YOSELP 13th and 14th November 2012 Balanced Scorecard YOSELP 13th and 14th November 2012

Levels of measuring impact (measure the mix) Inputs are all of the resources you and costs that organisations require to carry out the activities that aims. For example, all the costs associated with delivering a training programme. Outputs are the direct result delivering that activity. For example, number of attendees qualifications attained, hours of learning, new skills learned. An outcome is the immediate changes or effects on the recipients of your outputs, whether these are individuals or groups. For example, new skills that increase capacity or employer measurably. Impacts are the clearly attributable longer-term effects on whole groups, communities, society at large or the environment. For example, increased capacity deliver social change. © 2012 Real Organisation “All rights reserved” Real Partners Community Interest Company Registration No: 7178832

What is Balanced Scorecard? Balanced Scorecard is.... A strategic management tool that provides a snapshot of how the organisation is progressing towards the achievement of its strategic goals A way to gain an early insight into your organisation challenges that will prompt immediate action A communication tool that develops your understanding of the links between Finance, Operations, Stakeholders and your Culture A performance management tool which creates a “line of sight” between top leaders and the frontline A way in which managers lead in a more balanced way

Measuring Impact – traditional balanced scorecards © 2012 Real Organisation “All rights reserved” Real Partners Community Interest Company Registration No: 7178832

Community and Beneficiary Examples of the quadrants in new social balance scorecard (see website for more links examples and information) Community and Beneficiary

So how does a Balanced Scorecard improve your focus.... Currently Currently may track your performance in a number of different ways none of which relate to each other Your current measurement systems and management information may not give you enough insight as to your delivery against your key focus areas. Your current measures may have driven some of the wrong behaviours. With the scorecard…. There is a clear communication about your focus, performance is measured against targets and within tolerances, which allow action individuals to understand how their actions plans add value. You are able to predict future performance in your key focus areas. You have the opportunity to measure whole of the organisation routinely and celebrate success in a balanced way. You are able to recognise if under-performance in a given area of the organisation has an effect on other areas. The parameters for “good” and “poor” performance are clearly defined and applied consistently. 5

How does it all fit together? Key Focus Areas update the plan test the hypotheses Strategic Learning Loop BUDGET BALANCED SCORECARD diagnosis and feedback tool Management Control Loop allocation of cash reporting PERFORMANCE Input (Resources) Output (Results) Initiatives & Programs

C u l t e r O p e r t a C a s h & o t C u s t o m e r Development Plans On site visits Measure Evaluations Employee Relations Group Risk Matrix Apprentices hired Colleague Retention Risk Governance Colleague Turnover Leader Out & About Courses Completed Staff Survey Monthly 121s Audits Cash Reserve Revenue Treating Customers Fairly Cost vs. Revenue Complaints Handling Revenue Mix Community Impact Margin per project Service User Outcomes Donations made C a s h & o t Profit Before Tax C u s t o m e r SROI

Company Registration No: 7178832 Traffic lights flag issues on both lead and lag measures Reporting and Managing exception Red light Pre-defined tolerance levels Green light Amber light Blue light © 2012 Real Organisation “All rights reserved” Real Partners Community Interest Company Registration No: 7178832 9

Working in a more balanced way towards your key focus areas If you create an open and innovative culture that engages and focuses your colleagues… ... to deliver a strong performance on generating revenue and saving costs….. thereby delivering value to your all of key stakeholders …and take more personal responsibility for the quality way in which you operate … …you will deliver for your customers, service users and communities…….

Measures Each measure needs to be defined and reviewed frequently What and how to measure Type of measure (i.e.. £ % no. ratio RAG etc.) Targets and tolerances Frequency of measure Owner of the measure Reviewing of the measure definitions

Building a scorecard together as an organisation Make it simple and easily understood by all levels of staff Visual communication tool: Displayed prominently Eye-catching Data displayed graphically so staff can see the trends and targets Allows for management by exception: Only investigating those measures off track and celebrate successes often Helps to deliver strategic objectives: A tool to monitor delivery driven bottom up Reflects what the company looks to achieve Drives out actions Track the same measures: Targets and tolerances are developed by delivery teams and agreed by senior managers Regular reviews allow for any issues with measures to be raised Ownership is at team level Accountability for each measure should be driven as far down to individual members of staff as possible © 2012 Real Organisation “All rights reserved” Real Partners Community Interest Company Registration No: 7178832

Cascading and aligning scorecards When cascading balanced scorecard it is important that this is aligned to a Group Scorecard, which reflect current key areas of focus. Key Focus Areas Objectives Measures Group Organisation, Unit and Function Team and Individual