1. Balanced Scorecard Workshop Customer Objective: Enhance Relevance to Early Career Engineers TEC 2005 Pittsburgh, Pennsylvania Larry Dickinson, VP, K&C Program and Activities Marian Heller, Coordinator, Educational Activities
Introduce ourselves ….
How many here from what was COE? Knowledge Communities?
How many from CMA / Global Communities?
How many of you were at Joe Holm’s introductory session on the Balanced Scorecard earlier this morning? We’ll review a few keys points about BSC, and conduct an exercise on implementing it at a practical level,.

2. Workshop Objective The purpose of this workshop is to:
Provide you with a basic understanding of Strategy Development and Execution/Management using the Balanced Scorecard system
Use one of the ASME customer objectives as an example to demonstrate how technical and global units can plan and contribute to ASME’s overall objectives through unit operations.
THIS IS AN INTERACTIVE WORKSHOP AND YOUR PARTICIPATION WILL MAKE IT A SUCCESS!
We’ve done a lot of brainstorming and sharing of best practices …
This workshop will focus on using the Balanced Scorecard as a practical tool for linking programs and activities to ASMEs strategic objectives.

3. Review of Balanced Scorecard
The Balanced Scorecard facilitates the strategy management process
Facilitates strategy formulation, execution, measurement, and communication
Provides a framework to link strategy to operations at all levels of the organization
Enables organization to become centrally focused on the strategy
For ASME to be successful, individual unit strategies must be linked and integrated with ASME’s overall strategic objectives, and each unit ‘s decisions, actions, initiatives and programs impact them.

4. Review of Balanced Scorecard
The Balanced Scorecard centers around four important perspectives
1. The economic model of key levers driving financial performance
Financial Perspective
Return on Investment
Revenue Strategy
Productivity Strategy
Sources of Growth
Sources of Productivity
2. The identification of targeted customer segments and their value propositions
Customer Perspective
Value Proposition
Price
Quality
Time
Function
Image
Relationship
Internal Process Perspective
3. The process-focused aspects of the business
“Build the Brand”
“Make the Sale”
“Deliver the Product”
“Service Exceptionally”
The balanced scorecard concept involves keeping ‘score’ in four different areas. In each of these, the BOG has gone through and created specific objectives for the entire organization. For purposes of demonstrating how to implement the BSC at the unit level, we’ll focus on the customer perspective.
The Customer Perspective is the heart of strategy development and defines how growth will be achieved. The Customer Objective dictates the Internal processes, Learning & Growth perspective and, ultimately, helps realize the Financial objectives.
4. The intangible assets necessary to drive performance
Learning & Growth Perspective
Staff Competencies +
Technology Infrastructure +
Climate for Action
A Balanced Scorecard tells the “story of the strategy”
Source: Kaplan and Norton, Strategy-Focused Organization, 2001.

5. ASME Balanced Scorecard Customer Objectives
Enhance Relevance to Industry & Government
Serve our Core Customers
Increase and Expand Market Relevant Content
Expand & Enhance Global Presence
Enhance Relevance to Early Career Engineers
Expand/Enhance Multi-Disciplinary Activities
These objectives express ASME’s vision in the Customer perspective.
Successful strategies bring a “vision” (the future state we want to achieve) to reality, which in turn supports our “mission” (why we exist as an organization).
The strategy, then, is a “game plan” to get us to our vision. It describes the major initiatives (what we need to do) to realize the strategic outcomes (the “payoff” - both financial and non-financial)

6. Strategy Development
As you formulate your strategy around the four Balanced Scorecard perspectives, ask yourself the following questions:
Customer: "To achieve our vision, how should we appear to our customers?“
Financial: "To succeed financially, what models must be implemented for global growth, sustained viability and reinvestment?“ (key drivers of financial performance)
Internal: "To satisfy our customers, what business processes and procedures must we excel at?"
Learning and Growth: "To achieve our vision, how must our organization learn and change to sustain our ability to improve?"
The first step in strategy management is strategy formulation, or development, followed by execution, measurement, and communication.
In other words, what is the value proposition for early career engineers? What products, prices, services, relationships, and images are important to our customers? How can we provide that?
Tie to other questions ….

7. Strategy Development
A clear definition of the “value proposition” is the single most important step in strategy formulation
The “value proposition” is a description of the unique mix of product, price, service, relationship, and image that customers want.
What exactly in your division or section is unique and of value to early career engineers? (Brainstorm … record on flipchart). Products, services, relationships?

8. Strategy Development Need to identify:
Current assessment of our situation
(a complete honest assessment is key)
- Use SWOT Table:
Resources needed
We’ve brainstormed and shared a lot of best practices this weekend. In deciding which programs and activities you want to pursue, it’s helpful to see which ones complement or take advantage of your strengths, and the resources you have available.
Ex: let’s apply this to our example objective …… is there a brave soul who has a specific strategic issue, related to our objective, they’d like us to use in our example?

9. Customer Objective: Enhance Relevance to Early Career Engineers
ASME is losing its relevance to Early Career Engineers leading to erosion of its membership base and loss of sales of key programs. The Society must take on initiatives (e.g., develop key programs and activities) that can attract and retain early career engineers as members.
What are early career engineers looking for from a professional society?
How can the Balanced Scorecard help units (technical and global) plan and implement effective programs for early career engineers?
Here’s the current situation of ASME overall. SWOT? How does this relate to you?

10. Customer Objective: Enhance Relevance to Early Career Engineers
Strategic Theme:
Enhance Relevance to Early Career Engineers
Financial
Customer Value Proposition
What and How do we do that? (Basic requirements and differentiators)
Starting with the value proposition …. What are EC looking for? (FLIP CHART …. Choose one or ask for a brave soul!)
Go through each one briefly and write down ideas, pick one to use, and then how it generates internal and L&G possibilities
Internal
What processes must we master to support the customer value proposition? Unit Operations?
Learning & Growth
What competencies, knowledge and climate do we need to support processes and activities?

11. The Final Component – Measures, Targets & Initiatives
Objectives
Statement of what strategy must achieve and what’s critical to its success
Target
The level of performance or rate of improvement needed
Key action programs required to achieve objectives
Initiative
Measurement
How success in achieving the strategy will be measured and tracked
This slide reviews definitions and examples of Objectives, Measures, Targets, and Initiatives.
Implementing a program or activity is just the first step … the BSC helps us evaluate its effectiveness as it relates to strategic goals.
For our example, what is our objective? How will we define success? Measure it?\
You can apply this process to any objective.
Thanks!! 17