Balanced Scorecard Strategies And Hr Metrics Workshop Sept 13 Chicago, Il

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A brief overview of the Balanced Scorecard and Dashboard Management System for Human Resources

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  • Introduction of Rick and Chuck, talk briefly on the title of the workshop, and then turn it over to Rick, to do the Agenda[next slide]
  • RICKTalk to the workshop in May, what to expect:Specific application to HR Shared ServicesInteractive workshop, not just lecture. Attendees will be able to walk out with specific tools developed in draft, that they can then refine.So, Katherine, that is a brief overview of the Balanced Scorecard system for management, with some examples as to how it is being used today.KATHERINE ASKS A QUESTION HERE: What are the issues currently with HR and the Balanced Scorecard today?ANSWER: There is one important concern that has surfaced where Balanced Scorecards were deployed to support HR, specifically with respect to instances involving HR and applications of Balanced Scorecards that were used to conduct Annual performance appraisals. This is an incorrect application of the tool, and unfortunately, where this has happened, we see elevated sensitivities within the workforce regarding any type of scorecard after that, so there is no receptivity to doing it right at that point. We need to use the scorecard and dashboards to help us manage and optimized our business performance, rather than assessing individual performance. Thanks, Katherine, for the opportunity to talk with you and your audience today about the Balanced Scorecard. I would like to turn the reigns over to you at this point.[DONE]
  • RICKKey points:Financial metrics are important!! However, Financial management is not enoughFinancial measure performance is often the result of good process performance, coupled with a competent and capable workforce, meeting or exceeding customer expectations on a daily, weekly and monthly basis. The Balanced Scorecard provides a sound Business Management System, or also called a System for Management (SFM) within some circles…So, let’s look at these 4 ‘legs’ in great depth, and how they interact… [Next slide]
  • CHUCKKey points:The 4 legs interact, and so are co-dependant on each other for optimum overall organizational performance, to support this business management systems approach.Each Leg has distinct characteristics, which we will discuss in brief here, and go into more detail at the workshop.To see how this works, We follow a roadmap to developing your scorecard, so that all of the actions taken align with the business strategy, direction, and focus. Let’s take a look at this roadmap, and get a better understanding of what it take to deploy your scorecards successfully…. [Next Slide]
  • CHUCKKey Steps:Establish your Strategy Map. - Aligns your scorecard with key organizational strategic initiatives.2. Design the individual ‘Legs’ of your Balanced Scorecard. - Focus on each of the 4 aspects, and what you need to have in place to be effective. Design each ‘Leg’ with attention to the strategic, operational and tactical aspects needed, to maximize integration and collaboration throughout your organization.3. Develop Department ‘Dashboards’ for Real-Time Performance management and adjustment. - Dashboards are ‘Real-Time Indicators’ of what is going on, providing performance intelligence with which managers can make decisions.Use the Balanced Scorecard for continuous improvement of the business entity. - Create a competitive advantage through continually assessing and improving performance of each ‘Leg’ of the Balanced ScorecardSo, let’s take a look at the first step, that of creating your Strategy Map…[Next Slide]
  • RICKKey points:Critical first step to a Business Management System – need to get the direction and focus right! It is also required so that everyone can see what is required from a strategic perspective, so that they can develop their specific goals and actions accordingly.Go through the steps briefly.Cover the value added.Let’s look at an example, to get a better understanding of this connection…. [Next Slide]
  • RICKKey Points: DON’T READ VERBATIM!!!!This is a key table, that provides specific focus to each strategy, so that the organization can develop plans and metrics aligned to each ‘leg’ of the balanced scorecard.With this example, we see the top 3 strategies of the organization, and the focus to support them from each ‘Leg’ perspective. For Example, look at the business process focus to support growth, and then shareholder value…..notice the key items and what are the key drivers to support the strategies.Note also that we don’t force alignment, if it is not appropriate. For example, Financial Performance will directly impact Growth and Market Share, as well as Shareholder value, but will probably not influence how well regarded the company is as a Subject Matter Expert.KATHERINE ASKS A QUESTION AT THIS POINT: So, you have to understand the strategy of a business in order to develop the ‘balanced scorecard you would use to manage it?ANSWER: Yes, Katherine. Too often, groups launch into measuring their performance, focusing on what they track and manage, but don’t tie back to the overall strategic direction. This is vital, especially in today’s economy, where change is as fast as ever, and you have to have a fast and flexible way to see what changes are needed to stay ahead and retain your competitive advantage.4. So, let’s take a look at how this might work for a Shared Services entity. An important note in this regard is to remember that Shared Services is an evolving industry, with players at the initial, advanced and high performing levels. We will look at this in the next slide, to get a better understanding of how we can apply the balanced scorecard approach within this developing business model….. [Next Slide]
  • RICKKey point:This model helps us first determine where we are as a Shared Services entity, in terms of progressing levels of capability moving to higher levels of performance. This is very important, because where you are on this ‘ramp’ will influence the key strategic goals and direction for the organization, which is fundamental to establishing a sound strategy map.Note the different ‘stage’ descriptors: in the initial stages, Shared Services entities focus on each service provided and the quality aspects of how well it was done, in a standard way, with minimal variation and down time. In the advanced stages, they move to a more ‘systems’ approach, coupling similar/like services from a functional, geographic or client perspective, and also moving to a more complex system to enable greater flexibility for all involved. In the high performing stages, we see a more ‘holistic’ approach, implemented within a globally deployed, strategically focused capability.Once we know where you are in your deployment, we can then look at how to focus our resources and energy, based on the 4 ‘legs’ of our balanced scorecard, as depicted on the next slide…. [Next Slide]
  • CHUCKKey points:Definition: The Balanced Scorecard is the cornerstone of the system for management, enabling real-time performance measurement, and providing up-to-date intelligence about the organization and what to focus on. This provides the decision makers critical information necessary to make adjustments and retain competitive advantage.The methodology to develop your dashboard starts with determining key focus areas and measures from the strategy map and deciding what key actions we need to take and how to measure them. In this respect, we will develop our measures based on 3 types of actions: Strategic, Operational and Tactical. Let’s take a closer look at these three, and get a better understanding of what they mean….[Next Slide]
  • CHUCKNote: Talk to the connections between strategic, operational and tactical, as they relate to the specific metrics selected. Use the Pen to circle key areas as you discuss differences and interconnections.Also discuss the need to build in anticipated changes per health care changes recently, and to have a way to detect future changes early, so as to enable management to detect, understand and adjust in a timely way to remain competitive.Now, let’s look at an example of a Balanced Scorecard….[Next Slide]
  • CHUCKKey Points:This is an example of a balanced scorecard. Talk to the format, use the pen. First the 4 ‘legs, then the indicators, (also known as key performance indicators [KPI], critical performance indicators [CPI], …), measures, ….Touch on the indicators and measures, for each leg, but briefly… only have 1-2 minutes for this slide!KATHERINE ASKS A QUESTION AT THIS POINT: How would you see this working in an HR Shared Services Environment?ANSWER: Katherine, I could see dozens of applications within HR Shared Services, from assessing customer satisfaction with the services provided to process measurement on how fast, good, and cost effective different services were provided, to determining possible gaps in capability within the organization and developing critical training courses to close them. And, given Ricks model of ever increasing capability, we would see different goals and measures as the Shared Services groups evolved to higher levels as well, maybe adding measures to help optimize Excellence Center performance, highlight key skill needs, and enable breakthrough improvements to redesign and drastically reduce time and error rates.3. With the dashboard in place, our next step is to develop the Dashboards we would put in place, to enable visibility and management information in real-time. Let’s talk about what is a Dashboard, and how it might look with some examples…[Next Slide]
  • CHUCKKey Points:Dashboards provide the critical real-time visibility to the measures of the balanced scorecard at all levels. The steps surrounding the creation of a dashboard involve:First assessing the measures desired from the dashboard, Determine what you would want to see on an on-going basis, and thenDesign the dashboard, considering Key content, types of charts and graphs based on visual clarity, with some regard to format and keeping it simple. Finally, you put the dashboard into action, and adjust it/improve it through time.Discuss the value again, especially considering the real-time capability to see what it going on, and allows for real-time adjustment (hopefully avoiding rather than responding to issues, before they happen…)Let’s look at some examples, to illustrate dashboard design and integration…..[Next Slide]
  • CHUCKKey point: Here, we see, looking at the Director’s Dashboard, the layout, with 6-8 key measures being tracked.We also see the Linking between the executive, management and workgroup dashboards. This is important, to ensure vertical alignment with the key measures involved from the scorecard.Now, let’s look at another example, that shows a different way to use charts, color and ‘meters’…..[Next Slide]
  • CHUCKKey point:On this dashboard example, we see different types of charts, graphs and a ‘meter’ approach. This is particularly popular, and readily indicates if there is a problem with a key metric. Note also lots of color, and a sense of ‘balance’ on the page. Also, there are only 4 key areas, you want to have maybe no more than 10 or the dashboard gets cluttered.It is important to try to have key indicator flags to show immediately when something is not right (or better, when something is starting to waver, but is still ok… just needs some attention, adjustment, etc…)The next example is a little more complex, yet we can see how the whole operation works from the one page…..[Next Slide]
  • CHUCKKey Points:This is an example of a fairly complex dashboard, with all components. It seems complicated, yet when we look at it, we can see everything, and can assess the ‘health’ of how the business is doing based on the charts. It could use some key indicators, to help the viewer see where there might be some trouble spots, if possible….Use the pen, point out/circle key aspects of this dashboard, related to the 4 ‘legs’. For example, Revenue is financial, Flight data is operational process related, as is Top 10 Flights tracking, while Customers, and Flight disruptions are customer related.So, let’s wrap up, Rick. What can they expect from the Workshop?Hand off to Rick..[Next Slide]
  • Balanced Scorecard Strategies And Hr Metrics Workshop Sept 13 Chicago, Il

    1. 1. Balanced Scorecard Strategies and HR Metrics<br />Presented by<br />Mr. Frederick S. ‘Rick Buchman<br />Practitioner and Expert on Balanced Scorecard and Dashboard Applications, and<br />Co-Author, Balanced Scorecard Strategy for Dummies, Wiley & Sons, Inc. Sept 2007<br />September 13, 2010<br />Chicago, IL<br />9/13/2010<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />1<br />
    2. 2. Discussion of the Workshop<br />9/13/2010<br />For this Workshop<br />Objectives of the course:<br />Understand the fundamentals of the Balanced Scorecard and Dashboard approach within an HR framework, (specific to HR Metrics), and be able to:<br />Develop a framework for your Strategy Map<br />Devise the elements for each ‘Leg’ of your Balanced Scorecard<br />Design your Dashboard Concept<br />Conduct of the course:<br />Some introductory lecture, mostly interactive, individual work<br />Majority split into research time, collaborative, evaluative and presentation materials<br />Total time – about 140 min.<br />2<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    3. 3. Overview and Definitions<br />What is meant by the term “Balanced Scorecard?”<br /><ul><li>Traditional “Scorecards” are mostly Financial Based
    4. 4. Revenue, Margin, Profit, Cash Flow, Budget Compliance, …</li></ul>While these are very important to a company, they do not tell the whole story… and decisions based on these metrics may not work… (like wagging a dog…)<br /><ul><li>“Balanced Scorecards” look at the multiple dimensions of an organization, Primarily focusing on:
    5. 5. Customer Satisfaction and Focus
    6. 6. Financial Performance
    7. 7. Business Process Performance
    8. 8. Employee Knowledge, Skills and Competencies</li></ul>9/13/2010<br />3<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    9. 9. The Four ‘Legs’ of a Balanced Scorecard<br />9/13/2010<br />Business Process Performance<br />Employee Knowledge, Skill and Competencies<br />Per Delivery Plan<br />First Time Right<br />Exactly as Ordered<br />Excellent Condition<br />Cost Management<br />Good ‘Handoffs’<br />In-Process Checks & Great Quality<br />First Time Right<br />Customer Focus<br />Product Understanding<br />Process Understanding<br />Business Knowhow<br />Teamwork & Feedback<br />Continuous Improvement<br />On-Time Works Great!<br />Great Price! Durable<br />Customer Satisfaction<br />and Focus<br />Loyalty Selective<br />Confident Responsive<br />Financial Performance<br />Revenue Profitable<br />Margin Cost Management<br />Competitive Advantage<br />Market Share Business Growth Shareholder Value<br />4<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    10. 10. 9/13/2010<br />5<br />Overview and Definitions<br />Write down 4 general items related to each ‘Leg’, related to HR Metrics. Then, code each item as S, O, or T for Strategic, Operational or Tactical.<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    11. 11. 9/13/2010<br />6<br />Overview and Definitions<br />Small Group Discussion<br /><ul><li>Small group discussion:
    12. 12. Get into groups of 5-6, sorted by Strategic, Operational or Tactical.
    13. 13. Focusing on the specific HR Metrics you are focusing on, discuss each ‘Leg’ and the items you have written down. Share your thoughts with the other members of your discussion group. [15 minutes]
    14. 14. Ask questions for clarification, understanding. No Judging.
    15. 15. Feel free to change, add, correct your notes, based on your discussion.
    16. 16. Be prepared to talk briefly about what your group talked about, and any key insights discovered during the discussion. [General group review and summary – 5 minutes]
    17. 17. Update your notes for the next step.</li></ul>IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    18. 18. The 4 Steps to Implementing Balanced Scorecards<br />9/13/2010<br />1. Establish your<br />Strategy Map<br />Feed ‘Back’ Loops<br />[Quality, Issues, Timing, Performance, …]<br />2. Design the ‘Legs’ of<br />Your Balanced Scorecard<br />Feed ‘Forward’ Loops<br />[Information, Orders,..]<br />3. Develop Executive &<br /> Department ‘Dashboards’<br />3. Develop Executive &<br /> Department ‘Dashboards’<br />3. Develop Executive &<br /> Department ‘Dashboards’<br />3. Develop Executive &<br /> Department ‘Dashboards’<br />4. Continuously <br />Improve<br />Feed ‘Back’ Loops<br />[Quality, Issues, Timing, <br />Performance, …]<br />Feed ‘Back’ Loops<br />[Quality, Issues, Timing, <br />Performance, …]<br />7<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    19. 19. 9/13/2010<br />8<br />Step 1 – <br />Mapping your Strategy<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    20. 20. Strategy Mapping for a ‘Balanced Approach’<br /><ul><li>What is “Strategy Mapping?”
    21. 21. Maps the key organizational strategies to the ‘Legs’ of your scorecard
    22. 22. How is it done?</li></ul>Identify the top 3-4 organizational strategies<br />Set up a Matrix to align to the 4 ‘Legs’ (Customer, Financial, Process, Competencies) <br />Identify Key Alignments, Actions, and Metrics<br />Link to and Design Department Dashboards for Real-Time Management and Adjustment<br /><ul><li>How does it add value?
    23. 23. Ensures Actions, Focus are aligned to Strategic Direction
    24. 24. Enables Real-Time Response and Adjustment to Changes</li></ul>9/13/2010<br />9<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    25. 25. 9/13/2010<br />10<br />Strategy Mapping for a ‘Balanced Approach’<br /><ul><li>Key Concepts
    26. 26. There is an important difference between an Objective or Goal, and the Strategy to achieve it.
    27. 27. Objective or Goal: This is the desired ‘End State’ to be achieved by the organization. It can be a financial (Make $XX Million Net Profit), Market (Own XX% Market Share), or any other specific, measurable target.
    28. 28. Strategy: This is the method that the organization will employ, to achieve its objective or goal. </li></ul>Example: Objective: Achieve 15% increase in Market Share in 3 yrs.<br />Strategy: Add new major clients, through: 1) Acquiring 3-5 <br /> smaller competitors, 2) Converting 20 potential <br /> clients from competitor companies<br /><ul><li>KISS – “Keep It Simple Strategically ” – Strategy should be clear and explainable to anyone within 60 seconds or less.</li></ul>SM<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    29. 29. HR – Current Processes and Practices alignment to Balanced Scorecard ‘Legs’ - Survey of 100 Medium to Large Companies<br />9/13/2010<br />11<br />Current HR Processes and Practices are NOT well aligned in a ‘balanced’ way to meet<br />the needs of the business, nor do we see a strong relationship toward customer<br />Satisfaction, organizational goal achievement or overarching / long term strategies.<br />Source: BBI Study, 2010<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    30. 30. An Example of a Strategy Map<br />9/13/2010<br />A Company seeks to increase Market Share through Growth, providing added<br />Value to customers through knowhow and performance, and increasing shareholder<br />Value through improved Profitability and increased Margin performance <br />12<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    31. 31. HR – Metrics <br /> HR – Key Metrics Considerations:<br />HR Capability Requirements of the Organization<br />Technical skills, knowledge and competencies to design, produce, deliver, and support the products and services <br />Other skills and capabilities necessary – leadership, project management, functional competencies (i.e. financial competency, systems thinking,…)<br />HR Practice skills, knowledge and competencies – Career planning/ employee development, coaching/facilitating, problem solving, conflict management, Communication skills, …<br />HR Processes & Systems<br />Those processes which the HR department/group manages and executes to support the organization – staffing/hiring, resource planning, training and development,, compensation and benefits, performance appraisals, personnel data management, labor relations, succession planning, …<br />9/13/2010<br />13<br />Source: The HR Scorecard – Linking People, Strategy and Performance, by Becker, Huselid and Ulrich, HBS Press, 2001<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    32. 32. 9/13/2010<br />14<br />Current Considerations – Some thoughts about what’s important<br />Elements of a High Performing Organization<br />- Leadership - Motivation / Alignment<br />- Talent - Positive Work Environment<br />Source: Understanding the Balanced Scorecard; An HR Perspective, by James Creeland, Copywrite HR.Com 2002<br />Goal alignment – achieving definable Return on Investment (ROI)<br />To effectively achieve ROI, you must link the training experience and utilization to the impact on the business, and allow for real-time adjustment…<br />Source: The Human Resources Scorecard – Measuring the Return on Investment, by Phillips, Stone and Phillips, published by Butterworth-Heinemann, 2001<br />5 ‘Core Principles to Effective “Talent Management”<br /><ul><li> People Equity Framework
    33. 33. Strategic Focus on Talent Management
    34. 34. Align your Talent Management Practice to Trends & World Environment
    35. 35. Measure Talent Manager per Business Performance
    36. 36. Talent Growth</li></ul>Source: Reinventing Talent Management: How to Maximize Performance in the New Marketplace, by William A. Schiemann, published 2009 by Wiley & Sons, Inc.<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    37. 37. 9/13/2010<br />15<br />Strategy Mapping<br />Small Group Discussion<br /><ul><li>Small group discussion:
    38. 38. Get into groups of 5-6, sorted by Strategic, Operational or Tactical.
    39. 39. Discuss potential issues for Managing Human Resources and how best to measure success, relate to Strategy Mapping and the 4 ‘legs’ of the Balanced Scorecard. Discuss how they might be addressed. Share your thoughts with the other members of your discussion group. [15 minutes]
    40. 40. Ask questions for clarification, understanding. No Judging.
    41. 41. Feel free to change, add, correct your notes, based on your discussion.
    42. 42. Be prepared to talk briefly about what your group talked about, and any key insights discovered during the discussion. [General group review and summary – 5 minutes]
    43. 43. Update your notes for the next individual exercise.</li></ul>IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    44. 44. 9/13/2010<br />16<br />Strategy Mapping –– Select Level:<br />Write down your Objectives/Goals, <br />and specific Strategies:<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    45. 45. 9/13/2010<br />17<br />Step 2 – <br />Designing your Balanced Scorecard – <br />Defining and Aligning the 4 ‘Legs’<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    46. 46. The Balanced Scorecard<br />9/13/2010<br />18<br /><ul><li>What is a “Balanced Scorecard?”
    47. 47. Business Multi-Discipline Tracking and Management Tool to help achieve and sustain desired performance levels , based on 4 ‘Legs’:</li></ul>Customer Focus Financial Performance<br />Business Process Performance Employee Knowledge, Skills & Competence<br /><ul><li>How is it created?</li></ul>Determine the key focus areas and measures for each ‘Leg’, tied back to the strategic direction, from the Strategy Map<br />Decide the Strategic, Operational and Tactical Actions to be tracked and measured for your group<br />Design your Balanced Scorecard, get concurrence and deploy<br /><ul><li>How does it add value?
    48. 48. Ensures Actions, Focus are linked to key goals, and measured
    49. 49. Enables Real-Time Response and Adjustment to Changes</li></ul>IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    50. 50. 9/13/2010<br />19<br />Tying Strategic, Operational and Tactical to the 4 ‘Legs’<br />VISION / STRATEGIES<br />STRATEGIC LEVEL<br /><ul><li> TIMEFRAME: 3 TO 5 YEARS
    51. 51. ASSESSMENT
    52. 52. SELECTION
    53. 53. DEPLOYMENT
    54. 54. REVIEW: AT LEAST MONTHLY</li></ul>OPERATIONAL LEVEL<br /><ul><li> TIMEFRAME: 1 YEAR
    55. 55. ASSESSMENT
    56. 56. SELECTION
    57. 57. DEPLOYMENT
    58. 58. REVIEW: AT LEAST WEEKLY</li></ul>KNOWLEDGE & GROWTH<br />FINANCIAL<br />CUSTOMER<br />SYSTEMS & PROCESSES<br />TACTICAL LEVEL<br /><ul><li> TIMEFRAME: REAL TIME
    59. 59. ASSESSMENT
    60. 60. SELECTION
    61. 61. DEPLOYMENT
    62. 62. REVIEW: REAL TIME, DAILY, WEEKLY</li></ul>IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    63. 63. Strategic, Operational and Tactical Focus – An Example<br />9/13/2010<br />20<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    64. 64. Another Example of a Balanced Scorecard<br />9/13/2010<br />21<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    65. 65. 9/13/2010<br />22<br />Developing your Balanced Scorecard<br />Small Group Discussion<br /><ul><li>Small group discussion:
    66. 66. Get into groups of 5-6, sorted by Strategic, Operational or Tactical.
    67. 67. Discuss different aspects for HR Shared Services and Outsourcing, relate to the 4 ‘legs’ of the Balanced Scorecard. Share your thoughts with the other members of your discussion group. [15 minutes]
    68. 68. Ask questions for clarification, understanding. No Judging.
    69. 69. Feel free to change, add, correct your notes, based on your discussion.
    70. 70. Be prepared to talk briefly about what your group talked about, and any key insights discovered during the discussion. [General group review and summary – 5 minutes]
    71. 71. Update your notes for the next individual exercise.</li></ul>IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    72. 72. 9/13/2010<br />23<br />Developing your Scorecard – Select Level:<br />Enter your Key Performance Metrics (KPM) related to <br />each ‘Leg’ of your Balanced Scorecard from Step 2: <br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    73. 73. 9/13/2010<br />24<br />Defining the 4 ‘Legs’ of the Balanced Scorecard<br />Enter your Strategies down the left side. Then, in each box, identify a specific initiative that will support achieving each strategy related to the specific ‘Leg’ of your scorecard.<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    74. 74. 9/13/2010<br />IQPC HR SSO Summit, May 10, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Frederick S. ‘Rick Buchman<br />25<br />A Potential Risk with HR Metrics<br />How good is your data?<br />How can you know?<br />How do you ensure your information is reliable?<br /><ul><li>Utilizing Measurement Systems Analysis (MSA)
    75. 75. Resource multiple sources – validation
    76. 76. Check often, always ask where the information came from, and what is the basis for any conclusions or decisions made
    77. 77. Use the ‘Smell Test’ – if it “smells or feels funny”, don’t just accept or act on it, check it out to be sure, especially if it is something different or particularly ‘interesting’.</li></ul>The criticality of the decisions that depend on this information demand reliability, which requires rigorous discipline in ensuring the highest levels of quality and accuracy. <br />
    78. 78. 9/13/2010<br />26<br />Step 3 – <br />Develop your Dashboards– <br />Executive/Organization <br /> Department / Division<br /> Section / Workgroup<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    79. 79. The Dashboard<br />9/13/2010<br />27<br /><ul><li>What is a “Dashboard?”
    80. 80. Visual Management Tool that provides Real-Time critical information on key business measures, to enable timely decisions, based on the 4 ‘legs of the Balanced Scorecard:</li></ul>Customer Focus Financial Performance<br />Business Process Performance Employee Knowledge, Skills & Competence<br /><ul><li>How is it created?</li></ul>Assess your business operation/process, and determine what you would need to see on an on-going basis, in order to assess the ‘health’ of your operation/department, as related to each of the 4 ‘legs’<br />Design your Dashboard to provide Real-Time, up to date intelligence on these measurements<br />Install the Dashboard, test it, and improve on it, and make it part of your daily management system.<br /><ul><li>How does it add value?
    81. 81. Ensures Actions, Focus are continually aligned to key performance goals
    82. 82. Enables Real-Time Response and Adjustment to Changes</li></ul>IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    83. 83. 9/13/2010<br />28<br />Developing your Dashboard<br /><ul><li>Consider various ways to portray, arrange and display your visual and graphical indicators.
    84. 84. Important points:
    85. 85. Must clearly indicate when something requires attention
    86. 86. Should be simple
    87. 87. Easy to understand
    88. 88. Flow naturally
    89. 89. Use Color, different shades…
    90. 90. Updated in real time
    91. 91. Flexible to requirements changes</li></ul>IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    92. 92. Example of Exec, Mgmt and Workgroup Dashboards<br />9/13/2010<br />A Real State Department of Human Services Finance set-up <br />29<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    93. 93. Dashboard Example – Ad Group<br />9/13/2010<br />LEGEND:<br /> Home page<br /> Dept Web Pages<br />Key Points:<br /><ul><li>Lots of Color, Graphics, Charts, clearly labeled, and well understood by all.
    94. 94. Set up so that an executive or manager can look it over quickly, and should be able to spot something out of whack immediately.</li></ul>30<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    95. 95. Example of a Dashboard for an Airline<br />9/13/2010<br />31<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    96. 96. 9/13/2010<br />32<br />Strategy Mapping<br />Small Group Exercise<br /><ul><li>Small group Exercise:
    97. 97. Get into groups of 5-6, sorted by Strategic, Operational or Tactical.
    98. 98. Imagine you are members of an HR Shared Services organization. As a group, on a Flip-Chart, lay out a Dashboard, considering everything we have discussed. Be sure to include aspects related to all 4 ‘Legs’ of the Balanced Scorecard, but specifically to your ‘level’ and how you would measure your organizational performance. [15 minutes]
    99. 99. Be prepared to talk briefly about what your group talked about, and any key insights discovered during the discussion. [General group review and summary – 10 minutes]
    100. 100. Update your notes for the final individual exercise.</li></ul>IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    101. 101. 9/13/2010<br />33<br />Developing your Dashboard – Select Level:<br /><ul><li>List various visual and graphical ways to show current and updated status of your metrics, for each ‘Leg’, based on the metrics you chose for your Scorecard.
    102. 102. Suggestions: </li></ul> - Red, Yellow, Green Indicators - Gauges, Meters<br /> - Bar, Pie, Line, Radar Charts - Combinations<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    103. 103. 9/13/2010<br />34<br />Developing your Dashboard – Select Level:<br /><ul><li>Layout your Dashboard:</li></ul>IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    104. 104. 9/13/2010<br />35<br />Wrap up<br /><ul><li>What we covered today:
    105. 105. Understand the fundamentals of the Balanced Scorecard and Dashboard System for Management
    106. 106. Develop a Framework for Mapping your Strategy
    107. 107. Devise the Elements for each ‘Leg’ of your Balanced Scorecard
    108. 108. Design and layout a Dashboard for your particular level and management requirements
    109. 109. Where you can go to get more information:
    110. 110. Web
    111. 111. Books
    112. 112. Industry Examples
    113. 113. Other Resources
    114. 114. Remember…..
    115. 115. No ‘One’ answer for you, many different ways
    116. 116. Try something, and then adjust, but get it out there soon, and don’t be afraid to make changes and adjustments
    117. 117. Keep it Simple, Clear, Effective. Use the 20 second rule…</li></ul>IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />
    118. 118. 9/13/2010<br />36<br />- Your Presenter…Frederick S. ‘Rick Buchman<br />Mr. Buchman has over 25 years hands-on international strategic, operational and organizational transformation experience, spanning multiple industries from missiles and electronics to medical devices. A certified Black Belt and Master Black Belt in Lean Six Sigma, He has been directing business improvement initiatives involving Strategy Planning, Lean and Six Sigma, Balanced Scorecard and Dashboard deployment, Operations, and Organizational optimization for over 20 years, both internally and as a contract consultant, supporting the automotive, electronics, semiconductor, oil & gas, electromechanical, medical device, commercial and components industries, and working with Engineering, Operations, R&D, Finance, HR and Legal divisions. Rick has also taught extensively at the graduate level for major institutions, including The ‘Eli Broad Graduate School of Management’ at MSU, and at Towson and George Mason Universities, in strategy planning, problem solving, business management, value stream mapping, balanced scorecard and dashboard strategies, coaching and team leadership. His clients have included AT&T, Raytheon Corp., Hughes, Texas Instruments, Ford Motor Company, Allied-Signal, ITT, Husky Oil, Slumberger, Gerdau, Remy, Dura GmbH, GKN, and several US State and Federal Government agencies. A retired 28 year US Army Officer, Mr. Buchman has a B.S. in Mathematics, an MBA in Business, and a PhD (ABD) in Business, and has been featured in International Who’s Who in Business, 2006, and recently presented at the HR Shared Services Summit earlier this year in May in Chicago.<br />Rick recently co-authored the Amazon Productivity Best-seller Balanced Scorecard Strategy for Dummies, with Mr. Charles Hannabarger and Mr. Peter Economy, published by Wiley and Sons, Inc. in September 2007 (English Language), and again in March 2008 (Dutch Language) and September 2008 (German Language). This book was also just recently voted 5th out of the ‘Top 20 Must-Read Books’ by the Channel Insider Community, May 5, 2010, and #2 of Business Productivity books by Amazon, Sept. 6, 2010. Mr. Buchman currently resides in Louisville, KY.<br />IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman<br />

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