Balanced ScorecardPractitioners Forum

Launch Meeting 16th December 2003Oracle City Office

Why this Forum

Why did I think of setting up a forum ? What is the aim of the forum ?Why is the BSC Relevant to Public Sector ?

Agenda9.30 am Registration and Coffee

STRATEGY10.00 am Scorecard Heroes - What Makes a Great Scorecard

Peter Sparrow. Government Applications. Oracle Corporation

DESIGN10.45 am Choosing the Right Fabric,A Framework for Performance Information in Government.

Alex Hill. Performance Information + Reporting Advisor. HM Treasury

IMPLEMENTATION11.30 am Implementation Examples from Public Sector

Paul Badger. Principal Sales Consultant. Oracle Corporation

Agenda Continued12.30 pm Buffet Lunch

1.00 pm Workshop Session – Looking at the 5 Steps to Implementation, key drivers for the project, exploring barriers to implementation and lessons learned.Facilitated by Nick Hancock. Business Consultant. Oracle Corporation.

2.00 Coffee Break

IMPLEMENTATION 2.10 pm Balancing Commercial and Government Performance.

Experiences to Date. Graeme Smith. Business Improvement Manager. Ordnance Survey.

3.00 pm Summary, Collect Feedback Forms and Close

The Public Sector Business Environment –may be use an Education Example

Funding is Incremental, and Yearly Stop/GoInitiative Overload Budgeting is political process Plenty of KPI’s available and measured

……..How can we be hope to be strategic ?

…and what are the right perspectives ?

CUSTOMER– Complexity of customer/stakeholder environment Complex Issues –

casual linkage FINANCIAL

– Spend the Budget (make best use of resources)– Who is our Competition is there a surrogate?

INTERNAL PROCESSES– Cross-cutting initiatives versus departmental objectives – Engendering team work

LEARNING AND GROWTH – Control culture not leadership– Achieve alignment without incentive pay

The Scorecard Heroes

or What Makes a Great Balanced Scorecard in Government

Hero no 1.STRATEGIC OR

BREAKTHROUGH THINKING

Hero no 2.ACHIEVING BALANCE

Hero no 3.ORGANISATIONAL

ALIGNMENT

Hero no 4.CULTURE CHANGE

+ CUSTOMER CARE

Hero no 5.NAVIGATION

(not MEASUREMENT)

City of Charlotte FY2002-FY2003 Corporate ScorecardCity Council Focus Areas

Corporate Scorecard

Community Safety

City within a City

Restructuring GovernmentTransportationEconomic

Development

Customer

Financial

Internal BusinessProcess

Learning + Growth

ReduceCrime

IncreasePerception

of Safety

Strengthen Neighbourhoods

Enhance ServiceDelivery

Maintain Competitive

Tax Rate

Provide Safe

Convenient Transportation

PromoteEconomic

Opportunity

Expand Non-CityFunding

MaximiseBenefit/Costs

Grow theTax Base

Maintain AAA Rating

Enhance CustomerService

Promote Community Based Problem Solving

ImproveProductivity

Increase Infrastructure

Capacity

Enhance Knowledge Management

Achieve Positive Employee Climate

Close Skills Gap

Increase Positive Contacts

5 Focus Areas, City Leadership, PartnershipEmpowered Neighbourhoods & High Citizen Participation, Strong Innovative Private Partnerships

Single department issues - CabinetsCascade to Business Unit Scorecards & Employee compensation

Mission Driven GovernmentFrom 900 Measures to 19 Objectives with 19 Critical MeasuresOutcomes and Results (e.g. Quality of Life Index)

Audit Tool Planning ToolIntegrated Budgeting – work underwayNot all departments treated as strategic

Service Focus + Multi-Channel Communicatione-Business

What did they Achieve

Read the local paper and its full of praise for the City Council !!!Articles on praising vehicle licensing employees !!

One of the Top ten places to Live Money, "The Best Places to Live," December 2002also rated highly - as among top place to be Single, Black Family, Most Liveable Cities (no1 in 1995), Creativity, Real Estate, Parks, Cyber-City…….Univ Of North Carolina – IOG Benchmarked versus other Carolina State Authorities – consistently lower costs and better outputs for Highways, Police, Fire, Refuse

18th Straight year without a Property Tax increase (20% population growth)Public Transit passengers increases (c.f. National decline)

Practical Help Available

Get the Right Strategy Map Right– Design Review - 5 Heroes study + Scorecard Training

Oracle Solution Value Assessment for BSC– Data Sources, – Data Repository Strategy – Integration of Systems– Cascade and Roll out approaches– Integration of e-Surveys, budgeting, compensation/benefits

Costs reduction of MIS infrastructureRapid Prototyping in 30 days – see your business in our software – central government or specific strategiesLocal Government Best Value Measures – standard package

Nine Tenths of tactics (execution of strategy) were certain enough to be teachable in schools, but the irrational tenth was like the kingfisher flashing across the pool, and in it lay the test of generals (managers).

T.E. Lawrence

BSC Workshop

Why are you implementing a BSC ?– Prioritise the reasons 1 to 5 – Consolidate into a flip chart

What are the Barriers to Implementing a BSCBSC Process

– Define Strategy and Metrics– Design the Scorecard– Identify Data Sources– Build the Links to Data Sources– Define the Drill Down Communication

What is the right perspective Kaplan + Norton/Functional/Service Line?Stakeholder

How did they do?

RightsizeReorgnise: Business Units replacement departmentsFocus Areas and ObjectivesStrategic Plan Business PlansLeadership Development

Brownfields developments plan involving planning, transport, engineeringCommunity Policing – police Neighbourhood Development and Housing Depts.Code Enforcement

Master of Your Own Destiny an example from the Public Sector

A school –desire to raise the standardLast Year it –

– Recruited a New Head twice (early retirement policy)– Responded to amalgamation/closure– Consultation exercise– Recruit and train LSA’s– Harmonisation of employee conditions – Implemented EU working directive– Child protection – DFES withdrew funding on specific areas– Balanced Budget– Plus 30 other external directives

……..How can we be hope to be strategic ?

The Prize = The “Strategic Dividend”

(USM&R)1993

#6 in profitability

199519961997

#1 in profitability#1 in profitability#1 in profitability

Mobil

1993Property & Casualty

Brown & Root Engineering (Rockwater)

1993Losing money 1996

#1 in growth and profitability

Profit Stock

$275M loss

Stock Price = $59

1994199519961997

$15M$60M$80M$98M

$74$114$146$205

City of CharlotteNorth Carolina 1996

8% Cut in Budgets20% increase

in Demand

One of the Top Ten Places to Live in USA

2003