Employing the Balanced Scorecard in Academic LibrariesPresentation Transcript
Employing the Balanced Scorecard in Academic Libraries Presenter: John Potter, Librarian ITT Technical Institute/Grand Rapids, MI
What is the Balanced Scorecard?
A strategic planning and management system used extensively in business, government, and non-profit organizations
Created by Harvard Professors Robert Kaplan and David Norton as a performance measurement framework in 1992
Provides a comprehensive view of an organization’s performance (viewed from different viewpoints or perspectives)
Aligns organizational activities to a given mission/ vision; provides organizations with metrics against which to measure their success
What is the Balanced Scorecard?
Implementing the Balanced Scorecard is dependent upon focus and alignment of objectives
Strategic improvements flow from the bottom up
Strategic Planning begins by looking at higher perspectives, helps inform lower perspectives
The BSC forces organizations to rethink their strategic priorities and describe their strategies
Strategic Perspectives include
Financial: Profit, Cash Flow, Cost control, Return on Capital
Customer: Time, Quality, Performance, Price
Internal Process: Operations, Innovation processes, Social & Regulatory
Learning & Growth: Human, Information, & Organizational Capital
Underlying Principle: You cannot manage what you cannot measure
What is a Strategy Map?
A visual representation of an organization’s strategy
Thus, helps Management more easily formulate organizational strategy
Shows cause-and-effect relationships among components of an organization’s strategy
Evolved from the four-perspective Balanced Scorecard Model
At the 2008 MLA Conference Poster Session (strategy map in background)
Why a Strategy Map?
Helps management visualize strategy
A uniform and consistent way to describe strategy
Provides the missing link between strategy formulation and execution
Uses linked objectives to describe and visualize strategy (provide a macro view)
Underlying Principle : You cannot measure what you cannot
Financial Perspective Provide services w/high ratio of value-cost *ILL transaction unit cost Sufficient investment to remain top-ranked library *ARL index rating Increase financial base through donations, external support, & institutional support *Library expenses as a proportion of university expenses Customer Perspective Educate users in Information Literacy *Student Satisfaction with Info Literacy Provide Excellent service to library users * Overall student faculty rating with Library Service Develop high quality collection that supports institution’s mission *CirculationRate Internal Process Perspective Identify and Improve with processes greatest impact *Processing time for routine acquisitions Operate in the most innovative, effective way possible *regular usability testing of library websites Provide facilities that promote staff productivity, encourage library use *Response to equipment service requests Learning & Growth Foster learning among library employees to encourage innovation * impact of staff dvlpt Recruit, develop, and retain productive, highly qualified staff *retention rate *job satisfaction Develop an innovative & effective infrastructure to support library services & various initiatives **Funding generated by R&D
Causally linked with performance measures relevant to patrons, internal process, staff development processes
For example, collection development costs can be linked with relevant measures for
Faculty satisfaction, usage
Turnaround time for faculty requests
Staff cataloging skills
Likewise, reference staff costs can be linked to measures related to:
Reference desk ‘productivity’
Reference staff training
What does this mean?
By focusing upon strategically RELEVANT performance criteria, library management can
Clarify their strategic vision
Better communicate with staff
Plan and align their strategic initiatives
Enhance strategic feedback and learning
Moreover, management’s heightened focus upon specific performance areas can motivate staff to achieve innovative improvement in these areas
Are any academic libraries using the Balanced Scorecard?
Yes, the best known is The University of Virginia Library System