The document discusses creating a balanced scorecard to link organizational objectives, initiatives, and measures to its strategy. It provides an overview of what a balanced scorecard is, noting it measures progress toward strategic goals across financial, customer, internal process, and learning/growth perspectives. It outlines the steps to create a strategy map first to clarify the organization's strategy before developing performance measures in a balanced scorecard.

1. Balanced Scorecard and Strategy Map Lunch Bunch (Cabinet) August 23, 2007

2. Short-Term Goal (Today) Understand the Balanced Scorecard

3. Create a Balanced Scorecard that links objectives, initiatives (new and old), and measures to the strategy of our organization.

4. Why think strategically?

5. Funding cuts (Financial)

6. Demonstrate accountability (all areas)

7. Improve our performance (Customer/Student Achievement)

8. Focus on improving our inputs (Internal processes)

9. Alignment of our PD with where we expect our employees to be headed (Learning and Growth)

10. Why think strategically? Funding cuts (Financial) Demonstrate accountability (all areas) Improve our performance (Customer/Student Achievement) Focus on improving our inputs (Internal processes) Alignment of our PD with where we expect our employees to be headed (Learning and Growth)

11. ?

12. Strategy Strategy is h ow we inten d to create value f or ou r customers

13. It is estimated that fewer than 10% strategies that are effectively formulated are effectively implemented. 10%

14. In the majority of those cases (it is estimated to be 70%) the problem is not the strategy, but the execution of the strategy. Forbes Magazine

15. Barriers to strategic thinking

16. Vision: Only 5% of workforce understands the strategy

17. People: Only 25% of managers have incentives linked to strategy

18. Management: 85% of Executive Teams spend less than 1 hour on strategy

19. Resources: 60% of organizations do not link budgets to strategy

20. It is estimated that managers and executives spend less than 1 hour per month on strategy. 1 hour

21. Steps in this Process Step #1: What is a Balanced Scorecard? Step #2: What is a Strategy Map? Step #3: What method are we going to use to create our Strategy Map?

22. Step #1: What is BSC?

23. What is a Balanced Scorecard? … The BSC is a management tool that provides senior executives a comprehensive measure of how the organization is progressing towards achieving its strategic goals.

24. Balanced Scorecard The idea of the scorecard is to describe the essential ingredients of organizational success. Its underlying philosophy – Provides a tool for clearly communicating the goals and priorities of the organization.

25. Introduced in 1992, by Robert Kaplan and David Norton, the Balanced Scorecard is the most commonly used framework for ensuring that agencies execute their strategies. Today, about 70% of the Fortune 1,000 companies utilize the Balanced Scorecard to help manage performance. Where it started . . .

26. Some Basic Principles Quantifies the Organizational Strategy in measurable terms Strategy is summarized on a Strategy Map over four views of performance (perspectives). Must capture a cause-effect relationship between strategic objectives over the four perspectives on the Strategy Map. Critical Components include: - Measurements - Targets - Initiatives Everything must be linked: Goals to Objectives, Objectives to Measurements, Measurements to Targets.

27. Vision and Mission Strategic Assessment Strategy Map Balanced Scorecard Execution Monitor

28. When the community, students and staff are involved, all students do learn and succeed.

29. … to ensure all students will be at or above grade level

30. Four Sectors for Business. "If we succeed, how will we look to our shareholders?” The Strategy Private Sector Organizations Financial Perspective "To achieve our vision, how must we look to our customers?” Customer Perspective "To satisfy our customers, at which processes must we excel?” Internal Perspective "To achieve our vision, how must our organization learn and improve Learning & Growth Introducing Strategy Maps A simple model of the value creation process

31. Customer Who are our targeted customers? What is our value proposition in serving them?

32. Processes To satisfy our customers at what processes must we succeed?

33. Employee Learning and Growth What capabilities and tools do employees require to help then execute our strategy?

34. Financial Perspective What financial steps are necessary to ensure the execution of our strategy?

35. “ Simple, not simplistic.” -Kaplan and Norton

36. Make sure relationship between point A (where we are today) and point B (scorecard) is clear A scorecard is a final measurement tool. To get there we need to clarify our strategy. To clarify strategy will need to spend some time analyzing strategic data and then develop a map of strategy.