IT balanced score card Power Point

Managing Performance: Creating an IT Balanced Scorecard

Phil WatsonSenior ConsultantProActive Services

Agenda

• Caveats and Approach• The Balanced Scorecard• Quality Management Frameworks • Linkage to ITIL • Benefits• The Balanced Scorecard Process• Develop the SPUSC University IT

Balanced Scorecard• Workshop Review

Caveats and Approach

• Development of the Strategy and Balanced Scorecard is lots of work

• This workshop is a run through the process/steps• Focus is on understanding and working the process not

achieving the Balanced Scorecard itself• It is not a substitute for doing it properly and tailored to

your needs• We will need to compromise quality for speed (only have

90 minutes to explain BSC and work through a virtual example

• Questions as we go with a wrap up at the end

The Balanced Scorecard

• Translates Strategy into Action

• Four perspectives:

– Customers

– Financial

– Internal [business] processes

– Learning And Growth [people]

• Focus on measuring Performance

• Balance should exist between these four perspectives

The Balanced Score Card Perspectives

Organisations Vision, Mission, Values and Behaviours

Customer Perspective

Financial Perspective

Internal Processes Perspective

Learning & Growth Perspective

To satisfy our customers, what business processes must we excel at?

To be seen as successful what do we need to deliver?

To achieve our strategies how must we look to our customers?

To achieve our strategies how must our organisation develop?

Quality Management Frameworks

• European Framework for Quality Management (EQFM )• Australian Business Excellence Framework (ABEF)• Baldridge Awards

• Total Quality Management (TQM)

1. Leadership1. Leadership

2. Strategic Planning2. Strategic Planning

3. Customer & Market Focus3. Customer & Market Focus 6. Process Management6. Process Management

7. Business Results7. Business Results

5. Human Resource Focus5. Human Resource Focus

4. Information and Analysis4. Information and Analysis

Organisational Profile: Environment, Relationships and ChallengesOrganisational Profile: Environment, Relationships and Challenges

The Balanced Scorecard and ITIL

• QM, BSC and ITIL (& PRINCE2 etc) are all complementary

• Linkages to:

– Customer with ITSM and SLM

– Internal (business) processes with ITSM as a process framework

– Financial with ITSM and Financial Management

– Learning and Growth with People and Continuous Improvement

The Process

• Assumptions

• Values and Behaviours

• Business Model

• Customer Segmentation

• Stakeholder Identification

• Vision/Purpose and Strategic Intent/Mission

• Objectives and Priorities

• Map Objectives to BSC Perspectives

• The SPUSC IT Service Chain• Select and design measures for each objective• Produce Measurement Plan to collect data and link to databases

and MIS• Produce DIS-SR Strategic Intent Brochure• Produce the Change (Implementation) Management Plan

Assumptions

• We will struggle to win support from all areas (business and IT) no matter what we do

• We will never have enough resources to do everything we need to do

• IT is not central to the thinking or planning of the business – the focus is on ribbon cutting and sod turning

• Business demands on IT will always be varied and difficult to prioritise

• The ‘existing’ will always be in competition with the new and exciting (keeping it going vs keeping it growing)

• We can get Business IT representatives to understand and support IT requirements

• Customers will expect us to commit to (and deliver on) specific service levels

• Central IT and faculty IT – can work together and fulfill our parts

Values (Belief)

• We are one team – we have one voice• We are punctual and always report back to people quickly• We respect our customers and our fellow team members• We see Requests, Incidents, Problems, Changes etc from the

customer’s perspective• We take pride in the quality of our work and our technical expertise• We are a learning organisation – we aim to continuously improve• We always complete all of the job to all of the standard• We will never backstab!

Behaviours (Act)

• A sense of urgency• Clear thinking and intent• Courtesy and loyalty• Ownership and Accountability• Honesty, integrity, ethical and pride • Adaptability• Clear, concise customer driven communication

• Attention to minor detail

• Proactive Vs reactive

Business Model

Resolve Incidents and ProblemsResolve Incidents and Problems Manage Systems AvailabilityManage Systems Availability Manage IT&T AssetsManage IT&T Assets Liaise with CustomersLiaise with Customers …………………………………………………….?.? …………………………………………………….?.?

TeachingTeaching LearningLearning ResearchResearch Admin/SupportAdmin/Support External AgenciesExternal Agencies ………………………….?.? ………………………….?.?

CUSTOMER CUSTOMER PROCESSESPROCESSES

CUSTOMER CUSTOMER PROCESSESPROCESSES

CUSTOMER CUSTOMER SEGMENTSSEGMENTS

CUSTOMER CUSTOMER SEGMENTSSEGMENTS

Information ServicesInformation Services

Personnel Services Personnel Services (staffing, training)(staffing, training)

Security (Security (accreditation, advice, investigation & accreditation, advice, investigation & enforcement)enforcement)

InfrastructureInfrastructure

FinanceFinance

Support FunctionsSupport FunctionsSupport FunctionsSupport Functions

FacilitiesFacilities (accommodation) (accommodation)

Fleet ManagementFleet Management

Service Delivery SupportService Delivery Support

……………………………………..?..?

……………………………………..?..?

High Medium LowCampus A 12000 Email, Enrollments Law (500), Bus/Ec (700) Agr (200)Campus B 21000 Library, Payroll Medicine (R&D)Campus C 250 Labs EducationCampus D 1300Site 1 25 NW InfraSite 2 144Site 3 99Site 4 256

Operational IndicatorLocation Magnitude

Customer Segmentation

Which location has priority?Which location has priority?Which customer has priority?Which customer has priority?

• Needs to link in with the Service Catalogue• This is indicative only

• Needs to link in with the Service Catalogue• This is indicative only

Stakeholders

Accreditation Authorities

Staff

………?

Unions

Employees

Community

GovernmentStudents

SPUSCUniversity

Vision and Purpose

SPUSC Vision

To be one of the finest universities in the To be one of the finest universities in the worldworld

IT Purpose

As an integral part of SPUSC, IT is As an integral part of SPUSC, IT is committed to delivering committed to delivering on the technology on the technology aspects of the aspects of the University Business PlanUniversity Business Plan

Strategic Intent and Mission

SPUSC Strategic IntentThe University will be an internationally The University will be an internationally recognised thought and practice leader in recognised thought and practice leader in the field of teaching, learning and researchthe field of teaching, learning and research

IT MissionTo be the preferred technology partner in To be the preferred technology partner in the achievement of the University’s the achievement of the University’s teaching, learning and research objectivesteaching, learning and research objectives

2. Prioritise – impact, urgency, 2. Prioritise – impact, urgency, cost/benefit analysis cost/benefit analysis

B1 - implement a Service Improvement Plan based on ITIL

L1 - involve and develop staff

C1 - prompt response & resolution of customer concerns

F1 - produce well researched and justifiable financial plans

L2 - foster and develop a customer focused culture

C2 - engage the customer proactively and regularly

L3 - recruit, train and retain only the right people

B2 - implement and sustain a responsive and effective Service Desk

F2 - develop a culture of good financial management practices

C3 - market SPUSC IT to customer and stakeholders

B3 - implement SPUSC policies, practices and procedures

F3 - develop financial competency

F4 - capture resource usage against specified activities

B4 - continuously improve activity plans based on review processes

L4 - develop staff to maintain capability

B5 - benchmark against best practice

B3

L1

C1

F1

L2C2

L3B2

F2 C3

B1

F3 F4 B4 L4 B5

1. Identify Objectives1. Identify Objectives

Example Objectives and Priorities

2. Prioritise – impact, urgency, 2. Prioritise – impact, urgency, cost/benefit analysis cost/benefit analysis

B1 – Implement a Service Improvement Programme based on ITIL

L1 – Recruit, train and retain only the right people

C1 – Support specialist faculty IT

F1 – Develop 3 year technology development plan

L2 - ……………………………………..

C2 - Staff and student retention (and growth)

L3 - ……………………………………..

B2 - ……………………………………..

F2 - ……………………………………..

C3 - ……………………………………..

B3 - ……………………………………..

F3 - ……………………………………..

F4 - ……………………………………..

B4 - ……………………………………..

L4 - ……………………………………..

B5 - ……………………………………..

B3

L1

C1

F1

L2C2

L3B2

F2 C3

B1

F3 F4 B4 L4 B5

1. Identify Objectives1. Identify Objectives

SPUSC IT Objectives and Priorities

SPUSCUniversity

F1 - produce well researched and justifiable financial plansF2 - develop a culture of good financial management practicesF3 - develop financial competencyF4 - capture resource usage against specified activities

Financial

C1 - prompt response & resolution of customer concernsC2 - engage the customer proactively and regularlyC3 - market SPUSC IT to customer and stakeholders

Customer

B1 - implement a Service Improvement Plan based on ITILB2 - implement and sustain a responsive and effective Service DeskB3 - implement SPUSC policies, practices and proceduresB4 - continuously improve activity plans based on review processesB5 - benchmark against best practice

Business Processes

L1 - involve and develop staffL2 - foster and develop a customer focused cultureL3 - recruit, train and retain only the right peopleL4 - develop staff to maintain capability

Learning and Growth

Map Objectives to BSC Perspectives

Learning & GrowthLearning & Growth

Employee SatisfactionEmployee Satisfaction

Employee ProductivityEmployee ProductivityEmployee RetentionEmployee Retention

External Service ValueExternal Service ValueAttitude of obtaining results for Customers

Customer SatisfactionCustomer Satisfaction


Learning & Growth PerspectiveCause & Effect

Business ProcessesBusiness Processes

Employee SatisfactionEmployee Satisfaction

Employee ProductivityEmployee ProductivityEmployee RetentionEmployee Retention

External Service ValueExternal Service Value

Services designed and delivered to meet Targeted Customers Needs


B1 - implement a Service Improvement Plan based on ITILB2 - implement and sustain a responsive and effective Service DeskB3 - implement SPUSC policies, practices and proceduresB4 - continuously improve activity plans based on review processesB5 - benchmark against best practice

Business Processes PerspectiveCause & Effect

System ProductivitySystem Productivity

FinancialFinancial

Stakeholder SatisfactionStakeholder Satisfaction

Stakeholder LoyaltyStakeholder Loyalty

Stakeholder AdvocacyStakeholder Advocacy


Funding preferenceStandard settingReputation for Best Practice



Financial PerspectiveCause & Effect

CustomerCustomer

Customer LoyaltyCustomer Loyalty

Customer & Stakeholder AdvocacyCustomer & Stakeholder Advocacy


RetentionRepeat businessReferral


C1 - prompt response & resolution of customer concernsC2 - engage the customer proactively and regularlyC3 - market SPUSC IT to customer and stakeholders

Customer PerspectiveCause & Effect


CustomerCustomer


Customer & Stakeholder LoyaltyCustomer & Stakeholder Loyalty

Customer & Stakeholder AdvocacyCustomer & Stakeholder Advocacy

FinancialFinancial

Stakeholder SatisfactionStakeholder Satisfaction

Business ProcessesBusiness Processes


PurposePurposePurposePurpose Strategic IntentStrategic IntentStrategic IntentStrategic Intent

The SPUSC IT Service Chain



Select and Design Measures for each objective

MeasuresMeasures PerformancePerformance OutcomeOutcomeDriverDriver

Staff Development (vs Plan)Staff Development (vs Plan)

Percentage of staff trained in customer Percentage of staff trained in customer serviceservice

Employee satisfactionEmployee satisfaction

Staff RetentionStaff Retention

Staff trained as a percentage of Staff trained as a percentage of Succession Positions identifiedSuccession Positions identified

Business ProcessesBusiness ProcessesB1 - implement a Service Improvement Plan based on ITILB2 - implement and sustain a responsive and effective Service DeskB3 - implement SPUSC policies, practices and proceduresB4 - continuously improve activity plans based on review processesB5 - benchmark against best practice

Objectives & Measures


Service Desk problem resolution percentageService Desk problem resolution percentage

System Productivity System Productivity (measures to be developed)(measures to be developed)

Customer satisfaction with having needs Customer satisfaction with having needs understoodunderstood

Service Desk customer satisfactionService Desk customer satisfaction

Standards complianceStandards compliance

Critical processes benchmarked as a Critical processes benchmarked as a percentage of critical processes identifiedpercentage of critical processes identified

Comparisons with world class Service Desk Comparisons with world class Service Desk OperationsOperations

FinancialFinancial




Funding Authority Level of SatisfactionFunding Authority Level of Satisfaction

Achievement of expenditure against specified Achievement of expenditure against specified activitiesactivities

Achievement of the endorsed budget planAchievement of the endorsed budget plan

Accuracy and compliance of financial Accuracy and compliance of financial transactionstransactions

Percentage staff completed financial Percentage staff completed financial competency trainingcompetency training

Staff financial competency (self and audit Staff financial competency (self and audit assessment)assessment)

CustomerCustomerC1 - prompt response & resolution of customer concernsC2 - engage the customer proactively and regularlyC3 - market SPUSC IT to customer and stakeholders



Customer Liaison Schedules Customer Liaison Schedules developed and achieveddeveloped and achieved


Value of SPUSC IT as provider of choiceValue of SPUSC IT as provider of choice

Customer understanding of SPUSC IT Customer understanding of SPUSC IT servicesservices

Measure Target Source Method to Collect Data Accountable Person

System Availability 98% Server Logs Develop availability reports JGLocal Help Desk Collect report data SMService Centre Compile report SMNMS Analyse VariousDISG (Net Admin Reports)

Incident Response Time - Telephony

< SLA Peregrine (DVN) Request report RVM

Analyse VariousIncident Response Time - IT < Agreed

time framesService Centre Develop reports BN

Local Help Desk Generate reports SM, BNAnalyse Various

Incident Resolution Time - Telephony

< SLA Peregrine (DVN) Develop reports RVM

Generate reports FM, RVMAnalyse Various

Incident Resolution Time - IT

< Agreed time frames

Service Centre Develop reports BN

Local Help Desk Generate reports SM, BNAnalyse Various

Helpdesk Incident Resolution (Immediate Fix)

70% Service Centre Develop reports BN

Local Help Desk Generate reports SMAnalyse Various

Customer Satisfaction (Having Needs Understood)

85% Customer Satisfaction Survey

Liaise with DISG regarding National Survey

TBD

Conduct survey TBDAnalyse survey TBDInclude relevant questions regarding customer satisfaction

TBD

10. Select and Design Measures for each Objective and Measurement Plan - Business perspective example

How will we know when we have arrived?

Business (internal)Business (internal)People (learning and growth)People (learning and growth)

FinancialFinancial CustomerCustomer

goalsgoals performance indicators performance indicators goalsgoals performance indicators performance indicators

goalsgoals performance indicators performance indicators goalsgoals performance indicators performance indicators

Ability to control costsAbility to control costs Accuracy of IT forecasts Accuracy of IT forecastsEconomy of ITEconomy of IT Competitiveness of IT Competitiveness of IT

costs to the businesscosts to the businessValue of ITValue of IT Costs of IT used in Costs of IT used in valuevalue

addingadding business activities business activities vs costs of IT used invs costs of IT used in overheadoverhead activities activities

Quality of IT services Availability of IT servicesQuality of IT services Availability of IT services (in IT users’ perception)(in IT users’ perception) Compliance to SLAsCompliance to SLAs

Reliability of IT services Number and severity of IT Reliability of IT services Number and severity of IT service interruptionsservice interruptions

Performance of IT Performance of IT On-time IT service delivery On-time IT service deliveryservicesservices (defined by the customer) (defined by the customer)

Change controlChange control Percentage of ‘first time Percentage of ‘first time right’ IT changesright’ IT changes

ManageabilityManageability Hours spent on IT matters by Hours spent on IT matters by non-IT managers vs totalnon-IT managers vs total hours of IT use by non-IT hours of IT use by non-IT staffstaff

SecuritySecurity number of reported security number of reported security violationsviolations

Business productivity Annual business turnoverBusiness productivity Annual business turnover vs cost of running businessvs cost of running business Improvements in business Improvements in business turnover ascribable to ITturnover ascribable to IT Reduction in business costsReduction in business costs ascribable to ITascribable to IT

Service cultureService culture Number of business improve- Number of business improvements initiated by IT providerments initiated by IT provider