy: Five Perspectives . . . LEARNING and GROWTH To achieve our vision, how will we sustain our ability to change and improve? CUSTOMER and CONSTITUENTS To achieve our vision how should we appear to our customers? INTERNAL BUSINESS PROCESS To satisfy customers and public, what business processes must we excel at? FINANCIAL and SOCIAL COST While achieving our vision, how shall we minimize cost to the state and society? VALUE and BENEFIT To achieve our vision, what public benefits must we create? Vision and Strategy
    13. 13. Benefits . . . <ul><li>Deploys the strategic plan </li></ul><ul><li>Focuses and aligns agency efforts </li></ul><ul><li>Tests cause-and-effect relationships </li></ul><ul><li>Tells the agency’s story </li></ul><ul><li>Family of measurement types reduces risk </li></ul><ul><li>Links performance measures to decision making </li></ul>
    14. 14. Building Existing Performance Management Efforts . . . <ul><li>Quality improvement </li></ul><ul><li>Regulatory improvement </li></ul><ul><li>Strategic planning </li></ul><ul><li>Performance budgeting </li></ul><ul><li>Performance agreements </li></ul>
    15. 15. Leadership Business Results Strategic Planning Customer Focus HR Focus Process Management Information and Analysis Relationship of Baldrige and Balanced Scorecard Malcolm Baldrige Systems Model Balanced Scorecard
    16. 16. Highly Successful Balanced Scorecard Initiatives . . . STRATEGY Formulate Leadership from the Top Communicate Strategy is Everyone’s Job Execute Unlock Hidden Assets Navigate Strategy: A Continuous Process
    17. 17. Formulate . . . <ul><li>1. Leadership From the Top </li></ul><ul><li>Create the climate for change </li></ul><ul><li>Create a common focus for change activities </li></ul><ul><li>Rationalize and align the organization </li></ul>STRATEGY Formulate Leadership from the Top Communicate Execute Navigate
    18. 18. Communicate . . . <ul><li>2. Make Strategy Everyone’s Job </li></ul><ul><li>Comprehensive communication to create awareness </li></ul><ul><li>Align goals and incentives </li></ul><ul><li>Integrate budgeting with strategic planning </li></ul><ul><li>Align resources and initiatives </li></ul>STRATEGY Formulate Communicate Strategy is Everyone’s Job Execute Navigate
    19. 19. Execute . . . <ul><li>3. Unlock and Focus Hidden Assets </li></ul><ul><li>Create the climate for change </li></ul><ul><li>Create a common focus for change activities </li></ul><ul><li>Rationalize and align the organization </li></ul>STRATEGY Formulate Communicate Execute Unlock Hidden Assets Navigate
    20. 20. Navigate . . . <ul><li>4. Make Strategy a Continuous Process </li></ul><ul><li>Strategic feedback that encourages learning </li></ul><ul><li>Executive teams manage strategic themes </li></ul><ul><li>Testing hypotheses, adapting, and learning </li></ul>STRATEGY Formulate Communicate Execute Navigate Strategy: A Continuous Process
    21. 21. Use of Performance Measures . . . <ul><li>Compare </li></ul><ul><li>Learn </li></ul><ul><li>Motivate </li></ul><ul><li>Reward and celebrate </li></ul><ul><li>Promote and explain </li></ul>
    22. 22. Chase’s Law . . . Wherever the product of a public organization has not been monitored in a way that ties performance to reward, the introduction of an effective monitoring system will yield a fifty percent improvement in the product in the short run.
    23. 23. In other words . . . What gets measured gets done or Inspect what you expect and it will happen
    24. 24. Ask Ourselves These Six Questions . . . 1. Did you do what you planned? 2. What happened? 3. Why do you think that happened? 4. What might you do differently? 5. What do you think would happen? 6. Which is the best choice?
    25. 25. Our Challenge . . . To implement our wonderful plans To measure our plans and the ability to achieve our purpose and mission To learn from our mistakes and successes To make a difference in the lives of people in our state
    26. 26. Thank You
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