1. UC San Diego Financial Perspective How do we look to resource providers? Customer Perspective How do customers see us? Internal Process Perspective Are we productive and effective? Innovation & Learning Perspective How do our employees feel? The Balanced Scorecard Source: Kaplan and Norton

2. UCSD Mission Excellence in Teaching, Research & Patience Care Financial Perspective If we succeed, how will we look to our financial stakeholders UCSD Business Framework Customer Perspective To achieve our vision, how must we look to our customers Process Perspective To satisfy our customers, financial stakeholders, and mission, what business processes must we excel at? People Perspective To achieve our vision, how must our people learn, communicate, and work together? Source: Kaplan and Norton UC San Diego

3. Strategic Game Plan Within limited resources, maintain the most critical support services that will sustain the excellence of the University’s academic and clinical programs. Simplify procedures and reduce workload for academic and clinical departments. Provide our customers with intuitive and flexible tools so they can be successful.

4. UC San Diego Reduce cycle time and improve the performance of our essential support services to students, faculty, and staff. Provide appropriate development opportunities for University staff. Enhance the University’s system of financial controls so we maintain the public trust of our stewardship of campus resources. Strategic Game Plan

5. UC San Diego Disseminate, promote, and put into action UC San Diego’s Principles of Community. Enhance methods of communicating with our key customers. In the area of technology, migrate the campus to a set of standard protocols and tools that will allow for improved customer support in the future. Strategic Game Plan

6. Strategic Initiatives What we need to do Personal Objectives What managers and staff need to do Strategic Outcomes Strategy Our game plan Balanced Scorecard Implementation & focus A Framework For Translating Mission into Outcomes DelightedCustomers MotivatedWorkforce EffectiveProcessesEffectiveProcesses SatisfiedStakeholdersSatisfiedStakeholders Source: Kaplan & Norton Mission, Values, And Vision UC San Diego

7. 1995/961994/951993/941992/93 Business Unit 1 Excess Revenues as a Percent of Net Revenues Excess Revenue$42,463$71,844($4,544)($15,180) Net Revenue$918,285$848,649$686,223$674,541 Percentage4.62%8.47%-0.66%-2.25% Accumulated Earnings$46,144$4,260($53,601)($47,726) Total Assets Turnover Net Revenue$918,285$848,649$686,223$674,541 Total Assets$157,420$57,151$56,980$71,689 Ratio5.8314.8512.049.41 Business Unit 2 Excess Revenues as a Percent of Net Revenues Excess Revenue$35,262$51,162$93,827$14,578 Net Revenue$928,400$852,679$700,137$808,994 Percentage3.80%6.00%13.40%1.80% Accumulated Earnings$366,354$308,429$229,592$136,625 Total Assets Turnover Net Revenue$928,400$852,679$700,167$808,994 Total Assets$473,300$401,305$323,886$210,410 Ratio1.962.122.163.84 The Balanced Scorecard: Financial Perspective

8. UC San Diego Benefits Top/Bottom 2-Box Ratio 99': 8.3 8.2 3.6 4.3 6.8 4.6 15.8 10.2 6.7 97': 5.0 4.5 2.6 3.1 3.7 3.2 5.3 5.3 3.5 94': 2.2 2.6 1.3 1.8 1.9 1.1 2.4 3.0 1.6 Percentage Evaluating: 1999 = 60 1997 = 60 1994 = 53 N = 354 for 1999 372 for 1997 333 for 1994 Extremely Very Somewhat Not Very Not At All Satisfaction Mean Score UCSD CUSTOMER SATISFACTION SURVEY: 1994 - 1997 - 1999 Overall % 22.6 43.9 25.5 6.6 1.4 2 Box Ratio OverallRating AttributesAttributes

9. UC San Diego The Balanced Scorecard: Internal Process Perspective UCSD SimilarCampuses NationalCohortsNationalCohorts

10. UC San Diego The Balanced Scorecard: Innovation & Learning Perspective WorkplaceCharacteristics MeanScoresMeanScores

11. UC San Diego JUNE - JULY Report Benchmarking and Customer Service Survey Data JULY - SEPTEMBER Develop Strategic Plan and Organization Goals AUGUST - SEPTEMBER - Performance Reviews - Identify Individual Goals - Make Merit Increase Decisions SEPTEMBER - OCTOBER - Implement Merit Increase - Develop Departmental Action Plans to Achieve Goals OCTOBER -DECEMBER Implement Employee Recognition Program NOVEMBER -DECEMBER Develop and Forward Annual Report To Vice Chancellor DECEMBER - JANUARY Develop Benchmarking Data FEBRUARY - APRIL - Submit Benchmarking Data - Conduct Customer Satisfaction Survey APRIL - MAY Collect Results of Benchmarking and Customer Satisfaction Survey The BSC Becomes a Foundation of Strategy

12. Implement New Technology Strategy Map: Benefits Unit Source: Kaplan and Norton UC San Diego Learning & Growth Customer Perspective Resource Issues Internal Processes Team Building Program Leadership Development Redesign Organizational Structure Enhance Skills Of Staff Change Telephone Triage System Invest in Additional Staffing Improve Perception of Responsiveness Improve Perception of Quality Of Advice Benefits Service Delivery Strategy Deliver cost effective benefits Services that are valued by our customers Evaluate Methods To Reduce Cycle Time

13. UC San Diego CustomerPerspective Innovation & Learning FinancialPerspectiveFinancialPerspective ProcessPerspectiveProcessPerspective StrategicComponents OpportunityAssessment ChangeChange NumericGoals Actuals & Ratings Ratings

14. UC San Diego What Have Been the Results? Increased Productivity Reduction in Costs Understanding Customer Needs

15. UC San Diego Million Dollar Challenge Program Background –T–Target - Generate $1,000,000 Increased non-student revenue Reduced costs Over a period of 5 years Outcome –$–$891,189 within 2 years –E–Exceeded goal 3rd year

16. UC San Diego Carpet Procurement Program Background Direct purchase Direct contracting of installation Team project Outcome 5-year savings : $1,121,000

17. UC San Diego Custodial - Conditions in 1994 Low Productivity High Cleaning Costs Low Customer Satisfaction Costs/sq ft.94 cents Customer Satisfaction

18. UC San Diego Custodial - Results in 2002 Productivity Increases Reduced Cleaning Costs - $560,000 Increased Customer Satisfaction Customer Satisfaction Costs/sq ft.84 cents

19. UC San Diego Travel Reimbursement--1996 High Level of Errors Average Cycle Time Over 20 Days Low Customer Satisfaction Customer Satisfaction

20. UC San Diego Travel Reimbursement--2002 Error Level Reduced Cycle Time Down From 20 to 3 Days Customer Satisfaction Improved Customer Satisfaction

21. UC San Diego Payroll -- Conditions in 1995 Paper-Based Update Process Paper-Based Time Reporting Process 50% Transaction Error Rate Inadequate Communication with Customers

22. UC San Diego Payroll -- Results in 2002 Distributed Processes Implemented Error Rate Reduced from 50% to <5% Work Teams Established Phone Triage Process Implemented Customer Satisfaction Excellent

23. UC San Diego Finance -- Conditions in 1995 Difficult Data Extraction Process Paper-Based Financial Reporting Process Inadequate Functional Training Inadequate Communication with Customers

24. UC San Diego Finance -- Results in 2002 Financial Link Implemented Financial Link Improved New Phone Triage Process Implemented Revised and Improved Training Delivered Customer Satisfaction Ratings Excellent

25. UC San Diego Community Stakeholders Source: Kaplan and Norton

26. UC San Diego Why Consider this Approach in a Non-Profit Organization? It keeps an organization’s focus on what is important It is sustainable over the long-run It is explainable to your people It provides a context for decision making

27. UC San Diego Efforts and planning are aligned with customer priorities It is a great way to evaluate changes to key processes It builds habits of balance, continuous improvement, and accountability to constituents Why Consider this Approach in a Non-Profit Organization?

28. UC San Diego Lessons Learned: Things That Can Go Wrong Poor Data Quality Quality Lack of Participation in Measurement in MeasurementDevelopment A Culture that Values Complexity No Linkage to Mission & Strategy No Linkage to Mission & Strategy One-Size-Fits-AllApproachOne-Size-Fits-AllApproach

29. UC San Diego Lessons Learned: Critical for Success LeadershipCommitmentLeadershipCommitment Assessment Will InfluenceBehavior Results Influence Rewards Results Form Context for Planning Results Form Context for Planning CommunicateResultsCommunicateResults