the balance scorecard: creating alignment and simplifying daniel hayden, rare...
TRANSCRIPT
Agenda
• A bit about Rare• What are Balanced Scorecards• What is Rare’s Balanced Scorecard• How Rare uses the Balanced Scorecard
Our specialty: Social marketing to
reduce threats
Method Summary: Rare trains
partners to run “Pride campaigns” that
change attitudes and behaviors, provide sustainable alternatives, and
help communities protect biodiversity at
the local level
Founded: 1972
Central office: Arlington, Virginia USA
Regional offices: Indonesia, China,
Mexico
Total staff globally: 75
# of countries Rare has worked in:
57
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Rare at a Glance
Theory of Pride
• Commercial marketing practices can be used to sell conservation
• People have material, esthetic and aspirational needs
• People’s choices are based on rational and irrational factors
• Pride is one of human’s great motivators
• Pride + the right solution will drive behavior change
• Instilling conservation values makes a community resistant to new threats
Rare
Strategy Execution
(BSC)
Ongoing monitorin
g
Objectives
Partner Selection
Pre Campaign
Post Campaign
Measurement begins at strategy design and is implemented through the campaign cycle
Measurement is Part of Design
Agenda
• A bit about Rare• What are Balanced Scorecards• What is Rare’s Balanced Scorecard• How Rare uses the Balanced Scorecard
Balance Scorecard Basics
Mapping Strategy: • Mission • Strategic Themes • Strategic Results
Organizational Alignment• Vision/Mission• Financial • Customer• Learning & Growth / Human Capital
• Internal Business Processes
The Balanced Scorecard methodology is an approach that recognizes that organizational sustainability is not about delivering results one year, but the ability
to create results over many years.
Organizational Alignment Definitions
Each of these elements must be in “in balance” to ensure organizational sustainability
Vision/Mission
Financial
Customer
Learning & Growth / Human Capital
Internal Business Processes
Includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement.
Metrics that allow managers to know how well their team is running, and whether its products and services conform to customer requirements (the mission).
Recognizes the importance of customer focus and customer satisfaction are leading indicators. If customers are not satisfied, they will eventually find other suppliers.
Timely and accurate funding is essential, but it is “in balance” with other organizational objectives. Financial measures should focus on current and future needs.
A mission statement defines why an organization exists; the organization's purpose
Fully implemented Balanced Scorecard
Source: © 2007 by the Balanced Scorecard Institute, a Strategy Management Group company. All rights reserved.
Agenda
• A bit about Rare• What are Balanced Scorecards• What is Rare’s Balanced Scorecard• How Rare uses the Balanced Scorecard
Rare’s Strategy MapThe Strategy Map Defines the Processes that Support Our Mission
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Mission Focus
Partner / Customer
Focus
Human Capital
Financial
Business Process
Rare’s Regional BSC
Metric ReportCombines Data on the Outcomes, Process and Rules
Status trend
Definitions
Governance
Business rules
Outcomes
Drillable transparency
across the whole organization
Weekly Flash Report
Pride Scorecard
Summary Report
Rare and Departmental
Balanced Scorecard
Brief update on the short-term status of an individual campaign
Comprehensive view of the long-term status of an individual campaign
Summary of status of a group of campaigns
Average status of a group of campaigns
Programmatic Reporting FlowConnects Strategy with Execution
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Data Flows Up from Regions
Strategy Flows Down
Global Teams Drive AdoptionGlobal Teams Advocate Around BSC Measures
Cohort Development Team
Quality Management & Improvement
Global Programs
• Manages the recruitment of partners• Helps select which partners and sites we should work with
• Helps set standards for all Pride campaigns• Monitors campaigns against set goals
• Designs training for programmatic staff• Creates training for our Pride campaign managers (partner staff)• Sets expects about behavior change •Monitors impact
Pride Management Process
Select Theme
Recruit & select
Partners Train & Support Partners
Program Management
Initial Planning Pride Campaign Execution
Supporting Global Teams1
1 1 2
2
3
3
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Agenda
• A bit about Rare• What are Balanced Scorecards• What is Rare’s Balanced Scorecard• How Rare uses the Balanced Scorecard
• Strategy • Planning• Performance management
Strategy
• Strategy maps explain how we create value
• Highlight what we believe are the key organizational ingredients
• Visually show how elements interact
• Strategy maps are simple communications tools
• We always tend to overcomplicate, so simple is good!
• People need to understand where they fit it
• The Balanced Scorecard drives action• Links to the strategy map• Shows the objectives• Shows the measure
Clarity
Clarity does NOT equal agreement – it just focuses us on specific issues
Planning
In our Work Planning Process all initiatives (and budget items) must align to a
BSC measure
PRIORITY: Continuous Improvement of Program OperationsBSC/DBSC Measure(s) Supported (or draft new): Percentage of Pride Scorecard and Management Objectives Complete
(R, A) Daniel, Kevin, Paul Q1, Q4(R, A) Daniel, Kevin, Paul, Amielle OngoingDaniel, Kevin Ongoing(R, A) Daniel Q2(R, A) Daniel, Kevin, Katie Ongoing(R, A) Daniel, Kevin Ongoing
What are your team's priorities for next year? What BSC/DBSC measures do they support? What will be the major components of
your work?
What Activities Will Support These FY12 Priorities? Responsibility Month or Quarter
Initiative Name: Quality Management Processes Campaign ReviewsEnsure that Pride campaigns meet Rare standards and goals of the CPP through various checkin processes.
Pre-second university return meetingsMidpoint review
Pre- graduation reviewCohort Learning reviews
New! Activity to plan for "post graduation" phase 6 months before graduation
Initiatives must call out BSC Measure
Performance management
Department heads are measured against their performance against DBSC goals
Programmatic/Departmental Effectiveness Goal 1
Supported Rare Organizational ObjectiveThis field will populate automatically.
Maximize the Effectiveness of each Pride Campaign
Department Measure and FY11 TargetSelect a measure from the drop-down menu.
Compliance with Global Programmatic Standards 80%
Departmental InitiativeUse dropdown menu to select initiative from Department Scorecard. If this is an ongoing activity that does not have an FY11 Initiative, select, "Ongoing Responsibility"
Quality Management
Individual Contribution & TasksWhat is your individual contribution to the department's goal and what action will you take to achieve your goal?
Oversee:
- Two campaign reviews (PEP2 and Guad 7) with the regional directors (aka audits)- Improve and implement ongoing reviews (i.e. BROP's, project plans, final reports and other deliverables (these should be better communicated, less onerous and with clearer outcomes)- Continue to produce case studies - QMI will contribute at least 5 Cases Studies to the Bright Spots document (Kevin will lead this)- Drive usage and decision making around reports - continue to improve reports, focus on outcomes, ongoing training (this includes the work with Keith around reporting)- Note that we agreed to cancel the initiative around Miradi
Oops, Lessons Learned
• Our first BSC had 50+ metrics and no way to gather half of them
• Design process was very top-down• No staff to support rollout or maintenance• Not integrated with other management tools• Not integrated into management process (meetings)• Assumed that once things were “agreed” the “conversations” would stop
• Not reviewing metrics often enough for relevancy
Bright Spots: Key Lessons
• Design metrics combining Board and Leadership team needs with the insight from the staff on how to gather the data
• You need people who can gather and review the data• BSC method helps to structure strategy conversations (but it is not strategy)
• Things change, opportunities arise• BSC method brings focuses only if you are willing to stick with it
• Have plans to get you were you want to go with your measures
• Focus on the possible not ideal
Appendix
• Customer Value Proposition - The Customer Value Proposition is the unique added value an organization offers customers through its operations; the logical link between action and payoff that the organization must create to be effective. Three aspects of the proposition include Product/Service Attributes (Performance/ Functionality considerations such as quality, timeliness or price), Image and Relationship.
• Mission - A mission statement defines why an organization exists; the organization's purpose
• Performance Measures - Performance Measures are metrics used to provide an analytical basis for decision making and to focus attention on what matters most. Performance Measures answer the question, 'How is the organization doing at the job of meeting its Strategic Objectives?' Lagging indicators are those that show how successful the organization was in achieving desired outcomes in the past. Leading indicators are those that are a precursor of future success; performance drivers.
• Perspectives - A Perspective is a view of an organization from a specific vantage point. Four basic perspectives are traditionally used to encompass an organization's activities. The organization's business model, which encompasses mission, vision, and strategy, determine the appropriate perspectives.
• Strategic Initiatives - Strategic Initiatives are programs or projects that turn strategy into operational terms and actionable items, provide an analytical underpinning for decisions, and provide a structured way to prioritize projects according to strategic impact. Strategic Initiatives answer the question, ‘What strategic projects must the organization implement to meet its Strategic Objectives?’
• Strategic Objectives - Objectives are strategy components; continuous improvement activities that must be done to be successful. Objectives are the building blocks of strategy and define the organization's strategic intent. Good objectives are action-oriented statements, are easy to understand, represent continuous improvement potential and are usually not 'on-off' projects or activities.
• Strategic Result - Strategic results are the desired outcome for the main focus areas of the business. Each Strategic Theme has a corresponding Strategic Result.
• Strategic Theme - Strategic Themes are key areas in which an organization must excel in order to achieve its mission and vision, and deliver value to customers. Strategic Themes are the organization's "Pillars of Excellence.“
• Strategy Map - A Strategy Map displays the cause-effect relationships among the objectives that make up a strategy. A good Strategy Map tells a story of how value is created for the business.
• Strategy - How an organization intends to accomplish its vision; an approach, or “game plan”.
• Targets - Desired levels of performance for performance measures
• Vision - A vision statement is an organization's picture of future success; where it wants to be in the future
Definitions of Balanced Scorecard Strategic Planning & Management Terms
Source: © 2007 by the Balanced Scorecard Institute, a Strategy Management Group company. All rights reserved.
Purpose: Project management of campaigns, organizing and storing campaign data Audience: Leadership team, Quality ManagementReports: Pride Scorecard, Summary Reports, Weekly Flash Reports
Purpose: Managing fundraising and the Pride application processAudience: Development team, Recruiting/Partnerships teamReports: Fundraising status, cohort development
Purpose: Managing timesheets, vacations, etc.Audience: Finance teamReports: Hours of training, vacation balances, expenses
Purpose: Budgeting, tracking expenses, handling payrollAudience: Finance teamReports: Budget-to-actual, expense summaries
Purpose: Outline organization’s Balance ScorecardAudience: Department heads, BoardReports: Organization-wide and departmental balanced scorecards
Technology: Enables Information FlowA mix or proprietary and off-the-shelf tools support Rare