1. The Balance Scorecard: Creating Alignment and Simplifying Daniel Hayden, Rare dhayden@rareconservation.org

2. Agenda A bit about Rare What are Balanced Scorecards What is Rare’s Balanced Scorecard How Rare uses the Balanced Scorecard

3. Our specialty: Social marketing to reduce threats Method Summary: Rare trains partners to run “Pride campaigns” that change attitudes and behaviors, provide sustainable alternatives, and help communities protect biodiversity at the local level Founded: 1972 Central office: Arlington, Virginia USA Regional offices: Indonesia, China, Mexico Total staff globally: 75 # of countries Rare has worked in: 57 3 Rare at a Glance

4. Theory of Pride Commercial marketing practices can be used to sell conservation People have material, esthetic and aspirational needs People’s choices are based on rational and irrational factors Pride is one of human’s great motivators Pride + the right solution will drive behavior change Instilling conservation values makes a community resistant to new threats

5. Rare Strategy Execution (BSC) Ongoing monitoring Objectives Partner Selection Pre Campaign Post Campaign Measurement begins at strategy design and is implemented through the campaign cycle Measurement is Part of Design

6. Agenda A bit about Rare What are Balanced Scorecards What is Rare’s Balanced Scorecard How Rare uses the Balanced Scorecard

7. Balance Scorecard Basics Mapping Strategy: Mission Strategic Themes Strategic Results Organizational Alignment Vision/Mission Financial Customer Learning & Growth / Human Capital Internal Business Processes The Balanced Scorecard methodology is an approach that recognizes that organizational sustainability is not about delivering results one year, but the ability to create results over many years.

8. Organizational Alignment Definitions Each of these elements must be in “in balance” to ensure organizational sustainability Vision/Mission Financial Customer Learning & Growth / Human Capital Internal Business Processes Includes employee training and corporate cultural attitudes related to both individual and corporate self- improvement. Metrics that allow managers to know how well their team is running, and whether its products and services conform to customer requirements (the mission). Recognizes the importance of customer focus and customer satisfaction are leading indicators. If customers are not satisfied, they will eventually find other suppliers. Timely and accurate funding is essential, but it is “in balance” with other organizational objectives. Financial measures should focus on current and future needs. A mission statement defines why an organization exists; the organization's purpose

9. Fully implemented Balanced Scorecard Source: © 2007 by the Balanced Scorecard Institute, a Strategy Management Group company. All rights reserved.

10. Agenda A bit about Rare What are Balanced Scorecards What is Rare’s Balanced Scorecard How Rare uses the Balanced Scorecard

11. Rare’s Strategy Map The Strategy Map Defines the Processes that Support Our Mission 11

12. Mission Focus Partner / Customer Focus Human Capital Financial Business Process Rare’s Regional BSC

13. Metric Report Combines Data on the Outcomes, Process and Rules Status trend Definitions Governance Business rules Outcomes Drillable transparency across the whole organization

14. Weekly Flash Report Pride Scorecard Summary Report Rare and Departmental Balanced Scorecard Brief update on the short-term status of an individual campaign Comprehensive view of the long-term status of an individual campaign Summary of status of a group of campaigns Average status of a group of campaigns Programmatic Reporting Flow Connects Strategy with Execution 14 Data Flows Up from Regions Strategy Flows Down

15. Global Teams Drive Adoption Global Teams Advocate Around BSC Measures Cohort Development Team Quality Management & Improvement Global Programs Manages the recruitment of partners Helps select which partners and sites we should work with Helps set standards for all Pride campaigns Monitors campaigns against set goals Designs training for programmatic staff Creates training for our Pride campaign managers (partner staff) Sets expects about behavior change Monitors impact Pride Management Process Select Theme Recruit & select Partners Train & Support Partners Program Management Initial Planning Pride Campaign Execution Supporting Global Teams 1 112 2 3 3 15

16. Agenda A bit about Rare What are Balanced Scorecards What is Rare’s Balanced Scorecard How Rare uses the Balanced Scorecard Strategy Planning Performance management

17. Strategy Strategy maps explain how we create value Highlight what we believe are the key organizational ingredients Visually show how elements interact Strategy maps are simple communications tools We always tend to overcomplicate, so simple is good! People need to understand where they fit it The Balanced Scorecard drives action Links to the strategy map Shows the objectives Shows the measure Clarity Clarity does NOT equal agreement – it just focuses us on specific issues

18. Planning In our Work Planning Process all initiatives (and budget items) must align to a BSC measure Initiatives must call out BSC Measure

19. Performance management Department heads are measured against their performance against DBSC goals Programmatic/Departmental Effectiveness Goal 1 Supported Rare Organizational Objective This field will populate automatically. Maximize the Effectiveness of each Pride Campaign Department Measure and FY11 Target Select a measure from the drop-down menu. Compliance with Global Programmatic Standards80% Departmental Initiative Use dropdown menu to select initiative from Department Scorecard. If this is an ongoing activity that does not have an FY11 Initiative, select, "Ongoing Responsibility" Quality Management Individual Contribution & Tasks What is your individual contribution to the department's goal and what action will you take to achieve your goal? Oversee: - Two campaign reviews (PEP2 and Guad 7) with the regional directors (aka audits) - Improve and implement ongoing reviews (i.e. BROP's, project plans, final reports and other deliverables (these should be better communicated, less onerous and with clearer outcomes) - Continue to produce case studies - QMI will contribute at least 5 Cases Studies to the Bright Spots document (Kevin will lead this) - Drive usage and decision making around reports - continue to improve reports, focus on outcomes, ongoing training (this includes the work with Keith around reporting) - Note that we agreed to cancel the initiative around Miradi

20. Oops, Lessons Learned Our first BSC had 50+ metrics and no way to gather half of them Design process was very top-down No staff to support rollout or maintenance Not integrated with other management tools Not integrated into management process (meetings) Assumed that once things were “agreed” the “conversations” would stop Not reviewing metrics often enough for relevancy

21. Bright Spots: Key Lessons Design metrics combining Board and Leadership team needs with the insight from the staff on how to gather the data You need people who can gather and review the data BSC method helps to structure strategy conversations (but it is not strategy) Things change, opportunities arise BSC method brings focuses only if you are willing to stick with it Have plans to get you were you want to go with your measures Focus on the possible not ideal

22. Control Sites Daniel Hayden Rare Senior Director, Global Programs dhayden@rareconservation.org Discussion

23. Appendix

24. Customer Value Proposition - The Customer Value Proposition is the unique added value an organization offers customers through its operations; the logical link between action and payoff that the organization must create to be effective. Three aspects of the proposition include Product/Service Attributes (Performance/ Functionality considerations such as quality, timeliness or price), Image and Relationship. Mission - A mission statement defines why an organization exists; the organization's purpose Performance Measures - Performance Measures are metrics used to provide an analytical basis for decision making and to focus attention on what matters most. Performance Measures answer the question, 'How is the organization doing at the job of meeting its Strategic Objectives?' Lagging indicators are those that show how successful the organization was in achieving desired outcomes in the past. Leading indicators are those that are a precursor of future success; performance drivers. Perspectives - A Perspective is a view of an organization from a specific vantage point. Four basic perspectives are traditionally used to encompass an organization's activities. The organization's business model, which encompasses mission, vision, and strategy, determine the appropriate perspectives. Strategic Initiatives - Strategic Initiatives are programs or projects that turn strategy into operational terms and actionable items, provide an analytical underpinning for decisions, and provide a structured way to prioritize projects according to strategic impact. Strategic Initiatives answer the question, ‘What strategic projects must the organization implement to meet its Strategic Objectives?’ Strategic Objectives - Objectives are strategy components; continuous improvement activities that must be done to be successful. Objectives are the building blocks of strategy and define the organization's strategic intent. Good objectives are action-oriented statements, are easy to understand, represent continuous improvement potential and are usually not 'on-off' projects or activities. Strategic Result - Strategic results are the desired outcome for the main focus areas of the business. Each Strategic Theme has a corresponding Strategic Result. Strategic Theme - Strategic Themes are key areas in which an organization must excel in order to achieve its mission and vision, and deliver value to customers. Strategic Themes are the organization's "Pillars of Excellence.“ Strategy Map - A Strategy Map displays the cause-effect relationships among the objectives that make up a strategy. A good Strategy Map tells a story of how value is created for the business. Strategy - How an organization intends to accomplish its vision; an approach, or “game plan”. Targets - Desired levels of performance for performance measures Vision - A vision statement is an organization's picture of future success; where it wants to be in the future Definitions of Balanced Scorecard Strategic Planning & Management Terms Source: © 2007 by the Balanced Scorecard Institute, a Strategy Management Group company. All rights reserved.

25. Purpose: Project management of campaigns, organizing and storing campaign data Audience: Leadership team, Quality Management Reports: Pride Scorecard, Summary Reports, Weekly Flash Reports Purpose: Managing fundraising and the Pride application process Audience: Development team, Recruiting/Partnerships team Reports: Fundraising status, cohort development Purpose: Managing timesheets, vacations, etc. Audience: Finance team Reports: Hours of training, vacation balances, expenses Purpose: Budgeting, tracking expenses, handling payroll Audience: Finance team Reports: Budget-to-actual, expense summaries Purpose: Outline organization’s Balance Scorecard Audience: Department heads, Board Reports: Organization-wide and departmental balanced scorecards Technology: Enables Information Flow A mix or proprietary and off-the-shelf tools support Rare