THE BALANCED SCORECARD AS A TOOL FOR WISE DECISIONS

Transcription

1 THE BALANCED SCORECARD AS A TOOL FOR WISE DECISIONS AAPA Executive Management Cnference February 13 th, 2007, Miami Flrida The Canadian Infrmatin Exchange, 2006 Public Sectr Perfrmance Management Summit 1

2 Let s set the backdrp fr the rest f this presentatin Cntinued drive in public sectr fr accuntability t citizens, pliticians, central agencies and executive Guidelines and standards help shape planning and reprting, particularly fr accuntability purpses Operatinal and emplyee plans seen as imprtant, but degree f alignment remains a challenge Onging struggle putting in place meaningful measures Questins remain n use f this infrmatin in decisins 2

3 What abut the private sectr? Research carried ut by Kaplan and Nrtn has fund: Fr 67%, peratinal and crprate strategies were nt aligned; Human resurce and infrmatin technlgy plans did nt supprt these same strategies That 85% f executive spend less than ne hur per mnth discussing strategy Fr 50% f executive, n time was spent n discussing strategy Fr 60%, financial budgets did nt link t strategic pririties Rbert Kaplan and David Nrtn, The Office f Strategy Management, Harvard Business Review, Octber

4 Cnsidering the circumstances f the Fraser River Prt Authrity Witnessed a transfer f respnsibilities and authrities frm the Canadian federal gvernment Serius financial cncerns with millins in annual csts fr dredging and little pprtunity fr revenue generatin Imperative t create a strategic, team-based apprach t managing infrastructure, cntracts, peratins, etc Lked t the Balanced Screcard as the strategic fundatin fr addressing these and ther issues 4

5 S what is the Balanced Screcard? > Financial Perspective Revenues, csts, net earnings, return n capital, etc. > Prcess Perspective Prcess efficiencies (e.g., cycle times), prductivity, etc Strategi c Intent Custmer (Client) Perspective Quality f service, lyalty and acquisitin f custmers > Learning and Grwth Perspective State f, and enhancements in, the management f peple, capital and technlgy > Adapted frm R. Kaplan and D. Nrtn, Using the Balanced Screcard as a Strategic Management System, Harvard Business Review, January-February,

6 Can the Balanced Screcard be adapted? Perfrmance can have multiple dimensins that extend beynd the traditinal perspectives including: State f partnerships and relatinships (plitical, cmmunity, ) Level f cmmunity invlvement and trust Grwth in key markets and/r infrastructure (e.g., access t land) Security Envirnmental management and impacts, etc Cnsider audiences, types f decisins being made, and strategic aims 6

7 Is this indicative f the reality in practice? Excerpted frm Dilbert, Randm Acts f Management, Sctt Adams, Andrews McMeel Publishing,

8 Areas f challenge and pprtunity Ensuring use f perfrmance infrmatin in gvernance Reinfrcing key messages and maintaining mmentum Aligning planning, risk management, mnitring and reprting practices Aviding verly cmplex prcesses and systems Accunting fr different generatinal cultures Shift frm denial t cmpliance and then engagement 8

9 What might we cnsider as strategies in mving frward? Put in place gvernance principles and prcess Assign accuntabilities and prmte shared wnership Use cmmn terms, templates and technlgy t fster cnsistency while maintaining simplicity Cmmunicate using varius appraches and a fcus n this is why it is valuable, and this is hw it will be used Celebrate successes, use teams and peer-t-peer prcesses, and fster cmmunities f practice 9

10 Laying ut an agenda fr the future 10

11 CONTACT US Elevate Cnsulting Inc. Carnegie Building, 5 th Flr, 1312 Blanshard Street Victria, BC Canada V8W 2J1 Phne: / Fax: bill@elevatecnsulting.ca jae@elevatecnsulting.ca inf@elevatecnsulting.ca Web: 11