Notes on balanced scorecard

1/104

2/104

Background, Purpose, And Position

Practice Themes

The Balanced Scorecard Offering

Thoughts On Strategy

Strategy

Planning

Beneficial Outcomes

Measurement

Sample Balanced Scorecards

BSC Training Resources

References

3/104

4/104

Positioning

5/104

IT Performance Management applies these concepts to the strategic,

tactical and operational aspects of IT

BSC has many confusing and sometimes conflicting definitions

Positioning

6/104

7/104

Success starts with the management of intangible assets

8/104

† “The Balanced Scorecard: To Adopt or not to adopt?” Kevin Hendricks, Larry Menor

and Christine Wiedman, Ivey Business Journal, Nov/Dec 2004

Drivers

9/104



Balanced Scorecard would more likely benefit firms that

followed a Prospector or Analyzer strategy, and likely not

benefit firms that followed a Defender or Reactor strategy.

Drivers

10/104

Drivers

11/104

† “New Math for the New Economy,” Baruch Lev, Fast Company, 31, January, 2000

“There is no such thing as a free lunch,” — Milton Friedmann

Drivers

12/104

Drivers

Identify the needs of the IT department that focus on …

13/104

14/104

Balanced

Scorecard

Capabilities

Based

Planning

Real Options

Based

Portfolio

Management

Enterprise

Program &

Project

Management

Business and Technology Governance

Enterprise Class Tools and Work Processes

Su

sta

ined

Co

mp

etitiv

e A

dvan

tag

e

Readiness Assessment

Mobilization

Alignment

Sustainment

Balanced Scorecard Is 1 Of 4 Needed Capabilities For Success

Approach

15/104

Strategy Differentiating activities

Vision

Values

Mission

Approach

Mission and Vision are starting points for developing a Balanced

Scorecard from the “top down.” Without a Mission and Vision, the

underlying performance measures have no foundation on which to rest.

Picture of the Future

Guiding Principles

Why We Exist

Bala

nced

Sco

recard

16/104

General Mission

Strategic Themes

Desired Outcomes

Metrics

Strategic

Initiatives

What do we do?

Why is it important?

What results do we want?

How will we know when we’ve achieved these results?

What specific actions do we

believe will lead to these results?

Connecting specific actions with the strategy of the

firm is the role of a Balanced Scorecard

Identifying the strategic initiatives that support the organization strategies is key

beneficial outcome of deploying a Balanced Scorecard in IT

Approach

17/104

Mobilization

Mobilize change

through executive

leadership

Achieve

commitment from

the top

Build the

executive team

Build the case for

change

Identify initial

KPIs, CSFs, Goals

and Initiatives

Identify target

strategies

Missionary

Alignment

Translate the

strategy

Align the

organization

Define and clarify

the strategy

connections

Establish long

term targets

Communicate the

strategy

Connect measures

with strategies

Change Agent

Sustainment

Motivate the staff

Govern the

organization

Focus the staff

Align

accountability and

rewards

Develop human

capital

Re–define

governance

Get results

Strategy Focused

Readiness

Assess readiness

for BSC initiative

Identify gaps &

closure plans

Conduct

Readiness

Assessments

• Cultural

• Operational

• Data

• Governance

Identify and close

gaps

Prepare for

deployment

Discovery

Approach

The four phases of the Balanced Scorecard deployment are broad and

general purpose, focused on increasing maturity. The details of the

deployment must be developed in order to achieve success

18/104

The four phases of the

BSC deployment are a

sequence that builds

the increasing maturity

of the scorecard.

With the scorecard in place, the

Capabilities needed to fulfill the

strategy, the options trade–offs

for existing and future projects,

and the enterprise tools to

manage this portfolio.

Mobilization

Mobilize change

through executive

leadership

Achieve commitment

from the top

Build the executive

team

Build the case for

change

Identify initial KPIs,

CSFs, Goals and

Initiatives

Identify target

strategies

Missionary

Alignment

Translate the strategy

Align the organization

Define and clarify the

strategy connections

Establish long term

targets

Communicate the

strategy

Connect measures

with strategies

Change Agent

Sustainment

Motivate the staff

Govern the

organization

Focus the staff

Align accountability

and rewards

Develop human

capital

Re–define

governance

Get results

Strategy Focused

Readiness

Assess readiness for

BSC initiative

Identify gaps &

closure plans

Conduct Readiness

Assessments

• Cultural

• Operational

• Data

• Governance

Identify and close

gaps

Prepare for

deployment

Discovery

Balanced

Scorecard

Capabilities

Based

Planning

Real Options

Based

Portfolio

Management

Enterprise

Program &

Project

Management

Business and Technology Governance

Enterprise Class Tools and Work Processes

Su

sta

ined

Co

mp

etitiv

e A

dva

nta

ge

Approach

19/104

Approach

† Alignment: Using Balanced Scorecard to Create Company Synergies,

Norton and Kaplan, Harvard Business School Publishing Company, 2006

20/104

Develop

Strategic Goals

Mission Vision Clarify mission &

Vision statement

Strategic Goals

Derive

Sub–Goals Sub–Goals

Map Sub-Goals to

each quadrant of the

Balanced Score Card

Apply GQ(I)M to:

– Identify measurement areas

– Develop measurement goals

– Pose relevant questions

– Postulate indicators

– Identify data elements

For each BSC Quadrant

Performance Data

Elements

Module

Tro

ub

le R

ep

ort

s

Indicators

Balanced Scorecard

Strategy Map

Derived from

“Developing Enterprise–Wide

Measures for Tracking

Performance,” Software

Engineering Institute

GQ(I)M

Goal

Question

Indicator

Measure

Budget Perspective

Budget

Management

Resource

Management

Internal Processes Perspective

Stakeholder Perspective

Application Quality Time to Delivery System CapabilitiesStakeholder

Relations

Recognition

of Value

Service Attributes Relationships

Operations

Management

Stakeholder

Management

Innovation

Processes

Regulatory

Processes

Human Capital

Information Capital

Organizational Capital

Learnings & Growth Perspective

Image

Project

Performance

Culture Leadership Alignment Teamwork

KPI’s, Targets,

CSF’s for each

Objective

Approach

21/104 Derived from “Developing Enterprise–Wide Measures for Tracking Performance,” Software Engineering Institute”

Approach

Focusing on Goals, the Success Criteria separates the measures of success

from the task progress indicators. This separation distinguishes physical

progress from business value – both are needed, but they are not the

same.

Success

Criteria Goal

Strategy to

accomplish

the goal

Progress Indicators

Success Indicators

Task 1 Task 2 Task 3

Task n

Tasks to Accomplish

goal

• •

Task 1 Task 2 Task 3

Task n

Tasks to Accomplish

goal

• • • •

Analysis Indicators

80

20

40

60

100

Tasks

Test C

ases

Co

mp

lete

Functions Reporting Periods

Planned

Actual

1 2 3 4 1 2 3 4

%

Reporting Periods

80

20 40

60

100

22/104

GOAL(s)

Question 1 Question 2 Question n • • •

SLOC Staff-hours Trouble Reports Milestone Dates

Approach

Derived from “Developing Enterprise–Wide Measures for Tracking

Performance,” Software Engineering Institute``

23/104

IT Development

Balanced

Scorecard

IT Operations

Balanced

Scorecard

IT

Balanced

Scorecard

Business

Balanced

Scorecard

Approach

24/104

Approach

25/104

Themes

† Michael E. Nagel, Vice President, Balanced Scorecard Collaborative

26/104

Themes

27/104

Themes

If executives are having a normal meeting and talking about strategy, but

instead focusing on tactics – then they’re not fulfilling their roles as

leaders of their respective organizations

28/104

Themes

29/104

Themes

30/104

Themes

† Advice from Bruce W. Harber, CEO North Shore Health Board, Vancouver, B.C.

31/104

Positioning

32/104

From, Functions of an Executive, Chester Barnard, 1938.

Barnard laid the foundations of management theory. Bernard is widely

credited with having originated the “Systems” approach to the study of

organizations. He recognized that in order for the organization to survive in

the external environment and to succeed in the long run, it was necessary

to sustain cooperation from employees by satisfying the condition of

efficiency.

Positioning

33/104

Positioning

34/104

Positioning

35/104

These are core issues with almost every organization

Positioning

36/104

1.

2.

3.

The original 4–quadrant BSC fails to make the cause and effect connection

between action and outcome – strategy maps replace this approach and

show how to “connect the dots”

Positioning

37/104

First Generation Second Generation Third Generation

BSC as a framework for

organizational change

BSC as a

management

system

BSC as a

performance

evaluation system

• Performance measures

• Breakdown of strategy

• Four perspectives

• Strategic objectives,

performance indicators, key

performance parameters

• Performance linked to

compensation

• Organizational learning

• Identifying and solving

operational problems

• Feedback for planning

• Organizational

knowledge

• Organizational change

• Strategy maps

• Strategy patterns

• Integration of budget

and personnel plans

• Changing the

organizational behavior

A scorecard practice should move the client toward the 3rd generation.

They’ll have to get there eventually in order to impact their organization

– might as well start out headed in that direction on day one.

Positioning

38/104

Positioning

39/104

Positioning

40/104

Positioning

41/104

Strategies fail for a simple reason – their inability to be executed

Positioning

42/104

Vision Barrier Only 5% of the workforce

understands the strategy

Informed action is virtually impossible without sound knowledge of the organizations strategy

People Barrier Only 25% of managers have

incentives linked to strategy

Incentives linked to short-term financial targets, leads to less than rational decision making at the expense of long term sustainable success

85% of executive teams spend less than one hour per month discussing strategy

Without a clear and concise blueprint for success – the strategy – manage will focus on financial and operational details

Resource Barrier

60% of organizations don’t link budget to strategy

Based on strategy, what initiatives distinguish us from our competition?

Only 10% of organizations successfully execute their strategies

† Norton and Kaplan and, in Balanced Scorecard Diagnostics: Maintaining Maximum Performance,

Paul R. Niven, John Wiley & Sons and Strategy Safari, Mintzbert, Ahlstrand and Lampel, The Free

Press, 1998.

The four primary barriers that lay the seeds of strategy failure …

Positioning

43/104

In many studies of patients who have undergone coronary bypass surgery, only one in nine people, on average, adopts healthier day-to-day habits […] [even if] they clearly see the value of changing their behavior.

“The Neuroscience of Leadership,” David Rock and Jeffery Schwartz, strategy+business, Summer 2006

Instituting change is at the heart of a successful Scorecard

Positioning

44/104

Success

Confusion

Anxiety

Gradual

Change

Frustration

False Starts

Vision Action Plan Resources Skills Incentives

Action Plan Resources Skills Incentives

Vision Action Plan Resources Incentives

Vision Action Plan Resources Skills

Vision Action Plan Skills Incentives

Vision Resources Skills Incentives

Vision

Skills

Incentives

Resources

Action Plan

All five components of strategy are needed for true success

Positioning

45/104

Deriving Enterprise-Based Measures Using the Balanced Scorecard and Goal-Driven measurement Techniques, Wolfhart

Goethert and Matt Fisher, Software Engineering and Measurement Analysis Initiative, CMU/SEI-2003-TN-024, October 2003

The BSC must be placed in the context of process improvement

Positioning

46/104

Strategies Key Performance Indicators

User Orientation

Be the supplier of choice for services

Customer satisfaction

User survey score

Percentage of projects delivered on time

Business Value

Focus resources on attaining business strategies through effective delivery

Total business impact

Service budget as a percentage of revenue

Cost impact for each release

Percentage of budget allocated to new development

Operational Excellence

Deliver timely and effective services at or under budget

Budget versus actual

Staff utilization

Staff turnover

Historical availability

Future Orientation

Develop internal capabilities to learn and innovate to exploit future opportunities

Number of documented best practices

Existence of Process Architecture

A simple set of goals provides a good staring point for a BSC

Positioning

47/104

Connecting Critical Success Factors with Key Performance Indicators provides traceability from execution at the project level to fulfillment of strategic objectives.

Budget Perspective

Budget

Management

Resource

Management




Relations

Recognition

of Value


Operations

Management

Stakeholder

Management

Innovation

Processes

Regulatory

Processes

Human Capital

Information Capital



Image

Project

Performance


Positioning

48/104

Selection Key Performance Indicators identified

Connection align KPIs with Critical Success Factors

Collection Manage KPI process

Presentation Dashboards, Strategy Maps, Performance Indicators

Action Drive performance improvement

Positioning

49/104

Performance Goal Key Performance

Indicator (KPI)

Critical Success

Factor (CSF)

Strategic Objective

Be The Preferred

Supplier Of Business

Applications

Traceable to

Increased Customer

Revenue

Provide on-time, on-

budget, on-

specification for our

enterprise applications

Budget Variance

Schedule Variance

% Requirements

Variance

BPI ≥ 0.95

CPI ≥ 0.97

Function Points

Delivered ≥ 90%

Target

Provide scalable

platform for

acquisition and

growth of our

customer base

Cost of Delivery

Impact

Performance Impact

Global Operational

Baseline

Declining Cost per

Customer

SLA Compliance ≥

0.98

24/7/365 Non-Stop

Operations

What How Measures

Vision

Positively Impact

Financial

Performance

Why

Top Down

Making the effect-and-cause connection between Strategy and Key Performance Indicators is the role of an Balanced Scorecard automation system

Flow Down from Strategy to KPIs

Positioning

50/104


Indicator (KPI)

Critical Success

Factor (CSF)

Strategic Objective

Be The Preferred


Applications

Traceable to

Increased Customer

Revenue


budget, on-



Budget Variance

Schedule Variance

% Requirements

Variance

BPI ≥ 0.95

CPI ≥ 0.97

Function Points

Delivered ≥ 90%

Target

Provide scalable

platform for

acquisition and

growth of our

customer base

Cost of Delivery

Impact

Performance Impact

Global Operational

Baseline

Declining Cost per

Customer

SLA Compliance ≥

0.98

24/7/365 Non-Stop

Operations

What How Measures

Vision

Positively Impact

Financial

Performance

Why

Bottom Up

Making the cause-and-effect connection between Key Performance Indicators and Strategy is the role of an Balanced Scorecard automation system

Flow Up from KPIs to Strategy

Positioning

51/104

Many organizations have operational metrics in place. Identifying the Key

performance measures is the starting place for developing a strategy

based Scorecard


Indicator (KPI)

Critical Success Factor

(CSF)

Strategic Objective

Be The Preferred


Applications

Traceable to

Increased Customer

Revenue


budget, on-



Budget Variance

Schedule Variance

% Requirements

Variance

BPI ≥ 0.95

CPI ≥ 0.97

Function Points

Delivered ≥ 90%

Target

Provide scalable

platform for

acquisition and growth

of our customer base

Cost of Delivery

Impact

Performance Impact

Global Operational

Baseline

Declining Cost per

Customer

SLA Compliance ≥ 0.98

24/7/365 Non-Stop

Operations

What How Measures

Vision

Positively Impact

Financial

Performance

Why

Moving from ad hoc collections of performance metrics to Key Performance Metrics (KPI) to a

Strategy Focused Organization (SFO), is a natural progression for many organizations.

Making the connections between “ad hoc” metrics to KPI’s then to CSF’s creates a Line of Sight

between tactical performance measurement of strategy.

An ad hoc collection of

existing operational

performance metrics.

Each metric was

created for a good

reason, but not

necessarily for a the

measurement of a

strategic objective

Flow Up from Ad Hoc to KPIs to CSF to Goals to Strategy

Positioning

52/104

Budget Perspective

Budget

Management

Resource

Management




Relations

Recognition

of Value


Operations

Management

Stakeholder

Management

Innovation

Processes

Regulatory

Processes

Human Capital

Information Capital



Image

Project

Performance



Indicator (KPI)

Critical Success Factor

(CSF)

Strategic Objective

Be The Preferred


Applications Traceable

to Increased Customer

Revenue


budget, on-specification

for our enterprise

applications

Budget Variance

Schedule Variance

% Requirements

Variance

BPI ≥ 0.95

CPI ≥ 0.97

Function Points

Delivered ≥ 90% Target

Provide scalable

platform for acquisition

and growth of our

customer base

Cost of Delivery Impact

Performance Impact

Global Operational

Baseline

Declining Cost per

Customer

SLA Compliance ≥ 0.98

24/7/365 Non-Stop

Operations

What How Measures

Vision

Positively Impact

Financial Performance

Why

Bottom Up

Making the cause-and-effect connection between Key Performance Indicators and Strategy is the role of an Balanced Scorecard automation system

Flow Up from KPIs to Strategy

The Strategy Map described the

cause and effect connection

between each Strategic

Objective

The Metrics Map describes the

relationships between the Key

Performance Indicators, Critical

Success Factors, and

Performance Goals in support

of a Strategic Objective

Bi-directional

traceability

between

tactics and

strategy

Positioning

53/104

54/104

Strategy

Strategy is not the same as operational excellence …

55/104

Business

Strategy

Critical

Performance

Variables

Risks to be

Avoided

Core

Values

Strategic

Uncertainties

Belief

Systems Boundary

Systems

Diagnostic

Control

Systems

Interactive

Control

Systems

Obtaining

commitment for a

grand purpose

Staking out the

Territory

Getting the job

done

Positioning for

tomorrow

Internal Controls † “Levers of Control: How Managers

Use Innovative Control Systems to

Drive Strategic Renewal ,” R. Simons,

Harvard Business School, 1995

Strategy

56/104



Strategy

57/104

‒

‒

‒

‒

‒

Strategy

Mission and Vision provide the anchors for developing strategy. Without

a mission and vision the underlying performance metrics don’t have a

foundation on which to stand. “Why are we measuring this activity?” Ask

the Mission and Vision for the answer

58/104

Strategy

Implementing Balanced Scorecard, Jessica Keys, Auerbach, 2005 † The connection between scorecard performance and compensation is important, but it is also important to

understand that this connection comes ONLY in a mature organization where the scorecard and the resulting

performance has been operational for some time. Without this maturity the expected benefits will not appear

To be effective, the scorecard should have attributes like these

59/104

Strategy

Implementing Balanced Scorecard, Jessica Keys, Auerbach, 2005

Common Pit Falls Impact on the Performance Initiative

An IT centric view of IT performance

Lack of senior management involvement in metrics selection and refinement

Measures that don’t matter to the business

No explicit link between metrics and IT strategy

Lack of common ground Lack of common metrics definitions complicates aggregation

An over reliance on tools Lack of focus on data collection processes leads to inaccurate and outdated data

No drill–down capability Unavailable context for scorecard–level metrics hinders interpretation

Too many metrics Lack of aggregation and screening of low–level metrics results in cumbersome reports

No individual impact Individual lack incentives to impact scorecard performance

Co

lle

cti

on

S

ele

cti

on

R

ep

ort

ing

U

se

It is easy to fall into the trap of being metrics focused rather than strategy

focused. Make sure these “sins” are not present in the BSC. If they are,

take explicit actions to remove them

60/104

Strategy

“The Market–Based Adaptive Enterprise: Listening, Learning and Leading Through Systems Thinking, Vincent

P. Barabba, in Proceedings Russell L. Ackoff and The Advent of Systems Thinking, March 1999

It is VALUE we’re after with the IT Balanced Scorecard

61/104

Strategy

In order to deliver value we must first be ready to deliver value

62/104

Strategy

¾’s of the BSC value comes from intangible assets.

Only the financial quadrant can be traced to tangible assets

63/104

Strategy

Strategy converts intangible assets into tangible outcomes

An example of intangible asset manage built around a scorecard

64/104

65/104

66/104

Information Outlook Online, March 2005

Planning

Planning is a continuous improvement process

67/104

Role Responsibilities

Executive Sponsor

Assumes ownership for the Balanced Scorecard project

Provides background information to the team on the strategy and methodology

Maintain communication with senior management

Commit resources to the team

Provide support and enthusiasm for the Balanced Scorecard throughout the organization

Balanced Scorecard Champion

Coordinates meetings; plans, tracks and reports team results to all audiences

Provides thought leadership on the Balanced Scorecard methodology

Ensures that all relevant background material is available to the team

Provides feedback to the executive sponsor and senior management

Facilitates the development of an effective team through coaching and support

Team Members

Provide expert knowledge of business unit or functional operations

Inform and influence their respective senior executives

Act as Balanced Scorecard ambassadors within their business units

Act in the best interest

Organizational Change Expert

Increase awareness of organizational change issues

Investigates change-related issues affecting the Balanced Scorecard project

Works with the team to produce solutions mitigating change-related risks

Planning

Balanced Scorecard Diagnostics: Maintaining Maximum Performance, Paul R.

Niven, John Wiley & Sons

68/104

Planning Phase 1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

1 Develop objectives for the BSC

2 Determine the appropriate business unit

3 Gain executive sponsorship

4 Build the BSC team

5 Formulate the project plan

6 Develop the communication plan

Development Phase

1 Gather and distribute background material

2 Develop or confirm, mission, values, vision, & strategy

3 Conduct executive interviews

4 Develop objectives and measures

4a Executive workshop

4b Gather employee feedback

5 Develop cause and effect linkages


6 Establish targets for measures


7 Develop ongoing Balance Scorecard plan

Planning

Balanced Scorecard Diagnostics: Maintaining Maximum Performance, Paul R.

Niven, John Wiley & Sons

69/104

70/104

Allan R. Bailey, Chee W. Chow, and Kamal M. Haddad,

"Continuous Improvement in Business Education: Insights from the

For-Profit Sector and Business School Deans," Journal of

Education for Business, January-February 1999, pp. 165-181

Beneficial Outcomes

The benefits appear “soft” at first, they are “booked” as well

71/104

Beneficial Outcomes

72/104

73/104

74/104

Measurement

75/104

Core Measure Processes

Measurement

Establish

Commitment Plan Perform Evaluate

Techncial &

Management

Processes

Improvement Actions

User Feedback Information Needs

Analysis

Results

76/104

People Procedures Data Software Hardware

Owner of the PMS

People accountable for the units of measure

People who set up and maintain the PMS

Data suppliers

Internal and external users of the PMS

Internal and external stakeholders

Procedures and rules for the definition of the performance indicators

Rules for data management

Rules for data communication

Rules for the use of the performance results

Performance relevant data, the “as is” values

“To be” values of the performance indicators

Performance results (calculated data)

Meta data description of the performance indicators

Software for the extraction, transformation and loading of the data

Database management software. Data warehousing software

Data analysis software

Presentation and communication software

Personal computers

Servers

Communication infrastructure

Storage

Measurement

77/104

Guide to a Balanced Scorecard

Performance Management Methodology,

National Partnership for Reinventing

Government, U. S. Department of

Commerce, 1999

Measurement

78/104

Measurement

79/104

Measurement

“What to do with your ugly measures!,” Stacey Barr, www.staceybarr.com

It’s easy to create “ugly” measures, so test the outcomes of each measure before use

http://www.staceybarr.com/

80/104

“The Metrics Trap,” CIO Magazine, Feb 15, 2004

Too many CXOs judge implementations by measuring the technical

capacity of a project, instead of considering how it has improved their

companies' business

Measurement

81/104

1.

2.

3.

4.

5.

“Two Mistakes Most Professional Services Organizations Make,” Thomas Lah,

Technology Professional Services Association (TPSA)

Measurement

Each metric needs to be tested against these attributes

82/104

1.

2.

3.

4.

5.

Measurement

Implementing Balanced Scorecard, Jessica Keys, Auerbach, 2005

Perverse metrics, linked to perverse incentives, always yields to perverse results

83/104

Measurement

Deriving Enterprise-Based Measures Using the Balanced Scorecard and Goal-Driven measurement

Techniques, Wolfhart Goethert and Matt Fisher, Software Engineering and Measurement Analysis Initiative,

CMU/SEI-2003-TN-024, October 2003

Metrics are useful, indicators are better suited for strategy

84/104

85/104

86/104

87/104

Budget Perspective

Budget

Management

Resource

Management




Relations

Recognition

of Value


Operations

Management

Stakeholder

Management

Innovation

Processes

Regulatory

Processes

Human Capital

Information Capital



Image

Project

Performance


88/104

Inte

rna

l P

roc

es

se

sP

roje

ct

Ex

pe

cta

tio

ns CompetencyCompetency ContributionContributionCredibility

Operational ExcellenceOperational Excellence Project / IT AlignmentProject / IT Alignment Solutions LeadershipSolutions Leadership

Bu

sin

es

s

Re

su

lts

Provide appropriate technology to

enable success - P2


enable success - P2

…enable firm to accelerate

market deployment - R3


market deployment - R3 …enable profitable

operations - R1

…enable profitable

operations - R1……reduce overall

operating costs - R2

……reduce overall


“Keep my

systems running”

- E1

“Keep my

systems running”

- E1

Deliver solutions

on schedule - P6

Deliver solutions

on schedule - P6Manage

requirements - P7

Manage

requirements - P7

“Understand my

operation” - E3

“Understand my

operation” - E3

Improve

processes for

efficiency

and quality -

P4

Improve

processes for

efficiency

and quality -

P4

Strategically deploy services - P8Strategically deploy services - P8

Reduce the cost of

providing services - P1

Reduce the cost of


Centralize IT

resources - P5

Centralize IT

resources - P5Enhance customer

relationships - P9

Enhance customer

relationships - P9

Provide innovative

solutions - P3

Provide innovative

solutions - P3

“Implement timely and cost-

effective solutions” - E4



“Manage to

corporate goals”

- E2

“Manage to

corporate goals”

- E2

Pe

op

le a

nd

To

ols Provide employees with

the tools and knowledge

they need - S4

Provide employees with


they need - S4

Develop and

retain critical

skills - S1

Develop and

retain critical

skills - S1

Recognize team

and individual

performance - S3

Recognize team

and individual

performance - S3

Build a high performance

culture - S2


culture - S2

Leverage

knowledge and

best practices - P10

Leverage

knowledge and


“Do the right things, do them well, do them with less, to…”

Inte

rna

l P

roc

es

se

sP

roje

ct

Ex

pe

cta

tio

ns CompetencyCompetency ContributionContributionCredibility

Operational ExcellenceOperational Excellence Project / IT AlignmentProject / IT Alignment Solutions LeadershipSolutions Leadership

Bu

sin

es

s

Re

su

lts


enable success - P2


enable success - P2


market deployment - R3


market deployment - R3 …enable profitable

operations - R1

…enable profitable

operations - R1……reduce overall


……reduce overall


“Keep my

systems running”

- E1

“Keep my

systems running”

- E1

Deliver solutions

on schedule - P6

Deliver solutions

on schedule - P6Manage

requirements - P7

Manage

requirements - P7

“Understand my

operation” - E3

“Understand my

operation” - E3

Improve

processes for

efficiency

and quality -

P4

Improve

processes for

efficiency

and quality -

P4

Strategically deploy services - P8Strategically deploy services - P8

Reduce the cost of


Reduce the cost of


Centralize IT

resources - P5

Centralize IT

resources - P5Enhance customer

relationships - P9

Enhance customer

relationships - P9

Provide innovative

solutions - P3

Provide innovative

solutions - P3





“Manage to

corporate goals”

- E2

“Manage to

corporate goals”

- E2

Pe

op

le a

nd

To

ols Provide employees with


they need - S4

Provide employees with


they need - S4

Develop and

retain critical

skills - S1

Develop and

retain critical

skills - S1

Recognize team

and individual

performance - S3

Recognize team

and individual

performance - S3


culture - S2


culture - S2

Leverage

knowledge and


Leverage

knowledge and


“Do the right things, do them well, do them with less, to…”

89/104

90/104

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Enterprise mission goals

% mission improvement (cost, time, quantity) attributed to IT solutions and services

% planned IT benefits achieved

% IT strategies fully matched to enterprise strategies

Portfolio Analysis and Management

% IT portfolio reviewed and disposed

% compliance to approved IT solution deployment

% reusability of core modules

Financial and investment performance

% total IT costs by major asset categories (hardware, software, personnel, facilities, management)

IT budget as % of operational budget and compare to industry average net present value, internal rate of return, return of investment, return on assets percentages (aggregate or by project)

IT resources usage

% databases that can be shared

% hardware/software with interoperability capabilities

93/104

Customer partnership and involvement

% cooperative customer and IT applications design

% joint development service level agreements

% customers attending IT investment meetings

Customer satisfaction

% customers reporting full use of applications

% customers satisfied with IT application design

% customers satisfied with IT maintenance and support

% of problems resolved within target time

% products launched on time taken to fulfill service requests

Business process support

degree to which IT solution support process improvement plans

degree to which IT aids process analysis

degree to which IT solutions can adapt to new requirements

incremental cost to transfer application to new hardware platform

94/104

Architecture standards compliance

% procurement exception to architecture standards

N variations from standards detected by review and audit per year

% increase in systems using standard architecture

Project performance

% projects on time, on budget

% projects using standard methodology for systems analysis and design

N backlog on enhancement and maintenance requests

Infrastructure availability

% system availability

% applications availability

on-line system response time

95/104

Workforce competency and development

N staff trained by skill area

% staff training uses new technologies and techniques

% staff professionally certified

% IT budget devoted to training and staff development

Employee satisfaction

% employees satisfied with the existing technical and operating environment to deliver quality products or services

% employees satisfied with training

% employee turnover by function

96/104

97/104

98/104

http://www.balancedscorecard.org/

http://www.bscol.org

http://www.continuinged.uncc.edu/certificate/proc_mgmt/proc-mgmt.htm

http://www.scip.org/

http://www.academyci.com/scip.html

http://www.balancedscorecard.org/

http://www.bscol.org/




http://www.scip.org/

http://www.academyci.com/scip.html

99/104

http://www.casewise.com/index.php

http://www.casewise.com/index.php

100/104

101/104

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These books are Mandatory reading for anyone claiming to practice the discipline of

Balanced Scorecard

103/104

www.ejise.com

These papers and articles are reading for background, ideas, and guidance

http://www.ejise.com/

104/104