Implementing a Work Unit BSC

8/3/2019 Implementing a Work Unit BSC

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Balanced Scorecard Initiative

Implementing a Work-Unit BSC


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The Kaplan-Norton model (1/2)

To achieve the vision of our Work-Unit, we shouldcontinuously deliver our customers needs and expectationsTo deliver continuously and reliably our customers needsand expectations, we should have effective and up-to-dateinternal processes

To implement our internal processes successfully, ourworkforce should be competent, skilled and motivatedTo sustain all the above, we should be financially healthy


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The Kaplan-Norton model (2/2)

Therefore, the strategy is articulated through objectives thatfocus on:

Customers Internal Processes Learning and Growth (people) Finances

that are linked by cause-and-effect relationship

And through measures, targets and initiatives related to thoseobjectives


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Objectives, measures, targets and initiatives

Objectives: Describe the desired outcomesMeasures (KPIs): The tools we use to indicate how wellwe are achieving our objectivesStretch Targets: Describe the desired value we would like

the measure to reach within 3-5 yearsInitiatives: The actions we are planning to take in order toreach those targets


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Mission/ Values/ VisionObjectivesMeasures

TargetsInitiatives

during BSC Review Meetings and inbetween meetings

Implementing the Balanced Scorecard

is to focus on


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Work Unit BSC Review Meetings

The Purpose: Monitor the actual performance of the measures (against targets)

Monitor the progress of strategic initiatives Discuss implications and resolve strategic issues

The Tools: A Report Card for each measure A Microsoft Excel file containing all the data required

The Dates: Suggested every month on a recurring day (e.g 3 rd Wed at 10 am)

At least once a quarterThe Duration:

At least 1 hour each meeting. Initially longer.


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Generic membership of the BSC

Implementation TeamWork Unit Manager (one per Work Unit)Performance Owner (one per Measure)Measure Leader (one per Measure)BSC Coordinator (one per Work Unit)


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Role of the Work Unit Manager

Approves the strategyIssues the agenda of the BSC Review MeetingsChairs the BSC Review MeetingsApproves corrective actions as requiredReviews the minutes of the BSC Review MeetingsIdentifies the BSC Coordinator for the Work Unit


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Role of the Performance Owner

Reports on performance of his/her measures during theBSC Review Meetings

Advocates changes in strategy, initiatives and targetsIdentifies the Measure Leaders for the measures that he/sheis responsible for

Reviews the report card prepared by the Measure Leaders


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Role of the Measure Leader

Finalizes the measure details (e.g. formulae, data sources,frequency of update, method of calculation, etc.)

Prepares the report cards for measures assignedBriefs the Performance Owners prior to the BSC ReviewMeetings

Suggests revised targets and initiatives when necessary


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Role of the BSC Coordinator

Keeps the process of implementing and updating the BSCmoving forward

Coordinates all activities related to the BSC ReviewMeetings with the work unit manager, the performanceowners and the measure leaders

Drafts the agenda of the BSC Review MeetingsDrafts the minutes of the BSC Review Meetings


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Work UnitManager

Coordinator Performance

Owner

MeasureLeader

Staff Executive

Staff

C o o r d i n a t i o n

Attend the BSC Review Meetings

Do not attend the BSC Review Meetings


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Initial Presentations by Performance Owners

The Purpose: Performance Owners to take ownership of the Work Unit BSC

measures Consolidate the work done by the Work Unit BSC Coordinator and

the Measure Leaders Identify major gaps in the objectives and/or measures

Complete any element missing from the report cards, e.g.: Calculation method Targets Initiatives

Management Review frequency and dates


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Initial Presentations by Performance Owners

The Tools: A Report Card for each measure

A Microsoft Excel file containing all the data required

Requirement:

Frequent communications between the Work Unit BSCCoordinator, the Work Unit Performance Owners and the Work Unit Measure Leaders

Frequent communications between the Work Unit Measure

Leaders and the Work Unit Performance Owners


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Tips and recommendations

Dont look for perfection. Momentum is criticalMake participation in the BSC review meetings mandatoryfor all team membersComplete and distribute report cards one week prior tomeeting

Focus discussions on problem areas and strategic issuesDiscussions should not drift to operational minutiaeShare some of the outcomes from these meetings with a

larger audience


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Quality Management processes

A ssess

P lan

D o

C heck

ustomers


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BSC Roll-out Plan

Assign a Project Manager if different than WU managerRevise/Develop the Mission statementRevise/Develop the Vision statementAssign the BSC CoordinatorIdentify the Strategic ThemesIdentify the Strategic ObjectivesDraw the Strategy MapDevelop the MeasuresIdentify Performance Owners and Measure LeadersObtain Senior Management approval


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BSC Roll-out Plan

Identify StakeholdersObtain stakeholders buy-inCollect actual data for each measureSet Targets for each measureIdentify Initiatives for each objectiveObtain senior management approval (targets & initiatives)Develop reporting system (Who, where, what, when)Hold regular Management Review Meetings


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Completion levels of a BSC

10% : Mission and Vision statement exist20% : Objectives and Strategy Map exist

30% : Measures exist40% : BSC Coordinator, Performance Owners and

Measure Leaders assigned50% : Actual data exist for more than half of Measures

60% : Targets set for more than half of Measures70% : Initiatives articulated for more than half of objectives80% : Targets and Initiatives discussed with advisory

committee and approved by higher-level management90% : Report Card exist for more than half of Measures100%: Minutes of three Management Review Meetings

exist


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Microsoft Excel workbook fileContains most of the information needed for the Work Unit BSCAll Measure Leaders of the Work Unit BSC will receivethe same file from the Work Unit BSC Coordinator. Each

measure leader will use the section (s) relevant to him/her3 types of worksheets The Strategy_Map worksheet

The Measures_&_Targets worksheet The Report Card worksheets

Details of the the Work Unit BSC file


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Data Fields to Update:On the Measures_&_Targets worksheet:

Management review frequency Month (of management review) Actual (figures) Target (figures)

On the Report Card worksheets: Calculation method Comments on measures Comments on initiatives

Details of the Measure Leaders role


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Use the Work Unit BSC File to:Update the data fields requiredCommunicate with Work Unit Performance Owner or designee on allthe elements of the report cardsSend the updates to the Work Unit BSC Coordinator ten days prior tothe date of the BSC review meeting

Details of the Measure Leaders role


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Concatenate the following elements:

Work_Unit_Name_BSC Your Name: Firstname_Lastname Date of last update: YYYY_MM_DD

Separate the elements by an underscore _ Example:

UNIVERSITY_LIBRARIES_BSC UNIVERSITY_LIBRARIES_BSC _Helen_Bikhazi_2004_02_25

File Naming Convention

Implementing a Work Unit BSC

Documents