For other Informa Webinars: http://www.informa-mea.com/webinars To view recording: https://youtu.be/4RQF-oUMgcw or watch the video at end of the slide This webinar is designed as a practical guide to using the Balanced Scorecard. The Balanced Scorecard is a system used extensively in business and industry, government, and non-profit organisations worldwide to align business activities to the vision and strategy of the organisation, improve internal and external communications, and monitor organisation performance against strategic goals. The Balanced Scorecard was originated by Drs Robert Kaplan (Harvard Business School) and David Norton as a framework to help managers consider both financial and non-financial aspects of their business and design performance metrics around them. While the phrase Balanced Scorecard was coined in the early 1990s, the roots of this type of approach are deep, and include the pioneering work of General Electric on performance measurement reporting in the 1950s and the work of French process engineers (who created the Tableau de Bord – literally, a "dashboard" of performance measures) in the early part of the 20th century. About the Presenter: Ian has over 30 years of business experience ranging from senior management positions, in such companies as Ericsson to founding and selling his own companies. Ian designs and delivers training programmes globally with particular attention to the GCC nations. He works in many fields including both accredited and non-accredited courses. Ian divides his time equally between the Middle East and the UK. In the UK, Ian is a lead professor at London Met University and the University of West London specialising in working with students to gain their membership to the Chartered Institute of Procurement and Supply.

1. The Balanced Scorecard - What Does It Mean And
How To Implement It
Monday, 26 October 2015 ● 16:00 – 17:00 UAE Time
Ian Moody
Lead Tutor
Chartered Institute of Procurement and Supply
(CIPS)

2. Housekeeping
• The slides will be available on our SlideShare page; the link will be
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emailed to you
• Please take the time to complete a post-webinar survey that will pop
up at the end
• You can type your questions throughout the session in the Question
box
• Time will be allocated in the end for the speaker to address your
questions

3. Your Presenter
Ian Moody
Ian Moody Associates Ltd, Management Consultants
Ian Moody has more than 25 years’ experience in senior management positions. Ian has set up and developed various
highly profitable companies and has specific experience in creating exit strategy.
His practical knowledge of strategic development and operational management coupled with a strong sales and
marketing emphasis allows Ian’s clients and students to benefit from a ‘real life’ approach to his consultancy and
training assignments.
Ian works as a lead tutor and assessor for CIPS both in in the GCC and at London University.
Ian’s core expertise lies in the areas of planning, finance and communication at all levels of the organisation. In addition
to his work with CIPS he is accredited by major international examining bodies such as the ACCA, & ILM and works
throughout Europe, Asia and the Middle East.
He is a Senior Consultant of The Corporate L.I.F.E.™ Centre International, Canada; a world leading consultancy in
Business Strategy & Development.

4. Purpose of the Webinar
• Introduce the Balanced Scorecard to the
Organization
• Make sure everyone understands how the
scorecard works
• Communicate how the Balanced Scorecard fits
with the Malcolm Baldrige Model of
performance excellence

5. • The Organization will become more “strategically focused” over
the next ten years given the recent policy directive issued by BSP
(Budget & Strategic Planning).
• People at all levels have relied heavily on tactical performance
measurements, such as number of maps submitted, number of
land structures in flow, and % of supply vendor contracts in place.
• Need more balanced approach to looking at performance, both
tactical and strategic.
• Only 5% of a workforce tends to understand their company’s
strategy.
• 86% of executive teams spend less than one hour per month
discussing strategy.
Why the Balanced Scorecard?

6. • The Organization’s Information Resource Planning System (IRPS):
- Enterprise wide system for how we will evaluate success – division read
outs, data turnarounds, global partnerships, etc.
- Must be integrated into all agency components (such as region and
global outlet offices)
- Designed around the Balanced Scorecard framework
• The Balanced Scorecard will be the strategic view of performance for the
business, balancing out our current tactical view of performance which is
already in place.
A Major Driver is . . .

7. Introduced in 1992, by Robert Kaplan and David Norton, the
Balanced Scorecard is the most commonly used framework for
ensuring that agencies execute their strategies. Today, about
70% of the Fortune 1,000 companies utilize the Balanced
Scorecard to help manage performance.
Balanced Scorecards are used as the roadmap for creating the
“Strategic Management System” . And this will drive overall
organizational performance for our entire business!
Where it started . . .

8. Some Basic Principles
• Quantifies the Strategy in measurable terms
• Strategy is summarized on a Strategy Map over four views of
performance (perspectives).
• Must capture a cause-effect relationship between strategic objectives
over the four perspectives on the Strategy Map.
• Critical Components include:
- Measurements
- Targets
- Initiatives
• Everything must be linked: Goals to Objectives, Objectives to
Measurements, Measurements to Targets.

9. Four Views of Performance
• Strategy can be described as a
series of cause and effect
relationships.
• Provides a “line of sight” from
strategic to operational activity
– working on the “right” things.
“If we succeed, how will we look to
our stakeholders?”
Stakeholders
Strategic Objectives
“To satisfy our customers, at which
processes must we excel?
Internal Processes
"To execute our processes, how must our
organization learn and improve?"
Learning & Growth
“In order to succeed, what
investments in people and
infrastructure must we make?”
Agency Investments

10. Strategy
Corporate
Business
Operational
MeasuresObjectives
Complete Framework
The Importance of Alignment

11. Alignment all the Way Through
Improved "Cause
and Effect"
Knowledge
Innovation
Business
Processes
Improved Environmental
Assessment Reports
Management
Investments Available to
be Allocated to Other
Critical Areas
Business
Sustainability
Relationship
Management
Internal
External
Customers
Suppliers
Financial
Management
Resource
Investment
Goal:
Initiative:
Performance Gap:

12. In order to be successful. . .
• Be comprised of a balanced set of a limited vital few measures;
• Produce timely and useful reports at a reasonable cost;
• Display and make readily available information that is shared,
understood, and used by the Agency; and
• Supports the organization’s values and the relationship the
organization has with customers, suppliers, and stakeholders.

13. • Get down to a set of quantifiable strategic objectives:
Too vague
More precise
• Make sure your objectives have a direct relationship to
your goals and your goals have a direct relationship to
your mission and values.
Before we can map your strategy . . .
Improve Customer Service
Reduce average customer wait times by 30%
by year end

14. InternalProcessStakeholderLearning
&Growth
Reduce Re-Activities thru
ABC/M
Establish Web Based
Self Services
Knowledge
Management
Human Capital
Improved Returns on
Investments
More rapid and
accessible services
Leadership
Development
Investments
Strategy Map: Capture a Cause Effect
Relationship from the Bottom Up
IT InfrastructureFacilities and Fixed
Assets
Economic Model
Process
Expand Global
Facility Reach

15. Two Special Techniques
for Building Strategy Maps
The 4 to 5
Rule
Splitting the
Perspective
General Rule of Thumb to ensure strategy map is developed both
vertically and horizontally
Way of pulling out both drivers and outcomes that match up against the
core competencies of the business model
Customer Growth Customer SatisfactionRetention Rate
Timely Delivery Pricing Quality Service Reputation
Customer Perspective
Outcomes
Drivers
Weak Strong

16. • Articulates how the organization creates value for its constituents and
legitimizing authority
• Displays key priorities and relationships between outcomes (the "what") and
performance enablers or drivers (the "how")
• Provides a clear view of "how I fit in" for sub-organizations, teams, and
individuals
• "Cascading the scorecard throughout the organization, and clearly mapping
the various units and functions back to the organization or agency-wide map
is critical to leveraging and ensuring alignment"
Key Benefits of Strategy Maps

17. Executive consensus and
accountability:
Building the map eliminates
ambiguity and clarifies
responsibility.
Educate and Communicate:
Build awareness and
understanding of organization
strategy across the
workforce.
Ensure Alignment:
Each sub-unit and individual
link their objectives
to the map.
Source: "Using Balanced Scorecard Technology to Create Strategy-Focused Public Sector Organizations", Robert S. Kaplan, April 21, 2004, pg.
20
Promote Transparency:
Communicate with and
educate constituents, partners,
oversight bodies, and the
general public.
Strategy Maps –
A Better Way to Communicate Strategy

18. Once you have completed your strategy map, make sure it aligns divisions you report up to. This overall alignment of
scorecards throughout the entire Organization forms the Strategic Management System.
Best Business
Practices
Expand Global
Reach
Expand the Skill
Base
Lean Processes
Organization
Scorecard
Improve Asian
Footprint
Develop the
Workforce
GOG
Scorecard
Process Efficiency Grow Globally
Highly Skilled
WorkersAgency Scorecard
Streamline
Processes
Continue to
Expand Range
Improve
Employee
Competencies
Outlet
Scorecard
IRPS
Aligning the Scorecards

19. Detailed statement
of what is critical to
successfully
achieving the
strategy
How success in
achieving the
strategy will be
measured and
tracked
Key action
programs
required to
achieve
objectives
The level of
performance or
rate of
improvement
needed
Objective
Description
Target
2 per setup per
month each
Outlet Office
InitiativeMeasure
Number of Reworks
Strategy Map
StakeholderInternalProcessL&G
Faster Service Access
Self Service
Applications
Web Enable
Technologies
Process and Value
Map Analysis
Lean Processes
Investments
Invest in IT
Extend the Map into Measurements,
Targets and Initiatives
Lean / Six SigmaEliminate waste,
reworks, and other
errors in our
processes

20. Make sure the components of your scorecard fit together. We want to create a tight
model for driving execution of your strategy.
Goal Objective Measurement Target Initiative
Achieve
Business
operational
efficiencies
with best
practices in
the private
sector
Reduce
Operational
Service Costs by
50% over the
next 5 years
Cost per Outlet
Office, Cost per
Region, Cost
per FTE
5% - Year 1
10% - Year 2
15% - Year 3
Activity
Based
Costing /
Management
Reduce identified
re-activities
within primary
processes by
80% over the
next 3 years
Waste Volume
Charts, Rework
Tracking, Cycle
Time End to End
in S-LX (5 of 7
Regions)
Waste stream
reductions of
5% each year,
Reworks cut in
half for next 3
years, cycle
time cut by 75%
Lean / Six
Sigma
Alignment of Scorecard Components

21. Performance Measurement is a process by which a business
/ program / function / outlet office objectively assesses and
evaluates the extent to which it is accomplishing a specific
objective, goal, or mission. Performance measurement alone
is incomplete.
Performance Management is a systemic link between
company strategy, Investments, and processes. Performance
Management is a comprehensive management process.
The Context of Measurement

22. • Enables decision making
• Manage by results
• Promote accountability
• Distinguish between program success and failure
• Allow for organizational learning and improvement
• Justify budget requests
• Optimize Investments
• Provide means of performance comparison
• Fulfill mandates
• Establish catalysts for change
• And so on…
Why Measure Performance?

23.  Knowing what is going on in their enterprise
 Effectively making and supporting decisions regarding Investments,
plans, policies, schedules, and structure
 Specifically communicating performance expectations to subordinates
 Identifying performance gaps that should be analyzed and eliminated
 Providing feedback that compares performance to a standard
 Identifying performance that should be rewarded
Without Measuring, Decision Makers
Have No Basis For:

24. Leading
Definition
Lagging
Input
Output
Outcome
Objective /
Quantitative
Example
Intermediate outcomes that predicts or
drive bottom-line performance results
Measure Type
Bottom-line performance results resulting
from actions taken
Amount of Investments, assets, equipment,
labor hours, or budget dollars used
Units of a product or service rendered - a
measure of yield
Resulting effect (benefit) of the use or
application of an output
Empirical indicators of performance
Subjective /
Qualitative
Perceptions and evaluations of major
customers and stakeholders
Employee turnover rate
Employee satisfaction rating
Number of Value Meal orders fulfilled
Customer satisfaction rating
Wait time
Customer complaints received as a % of
total customers served
Number of cashiers
Types of Measurements ( e.g. fast food restaurant)

25. Stakeholder / Customer Internal Processes
Learning and Growth Investments
• % of facility assets fully funded for
upgrading
• % of IT infrastructure investments
approved
• # of new hire positions authorized for filling
• % of required contracts awarded and in
place
• Percentage employee absenteeism
• Hours of absenteeism
• Job posting response rate
• Personnel turnover rate
• Ratio of acceptances to offers
• Time to fill vacancy
• Number of unscheduled maintenance calls
• Production time lost because of maintenance
problems
• Percentage of equipment maintained on
schedule
• Average number of monthly unscheduled
outages
• Mean time between failures
• Current customer satisfaction level
• Improvement in customer satisfaction
• Customer retention rate
• Frequency of customer contact by customer
service
• Average time to resolve a customer inquiry
• Number of customer complaints
Examples of Measurements by Perspective

26. • You should have at least one measurement for each
objective.
• Measurements define or explain objectives in quantifiable
terms:
Vague => We will improve customer service
Precise => We will improve customer service by
reducing response times by 30% by year
end.
• Measurements should drive change and encourage the
right behavior.
• Should be able to influence the outcome.
Some Basic Guidelines for
Good Performance Measures

27. Selection Criteria for
Performance Measurements
 MEANINGFUL - related significantly and directly to organizations mission and
goal
 VALUABLE – measure the most important activities of the organization
 BALANCED – inclusive of several types of measures (i.e. quality, efficiency)
 LINKED - matched to a unit responsible for achieving the measure
 PRACTICAL – affordable price to retrieve and/or capture data
 COMPARABLE – used to make comparisons with other data over time
 CREDIBLE - based on accurate and reliable data
 TIMELY - use and report data in a usable timeframe
 SIMPLE -- easy to calculate and understand

28. 1. Relevant
– Addresses an operational or strategic performance issue
– Is results- or outcome-focused
– Provides useful information to enable decision making
2. Measurable
– Quantifiable and Objective
– Facilitates Analysis
– Can be done in a timely manner with high accuracy
– Data are available and collectable
3. Actionable
– Can be tracked to an appropriate person or team responsible for the activity
measured
– Measure relates to process inputs that can be controlled/adjusted to address
concerns
Three Criteria Used for Scorecard

29. Some Tools for Determining
What to Measure
Inputs
Process/
System Output
Intermediate
Outcomes
End
Outcome
Program Logic Model
Desired
Outcome
Causal Analysis
Process Flow
Results
Of
Testing
Not AcceptableAcceptable
Prototype
Product
Back to
Laboratory
To Market

30. • Past performance trends per historical data.
• Performance levels of similar organizational units at a
comparable level that facilitates benchmarking.
• Best practices across the agency, the public sector or the
private sector. Must be at a pre-existing high level of
performance before you use this approach.
• For newly launched services, may have to establish a
baseline per a prototype test and extend out from this
point forward.
• For major strategic shifts, may have to set directly per the
plan itself without regard for hard data.
How to Set Targets

31. • Targets match up with measurements, one to one.
• Targets require improving current levels of performance.
• Targets are a stretch, but achievable: they may require
improvements to existing processes.
• Targets are quantifiable so that the target communicates if
the expected performance was met.
• Long-term targets are established before short-term targets.
• Financial/Budget related targets are established before non-
financial targets.
Checklist for Setting Targets

32. • Leader Sponsored
• Requires Investments – people, funding, technology, etc.
• Has designated owners
• Includes deliverables or milestones
• Usually has time deadlines
• May be difficult to launch – not resourced
• Could encounter obstacles – people are confused, conflicts with
other functions
Characteristics of Initiatives

33. Initiatives Goals or Objectives
Value Mapping Project Improve identification and delivery of all
services across the full stakeholder
spectrum
Employee Rotation Program Improve the employee turnover and
satisfaction scores
Web Self Service Portal Reduce costs and streamline our services
for more direct service delivery
Common Knowledge Center Expand the overall knowledge base so that
inter-functions can learn from one another
Customer Survey and
Analysis Tool Program
Develop a more systematic process across
the entire business to better connect to our
customers
Shared Service Center
Tracking System
Reduce reworks and overlaps between our
seven shared service centers
Initiatives should enable strategic execution

34. When you first launch your Initiative, you probably want to use an Output Measurement. Once
the Initiative is up and running, change your measurement to an Outcome to see if the Initiative is
really having strategic impact.
Initiative Output
Measurement
Outcome
Measurement
Lean Process / Six
Sigma
Number of Projects
Defined by Region
Overall reductions in errors,
reworks, and cycle times
Activity Based Costing
/ Management
(ABC/M)
% of Service Center
Outlets with ABC Models
in place for Allocation
Costs
Reductions in identified re-
activities per process study
Employee
Competency Models
% of Employees who
have a Competency
Model in place
Higher skill levels of
employees using the models
Going from Output to Outcome

35. • Describes an overall strategic direction
• Can improve the communication effectiveness of the Strategy Map
• Examples of themes:
– Innovative Services
– Lean Processes
– Adaptive Organization
– Realign our Core Competencies
– Reach the Stakeholder
• Group common set of objectives around a theme
Strategic Themes

36. Making the connection to the Aldridge Criteria
Malcolm Baldrige Balanced Scorecard
Leadership Learning & Growth Perspective
Human Resource Capital
Business Results
Process Management
Strategic Planning Strategy Map
Learning & Growth Perspective
Internal Process Perspective
Customer Focus Stakeholder / Customer Perspective
Measurements and Targets

37. • Cascade and align strategy down to the Outlet level (and beyond –
personal scorecards) where execution takes place.
• Capture cause effect linkages as you cascade and align down. This will
ensure that all of the Agency is moving in the same strategic direction.
• Identify and commit to projects and initiatives that will drive strategic
execution.
• Establish performance outcomes in the form of measurements and
targets.
• Review results on a regular basis within the Quarterly Leadership Briefings
using the Balanced Scorecard framework.
Highlight Important Steps

38. • Questions?

39. • End of webinar
• Thank you for your time