Performance
Measurement
If you wanted to climb Mount Everest…
What would you do?
Where would you start?
What would keep you going when it gets tough?
How would you know you are successful?
The Balanced Scorecard
In 1990 the Nolan Norton Institute sponsored a multicompany
study:
“Measuring Performance in the Organization of the Future”
Nolan Norton and Robert Kaplan:
…believed that reliance on measuring financial performance
hinders the ability of organisations to create economic value.
…introduced the Balanced Scorecard in 1992 as a business
performance system designed to implement organisational
strategy.
The scorecard uses the process of setting specific and
challenging goals that translate an organisation's mission and
strategy into a comprehensive set of performance measures.
The Balanced Scorecard
It is Balanced:
• financial and non-financial measures
• internal and external constituents
• lagging and leading indicators
It is a Scorecard:
• measures progress against chosen targets
The Strategy Pyramid:
Making Strategy Measurable
Why do we exist?
Mission
To explore new mountains
What are our beliefs?
Core Values
Respect nature
What is our aim?
Vision
To summit that mountain
How will we achieve our goal?
Strategy
To climb up the north side
during the day
What must we achieve to meet
our goals?
Objectives
Climb fast
How do we know that we are
going to reach our goals?
BSC Measures
The speed that I am
climbing (m/h)
What do we need to reach our
goal?
Strategic Initiatives (Project Plans)
Buy ladders and ropes to
allow you to climb faster
Key Principles
1. Translate the Strategy into Operational
Terms
2. Align the Organisation to the Strategy
3. Make Strategy Everyone's Everyday
Job
4. Make Strategy a Continual Process
5. Mobilize Leadership for Change
BSC Components
Financial
Measures
Operational
Measures
A tool to measure the performance of an
organization in four key areas:
• Financial: How do we look to shareholders?
• Customers: How do customers see us?
• Internal process: What must we excel at?
• Learning and growth: Can we improve?
Components
B
A
C
D
E
F
Measuring Objectives
The Key Result Areas are the focus points critical to the success of the business.
The objective should
be convertable into
action and should
also be measurable,
ie. “what do we want
to achieve?”
• Needs to be able
to be consistently
applied to yield
reliable results
• Needs to be valid
in that it will
measure
attainment of
objective
• Must have control
over the measure
Future
targeted
figures
Who is
responsible
for actioning
the planned
measure?
The current
figure of
performance
Frequency of
reporting
G
The Strategy Map: An Example
Financial
Return on
Investment
Customer /
Stakeholder
Partnership
across the De
Beers pipeline
Partner of
Choice
Internal
Business
Processes
The right
people in the
right place at
the right
time
Culture
EXCO –
Exploration
Appetite
Technolog
y and
Practice
Delivering
Diamond
Deposits
Organisation
& Learning
Employee
Wellness
Cash
Management
Knowledge
Sharing &
Learning
Managing
Performance
Dashboard: An Example
H
Student Success
Enrollment
1.18
Freshman Success
1.067
1.18
1.18
0.828
Recruitment
1
0.828
1
General Education (Academic0.828
Profile) 1
1.052
1.718
2
1.132
-0.1
1
#
0.96
0.947
Diversity
1
Retention
1
1
Financial
Enrollment Management
Financial Flexibility
1.167
Appropriations
0.978
Graduation Rates
1.067
1.067
1
0.942
1
Teacher Education - Overall aggregation
0.74
1
Major Field
Initiative Achievement
1.167
1.167
Technology
1.233
Capital
1.233
1.233
Human Resources
1.2
Satisfaction
Operations - E&G
1.156
Students
1.081
0.74
0.924
0.896
Operations - Auxiliary
0.975
0.94
0.94
0.94
Communication
0.438
Fund Balance
1.01
Staff
Teacher Education
0.94
1.036
Faculty
1
0.6
0.438
0.438
11.5
Endowment
6.23
0.964
Key: Performance Above Target; Performance At Target; Performance Below Target; Performance Well Below Target
The Balanced Scorecard in the Non-Profit
Sector
The Balanced Scorecard in the Non-Profit
Sector
The Strategy Pyramid
Mission
Why we exist
Core Values
What we believe in
Vision
What we want to be
Strategy
What our game plan will be
Balanced Scorecard
What our strategy implementation looks like
Strategic Initiatives
What we need to do
Personal Objectives
What I need to do as an individual
Mission: Sonlife Africa exists to establish church-based disciplemaking youth
ministry in each country in Africa to help fulfil the Great Commission.
Values: We value the church as the hope of the world, the life and ministry of
Christ as the model for ministry, the ability of young leaders to develop
ministries in local churches that demonstrate the priorities of disciplemaking
(winning, building, equipping and multiplying), and the empowerment of servant
leaders passionate about the Great Commission and the Great Commandment.
Vision: We will achieve our mission by training, coaching and mentoring young
leaders in each country in Africa to develop disciplemaking youth ministries that
grow healthy churches and start a disciplemaking movement that covers each
country.
Strategy: Our strategy is to connect with key leaders in countries in Africa,
present consecutive levels of training in disciplemaking, coach and mentor
leaders to develop ministries that make disciples, and identify key leaders who
will be equipped to train, coach and mentor other leaders.
Mission: Develop Healthy Disciplemaking Youth Ministries in Local Churches in Africa
Impact Youth Leaders
Customers and
Stakeholders
Track
Seminar
Progress
Build
Ministry
Capacity
Equip Presenters
Internal
Processes
Supply
Quality
Tools
Provide
Effective
Training
Develop Structures
Learning and
Growth
Cascade
Balanced
Scorecard
Develop
Board
Ownership
Raise Funds
Financial
Secure
Donor
Funding
Grow
Donor
Base
Monitor Presenters
Monitor
Leader
Training
Monitor
Leader
Coaching
Mobilise Donors
Monitor
Leader
Mentoring
Develop Regional Directors
Facilitate
Regular
Gatherings
Find New
Regional
Directors
Oversee
Regional
Training
Evaluate Knowledge
Gather
Seminar
Feedback
Analyse
Seminar
Feedback
Share
Insights
Gained
Control Expenses
Evaluate
Operating
Expenses
Maintain
Operating
Surplus
Reduce
Cash
Expenses
Develop
Active
Partnerships
Secure
Ongoing
Funding
Support Country Leaders
Provide
Ongoing
Training
Maintain
Consistent
Contact
Develop Material
Create
Seminar
Material
Translate
Seminar
Material
RACI Charting: An Example
Sonlife Africa: Key Performance Indicators
Key Result Area
Measurement
Financial
Income Raised
Costs Incurred
Training Costs
Amount raised
Amount spent
Cost per leader trained
Learning and Growth
Board governance
Develop training material
% partipation
# seminars translated
Internal Processes
Develop Regional Leaders # of regional leaders
Expand Regionally
# of seminar events
Customers
Train Leaders
Expand Training
Coach Leaders
Mentor Leaders
# of leaders trained
# countries operating
# churches impacted
% delegates mentored
2000 2001
2002
2003
2004
2005
2006
2007 2008 2009
Goal
R 524,600 R 669,747 R 403,265 R 460,304 R 379,165
R 251,969 R 792,720 R 479,225 R 513,897
R 266
R 1,598
R 487
R 1,034
Total
R 2,437,080
R 2,037,811
R 846
80
90
100
100
3
3
3
4
60
2
70
1
0
1
0
2
0
4
0
5
2
5
3
8
4
12
4
16
5
20
5
24
5
28
87
3
360
4
949
10
496
11
985
12
5
5
5
10
20
497
15
300
25
700
20
400
50
1000 2000
27
35
500 750
75 100
3000 10000
42
52
1000 5000
100
100
3,374
RACI Charting
RACI is an acronym that stands for:
(1) Responsible – The person who has to
do the work.
(2) Accountable – The person who has to
make sure the work gets done.
(3) Consulted – The person who must be
consulted before the work is started.
(4) Informed – The person who must be
informed after the work has been
completed.
% of Leaders Trained
Target: 10,000
Actual
No. of Countries Operating
Sources of Income 2006
Projection
Other
1%
45
40
100
90
35
30
80
25
Support
39%
20
70
60
15
10
50
5
Grants
50%
0
40
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
30
Consultancy
10%
20
10
No. of Regional Training Events
0
16
14
300 Churches Im pacted
18 20
22
24
26
12
Expenses Breakdown 2005
Travel
17%
28
10
1
8
6
1
4
1
Admin
45%
2
0
Equipment
1%
Salary
37%
Implementing the Balanced
Scorecard
A. Provide leadership from the top
B. Make strategy everyone's job
C. Unlock and focus hidden assets
D. Make strategy a continuous process
Recommended Reading
Books by Robert S. Kaplan and David P.
Norton:
(1) The Balanced Scorecard: Translating
Strategy into Action
(2) The Strategy-focused Organisation
(3) Strategy Maps: Converting Intangible
Assets into Tangible Outcomes
Perspective
Intent
KRA
Raise
Funds
Control
Expenses
Financial
To generate finances to accomplish our mission and develop systems to control spending.
Objective
Measurement
Measure FreqCollator uency
Target by Year End
2005 2006
Goal
2007
2008
2009
Nurture exisiting
donors.
No. of monthly connections
made with current donors.
MD
Quarterly
8
10
12
12
12
12
Find new donors.
No. of new (local and
international) donors found.
MD
Quarterly
4
6
8
10
12
16
Write/present
funding proposals.
No. of new funding proposals
written/presented each year.
MD
Quarterly
4
6
6
10
12
12
Develop annual
budgets.
No. of board approvals for new
year budgets.
MD/FD
Yearly
1
1
1
1
1
1
Present audited
accounts to board.
No. of AGM’s where audited
accounts are presented.
MD/FD/C
M
Yearly
1
1
1
1
1
1
Evaluate operating
expenses.
No. of monthly reports
completed to evaluate costs.
MD/FR
Monthly
4
6
8
10
12
12
Perspective
Intent
KRA
Develop
Corporate
Structure
Evaluate
Intellectual
Capital
Develop
Training
Material
Learning and Growth
To grow organisational capacity to be able to effective delivery our ministries.
Objective
Measurement
% of awareness of the
Cascale the
Balanced Scorecard Scorecard among
stakeholders.
Target by Year End
Measure FreqCollator uency 2005 2006 2007 2008 2009
Goal
MD/RD
Quarterly
20
50
75
100
100
100
MD
Monthly
60
70
80
90
100
100
Develop board
governance.
% of attendance and
particpation at meetings
Gather feedback
from delegates.
% of evaluation forms
collected at each seminar.
Trainers
Every
Seminar
100
100
100
100
100
100
Analyse seminar
feedback.
% of feedback analysed per
seminar.
CL
Monthly
60
70
80
90
100
100
Discover insights
being gained.
% of country leader insights
received.
MD/RD
Quarterly
30
50
70
90
100
100
Revise existing
training material.
No. of seminars revised
based on insights gained.
MD
Quarterly
1
2
2
3
3
4
Create new training
material.
No. of new training modules
developed.
MD
Annually
2
Equip
Destiny
1
1
Harmony Accredit.
1
Adv3
1
6
Translate training
material.
Seminars translated into
local languages.
CL/RD
Annually
Strategy:
Portug.
Foundat: Vision:
Multipl:
Portug.
Portug.
Portug.
Chichew. Chichew. Chichew.
?
10.
Perspective
Intent
KRA
Equip
Ministry
Presenters
Support
Country
Leaders
Develop
Regional
Leaders
Internal Processes
To mobilise people who deliver and oversee our training, coaching and mentoring.
Objective
Measurement
Target by Year End
Measure FreqCollator uency
2005 2006 2007 2008 2009
Goal
Find equipping tools
and resource.
No. of modules created to
train presenters.
MD/RD
Annually
1
2
3
4
5
8
Train and support
presenters.
No. of training and support
events implemented.
MD/RD
Quarterly
1
2
3
4
5
6
Provide ongoing
training for leaders.
No. of regional training events
held for country leaders.
RD
Quarterly
2
4
6
8
10
12
Maintain regular
No. of monthly email and
contact with leaders. telephonic support to leaders.
RD
Monthly
6
8
10
12
12
12
Arrange regional
gatherings.
No. of gatherings held for
regional leaders.
MD
Quarterly
1
1
2
2
3
4
Find new regional
leaders.
Total no. of regional leaders
operating in Africa.
MD
Quarterly
3
4
4
5
5
5
Oversee regional
training.
No. of training events
presented by regional leaders.
MD/RD
Monthly
6
9
12
15
18
24
Segment
Intent
KRA
Train
Leaders
Coach
Leaders
Mentor
Leaders
Customer
To deliver training, coaching and mentoring to grow healthy youth ministries.
Objective
Measurement
Measure FreqCollator uency
Target by Year End
Goal
2005
2006
2007
2008
2009
4000
5000
6000
7000
8000
10000
40
60
80
100
100
100
Provide excellent
training seminars
# of leaders receiving training in
Africa
Track progress
through training
% delegates invited to next
training level
Oversee expansion
to countries in Africa
# countries that Sonlife Africa is
operating in
MD/RD
Quarterly
15
19
23
27
31
52
Develop coaching
strategy
No. of new modules developed
for coaching
MD
Quarterly
1
2
3
4
5
6
Implement coaching
strategy
% of training delegates being
coached
Trainers
Quarterly
40
60
80
90
100
100
Evaluate coaching
impact
No. of churches where the
strategy is being implemented
MD
Trainers
Quarterly
100
250
500
750
1000
5000
Develop mentoring
strategy
No. of new modules developed
for mentoring
MD
Quarterly
1
2
3
4
5
6
Implement mentoring % of seminar delegates being
strategy
mentored
Trainers
Quarterly
40
60
80
90
100
100
Evaluate mentoring
strategy
MD
Trainers
Quarterly
500
1000
2000
4000
7000
10000
% of trained leaders evidencing
life change
MD/RD
Quarterly
MR/RD/CL Quarterly