2. AGENDA
Part 1
The BSC in a nutshell
Benefits of implementing a BSC
Part 2
Case study: completing our own BSC
3. SESSION GOALS
• Getting to know what a Balanced Scorecard (BSC) is
• The usefulness of a BSC in organizations
• Identifying the key elements and perspectives of a BSC
• BSC: applications for a cultural firm or project
• Quick case study: from theory to practice
4. AGENDA
Part 1
The BSC in a nutshell
Benefits of implementing a BSC
Part 2
Case study: completing our own BSC
5. A GENERIC PROJECT/ORGANIZATION
Who we are?
- ethics
Lifetime values
- principles
- beliefs
Why we are here?
> 10 years - Why are we in this business?
vision - If the market changed, what would we change?
- How does this work fulfill our core values?
What do we do?
5 - 10 years - What do we want to contribute?
mission
- How can we change our world/industry?
When do we do it?
1 - 5 years - What do we want to accomplish?
strategic objectives - When do we want to accomplish it?
How do we get there?
> 1 year - short term goals
operating initiatives - projects
- resources
- staffing
6. MAIN ISSUES OF A BSC: THE 4 PERSPECTIVES
The Balanced Scorecard (BSC) was first popularized in early 90s, as an approach for generating a performance report, by grouping
performance measures by perspectives
A typical balanced scorecard supplements traditional financial measures with criteria that measure performance from the perspective of
customers, internal business processes and innovation and learning
• In the private sector, these measures have
typically focused on profit and market share.
The key question that must be answered is:
Financial
How do satisfy the financial expectations
of our stakeholders?
• The members of the organization need to
• Every organization must know focus on those critical internal operations
the degree of its customer Vision Internal that enable them to deliver their work
satisfaction The key question Customer and Business program. The key question that must be
that must be answered is: process answered is:
strategy What must we excel at?
How do customers see us?
• An organization's ability to innovate, improve, and
Learning learn ties directly to its value as an organization. The
& key question that must be answered is:
Growth How can we continue to improve and create value
for our services?
The four perspectives offer a balance between short-term and long-term objectives, between outcomes desired and performance drivers
of those outcomes, and between hard objective measures and softer, intangible measures.
When using the balanced scorecard, companies articulate goals for each perspective and translate these goals into specific
measures
Kaplan and Norton: “Using the BSC
as a Strategic Managemtn System
(1996)
7. BASIC CONTRIBUTIONS OF A BSC
Translating the Vision 1 Business planning 3
Lofty statements such as "becoming the number one supplier" or "best
in class" are difficult to translate into operational measures that have Managers set targets for the long term objectives for all four scorecard
meaning to the people at the local level. perspectives.
Creating a balanced scorecard however forces management to further In order to achieve these long term objectives, managers identify the
clarify their vision until they are able to translate the vision into a set strategic initiatives required and allocate the necessary resources to
of objectives and operational measures on the balanced scorecard, those initiatives.
which have meaning to the people who have to realize the vision. Finally, managers establish short term goals (milestones) for the
These objectives and measures for the four perspectives, agreed upon measures that mark progress towards achieving the long term
by all executives, describe the long term drivers of success. objectives
Communicating and Linking 2 Feedback and learning 4
Managers formulate a strategy based on certain hypotheses about
Implementing a strategy begins with communicating the strategy up cause-and-effect relationships
and down the organization and educating those who have to execute When a company implements the strategy it might find out that certain
it. cause-and-effect relationships are not found over time.
The strategy must also be translated into goals and performance In that case a company should reconsider the theory underlying the
measures on the balanced scorecard for operating units and unit's strategy and might even conclude that it needs a different
individuals. strategy.
Rewards might be linked to these performance measures This process of gathering feedback, testing the hypotheses on which
strategy was based and making the necessary adjustments is called
"strategic learning”
Kaplan and Norton: “Using the BSC
as a Strategic Managemtn System
(1996)
8. COMPLETION AND MAINTENANCE OF A BSC
Control of versions to monitor the
ongoing progress
Name of the project / institucion BSC
Version: Mar 2013
Vision: _______________________________
Mission: ____________________________
Perspective Strategic Objectives Operating iniciatives Measure Target Status Priority Champion / Responsible
Amount of
current 100% A Council Board & Staff
Stakeholders
Customer /
Develop and enhance content
Engange all
1 corporate website Number of
stakeholders….
pages/ TBD B
articles
The 4 perspective as
previously seen
Current degree of
accomplishment related Person or group
Indicator
Number of strategic to the measure responsible for the
objective action
Priority keys:
p.e. A = immediate (next 6 months)
B = soon (6 months to 1 year)…
9. AGENDA
Part 1
The BSC in a nutshell
Benefits of implementing a BSC
Part 2
Case study: completing our own BSC
10. BENEFITS OF IMPLEMENTING A BSC
WITHOUT USING A BSC
Objective: Long term.
Based on economic
results
Stockholders
Objective: Middle term. Reporting to
higher stockholders and managing
the lower levels
Operating areas (CEO)
Key considerations
Objective: Short
Human term. Accomplishing
Finance Communication
Resources the area activities DIFFERENT OBJECTIVES FOR
EACH STAKEHOLDER
LACK OF CONTROL
RISK TO MEASURE NOT
CRITICAL DATA
KPI’s/measures
DIFFICULT OR LATE REPORTING
11. BENEFITS OF IMPLEMENTING A BSC
USING A BSC
Objective alignment within the
organization.
SEEN AS A COHERENT WHOLE
Stockholders
Operative areas (CEO)
Key considerations
Human
Financial Communication SAME OBJECTIVES FOR ALL
Resources STAKEHOLDERS
CONTROL OF THE NEEDED
DATA
EASY AND QUICK REPORTING
KPI’s/measures ENCOURAGES A MORE
RIGOROUS STRATEGIC REVIEW
OR ANALYSIS
GUIDING USERS IN
DETERMINING CRITICAL
SUCCESS FACTORS AND
PERFORMANCE INDICATORS
12. AGENDA
Part 1
The BSC in a nutshell
Benefits of implementing a BSC
Part 2
Case study: completing our own BSC
13. CASE STUDY: A 2-DAY MUSIC FESTIVAL IN A FOREST
Lifetime
VALUES: who we are
Sustainable festivals are possible / Ethical behavior / Permanent innovation / Fun
> 10 years
VISION: what do we want to be in the future?
To become the largest event en Europe being a reference for all new festivals that want to use natural
spaces.
To develop environmental standards for music or art events.
5 - 10 years
MISSION: what are we?
Music festival that combines new musical talents with an amazing and natural landscape, by making
compatible the environmental sustainability with having good fun.
14. CASE STUDY: A 2-DAY MUSIC FESTIVAL IN A FOREST
A. Financial Perspective or how do we satisfy the financial expectations of our stakeholders?
A.3. Expand Strategic
A.1.Improve Cost A.2. Increase
revenue objectives
Structure Asset utilization
opportunities
Use new
Reduce the Benchmark of Reach
spaces Optimize the Meet new
energetic drinks and partnership
increasing cash flow sponsors
supply costs spirits supplier agreements
capacity
Operating
initiatives
Sound and
video partner … … … … …
discounts
% Discount on watt price M2 available for new activities or Number of new sponsors contacted
% non consumed drinks already events % money from sponsors (over the Key
purchased (wasted fungibles) Average days to get the money total budget)
performance
Number of agreements with local
authorities and organizations indicators
(KPI)
15. CASE STUDY: A 2-DAY MUSIC FESTIVAL IN A FOREST
B. Customer perspective or how do customers see us?
B.1. Optimize Strategic
B.2. Enhance B.3. Increase
product / service objectives
relationship Image impact
attributes
Simplify Maximize Increase
Add new Expand
pricing/ticket interaction in Partnership brand
services social media Media impact
scheme positioning
Operating
initiatives
Increase in
international … … … … …
artists
Types of ticket packages % Increase Facebook friends Number of appearances in
Total number of services offered % Increase Twitter followers traditional media Key
Number of international artists Number if other festivals and Number of appearances in
compared to the last edition festival specialized blogs
performance
events we participate
Improve the statistics on google indicators
analytics (KPI)
16. CASE STUDY: A 2-DAY MUSIC FESTIVAL IN A FOREST
C. Internal business perspective or what must we excel at?
C.1. Enhance C.3. Regulatory Strategic
C.2. Innovation
artist booking and social objectives
introduction
process compliance
Enhance artist Fostering Obtain
Increase of Develop new environmental Organic food
booking artistic quality
schedule efficiency ideas positioning
innovation certification
Operating
initiatives
… … … … … …
% of artists contracted by Total number of artistic disciplines % compliance to get the ISO 14001
20th June 2013 (deadline) % of new artistic disciplines over certification by April 15th 2013 Key
Total Number of the last edition festival % organic food places over the
artists/Number of festival total
performance
bookers indicators
(KPI)
17. CASE STUDY: A 2-DAY MUSIC FESTIVAL IN A FOREST
D. The innovation and learning perspective or how can we continue to improve and create value for our services?
D.3. Emphasize Strategic
D.1. Empower D.2. Reinforce
Organizational objectives
Human capital Information capital
capital
Balance Enhance the Create an
Increase staff Fostering the
volunteers vs information of improved …
skills teamwork
professional our fans CRM system
Operating
initiatives
Improve
… … press data … … …
base system
Number of volunteers in the % of visitors/fans profiles created in Ratio of staff participants /
organization our databases committee Key
Number of permanent staff Number of teambuilding activities
Number of training sessions undertaken in 2013
performance
indicators
(KPI)
18. CASE STUDY: A 2-DAY MUSIC FESTIVAL IN A FOREST
Global vision
A.1.Improve Cost A.2. Increase Asset A.3. Expand revenue
A. Financial Structure utilization opportunities
B.1. Optimize Product / B.2. Enhance B.3. Increase Image
B. Customer Service attributes relationship impact
C. Internal C.1. Enhance artist C.2. Innovation C.3. Regulatory and
Business booking process introduction social compliance
D. Innovation D.1. Empower Human D.2. Reinforce D.3. Emphasize
and learning Capital Information capital Organizational capital
19. THE IMPORTANCE OF USING A BSC IN A CULTURAL PROJECT
• Due to the market financial restrictions, methodology
must be implemented on cultural projects
• It enforces us to think strategically and plan our actions
Global and The whole
instant view team share
• We have to understand and adapt the cultural of the the same
particularities to our BSC project objectives
• It’s not the same a bank’s client than a music festival Ease to
Helps to
event client identify and
focus on
anticipate
what we are
the main
• Make it simple! It’s not important to consider all good at
problems
dimensions. Find out which are important to your project
• Measure what you can. Don’t try to control many KPI’s
