The document summarizes how a balanced scorecard works in Microsoft Excel. It contains three worksheets that track: 1) Financial metrics like objectives, measures, targets, action plans, and quarterly results. 2) Next steps which further analyzes financial metrics and plans for improvement. 3) Learning and growth metrics that measure employee retention, satisfaction, and productivity through objectives, targets, initiatives, and quarterly results. Each worksheet builds on the previous one to provide a complete picture of progress towards overall financial objectives using goals, actions taken, and analysis of results. Examples of completed scorecards are also included.

1. The Balanced Scorecard ® Confidential © 2010 Douglas W. Snell, Sr. CFM Douglas W. Snell, Sr. CFM 12/11/10

2. How it Works The balanced score is developed in Microsoft Excel and has three worksheets: Financial Metrics—includes objectives, measures, targeted areas of concentration, action plans, quarterly results of measurement and an analysis area for brief review. Next steps—includes the financial metrics with an area for making improvement in each one. This might include special projects, comparison of actual results to budget, actual financial targets, review of actions already taken, quarterly results with notations on success and failure, and an analysis of what took place. Learning and Growth Metrics—this worksheet surrounds itself around employee retention, satisfaction and productivity. For non-profits, it could include the board and other volunteers.

3. Financial Metrics- Goals/Targets/Actions/Results/Analysis At the top of the first worksheet, the financial target is placed to see clearly what the overall goal or budgeted need is, so one can easily see progress. Goals need to be specific and measurable. Measures are an area that may be used to break down goals into sub goals if they are combined with several groups and seem complicated. Targeted Areas of Concentration show in what area of the business (profit or non-profit) where time is spent developing the goals. For instance, if a particular goal represents 35% of the total financial target then at least that much time should be spent in that area. Action Plans may sound obvious, but one needs to identify where the financial goal is going to obtain the results. This could include contracts, individual donations, products and services, special events, and marketing. For profit versus non-profit will have different focuses, but the plan has the same results identified. Quarterly results is a typical way to show progress and allows for correction if the results fall short of the target. Analysis simply put is a series of observations where to begin with one can see if the objectives are solid and will bring success, then quarterly additional statements can be made to support the plan, action steps and a course of correction.

4. Next Steps Goals/Measures/Targets/Actions/Results/Analysis This is not a repeat of the metrics; rather, this is where additional work is done including new ideas or correction from previous ideas. The entire plan is presented in a more detailed picture so one can easily see where actions were taken and perhaps either additional steps are required or course correction of such actions are needed. This is a deeper dive of what has taken place so complacency is addressed and continued efforts are renewed or continued for obtaining the overall financial goal. Measurement of results in percentage help to see if a goal that represents 35% of the total financial goal is being obtained. If the 2 quarters of the year have passed and only 5% of the goal has been obtained, course correction is needed. Action steps is the area for this correction, because the target, objectives and measures are already in place. Now one needs to concentrate on how to be successful. If previous action steps were a failure, change what you are doing. If some are successful, keep doing them. Celebrate success through analysis and point out failure. This is a true picture of how employees and/or volunteers have performed.

5. Learning and Growth Metrics Objective Type/Measures/Targets/Supporting Initiatives/Results/Actions Employees and Volunteers—the objective type is listed here in separate and potentially multiple line items for retention, satisfaction, and productivity. Retention identifies turnover in percentage. Satisfaction identifies recognition, access to information, encouragement, revenue per employee, training and competency. Targets show results in percentage to show effectiveness of supporting initiatives. Supporting initiatives show if the support group (s) are effectively making a difference. Quarterly results are shown to help identify areas of success or failure. Analysis helps to see how successful the people aspect has worked and what else needs to be done or altered.

6. Summary The balanced scorecard includes: Overall financial objective Financial Metrics broken down into goals Next Steps are the actions being taken Learning and Growth Metrics measures success Each of the three worksheets continue a complete focus on the entire plan as it progresses. What gets measured, gets done.

7. Example of a Balanced Scorecard-Worksheet 1

8. Example of a Balanced Scorecard-Worksheet 2

9. Example of a Balanced Scorecard-Worksheet 3

10. End of Presentation Developed for Example Only