1. Balanced Scorecard The University of Texas at El Paso Division of the Vice President for Business Affairs

2. What is the driving reason for the Office of the Vice President of Business Affairs to implement the Balanced Scorecard?

3. Questions we should be asking ourselves : 1. Do our priorities, goals and objectives align with the mission and vision of the entire division? Do they line up with the mission and vision of the University? 2.Does our division have the right priorities, goals and objectives to achieve the University’s priorities, goals and objectives? 3.Are we doing the right things in the right way to accomplish our priorities, goals and objectives?

4. Questions we should be asking ourselves: 4. How do we know if we are fulfilling our priorities, goals and objectives? 5. Are the managerial decisions we are making to run our business on a daily basis driven by data? 6. Are the managerial decisions made using real time data or historical information? 7. Are we pro-active or reactive as an organization?

5. Executive Sponsor Cynthia Vizcaíno Villa Balanced Scorecard Champion Laura Granado Balanced Scorecard Advisor/Observer Dr. Roy Mathew Executive Leadership Team Division Leaders, Advisors, and Associates Strategic Development Team Departmental Directors and Managers for each Business Unit of the Division

6. Executive Leadership Team Cynthia Vizcaíno Villa Vice President for Business Affairs Carlos Hernandez Associate Vice President/Comptroller Dr. Victor Pacheco Assistant Vice President Greg McNicol Associate Vice President for Facilities Services Andrew Peña Director of Human Resource Services Dr. Roy Mathew Director of Center for Institutional Evaluation, Research & Planning Laura Granado Organizational Development Specialist

7. The Executive Leadership Team Develops vision, strategy, and goals Develops organizational objectives and targets Provides leadership, endorsement, and vision Clears barriers to scorecard progress

8. Strategic Development Team Drafts the strategy map and scorecard Works with employees to develop measures supporting strategic objectives Works with the Leadership Team to plan and implement the Balanced Scorecard in the VPBA Division

9. I. Balanced Scorecard –What is it? –Why do it? II. Balanced Scorecard Fundamentals III. The Four Perspectives IV. The Balanced Scorecard as a Management System Agenda

10. What is the Balanced Scorecard? The Balanced Scorecard is a management tool that provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals.

11. Balances financial and non-financial measures. Balances short and long-term measures. Balances performance drivers (leading indicators) with outcome measures (lagging indicators). Should contain just enough data to give a complete picture of organizational performance… and no more! Leads to strategic focus and organizational alignment. What is the Balanced Scorecard?

12. To achieve strategic objectives. To provide quality with fewer resources. To eliminate non-value added efforts. To align customer priorities and expectations with the customer. To track progress. To evaluate process changes. To continually improve. To increase accountability. Why Implement the Balanced Scorecard?

13. The Strategy Focused Organization Mission: What we do Vision: What we aspire to be Strategies: How we accomplish our goals Measures: Indicators of our progress

14. The Five Principles: 1. Translate the strategy to operational terms 2. Align the organization to the strategy 3. Make strategy everyone’s job 4. Make strategy a continual process 5. Mobilize change through executive leadership Source: The Strategy Focused Organization, Norton & Kaplan The Strategy Focused Organization

15. Strategic Direction Create Environment for Change Strategic Performance Management System Linking it all together…. Communicate Strategies Define Objectives Implement BSC Performance Measures Improve Processes Evaluate and Adjust Continuous Improvement Redefine Initiatives

16. FINANCIAL/STEWARDSHIP To satisfy our constituents, what financial & regulatory objectives must we accomplish? CUSTOMER To achieve our vision, what customer needs must we serve? INTERNAL PROCESSES To satisfy our customers and stakeholders, in which business processes must we excel? LEARNING & GROWTH To achieve our goals, how must we learn, communicate and grow? THE BALANCED SCORECARD

17.  Customer Satisfaction (Average)  Satisfaction Gap Analysis (Satisfaction vs. Level of Importance)  Satisfaction Distribution (Bell Curve Analysis) Possible Performance Measures: To achieve our vision, what customer needs must we serve? Customer Perspective

18. Financial / Stewardship Perspective To satisfy our constituents, what financial and regulatory objectives must we accomplish? Possible Performance Measures:  Cost per Unit  Unfunded Requirements or Projects  Cost of Service  Budget Projections and Targets

19. Internal Processes Perspective To satisfy our customers, in which internal processes must we excel? Possible Performance Measures:  Cycle Time  Errors or Re-work  Completion Rate  Workload and Employee Utilization  Transactions per Employee

20. Learning & Growth / Capacity Building Perspective To achieve our goals and accomplish core activities, how must we learn, communicate, and work together? Possible Performance Measures:  Employee Satisfaction Rate  Retention and Turnover  Training Hours and Resources  Technology Investment

21.  Regular review enhances operational decision-making.  Success of initiatives are based on data and not on opinions.  Leading indicators are evaluated to determine accuracy of assumptions. The Balanced Scorecard: A Management System

22.  A living document that requires regular revision of objectives, measures and initiatives.  Answers the questions:  How are we doing?  Are we measuring the right things?  What initiatives must we implement to get us to our goals?  Have our goals changed? The Balanced Scorecard: A Management System

23. FINANCIAL CUSTOMER INTERNAL PROCESSES LEARNING & GROWTH Human Resources Office of Special Events Facilities Ticket CenterDinner Theatre Measure: Satisfaction Index Current: 3.0 Target: 4.0 DIVISION DEPARTMENT FUNCTION Linking it Together…

24.  Simple to use and understand  Based on Vision and Strategy  Multidimensional  Quantitative and qualitative measures  Present and future oriented  Provides measurement of and method for improving our services  Ties together qualitative initiatives  Serves as a communication tool Advantages to the Balanced Scorecard Approach

25.  Provide all team members with “Balanced Scorecard Step by Step for Government and Non-Profit Agencies,” by Paul R. Niven.  Provide all team members with articles by Robert S. Kaplan and David P. Norton on the Balanced Scorecard.  Provide definitions for key terminology used by Balanced Scorecard literature to ensure we are “speaking the same language.”  Provide all team members with Audio CD on value creation. Activities to Follow…

26.  Careful examination by Executive Leadership Team of VPBA’s divisional mission and vision statements, and current strategic plans. Understand the value that the plan provides to the overall University.  Individual interviews with each member of the Executive Leadership Team by Balanced Scorecard Champion.  Development of top-level scorecard by Executive Leadership Team Activities to Follow…

27. Laura Granado Organizational Development Specialist The University of Texas at El Paso (915) 747-8873 lrgranado@utep.edu Thank You