Using A Balanced Scorecard For An IT Department -- The Secret To Knowing Where You Are Going

1. The Secret ToKnowing Where You Are Going:Using The Balanced Scorecard For IT Dr. Jim Anderson

3. Performance Measurement And The Need For A Balanced ScorecardWhat You Want To Be Able To Do:1. Use financial numbers to drive IT’s future performance2. Harness the power of IT’s intangible assets3. Implement Your IT strategyWhat The Balanced Scorecard Provides:1. A communication tool2. A performance measurement system3. A strategic management system © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

4. How To Make Biscuits Directions 1. Preheat oven to 450 degrees F 2. Mix together the flour, salt, baking soda, and baking powder in a bowl. 3. Grate the frozen butter and 2 tablespoons frozen lard into the flour mixture 4. Stir lightly 1 or 2 times to mix. Pour in bacon drippings and buttermilk.Ingredients 5. Roll the dough out to a square.1/2 teaspoon lard 6. Cut the biscuit dough into rounds2 cups all-purpose flour with a 2 1/2-inch biscuit cutter3/4 teaspoon salt 7. Lay the biscuits onto the prepared1/4 teaspoon baking soda baking sheet so the edges just2 teaspoons baking powder touch.2 tablespoons butter, frozen 8. Bake in the preheated oven until2 tablespoons lard, frozen risen and lightly golden brown, 151 teaspoon bacon drippings to 20 minutes.1 cup buttermilk 9. Serve warm. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

5. Let’s Talk About Cooking Up A Balanced Scorecard Directions 1. Assess the state of your IT department. 2. Create a strategy for your IT department. 3. Create objectives for your strategy. 4. Create a strategy map. 5. Create performance measures for your objectives.Ingredients1 mission statement 6. Prioritize your IT initiatives.1 vision statement 7. Integrate your strategy components.1 IT department strategy1 set of IT department values 8. Cascade your IT balanced scorecard.1 sponsorship from 1 or more executives 9. Evaluate your IT balanced scorecard. 10. Change – only if needed. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

6. Three Assessment Questions1. How well does the IT department communicate?2. Does everyone in IT share the same goals?3. Is IT working to achieve the company’s goals? © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

7. Let’s Talk About Cooking Up A Balanced Scorecard Directions 1. Assess the state of your IT department. 2. Create a strategy for your IT department. 3. Create objectives for your strategy. 4. Create a strategy map. 5. Create performance measures for your objectives.Ingredients1 mission statement 6. Prioritize your IT initiatives.1 vision statement 7. Integrate your strategy components.1 IT department strategy1 set of IT department values 8. Cascade your IT balanced scorecard.1 sponsorship from 1 or more executives 9. Evaluate your IT balanced scorecard. 10. Change – only if needed. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

12. Vision• Defines where the department wants to go in the future• A word picture of what the department ultimately wants to become in 5, 10, 15, 20 years. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

15. Developing Objectives For Each Perspective• Customer perspective• Internal processes• Employee Learning & Growth• Financial perspective Directions 1. Assess the state of your IT department. 2. Create a strategy for your IT department. 3. Create objectives for your strategy. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

16. You Need Objectives For Each Of The 4 Perspectives The Customer The Internal Perspective Process Perspective The Learning & The FinancialGrowth Perspective Perspective © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

17. Strategy Maps• The balanced scorecard is able to communicate strategy clearly and succinctly to all stakeholders through strategy maps. Directions 1. Assess the state of your IT department. 2. Create a strategy for your IT department. 3. Create objectives for your strategy. 4. Create a strategy map. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

19. Why You Need A Strategy Map Current Industry Conditions “How To” Increase Something Goals & initiatives Spreadsheets Budget PowerPoint A Plan © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

20. Creating Performance Measures“Knowing what you want to measure and howto measure it makes a complicated world muchless so…” Directions 1. Assess the state of your IT department. 2. Create a strategy for your IT department. 3. Create objectives for your strategy. 4. Create a strategy map. 5. Create performance measures for your objectives. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

21. A Sample Balanced Scorecard User: A University’s IT Department• Goal: Create a unifying IT department strategy, communicate it to everyone in the department, and improve the standing of the IT department within the University. IT Service Infrastructure eMedia Center Services Services• Step #1: Created a Mission Stmt, A Vision Stmt & A Set Of Values – Mission: We are dedicated to increasing the meaningful and effective use of technology in teaching, learning, research and service in meeting the needs of the University communities we serve. – Vision: We are an important partner to the University and are involved in a future plans because we provide IT systems that simply work all the time. – Values: Our values include Excellence, Customer Focus, Innovation, Honesty, Integrity, Mutual Respect, Teamwork & Stewardship © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

26. Finalizing Your Balanced Scorecard Metrics• Select performance metrics• How many metrics are needed?• Create a data dictionary• Getting feedbackDirections1. Assess the state of your IT department.2. Create a strategy for your IT department.3. Create objectives for your strategy.4. Create a strategy map.5. Create performance measures for your objectives.6. Prioritize your IT initiatives. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

27. Don’t Keep IT Strategy A Secret: Cascade Everything!Directions1. Assess the state of your IT department.2. Create a strategy for your IT department.3. Create objectives for your strategy.4. Create a strategy map.5. Create performance measures for your objectives.6. Prioritize your IT initiatives.7. Integrate your strategy components.8. Cascade your IT balanced scorecard. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

29. Do Performance Measures Remain The Same?• “Will we have a chance Directions to change our 1. Assess the state of your IT department. measures? 2. Create a strategy for your IT department. 3. Create objectives for your strategy. 4. Create a strategy map.• “Should measures 5. Create performance measures for your change?” objectives. 6. Prioritize your IT initiatives. 7. Integrate your strategy components. 8. Cascade your IT balanced scorecard. 9. Evaluate your IT balanced scorecard. 10. Change – only if needed. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com

30. Where Do I Go From Here? www.TheAccidentalSuccessfulCIO.com & www.TheAccidentalITLeader.com www.BlueElephantConsulting.com / 813.418.697030 © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com