The Three Domains of a Balanced Scorecard

THREE DOMAINS OF A
BALANCED SCORECARD
Balanced Scorecard Interest Group
May 15, 2003
Three Domains
Of A Balanced Scorecard
• Balanced Scorecard Interest Group (BaSIG)
– Purposes
– Provided supporting data
• The three domains
• When the domains intersect
• Impact of political environment
Balanced Scorecard
Interest Group Purposes
• Provide an opportunity for federal agencies
contemplating a Balanced Scorecard to
learn from the experiences of others and
make a more informed decision.
• Provide and opportunity for federal
agencies engaged in the use of a Balanced
Scorecard to learn from each other by
sharing and reflecting on experiences.
Supporting Data From BaSIG
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USC Æ NAPA
NAPA/ASPA/IBM Foundation
FREE
26 BaSIG Presentation/Discussions
– Summaries
– http://www.aspanet.org/bscorecard/index.html
The Three Domains
•Behavior: People domain e.g. leadership,
motivation, acceptance, participation, culture
and change
•Conceptual: Analytical thinking domain e.g.
strategic thinking, selecting perspectives, goals
and metrics
•Data: Information domain: e.g.data
warehousing, issues of accuracy, availability,
affordability and timeliness
Behavior Domain Examples
• Start with top leadership buy-in. Nobody cares
until top management cares (Summary 17)
• A Scorecard is likely to survive a leadership
change if the organization thinks it meets a need
(Summary 14)
• Both of these scorecards were designed to change
employee and organizational behavior (Summary
16)
Conceptual Domain Examples
• Prior to 1998, the IRS was very good at counting
things, but the public was interested in other issues
like fairness and service. (Summary 6)
• Defining success, and how business unit success is
linked to organizational success is a critical but
difficult step. (Summary 21)
Data Domain Examples
• Conducting customer surveys is not a casual
undertaking, it requires input from specialists.
• Not all customers are the same. When collecting
feedback it is wise to stratify customers by their
level of importance.
• Surveying different customers year by year keeps
surveys from becoming “routine”.
(All three from Summary 14)
Behavior
Conceptual
Data
Intersection
Behavior & Conceptual Domains
• An employee survey was used to collect ideas and
preferences for measures to assure that employees
would accept and use them. (Summary 22)
• Monitoring and removing measures that produce
unintended consequences keeps the whole system
relevant to management needs and agency
circumstances. (Summary 11)
Intersection
Conceptual & Data Domains
• There is a Navy wide system to collect data on
turnover but it doesn’t disaggregate the data to the
local manager who had this as a metric and target.
(Summary 16)
• The library had lots of data collection activities
but these were not connected to the strategic plan
and strategic goals. (Summary 23)
Intersection
Data &Behavior
• Initially only the top 2 or 3 performers were
identified (as well as the organization’s overall
average). This allowed below average performers
to obtain suggestions and advice from high
performers. Later, as trust in the system increased
and was proven to be non-punitive, the
participating offices asked that all participants be
identified. (Summary 24)
Intersection
All Three Domains
• Research has demonstrated that measurementmanaged companies consistently out-perform
companies that do not use measures to manage.
Measures force clarification of strategy and the
alignment of of organizational units around
strategy. (Summary 12)
Behavior
Conceptual
Political
Data
Behavior
Conceptual
Political
Data
Impact of the
Political Environment
• Implementation can be affected by outside forces
e.g. OMB’s recent shortenings of the time table
for performance reports and financial statements
(Summary 17)
• The short term increase in backlogs, brought about
primarily by new statutory requirements, has
caused VBA’s new leadership to increase its focus
on timeliness only and to de-emphasize a broad
range of metrics.(Summaries 1 & 19)
Three Domains
Of A Balanced Scorecard
CONTACT INFORMATION
Gerald (Jake) Barkdoll DPA
[email protected]
(301) 987 8596 Home Office
(202) 347 3190 ext 3081 NAPA