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Session 8

Balanced Scorecard

and

Communication Protocol

How to Create a Successful Balanced Scorecard

What is a Balanced ScorecardThe balanced scorecard is a concept and tool first conceived by by Robert Kaplan and David Norton. The balanced scorecard idea debuted in the Harvard Business Review in 1992.

"The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation."

It allows managers a tool on which view critical operational factors and their inter-relationships with current and future performance in mind.

When developing your Balanced Scorecard, the focus should be on organizational vision and long-term success, not on control and compliance (see ‘Recommendations for Success’ in this document.

The Process for Developing a Balanced Scorecard Get enthusiastic support and commitment from top management Carefully design the design team

• Cross-representation• Get your IT support on

board early Determine what the true drivers of

performance are• Enlightening process• Defines the “heart” of the

organization• Focus in on ‘cause and

effect’ relationships Determining how to measure (would

you like that in pounds, inches, pieces or adjectives?) Identify the design and functionality criteria? Create consistent definitions

Rolling Out Your Balanced Scorecard Create a Communication Plan – let people know why it’s there and how to use it Avoid an “identity crisis” Conduct a training session or at least an overview and tour for all employee

© The Employee Engagement Group Session 8All rights reserved

8-1

Maintaining Your Balanced Scorecard On-going investment will be different in every organization Constant communication and integration with internal processes IT resources to update and maintain

Keeping the Balanced Scorecard Vibrant Reference the Balanced Scorecard in monthly CEO communication

• See information on Communication Protocol for more information about CEO communications Use the information and, if possible, the live tool in the quarterly operations review Create a prominent place for the tool on your intranet

• Link from home page – make it easy to access• Make the scorecard page your default intranet home page (at least for a while)

Point employees to the Balanced Scorecard page instead of answering their questions • If they want to know something that is on the Balanced Scorecard, refer them (even if you know

the answer)• Empower them to find their own answers

Communicate positive trends visible on scorecard, as well as negative trends as an “early warning system”

Recommendations for Success Before anything else, seek management buy-in! Make sure someone owns it – it is best to have one person own and be responsible for the project Keep the Balanced Scorecard simple and focused

• Think one screen and one page Metrics (drivers) have to be aligned with goals, especially at company level.

• Answer the question: What will fulfill the mission of the organization? Include the Balanced Scorecard link in as many communications and activities as possible or

conceivable. Get it in front of the employees at every opportunity, especially as it is rolled out Numbers are the drivers of the Balanced Scorecard but pictures are essential for effective communication

and ongoing use Establish meaningful benchmarks/ comparisons to historical data Make it relevant and understandable to all employees When trends go south – engage employees in correcting the course (it’s about vision and long-term

success) Treat it as a learning tool – not a control tool!


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To Buy or to Build your Balanced Scorecard

Buy Build

Pros Off the shelf ready Professional look and feel May include design support List other pros to buying you

can think of below

Design and customize to your specific needs

Ties easily to your data Changes done quickly at a

minimum cost List other pros to building you

can think of below:

Cons Maintenance comes from the outside

Difficult to customize Programming changes can

be expensive Needs tied to costs List other cons to buying you

can think of below:

Significant investment of IT resources

May not have the professional look and feel

Longer development time List other cons to building you

can think of below:


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Establish a Communication Protocol

Companies need to minimize communication gaps, build alignment with all levels of leadership, and ensure that

employees receive consistent messages.

The Communication Protocol outlines the types of information to be communicated to the organization, as well as

identifying the person(s) responsible for communicating particular topics. In addition, the audience, frequency,

and suggested communication vehicles are also outlined. Prominently displayed in all common areas such as

lobby’s and conferences, and distributed to all new hires, the Protocol ensures that communications will align with

the company’s key strategic priorities.

As importantly, the Protocol represents a set of company commitments to employees:

Leaders will be held accountable for fulfilling their communication responsibilities and assessed on the

effectiveness and timeliness of their communication.

Employees will receive regular updates about the progress, initiatives, and changes that affect them.

And (most importantly for this step of the engagement process), each communication milestone provides

opportunities for employees to ask questions, contribute ideas, and give or receive feedback.

In turn, the expectations for employees are clear. All employees are responsible to share information and give

feedback to help the company reach its goals, thereby reinforcing the desire for employees to communicate “up”

and bolstering the mutual commitment shared by employer and employee.

A Communication Protocol will reinforce that one’s culture needs to be one of mutual commitment and high

performance. All new hires should receive a copy of the Protocol, demonstrating the company’s promise to

communicate on day one.


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Goals of a Communication Protocol

Establish Communication Expectations

Build consistent messaging

Create alignment with employees at all levels

Create circular communication

Build shared accountability (from the top to bottom)

Reinforce a culture of achievement

Minimize duplicate work

Reinforce key messages “13 times”

Leverage different communication venues and tools

Keys to a Successful Communication Protocol

Begin by creating one presentation template from the office of the CEO

Include the key elements of your strategic plan. Examples:o Profito Growtho Engagemento Etc.

Support with a Balanced Scorecard

Link with your strategic plan and update annually

Post in all public areas

Give to all new hires


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Sample Communication Protocol

Scope Message/Topic Leader Venue Audience Frequency

General Info

Corporate

Company Update:

-Review of Company Metrics (e.g., health & safety performance to plan, net sales growth, etc.)-Recent Awards/Opportunities-Organizational Development Update-International News-Recognition

CEO EmailAll

EmployeesMonthly

Regional

Quarterly Review Meeting to include: -Review of Company Metrics -BD Review (inc. recent awards)-Recognition-Organizational Development Update

Regional VP

On-site, conference

call, or Webex

meetings

All employees of the region

Quarterly

Office

Office Update: -Review of Key Metrics (e.g. performance to plan, net sales growth, etc.)-Recent Awards/Opportunities-Workload leveling-Organizational Development Update-Recognition

Office Manager

On-site, conference

call, or Webex

meetings

All employees of Office

Quarterly/Monthly

Department

Workload leveling:

-Recent Wins Proposal Activity-Professional Developmental Opportunities-Health & Safety-Recognition

Dept. Mgr.On-site

meetingsAll employees of department

Weekly/Bi-weekly


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General Info

Corporate Company Update CEOConference

CallSr. Mgt. Team

Bi-weekly

Corporate Strategy UpdateCEO

On-site meetings

Sr. Mgt. Team

Quarterly

Regional

Operations Review:

-Performance vs. Plan-Key Account Update-Strategic Initiatives-Staff Development Update

CEO

On-site meeting or conference

call

EVP, CFO,Sr. VP Sales, RVPs, Office

Managers

Bi-annual

Sales

CorporateMust Win Sr. VP

SalesConference

CallRVPs, RSDs,

KAMsBi-weekly

Regional

Regional BD Review:-BD Plan Review-Account Plan Review-Sales Training

RSDConference

CallCSCMs, KAMs

Monthly

CSCCSC BD Review

CSCMOn-site meeting

DMs, Sr. Seller-Doers

Bi-weekly

Corporate

Service Line/Industry Sectors - Bookings and Sales Trends- Overall Performance- Key Wins - Professional Development Opportunities

Applicable Leader

Email/IntranetAll

EmployeesQuarterly


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Other Communication

CorporateProfessional Development Calendar and Employer of Choice Committee Updates

EVP-ODEmail, OD Quarterly

All Employees

Bi-weekly

CorporateIndirect Labor Team

VP-Quality EmailAll

EmployeesQuarterly


CorporateOrganizational Development Update

HR and IS Depts.

"OD Quarterly" Newsletter

All Employees

Quarterly

Corporate"Inside Company" Mktg.

Dept.Email All

EmployeesBi-weekly


Board of Directors

BOD-Performance to plan -Forecast-Sales & Marketing

CEOOn-site meeting

BOD Members &

GuestsQuarterly

BODBi-weekly Shareholder Update

CEOConference

Call

Shareholders, CEO, EVP,

CFOBi-weekly

Information Dynamic


8-8

Example: Strategic Communications

© The Employee Engagement Group 8-9 Session 8All rights reserved

Example: Tactical Communications


What and how we’re doing

Example: Tactical Communication


Example: Tactical Communication


What and how we’re doing

Message Who Delivers Venue Audience Frequency

Thought-Provoking Questions:

1. What are your specific strategic and tactical elements?2. What opportunities will staff have to communicate up?3. How will this tool build alignment?4. How will you leverage social media5. How will people delivering the message be held accountable?


Creating a Communication Protocol (Part 1)Imagine you are sitting with your CEO – what are the 4 key elements that he/she would want to communicate to the organization? In the form below, write the:

Message or key topic Venue – how it’s delivered Audience – who receives this directly (does it go to all employees, high level management, etc?) Frequency – how often will the message go out (will the CEO commit to this time table?)



Creating a Communication Protocol (Part 2)Look at the next level down from the CEO (Director, VP, Department Leader, etc.)? What messages or key topics should this level communicate and how does it tie to the CEO message?

In the form below, write the: Message or key topic Venue – how it’s delivered Audience – who receives this directly (does it go to all employees, next level only, etc?) Frequency – how often will the message go out (will the CEO commit to this time table?)



Creating a Communication Protocol (Part 3) Look at two levels down from the CEO (this could be line managers, department managers, or even supervisors)? What messages or key topics should this level communicate and how does it tie to the CEO message?

In the form below, write the: Message or key topic Venue – how it’s delivered Audience – who receives this directly (does it go to all employees, next level only, etc?) Frequency – how often will the message go out (will the CEO commit to this time table?)



Keeping your Protocol Vibrant

Reference in monthly CEO communication

Keep the same sequence

Leverage the same template where and when possible

Use social media in partnership with other forms

Update annually

Show communication graphically where possible

Maintain ongoing communication using a balanced scorecard

© The Employee Engagement Group 8-17 Session 8

Session 8All rights reserved

Engagement Assignment

& Pre-Work

Session 8 Required Assignment

Create a draft Communication Protocol addressing 3 levels from the CEO down.

Level 1 (CEO, C-Suite)Message Who Delivers Venue Audience Frequency

Level 2Message Who Delivers Venue Audience Frequency

Level 3Message Who Delivers Venue Audience Frequency

© The Employee Engagement Group All Rights Reserved. Session 8 Assignment

Use additional pages if needed.Please finish all sections and be prepared to discuss during session 9

4

Session 9 Pre-work

1. What % of your population is eligible for bonuses?________________________%2. What % of bonuses paid are based on:

How are each of these results measured?% based on qualitative results

__________________%% based on quantitative results

__________________%3. What types of ongoing reward / recognition programs to you have in your organization? Ongoing reward

/recognition programs might include: Employee of the month Spot bonuses (cash for outstanding work) Gift cards Time off

© The Employee Engagement Group All Rights Reserved Pre-Work Session 9

Use additional pages if neededPlease finish all sections and be prepared to discuss during session 9

1

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