1. Balanced Scorecard 101 A Brief Overview of the BSC Methodology
and introduction to the Contractor Program
Steve Logan
Department of Energy
BSC Program Manager
Presentation to the PERT
February 2009

2. 2
“One accurate measurement is worth more than a thousand expert opinions.” Admiral Grace Hopper, USN

3. What is a Balanced Scorecard??3
What is a Balanced Scorecard??
Definition of BSC as a strategic management system
Steps in a strategic management system:
Clarify and translate vision and strategy
Communicate and link strategic objectives and measures
Plan, set targets, and align strategic initiatives
Enhance strategic feedback and learning

4. What is a Balanced Scorecard??4 A
Management
System A
Measurement
System A
Communication
System

5. Performance Management- Not Just Performance Assessment5
BSC Linked to Strategic Plan
Performance Objectives Tied to
Strategic Commitments
Clear Alignment from Strategic Plan to Performance Plans of Managers/Teams
Corporate Initiatives Support
Operational Objectives

6. BALANCED SCORECARD STRATEGIC PERSPECTIVES6
BALANCED SCORECARD STRATEGIC PERSPECTIVES
CUSTOMER
How do our customers
see us?
What must we excel at?
FINANCIAL
MISSION
VISION
STRATEGY
INTERNAL
BUSINESS
PROCESSES
LEARNING
AND
GROWTH
Do we get the best
deal for the Government?
Do we continue to
improve and create
value?

7. The BSC reflects the balance between: Short and long term objectives 7
The BSC reflects the balance between:
Short and long term objectives
Financial and non-financial measures
Lagging and leading indicators (i.e., outcome measures vs performance drivers)
External and internal performance perspectives

8. BALANCED SCORECARD PERFORMANCE MEASURES, PERFORMANCE TARGETS AND MANAGEMENT INITIATIVES CUSTOMER PERSPECTIVE 8
Procurement
SAMPLE PAGE

9. Background 9
In 1980’s, oversight models emphasized process conformance (Executive Order 12352)
In 1990’s, performance assessment models emphasizing results over process (National Performance Review, Executive Order 12862, Gov’t Performance and Results Act)

10. Background 10
Interagency team develops new performance measurement approach (PMAT 1995)
Model enhanced to include strategic focus (BSC 1997)

11. Contractor Balanced Scorecard11
Contractor Balanced Scorecard
In 1998, BSC Performance Management Methodology Extended to:
Federal Property
Major Facility Contractor Purchasing and Property
Contractor BSC Replaces VBSA Model
Contractor Core Measures Developed by Govt/Contractor Team

12. Contractor Balanced Scorecard12
Contractor Balanced Scorecard
FY1998 Contractor Departmental Averages and Best-in-Class Scores Published
Benchmarking/Process Improvement Among Contractors Encouraged

13. PERSPECTIVES AND OBJECTIVES
BALANCED SCORECARD
PERSPECTIVES AND OBJECTIVES 13
CUSTOMER
- Customer Satisfaction
INTERNAL BUSINESS
PROCESSES
- Effective Internal Controls
Effective Supplier Management
Use of Effective Competition
- Effective Utilization of Alternate
Procurement Approaches
- Acquisition Process
- Good Corporate Citizenship
through Purchasing
FINANCIAL
- Optimum Cost Efficiency of
Purchasing Operations
MISSION
VISION
STRATEGY
LEARNING
AND
GROWTH
- Employee Satisfaction
- Employee Alignment
SAMPLE PAGE

14. SAMPLE PAGE CUSTOMER PERSPECTIVE OBJECTIVE MEASURE NATIONAL TARGET 14
Customer Satisfaction
Data Source: Annual Customer
Climate Survey or Real-Time
Transactional Survey
Data Generation: Accomplished by
using appropriate survey instrument.
Data Verification: Purchasing Directors
are responsible for accuracy of survey
data generation, and for retention of
records in accordance with records
management requirements. Records
will be made available for compliance
and/or DOE reviews.
Core:
Customer Satisfaction Rating
% of customer satisfaction with the timeliness,
quality, and level of communication provided
by the procurement office.
The Customer Satisfaction Rating must address
the following elements:
Timeliness: Extent of customer
satisfaction with timeliness of
procurement processing; planning
activities; and on-going communications
Quality: Extent of customer satisfaction
with the quality of procurement services
Communications: Extent to which
procurement communicates accurate
information which impacts the work
of the customer’s organization
92%
SAMPLE PAGE

15. 15
Steps in the Process
Contractor Prepares Annual Self- Assessment Plan (late summer)
Plan submitted to local DOE CO
Copy of Plan submitted to DOE HQ by October 15
At end of FY, contractor prepares annual assessment results

16. Steps in the Process Results submitted to local DOE CO16
Steps in the Process
Results submitted to local DOE CO
Copy of Results submitted to DOE HQ by December 15
BSC Program Manager prepares annual Departmental Average Scores
Average Scores and identification of “Best-in-Class” organizations published

17. 17
Steps in the Process
During the summer of each year, current core measures/targets are reviewed and changes made.
Revised core measures are published
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BSC Program Description Document
(aka: Balanced Scorecard Performance Measurement and Performance Management Program for Federal Procurement and Major Site and Facility Management Contractor Purchasing Systems)