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Strategy Management And Balanced Scorecarding At Barcelona City Hall With Ibm Cognos 8 Bi Scorecarding


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Presentation on implementing a performance management system at the Barcelona City Hall using IBM Cognos BI (specifically Metrics Studio).

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Strategy Management And Balanced Scorecarding At Barcelona City Hall With Ibm Cognos 8 Bi Scorecarding

  1. 1. Powering Performance Management at the City Hall of Barcelona<br />JordiVilalta, Director of Management & Control (Office of Strategy Management)<br />Maria del Mar Gimenez-Salinas iBotella, Deputy Manager of Urban Planning <br />Glyn Heatley, PM & Analytics Practice Leader (The Palladium Group, EMEA)<br />
  2. 2. Agenda<br />Introduction<br />Barcelona 2.0 Transformation Model<br />Model for Management by Objectives <br />Enablement through a Performance Management Solution<br />Conclusions<br />
  3. 3. Introduction: Barcelona<br />Barcelona has become one of the main economic and cultural hubs of Europe and is considered one of the European cities with the greatest projection in the world. Recently it was named the Euro-Mediterranean Capital. It is ranked as the Best European City in Quality of Life.<br />Location & Population<br />General figures<br />Economic activity<br />02<br />03<br />01<br />Capital of Catalonia<br />Second largest city of Spain: <br /><ul><li>1.6 million inhabitants
  4. 4. 4.9 M metropolitan region: 10.7% of Spain's population</li></ul>Strategic geographical location<br />Catalonia (mainly Barcelona) is driving the Spanish GDP as the largest contributor:<br /><ul><li>GDP Catalonia: 208,627 million € (2007)
  5. 5. GDP growth rate: 3.8% (2007)
  6. 6. PIB per Capita –PPP-: 25,651 € (9.4% ahead of EU27’s PPP)</li></ul>Number of companies: 477.942<br />Foreign investment in Catalonia: 2,555 M €<br />Fourth-best city in Europe for business*<br />Airport passengers: 32,898,249 <br />Port Goods: 51.39 M tonnes<br />Visitors: 7,108,398<br />Conferences and conventions 1,775<br />Barcelona economic triangle: 10,810,700 m2<br />1000 Km<br />1hr 40min flight<br />1800 Km<br />2hr 30min flight<br />*Source: European Cities Monitor 2006<br />
  7. 7. Introduction: The City Hall<br /><ul><li>eAdministration and Systems
  8. 8. General Services
  9. 9. Social Services
  10. 10. Environment
  11. 11. Prevention, Security and Mobility
  12. 12. Urbanism
  13. 13. Economic Development
  14. 14. Finances
  15. 15. HumanResources
  16. 16. Education and Culture</li></ul>10 SECTORS<br />13.000  workers<br />2.700 M€  budget<br />10 <br />DISTRICTS<br />MUNICIPAL HOLDING<br />4<br />
  17. 17. <ul><li>In the changing global environment, with society becoming better informed, more involved and more demanding, it is necessary to rethink public management models to address this new reality.
  18. 18. Virtual networks
  19. 19. New relationships between institutions and individuals
  20. 20. New economic and social structures</li></ul>Connectivity<br />Social Diversity<br /><ul><li>Groups with a mixed background
  21. 21. Greater mobility
  22. 22. A future that demands quality of life alongside sustainability</li></ul>Sustainability<br />Economic Globalization<br /><ul><li>Global economic recession
  23. 23. Infrastructure to compete in the global economy
  24. 24. Innovation</li></ul>Introduction: The Global Environment<br />
  25. 25. <ul><li>The city of Barcelona has long been considered a world-class city. Therefore, due to the new realities of the global environment, it must adapt its model in order to successfully face challenges:</li></ul>Sustainable Barcelona<br />Barcelona of the people<br />Barcelona <br />“Capital”<br />Cohesion<br />Quality<br />Proximity<br />Innovation<br />Mobility<br />Efficiency <br />Barcelona and its <br />neighbourhoods<br />Dynamic, Enterprising, and Innovative Barcelona<br />Introduction: The City Model<br />
  26. 26. Agenda<br />Introduction<br />Barcelona 2.0 Transformation Model<br />Model for Management by Objectives <br />Enablement through a Performance Management Solution<br />Conclusions<br />
  27. 27. Gestión <br />Ajuntament<br /><ul><li>The project to develop anewmanagement model of the City Council is known as Barcelona 2.0.</li></ul>Why should we change?<br />What should we change?<br />How can we achieve it?<br />Key Projects<br />New Management Model<br />Global Environment<br />+<br />City Model<br />The Barcelona 2.0 Transformation Model<br />
  28. 28. Human <br />Resources<br />Plan<br />Relationship<br />with the<br />citizens<br />Management by <br />Objectives<br />e-Administration<br />Territorialization Model<br />Service<br />Catalog<br />IT Plan<br />Transformation Model: Key Projects<br />
  29. 29. Agenda<br />Introduction<br />Barcelona 2.0 Transformation Model<br />Model for Management by Objectives <br />Enablement through a Performance Management Solution<br />Conclusions<br />
  30. 30. Model for Management by Objectives<br />Whydidwe decide toimplementthe Management byObjectives?<br />1. Methodicalmonitoring of ...<br /><ul><li>PoliticalStrategy: Municipal Action Plan - PAM
  31. 31. Management Strategy: Plan Barcelona 2.0
  32. 32. OperatonalServices (external and internal)</li></ul>Tobeableto link corporate strategy with municipal budgets and its execution<br />Clearly assign management responsibilities to managers and directors of the municipal structure<br />
  33. 33. BPS<br /><ul><li>Objective: To implement a model that ensures that the City Council's strategy is enforced and that it is in line with all of the Sectors, Districts, Institutes, and Autonomous Organizations; so that management efficiency and effectiveness can be evaluated.</li></ul>Objectives<br />Definition of programs<br /> MAP / City Activities<br />Management by Objectives<br />Budgeting by Programs<br />Strategy Maps<br />Breakdown of activities and projects<br />Prioritization<br />Scorecards<br />Budget allocation for activities<br />Information<br />EFFECTIVENESS<br />EFFICIENCY<br />Model for Management by Objectives<br />
  34. 34. BPS<br />Groups of Programs<br />Diagnostics<br />Recurring objective activities<br />Definition of overall budget limits<br />Programs<br />Activities<br />KPIs<br />Budget<br /><ul><li>Program budgets identified
  35. 35. Activities for each program defined
  36. 36. Money allocated for each activity
  37. 37. Budget activities aligned with the objectives in the map</li></ul>Spending<br />Goals<br />Investment<br />Model for Budgeting by Programs<br />
  38. 38. Objective X<br />S<br />Strategy Formulation through the Muncipal Action Plan –PAM- <br />(2008 – 2011)<br />Main Strategy Map<br />MAP<br />Recurring Activity<br />+<br />Revision of theassumptionsmade in the PAM. Input to formulatethenew PAM for nextterm of office<br />Consolidation of the OSM<br />MAP <br />2012 - 2015<br />Cascading maps for each Sector and District:<br />BudgetingbyPrograms:<br /><ul><li>Defineactivities for eachbudgetedprogram
  39. 39. Allocate a budget for eachactivity
  40. 40. Alignbudgetedprogramswithmap’s objectives</li></ul>BI Solution: Dashboards of KPIs in IBM COGNOS for each map.<br />Monitoring of defined KPIs.<br />Program<br />Activity<br />$<br />Management by Objectives as a Continuous Improvement Cycle<br />
  41. 41. Model for Management by Objectives<br />Global Mapforthe City Hall<br />Drill-downinto 20 Maps: <br /><ul><li>Oneforeach Sector
  42. 42. OneforeachDistrict</li></li></ul><li>Model for Management by Objectives<br />Example<br /><ul><li>StrategicMaps are builtwithObjectivesthat are measuredwithKPI’s</li></ul>P7- Update and Expand Corporate Network Voice and Data<br /><ul><li>Each KPI isassociatedwith a Goal/Tolerance/Weight and Responsible</li></li></ul><li>Management by Objectives: Schedule<br />At a high level, the objective-based management schedule is summarized as follows:<br />1 yearschedule<br />Start Mandate<br />End Mandate<br />PAM<br />2008<br />PAM <br />2012 - 2015<br />BudgetbyPrograms<br />Mandate Strategy<br />Input to define PAM2012-2015<br />IdentifyBudgetaryActivities<br />Assign € toactivities<br />Budgetnegotiation<br />Link budgetaryactivitiestoStrategyMap<br />BudgetValidation<br />x4 years<br />MbO<br />Translatestrategyintoobjectives and StrategyMap<br />Define / ReviewKPIs<br />Updatetechnologyplatform<br />COGNOS configured<br />
  43. 43. Agenda<br />Introduction<br />Barcelona 2.0 Transformation Model<br />Model for Management by Objectives <br />Enablement through a Performance Management Solution<br />Conclusions<br />
  44. 44. URBANITZACIÓ<br />MANTENIMENT<br />CONSTRUCCIÓ <br />URBANISME<br />City Manager<br />Are we executing our strategy?<br />Global view of each District and Sector:<br /><ul><li>80+ KPIs by Sector and District
  45. 45. Consolidated information</li></ul>Management Report<br />KPI performance against target<br />What KPIs and action plans will achieve our targets?<br />Objectives details<br /># of buildings restored<br />Strategy Map<br />Sectors & Districts Managers<br />Improve conditions of urban buildings<br />Where should we allocate our budget in order to reach the targets stablished at our plan?<br />FGBDFHDFVBVBXGHGHXGBNVNV<br />Budget assigned to a given Objective<br />FGBDFHDFVBVBXGHGHXGBNVNV<br />Budgetary Programs<br />Status of objectives linked to a given budgetary program<br />Are we allocating resources to the correct actions and initiatives? Are they bringing the expected results?<br />FGBDFHDFVBVBXGHGHXGBNVNV<br />Finance Department<br />FGBDFHDFVBVBXGHGHXGBNVNV<br />FGBDFHDFVBVBXGHGHXGBNVNV<br />FGBDFHDFVBVBXGHGHXGBNVNV<br />FGBDFHDFVBVBXGHGHXGBNVNV<br />FGBDFHDFVBVBXGHGHXGBNVNV<br />MbO: A new way of managing the city<br />
  46. 46. 1<br />2<br />3<br />Strategy Map<br />Balanced scorecard - BSC<br />Objective details<br />4<br />Programs - Activities and Budget<br />KPI’s details<br />Management by Objectives Solution Sample<br />
  47. 47. Management by Objectives Solution Sample<br />Strategy Map<br />1<br />Illustrative example<br />
  48. 48. Management by Objectives Solution Sample<br />Balanced Scorecard<br />2<br />Illustrative example<br />
  49. 49. Management by Objectives Solution Sample<br />Balanced Scorecard - BSC<br />2<br /><ul><li>Example:In the case of S15 Objective "To provide the city with quality lighting, we have detail KPIs:</li></ul>Objective details<br />3<br />Illustrative example<br />
  50. 50. Management by Objectives Solution Sample<br />KPI Detail<br />4<br />Illustrative example<br />
  51. 51. Programs– Activities and Budgets<br />4<br />Management by Objectives Solution Sample<br />Illustrative example<br />
  52. 52. Solution Architecture & Technologies<br />
  53. 53. Solution Architecture & Technologies<br /><ul><li>Master Data & Meta Data Management: Strategies, Objectives, KPIs + Custom Attributes)
  54. 54. Security: Admin, Data and Usage
  55. 55. Status Calculations: Objetive and KPI status calculation for Monthy and Year To Date views
  56. 56. KPI Data Entry for those that can not be automated</li></ul>Cognos Metrics Studio<br />Cognos Report Studio<br /><ul><li>Management of Budget Programs Activities (projects) and their assocaition with Strategic Objectives
  57. 57. Management of Special Projects, e.g. Tour de France</li></li></ul><li>Solution Architecture & Technologies<br /><ul><li>Custom Reporting; Strategy Map, Balanced Scorecard, Objective Detail, KPI Detail and Financials (Monthly & Year To Date Views)
  58. 58. Financial Reporting of Actuals vs Budget for Activities/projects providing transparancy and accountablity
  59. 59. Management Comments to be maintained and reported on for Maps, Objective, KPIs and Special Projects
  60. 60. Management Control Reporting for the Office of Strategy Management to enable them to assist Sectors and Districts on their Strategy Management Process and Performance Analysis & Reporting</li></ul>Cognos Report Studio<br />Cognos Query Studio<br /><ul><li>Adhoc Query & Reporting; Repeatable and one time analysis and reporting of City Management performance management activaties and status</li></ul>Cognos Go!Office<br /><ul><li>Executive Reporting; High quality executive management summary reporting using MS-Word with embedded Cognos Query and Report Objects</li></li></ul><li>Solution Architecture & Technologies<br /><ul><li>Data Warehouse for centralization and integration of Performance Management Data
  61. 61. Advanced Status Calculations for Objectives and KPIs including Year to Date
  62. 62. Integrated, Historical Data Platform for Global Performance Management Reporting and Analysis (i.e across Sectors & Districts)
  63. 63. Data Sourcing of Financial Budget & Actuals for Program Activities
  64. 64. Data Sourcing of KPI Actuals</li></li></ul><li>Performance Management SolutionSummary<br />Objetivo X<br />S<br />Performance Management Solution<br />Strategy Map<br />Management Framework Adoption and Solution Enablement<br /><ul><li>20 Maps
  65. 65. 500+ Objectives
  66. 66. 2000+ KPIs
  67. 67. 700+ Users
  68. 68. Integration with SAP
  69. 69. Integration with +20 Source Systems for data automation
  70. 70. Initial Framework and Solution Implementation 8 Months
  71. 71. 10 Team Members (Business & Technical)</li></ul>Strategy Cascaded to Sectors and Districts<br />Budget by Programmes<br /><ul><li>Definition of activities for each program
  72. 72. Budget allocation to each activity
  73. 73. Links between strategic objectives and activities</li></ul>Programa<br />Actividad<br />€<br />Metrics, Query & Report Studio,Go! Office<br />
  74. 74. UpcomingMbOSolutionChallanges<br />
  75. 75. Real case of Success<br />UrbanPlanning Sector<br />Maria del Mar Gimenez-Salinas i Botella, Deputy Manager of Urban Planning <br />
  76. 76. Real case of Success<br />
  77. 77. Real case of Success<br />“ The implementation process of the Management by Objectives has facilitated the alignment between the Urbanism Sector and different municipal companies and institutes with whom we coordinate to achieve common goals ”<br />Maria del Mar Gimenez-Salinas i Botella, Deputy Manager of Urban Planning<br />
  78. 78. Real case of Success<br />“The new model of Management by Objectives is giving us the possibility to work in a different methodology in which we can plan we can plan our strategy at the beginning of the year and then we can analyze the results by monitoring the development of our objectives status ”<br />Maria del Mar Gimenez-Salinas i Botella, Deputy Manager of Urban Planning<br />
  79. 79. Real case of Success<br />“So, we believe it is a huge positive change for the Sector being able to make decisions by comparing and analyzing what we planned at the beginning of the year and the results we have had monthly “<br />Maria del Mar Gimenez-Salinas i Botella, Deputy Manager of Urban Planning<br />
  80. 80. Agenda<br />Introduction<br />Barcelona 2.0 Transformation Model<br />Model for Management by Objectives <br />Enablement through a Performance Management Solution<br />Conclusions<br />
  81. 81. Development of a new city management model:link the strategic objectives of the term of office (PAM) to the tactical objectives specific to each Sector/District (maps)<br />Definition of balanced scorecards according to KPIs for tracking key objectives<br />Identification of the actions needed to meet objectives and aligning them to the city budget <br />Establish a common framework of relationships, understanding, and evaluation among allstakeholders<br />Promote verticalization within the City Council: between the service coordinator (Sector), the regional coordinator (District), and the service provider (Institute)<br />High level of commitment and consensusamong everyone involved, thanks to the participatory nature of the project<br /> Very important cultural changethroughout the organization<br />Improvefocusedof senior management<br />Conclusions: Results Obtained<br />
  82. 82. The Management by Objectives and methodology (XPP) havemadeit possible tosuccessfullyclosethe GAP between politics and management.<br />Politicians - Managers<br />Change management has been the key element for the success of the project.<br />Change Management<br />To ensure the success of Management by Objectives (and Barcelona 2.0), it is crucial to have an office that centralizes strategic management and key project management.<br />Management Office<br />Diverse information, several processes and multiple variables, makeKPI extraction highly complex.<br />Difficulty to measure<br />Lessons Learned<br />