1. Measuring for Performance: The Balanced Scorecard
What gets measured gets done.
If you can’t measure it, you can’t manage it.
When performance is measured, performance improves.
“What you measure is what you get. Senior executives understand that their organizations measurement system strongly affects the behavior of managers and employees.” -Kaplan and Norton
“The Balanced Scorecard gives government organizations a tool to plan, communicate and drive new strategies to meet the needs of stakeholders, including constituents and legislators…[while] demonstrating accountability for program and organizational outcomes/results.” Gartner-- Balanced Scorecard: Holistic View of Public-Sector Strategy, 2001

2. Creating a Balanced Scorecard
Confirm or develop strategy
Filter metrics to ‘vital few’
Draft scorecards, targets & iterate
Identify metrics
xxx
Improve Customer Service
xxx
xxx
First Draft Metrics
Strategy
Increase Efficiency
Measurable
xxx
Controllable
Focused
xxx
Increase Productivity
xxx
Execute plan
Communications
Training
Roles and Responsibilities
Management Process
IT Platform

3. Internal Business Processes
Step 1: Confirm or Develop Strategy
What processes are critical to our
success (efficiency, innovation,
learning, etc.)?
What are the critical dependences
and relationships among processes?
How must these be structured or
organized?
What actions and initiatives do we
take in light of the above?
- Who takes them?
How do we measure and manage
progress?
Who are our shareholders or stakeholders?
What do they expect from us?
What are our goals?
What actions and initiatives do we
take in light of the above?
- Who takes them?
- How do we measure and manage progress?
Financial
Balanced Scorecard from 30,000 Feet
Balanced?
Balanced?
Internal Business Processes
Customer
Mission and Strategy
Who are our customers?
- What do they value?
- What do we provide them?
- What value propositions do
we offer?
- What is our brand image?
How do we establish, sustain,
and leverage client relationships?
What actions and initiatives do we
take in light of the above?
- Who takes them?
How do we measure and manage
progress?
Balanced?
Balanced?
What are our human capital issues and
requirements (skill mix, critical skills,
morale, motivation, training,
development, bench strength, etc.)?
What infrastructure resources are
critical to our success (tools, methods,
knowledge bases, labs, etc.)?
What organizational capital resources
are critical (structure, leadership,
culture, values, etc.)?
What actions and initiatives do we
take in light of the above?
- Who takes them?
How do we measure and manage
progress?
Learning and Growth

4. Organizational entrenchment
Metrics should be…
Linked
KPIs must have strong and clear linkage with organization vision, strategy, and goals
Controllable
Individual metrics
KPIs must be owned by those who will be accountable
Measurable
Must be measurable with available data that is easily trackable
Balanced
KPIs must be balanced to include financial and non-financial metrics as well as leading and lagging metrics
Focused
Set of metrics
Performance should be assessed on the ‘vital few’, not the ‘trivial many’ KPIs
Appropriate targets
Targets must be set appropriately so that they are stretch, but achievable; they should reviewed frequently
Cascaded
Must cascade up/down so that achievement of lower level KPIs ensures company reaches its corporate goals
Organizational entrenchment
Buy In
Organizational buy-in is critical and requires that metrics and targets are accepted by each organization

5. After identifying potential metrics filter down to ‘vital few’
Initial set of metrics
(50+ potential metrics)
Controllable
Measurable
Mix
Focused
Metric owner influences/controls outcome measured
Input data available, objective and comparable over time
Duplication and “non-priority” metrics removed
Leading and lagging financial and non-financial metrics
‘Vital Few’
(target <15 metrics per scorecard)

6. Why Use Balanced Scorecard?
Why Scorecard?
Translate strategy into action, making strategy everyone’s job.
Manage the intangible assets e.g., customer satisfaction, innovation, employee capabilities
Measure what matters - the critical few vs. the trivial many – in real time, not just after the fact
Create a daily management system for the day-to-day navigation of the business
To Scorecard Successfully
Reach cross-functional agreement on strategic direction
Translate strategy into “everyday speak”
Understand the cause and effect of linkages between strategy/initiatives/processes
Identify most important measures of success, critical strategic initiatives, and process drivers
Cascade the Scorecard into the organization
What You’ll Get
Alignment and focus of the organization around a common purpose and strategic direction
Improved resource prioritization and allocation
Improved basis for business development and growth planning
An ongoing feedback mechanism to make real-time, mid-course adjustments to priorities
A set of balanced metrics
“Now I understand how I contribute to the business strategy – and the bottom line.”

7. State of Utah Scorecard Template
Period
Department/Division Name
Logo
Mission Statement
Metric
Status
Trend
Target
Current
Previous
Measured
Definition
Metric Category
Metric Category
Metric Category
Footnotes
Executive Director Contact Info

8. State of Utah Three Year Performance Plan: Balanced Scorecard Implementation
FY 2007
Department and Division Level
FY 2008
Management Level
FY 2009
Employee Level
Scorecards statewide at the department and division level
Scorecards at the sub-division or “manager” level
Scorecards at the employee level and link to employee performance plans
Performance management training for Senior Management including cabinet and sub-cabinet directors(~250 people)
Performance management training for sub-division/managers (~4,500 people)
Performance management training through “CPM” curriculum available for all state employees
“Department Performance Review Meetings” on a quarterly basis with governor and senior staff