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Employing the Balanced Scorecard in Academic Libraries


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Employing the Balanced Scorecard in Academic Libraries

  1. 1. Employing the Balanced Scorecard in Academic Libraries Presenter: John Potter, Librarian ITT Technical Institute/Grand Rapids, MI
  2. 2. What is the Balanced Scorecard? <ul><li>A strategic planning and management system used extensively in business, government, and non-profit organizations </li></ul><ul><li>Created by Harvard Professors Robert Kaplan and David Norton as a performance measurement framework in 1992 </li></ul><ul><li>Provides a comprehensive view of an organization’s performance (viewed from different viewpoints or perspectives) </li></ul><ul><li>Aligns organizational activities to a given mission/ vision; provides organizations with metrics against which to measure their success </li></ul>
  3. 3. What is the Balanced Scorecard? <ul><li>Implementing the Balanced Scorecard is dependent upon focus and alignment of objectives </li></ul><ul><li>Strategic improvements flow from the bottom up </li></ul><ul><li>Strategic Planning begins by looking at higher perspectives, helps inform lower perspectives </li></ul><ul><li>The BSC forces organizations to rethink their strategic priorities and describe their strategies </li></ul>
  4. 4. Strategic Perspectives <ul><li>Strategic Perspectives include </li></ul><ul><ul><li>Financial: Profit, Cash Flow, Cost control, Return on Capital </li></ul></ul><ul><ul><li>Customer: Time, Quality, Performance, Price </li></ul></ul><ul><ul><li>Internal Process: Operations, Innovation processes, Social & Regulatory </li></ul></ul><ul><ul><li>Learning & Growth: Human, Information, & Organizational Capital </li></ul></ul><ul><li>Underlying Principle: You cannot manage what you cannot measure </li></ul>
  5. 5. How conceived:
  6. 6. What is a Strategy Map? <ul><li>A visual representation of an organization’s strategy </li></ul><ul><li>Thus, helps Management more easily formulate organizational strategy </li></ul><ul><li>Shows cause-and-effect relationships among components of an organization’s strategy </li></ul><ul><li>Evolved from the four-perspective Balanced Scorecard Model </li></ul>
  7. 7. At the 2008 MLA Conference Poster Session (strategy map in background)
  8. 8. Why a Strategy Map? <ul><li>Helps management visualize strategy </li></ul><ul><li>A uniform and consistent way to describe strategy </li></ul><ul><li>Provides the missing link between strategy formulation and execution </li></ul><ul><li>Uses linked objectives to describe and visualize strategy (provide a macro view) </li></ul><ul><li>Underlying Principle : You cannot measure what you cannot </li></ul>
  9. 9. Financial Perspective Provide services w/high ratio of value-cost *ILL transaction unit cost Sufficient investment to remain top-ranked library *ARL index rating Increase financial base through donations, external support, & institutional support *Library expenses as a proportion of university expenses Customer Perspective Educate users in Information Literacy *Student Satisfaction with Info Literacy Provide Excellent service to library users * Overall student faculty rating with Library Service Develop high quality collection that supports institution’s mission *CirculationRate Internal Process Perspective Identify and Improve with processes greatest impact *Processing time for routine acquisitions Operate in the most innovative, effective way possible *regular usability testing of library websites Provide facilities that promote staff productivity, encourage library use *Response to equipment service requests Learning & Growth Foster learning among library employees to encourage innovation * impact of staff dvlpt Recruit, develop, and retain productive, highly qualified staff *retention rate *job satisfaction Develop an innovative & effective infrastructure to support library services & various initiatives **Funding generated by R&D
  10. 10. Library expenditures: <ul><li>Causally linked with performance measures relevant to patrons, internal process, staff development processes </li></ul><ul><ul><li>For example, collection development costs can be linked with relevant measures for </li></ul></ul><ul><ul><ul><li>Faculty satisfaction, usage </li></ul></ul></ul><ul><ul><ul><li>Turnaround time for faculty requests </li></ul></ul></ul><ul><ul><ul><li>Staff cataloging skills </li></ul></ul></ul>
  11. 11. Library Expenditures: <ul><li>Likewise, reference staff costs can be linked to measures related to: </li></ul><ul><ul><li>Student satisfaction </li></ul></ul><ul><ul><li>Reference desk ‘productivity’ </li></ul></ul><ul><ul><li>Reference staff training </li></ul></ul>
  12. 12. What does this mean? <ul><li>By focusing upon strategically RELEVANT performance criteria, library management can </li></ul><ul><ul><li>Clarify their strategic vision </li></ul></ul><ul><ul><li>Better communicate with staff </li></ul></ul><ul><ul><li>Plan and align their strategic initiatives </li></ul></ul><ul><ul><li>Enhance strategic feedback and learning </li></ul></ul><ul><li>Moreover, management’s heightened focus upon specific performance areas can motivate staff to achieve innovative improvement in these areas </li></ul>
  13. 13. Are any academic libraries using the Balanced Scorecard? <ul><li>Yes, the best known is The University of Virginia Library System </li></ul><ul><li>See </li></ul>