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The Secret ToKnowing Where You Are Going:Using The Balanced Scorecard For IT                         Dr. Jim Anderson
The Rosetta Stone© 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
Performance Measurement And The  Need For A Balanced ScorecardWhat You Want To Be Able To Do:1. Use financial numbers to d...
How To Make Biscuits                                       Directions                                       1. Preheat ove...
Let’s Talk About Cooking Up A                 Balanced Scorecard                                          Directions      ...
Three Assessment Questions1. How well does the IT   department   communicate?2. Does everyone in IT   share the same goals...
Let’s Talk About Cooking Up A                 Balanced Scorecard                                          Directions      ...
4 Reasons That Strategy Execution     Fails In IT Departments © 2012 By Blue Elephant Consulting / www.BlueElephantConsult...
4 Perspectives Of Your IT             Department’s Strategy    Customer                     Internal                    Pr...
Build A Balanced Scorecard By Transforming Your Strategy© 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
Mission StatementsWe all have them,we all ignore them.  © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
Vision• Defines where the  department wants to go  in the future• A word picture of what  the department  ultimately wants...
Values• Timeless principals       • Deeply held beliefs           • Day-to-day  that guide an                             ...
Strategy© 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
Developing Objectives For Each              Perspective• Customer perspective• Internal processes• Employee  Learning & Gr...
You Need Objectives For Each Of              The 4 Perspectives  The Customer                                             ...
Strategy Maps• The balanced scorecard is able to  communicate strategy clearly and succinctly to  all stakeholders through...
What Is A Strategy Map?© 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
Why You Need A Strategy Map                          Current Industry                            Conditions               ...
Creating Performance Measures“Knowing what you want to measure and howto measure it makes a complicated world muchless so…...
A Sample Balanced Scorecard User:          A University’s IT Department• Goal: Create a unifying IT department  strategy, ...
Measures For The Employee    Learning & Growth Perspective• Human capital• Information capital• Organization capital     ©...
Measures For The      Internal Process Perspective• Operations mgmt• Customer mgmt• Innovation    © 2012 By Blue Elephant ...
Measures For The             Customer Perspective• Operational  excellence• Product leadership• Customer intimacy    © 201...
Measures For The               Financial Perspective• Revenue growth• Productivity• Enhancing  shareholder value     © 201...
Finalizing Your Balanced Scorecard                    Metrics• Select performance metrics• How many metrics are needed?• C...
Don’t Keep IT Strategy A Secret:               Cascade Everything!Directions1. Assess the state of your IT department.2. C...
Evaluation© 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
Do Performance Measures             Remain The Same?• “Will we have a chance              Directions  to change our       ...
Where Do I Go From Here?     www.TheAccidentalSuccessfulCIO.com                     &       www.TheAccidentalITLeader.com ...
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Using A Balanced Scorecard For An IT Department -- The Secret To Knowing Where You Are Going

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You have probably asked at one time or another: Is your IT department headed in the right direction? Is it aligned with where the rest of the company is going?

In this presentation, Dr. Jim Anderson takes a proven business communication, measurement, and strategy tool – The Balanced Scorecard – and shows you how to apply it to the unique needs of IT.

There is no question that The Balanced Scorecard works; estimates show that 60% of the Fortune 1000 have a Balanced Scorecard in place.

Many successful organizations have already shown that The Balanced Scorecard allows your IT department to have a single, focused, strategy that the entire staff can rally behind. Dr. Jim will tell you how to do it!

For more information on Dr. Jim Anderson and his company, Blue Elephant Consulting, find out more on the web at http://www.BlueElephantConsulting.com

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

  1. 1. The Secret ToKnowing Where You Are Going:Using The Balanced Scorecard For IT Dr. Jim Anderson
  2. 2. The Rosetta Stone© 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  3. 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. 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. 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. 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. 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
  8. 8. 4 Reasons That Strategy Execution Fails In IT Departments © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  9. 9. 4 Perspectives Of Your IT Department’s Strategy Customer Internal Processes EmployeeLearning & Growth Financial © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  10. 10. Build A Balanced Scorecard By Transforming Your Strategy© 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  11. 11. Mission StatementsWe all have them,we all ignore them. © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  12. 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
  13. 13. Values• Timeless principals • Deeply held beliefs • Day-to-day that guide an behavior of organization employees © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  14. 14. Strategy© 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  15. 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. 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. 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
  18. 18. What Is A Strategy Map?© 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  19. 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. 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. 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
  22. 22. Measures For The Employee Learning & Growth Perspective• Human capital• Information capital• Organization capital © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  23. 23. Measures For The Internal Process Perspective• Operations mgmt• Customer mgmt• Innovation © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  24. 24. Measures For The Customer Perspective• Operational excellence• Product leadership• Customer intimacy © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  25. 25. Measures For The Financial Perspective• Revenue growth• Productivity• Enhancing shareholder value © 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  26. 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. 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
  28. 28. Evaluation© 2012 By Blue Elephant Consulting / www.BlueElephantConsulting.com
  29. 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. 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

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