balancedscorecard.asp

Balanced Scorecard

What is the Balanced Scorecard?

The Balanced Scorecard (BSC) is a strategic management system that the Division of Administration & Finance has adopted that provides a comprehensive framework for translating our organization's mission, vision, and goals into a coherent set of performance measures. As one of our core management systems, the BSC helps our leaders assess the effectiveness of our organizational strategy and overall performance.

The BSC framework was originally designed by Robert Kaplan, Professor of Accounting at Harvard Business School, and David P. Norton, President of Nolan, Norton & Company, Inc., a Massachusetts-based information technology-consulting firm. The measurement framework developed by Kaplan and Norton provides a comprehensive view of an organization's performance from both a financial and operational perspective.

The traditional BSC developed by Kaplan and Norton consists of four perspectives:

• learning and growth (people perspective),

• internal business process perspective,

• customer perspective, and

• financial perspective.

The adaptation of traditional BSC as developed for the Division of Administration & Finance consists of the following areas that we call "critical success factors" (CSF). The CFS's are:

• Motivated and Productive People,

• Excellence in Business Processes,

• Quality Customer Service, and

• Responsible Resource Management.

Each of these critical success factors addresses one of four important strategic questions.

Motivated & Productive People	"How do we continue to improve and create value through people?"
	This CSF focuses on employee competencies, information systems and technology capabilities, and organizational climate.
Excellence in Business Processes	"What do we have to excel at to be successful?"
	This CSF focuses on "mission critical" processes at which the Division must excel. These are the processes that have the greatest impact on creating customer satisfaction.
Quality Customer Service	"How do our customers see us?"
	This CSF is related to both external and internal customers and focuses on ways to satisfy customer value expectations associated with product/service attributes, customer relations, reputation, and overall satisfaction.
Responsible Resource Management	"How do we look to our financial stakeholders?"
	This CSF focuses on ways in which to grown and diversity revenues, contain costs, better utilize financial resources and preserve physical assets, and mitigate risk. Answers the question:

Within each CSF, specific quantitative indicators have been identified that represent our core performance measures related to the Division's strategy and goals. Some measures in our BSC are leading indicators of performance while others are lagging indicators. Best practices in scorecard development limit the number of measures to a total of no more than 25, with a relatively even distribution among the perspectives. Our BSC is composed of 23 measures distributed as follows across the four critical success factors:

Motivated & Productive People	6
Excellence in Business Processes	6
Quality Customer Service	6
Responsible Resource Management	5

Scorecards

Measures Definitions

Quarterly Reports