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 • • • • 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
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