Developing a Balanced Scorecard Developing a Balanced Scorecard in the Veteran Benefits in the Veteran Benefits

AdministrationAdministration

Presentation to the Balanced Scorecard Presentation to the Balanced Scorecard Interest GroupInterest Group

September 25, 2002September 25, 2002Joe ThompsonJoe Thompson

History and Background• The Veterans Benefits Administration -

Mission, Structure and Culture

• Evolution of thought on BSC

• Why use a BSC?

• Features of VBA’s Scorecard

• Q&A

Department of Veterans Affairs

• Veterans Health Administration• National Cemetery Administration• Veterans Benefits Administration

VBA Business Lines

1776 1778 1917 1944

Compensation

Pension

Insurance

VocationalRehabilitation

Education

Home Loans

Evolution of the Scorecard

• VBA’s measurement culture• Mega Report• GPRA• Reinvention Lab• National Deployment

Question 3b(ii) Please explain your strategy to evaluate implementation and to prevent an increase in case backlogs during transition.

Answer 3b(ii). The key to evaluating the progress made in improving veterans benefits and services lies in the Balanced Scorecard approach. A (BSC) is developed using five outcome measures - customer satisfaction, speed, accuracy, unit cost, and employee development - and is used to monitor the results of improvement activities… The (BSC) will provide us with a strategic measurement system…looks at both external and internal measures of performance and …includes objective, numerical measures and more subjective judgmental measures. It is also … looks at lagging indicators - those measures that are based on past actions - and at leading indicators - those which shape future actions. The organization will look at the total service delivery picture taken together rather than just productivity, cost, or speed.

“Don’t worry about people stealing an idea, if it’s an original

you will have to ram it down their throats.”

Howard Aiken

BALANCING MEASURES

OLD MEASURES

- Timeliness- Quality- Productivity

NEW MEASURES(Balanced Scorecard)

- Speed- Accuracy- Cost-per-Claim/Unit Cost- Customer Satisfaction- Employee Development

The Balanced Scorecard as a Strategic Framework

Customer

InternalBusiness

Learningand

Growth

Financial VISION ANDSTRATEGY

The Balanced Scorecard as a Strategic Framework

Clarifying &Translating

Vision &Strategy

StrategicFeedback &Learning

Planning &Target Setting

Communications• Linking• Setting Goals

THE BALANCEDTHE BALANCEDSCORECARDSCORECARD

Link Business Plan to Budget

– Links performance to budget request

– Measures come from strategies– Strategies stem from your vision– Vision driven by your mission

Setting Zero Values

• Minimum acceptable level of performance– When a “Zero”

value doesn’t equal zero

– Intuitive “spacing” (or program judgement)

Setting Percentages (“Weights”)

• The sum of the parts equals the whole– Reflects agency

priorities– Considers external

factors & input • Customers• Stakeholders

Target Setting Process• Field and Headquarters Collaboration

• Data Driven

• Small Groups

• Current performance

• Influencing factors quantified

• Final target

• Field targets

• Reconciliation

REWARDS AND RECOGNITION PROGRAM

Recognizing employee contributions and efforts in meeting VBA’s mission.

Establishing Balanced Scorecard targets in each program with accomplishments recognized at the regional and National levels using a Two-Tier payout plan.

Compiling & Disseminating the Scorecard

• Model built based on VBA specifications

• Data Warehouse technology used to compile data from disparate systems

• Disseminate via Intranet so all employees have access

• Iterative process - continuous refinement to meet end-user needs

National C&P Scorecard

Postscript

• Minimal use of BSC• Focus on measures of speed and

workload balances• Infrastructure in place if focus

changes