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Background, Purpose, And Position

Practice Themes
The Balanced Scorecard Offering
Thoughts On Strategy
Strategy
Planning
Beneficial Outcomes
Measurement
Sample Balanced Scorecards
BSC Training Resources
References
2/104

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Positioning

4/104

Positioning

BSC has many confusing and sometimes conflicting definitions

IT Performance Management applies these concepts to the strategic,

tactical and operational aspects of IT

5/104

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Success starts with the management of intangible assets

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Drivers

The Balanced Scorecard: To Adopt or not to adopt? Kevin Hendricks, Larry Menor
and Christine Wiedman, Ivey Business Journal, Nov/Dec 2004

8/104

Drivers

Balanced Scorecard would more likely benefit firms that

followed a Prospector or Analyzer strategy, and likely not
benefit firms that followed a Defender or Reactor strategy.

The Balanced Scorecard: To Adopt or not to adopt? Kevin Hendricks, Larry Menor
and Christine Wiedman, Ivey Business Journal, Nov/Dec 2004

9/104

Drivers

10/104

Drivers

There is no such thing as a free lunch, Milton Friedmann

New Math for the New Economy, Baruch Lev, Fast Company, 31, January, 2000

11/104

Drivers

Identify the needs of the IT department that focus on

12/104

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Approach

Balanced Scorecard Is 1 Of 4 Needed Capabilities For Success

Balanced
Scorecard

Capabilities
Based
Planning

Real Options
Based
Portfolio
Management

Enterprise
Program &
Project
Management

Enterprise Class Tools and Work Processes

Sustained
Competitive Advantage

Business and Technology Governance

Readiness Assessment
Mobilization
Alignment
Sustainment

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Approach

Mission and Vision are starting points for developing a Balanced

Scorecard from the top down. Without a Mission and Vision, the
underlying performance measures have no foundation on which to rest.

Values

Vision
Strategy

Balanced Scorecard

Mission

Why We Exist
Guiding Principles

Picture of the Future

Differentiating activities

15/104

Approach

Identifying the strategic initiatives that support the organization strategies is key
beneficial outcome of deploying a Balanced Scorecard in IT

General Mission
Strategic Themes
Desired Outcomes
Metrics
Strategic
Initiatives

What do we do?
Why is it important?
What results do we want?
How will we know when weve
achieved these results?

What specific actions do we

believe will lead to these results?

Connecting specific actions with the strategy of the

firm is the role of a Balanced Scorecard
16/104

Approach

The four phases of the Balanced Scorecard deployment are broad and
general purpose, focused on increasing maturity. The details of the
deployment must be developed in order to achieve success
Readiness

Mobilization

Alignment

Sustainment

Assess readiness
for BSC initiative
Identify gaps &
closure plans

Mobilize change
through executive
leadership

Translate the
strategy
Align the
organization

Motivate the staff

Govern the
organization

Conduct
Readiness
Assessments
Cultural
Operational
Data
Governance
Identify and close
gaps
Prepare for
deployment

Achieve
commitment from
the top
Build the
executive team
Build the case for
change
Identify initial
KPIs, CSFs, Goals
and Initiatives
Identify target
strategies

Define and clarify

the strategy
connections
Establish long
term targets
Communicate the
strategy
Connect measures
with strategies

Focus the staff

Align
accountability and
rewards
Develop human
capital
Redefine
governance
Get results

Discovery

Missionary

Change Agent

Strategy Focused

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Approach

Readiness

Mobilization

Assess readiness for

BSC initiative
Identify gaps &
closure plans

Mobilize change
through executive
leadership

Conduct Readiness
Assessments
Cultural
Operational
Data
Governance
Identify and close
gaps
Prepare for
deployment

Achieve commitment
from the top
Build the executive
team
Build the case for
change
Identify initial KPIs,
CSFs, Goals and
Initiatives
Identify target
strategies

Discovery

Missionary

Alignment
Translate the strategy
Align the organization

Define and clarify the

strategy connections
Establish long term
targets
Communicate the
strategy
Connect measures
with strategies

Change Agent

Sustainment

The four phases of the

BSC deployment are a
sequence that builds
the increasing maturity
of the scorecard.

Motivate the staff

Govern the
organization

Focus the staff

Align accountability
and rewards
Develop human
capital
Redefine
governance
Get results

With the scorecard in place, the

Capabilities needed to fulfill the
strategy, the options tradeoffs
for existing and future projects,
and the enterprise tools to
manage this portfolio.

Strategy Focused

Balanced
Scorecard

Capabilities
Based
Planning

Real Options
Based
Portfolio
Management

Enterprise
Program &
Project
Management

Enterprise Class Tools and Work Processes

Sustained
Competitive Advantage

Business and Technology Governance

18/104

Approach

Alignment: Using Balanced Scorecard to Create Company Synergies,

Norton and Kaplan, Harvard Business School Publishing Company, 2006

19/104

Approach

Mission

Clarify mission &

Vision statement
Develop
Strategic Goals

SubGoals

Vision
Strategic Goals

Derive
SubGoals

Balanced Scorecard
Strategy Map
Stakeholder Perspective
Service Attributes

Application Quality

Time to Delivery

System Capabilities

Relationships

Image

Recognition
of Value

Stakeholder
Relations

Internal Processes Perspective

Map Sub-Goals to
each quadrant of the
Balanced Score Card

Operations
Management

Stakeholder
Management

Innovation
Processes

Regulatory
Processes

Learnings & Growth Perspective

Human Capital
Information Capital
Organizational Capital
Culture

Leadership

Alignment

Teamwork

Budget Perspective
Project
Performance

Derived from
Developing EnterpriseWide
Measures for Tracking
Performance, Software
Engineering Institute

KPIs, Targets,
CSFs for each
Objective

For each BSC Quadrant

Apply GQ(I)M to:
Identify measurement areas
Develop measurement goals
Pose relevant questions
Postulate indicators
Identify data elements

Resource
Management

Indicators
Trouble Reports

GQ(I)M
Goal
Question
Indicator
Measure

Budget
Management

Module

Performance Data
Elements
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Approach

Focusing on Goals, the Success Criteria separates the measures of success

from the task progress indicators. This separation distinguishes physical
progress from business value both are needed, but they are not the
same.
Success
Criteria

Goal

Strategy to
accomplish
the goal

Success Indicators
%

Analysis Indicators
100
80
60
40
20

Tasks to Accomplish
goal
Tasks

Test Cases
Complete

Task 1
Task 2
Task 3
Functions

Task n

Reporting Periods

Progress Indicators
100
80
60
40
20

Derived from Developing EnterpriseWide Measures for Tracking Performance, Software Engineering Institute

Actual

Planned
Reporting Periods

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Approach

GOAL(s)
Question 1

SLOC

Question 2

Staff-hours

Trouble Reports

Question n

Milestone Dates

Derived from Developing EnterpriseWide Measures for Tracking

Performance, Software Engineering Institute``

22/104

Approach

IT Development
Balanced
Scorecard
Business
Balanced
Scorecard

IT
Balanced
Scorecard
IT Operations
Balanced
Scorecard

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Approach

24/104

Themes

Michael E. Nagel, Vice President, Balanced Scorecard Collaborative

25/104

Themes

26/104

Themes

If executives are having a normal meeting and talking about strategy, but
instead focusing on tactics then theyre not fulfilling their roles as
leaders of their respective organizations

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Themes

28/104

Themes

29/104

Themes

Advice from Bruce W. Harber, CEO North Shore Health Board, Vancouver, B.C.
30/104

Positioning

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Positioning

From, Functions of an Executive, Chester Barnard, 1938.

Barnard laid the foundations of management theory. Bernard is widely
credited with having originated the Systems approach to the study of
organizations. He recognized that in order for the organization to survive in
the external environment and to succeed in the long run, it was necessary
to sustain cooperation from employees by satisfying the condition of
efficiency.
32/104

Positioning

33/104

Positioning

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Positioning

These are core issues with almost every organization

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Positioning

The original 4quadrant BSC fails to make the cause and effect connection
between action and outcome strategy maps replace this approach and
show how to connect the dots

1.

2.

3.

36/104

Positioning

A scorecard practice should move the client toward the 3rd generation.
Theyll have to get there eventually in order to impact their organization
might as well start out headed in that direction on day one.
First Generation

BSC as a
performance
evaluation system

Performance measures
Breakdown of strategy
Four perspectives
Strategic objectives,
performance indicators, key
performance parameters
Performance linked to
compensation

Second Generation

BSC as a
management
system

Third Generation

BSC as a framework for

organizational change

Organizational learning
Identifying and solving
operational problems
Feedback for planning
Organizational
knowledge

Organizational change
Strategy maps
Strategy patterns
Integration of budget
and personnel plans
Changing the
organizational behavior
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Positioning

38/104

Positioning

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Positioning

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Positioning

Strategies fail for a simple reason their inability to be executed

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Positioning

The four primary barriers that lay the seeds of strategy failure
Only 10% of organizations successfully execute their strategies

Vision Barrier

Only 5% of the workforce

understands the strategy
Informed action is virtually
impossible without sound
knowledge of the organizations
strategy

People Barrier

Only 25% of managers have

incentives linked to strategy
Incentives linked to shortterm financial targets, leads to
less than rational decision
making at the expense of long
term sustainable success

85% of executive teams spend

less than one hour per month
discussing strategy
Without a clear and concise
blueprint for success the
strategy manage will focus
on financial and operational
details
Resource Barrier
60% of organizations dont
link budget to strategy
Based on strategy, what
initiatives distinguish us from
our competition?

Norton and Kaplan and, in Balanced Scorecard Diagnostics: Maintaining Maximum Performance,
Paul R. Niven, John Wiley & Sons and Strategy Safari, Mintzbert, Ahlstrand and Lampel, The Free
Press, 1998.
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Positioning

Instituting change is at the heart of a successful Scorecard

In many studies of patients who have undergone coronary bypass
surgery, only one in nine people, on average, adopts healthier day-to-day
habits [] [even if] they clearly see the value of changing their behavior.

The Neuroscience of Leadership, David Rock and Jeffery Schwartz, strategy+business, Summer 2006
43/104

Positioning

All five components of strategy are needed for true success

Vision

Skills

Incentives

Resources Action Plan

Success

Vision

Skills

Incentives

Resources Action Plan

Confusion

Vision

Skills

Incentives

Resources Action Plan

Anxiety

Vision

Skills

Incentives Resources Action Plan

Gradual
Change

Vision

Skills

Incentives

Resources Action Plan

Vision

Skills

Incentives

Resources

Action Plan

Frustration

False Starts

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Positioning

The BSC must be placed in the context of process improvement

Deriving Enterprise-Based Measures Using the Balanced Scorecard and Goal-Driven measurement Techniques, Wolfhart
Goethert and Matt Fisher, Software Engineering and Measurement Analysis Initiative, CMU/SEI-2003-TN-024, October 2003

45/104

Positioning

A simple set of goals provides a good staring point for a BSC

Strategies

Key Performance Indicators

Customer satisfaction
User survey score
Percentage of projects delivered on time
Total business impact
Service budget as a percentage of revenue
Cost impact for each release
Percentage of budget allocated to new
development

timely and
Operational Deliver
services at
Excellence effective
or under budget

Budget versus actual

Staff utilization
Staff turnover
Historical availability

Develop internal
to learn
Future capabilities
innovate to
Orientation and
exploit future
opportunities

Number of documented best practices

Existence of Process Architecture

User Be the supplier of

Orientation choice for services
Focus resources on
Business attaining business
Value strategies through
effective delivery

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Positioning

Stakeholder Perspective

Application Quality

Service Attributes

Relationships

Image

Time to Delivery

Recognition
of Value

Stakeholder
Relations

System Capabilities

Internal Processes Perspective

Operations
Management

Stakeholder
Management

Innovation
Processes

Regulatory
Processes

Learnings & Growth Perspective

Human Capital
Information Capital
Organizational Capital
Culture

Leadership

Alignment

Teamwork

Budget Perspective
Project
Performance

Budget
Management

Resource
Management

Connecting Critical Success Factors with Key Performance Indicators provides

traceability from execution at the project level to fulfillment of strategic
objectives.
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Positioning

Selection Key Performance Indicators identified

Connection align KPIs with Critical Success Factors
Collection Manage KPI process
Dashboards, Strategy Maps, Performance
Indicators
Action Drive performance improvement

Presentation

48/104

Positioning

Top Down
Making the effect-and-cause connection between
Strategy and Key Performance Indicators is the role of
an Balanced Scorecard automation system

Vision
Positively Impact
Financial
Performance

Strategic

Objective

Be The Preferred
Supplier Of Business
Applications
Traceable to
Increased Customer
Revenue

Why

Performance Goal

Critical Success
Factor (CSF)

Key Performance
Indicator (KPI)

Provide on-time, onbudget, onspecification for our

enterprise applications

Budget Variance

BPI 0.95

Schedule Variance

CPI 0.97

% Requirements
Variance

Function Points
Delivered 90%
Target

Provide scalable
platform for
acquisition and
growth of our
customer base

Cost of Delivery
Impact

Declining Cost per

Customer

Performance Impact

SLA Compliance
0.98

Global Operational
Baseline

24/7/365 Non-Stop
Operations

What

How

Measures

Flow Down from Strategy to KPIs

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Positioning

Vision
Positively Impact
Financial
Performance

Bottom Up
Making the cause-and-effect connection between Key
Performance Indicators and Strategy is the role of an
Balanced Scorecard automation system

Strategic Objective

Performance Goal

Critical Success
Factor (CSF)

Key Performance
Indicator (KPI)

Be The Preferred
Supplier Of Business
Applications
Traceable to
Increased Customer
Revenue

Provide on-time, onbudget, onspecification for our

enterprise applications

Budget Variance

BPI 0.95

Schedule Variance

CPI 0.97

% Requirements
Variance

Function Points
Delivered 90%
Target

Provide scalable
platform for
acquisition and
growth of our
customer base

Cost of Delivery
Impact

Declining Cost per

Customer

Performance Impact

SLA Compliance
0.98

Global Operational
Baseline

24/7/365 Non-Stop
Operations

What

How

Measures

Why

Flow Up from KPIs to Strategy

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Positioning

Many organizations have operational metrics in place. Identifying the Key

performance measures is the starting place for developing a strategy
based Scorecard
Vision
Positively Impact
Financial
Performance

Moving from ad hoc collections of performance metrics to Key Performance Metrics (KPI) to a
Strategy Focused Organization (SFO), is a natural progression for many organizations.
Making the connections between ad hoc metrics to KPIs then to CSFs creates a Line of Sight
between tactical performance measurement of strategy.

Strategic Objective

Performance Goal

Be The Preferred
Supplier Of Business
Applications
Traceable to
Increased Customer
Revenue

Critical Success Factor

(CSF)

Key Performance
Indicator (KPI)

Provide on-time, onbudget, onspecification for our

enterprise applications

Budget Variance

BPI 0.95

Schedule Variance

CPI 0.97

% Requirements
Variance

Function Points
Delivered 90%
Target

Provide scalable
platform for
acquisition and growth
of our customer base

Cost of Delivery
Impact

Declining Cost per

Customer

Performance Impact

SLA Compliance 0.98

Global Operational
Baseline

24/7/365 Non-Stop
Operations

What

How

Measures

Why

An ad hoc collection of
existing operational
performance metrics.
Each metric was
created for a good
reason, but not
necessarily for a the
measurement of a
strategic objective

Flow Up from Ad Hoc to KPIs to CSF to Goals to Strategy

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Positioning

Stakeholder Perspective

Application Quality

Service Attributes

Relationships

Image

Time to Delivery

Recognition
of Value

Stakeholder
Relations

System Capabilities

Internal Processes Perspective

Operations
Management

Stakeholder
Management

Innovation
Processes

Regulatory
Processes

Learnings & Growth Perspective

Bi-directional
traceability
between
tactics and
strategy

The Metrics Map describes the

relationships between the Key
Performance Indicators, Critical
Success Factors, and
Performance Goals in support
of a Strategic Objective

Human Capital
Information Capital
Organizational Capital
Culture

Leadership

Alignment

Budget Perspective
Project
Performance

Budget
Management

Teamwork

Vision
Resource
Management

Positively Impact
Financial Performance

Bottom Up
Making the cause-and-effect connection between Key
Performance Indicators and Strategy is the role of an
Balanced Scorecard automation system

Strategic Objective

Performance Goal

Be The Preferred
Supplier Of Business
Applications Traceable
to Increased Customer
Revenue

Provide on-time, onbudget, on-specification

for our enterprise
applications

The Strategy Map described the

cause and effect connection
between each Strategic
Objective
Why

Critical Success Factor

(CSF)

Key Performance
Indicator (KPI)

Budget Variance

BPI 0.95

Schedule Variance

CPI 0.97

% Requirements
Variance

Function Points
Delivered 90% Target

Cost of Delivery Impact

Provide scalable
platform for acquisition
and growth of our
customer base

Declining Cost per

Customer

Performance Impact

SLA Compliance 0.98

Global Operational
Baseline

24/7/365 Non-Stop
Operations

What

How

Measures

Flow Up from KPIs to Strategy

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Strategy

Strategy is not the same as operational excellence

54/104

Strategy

Obtaining
commitment for a
grand purpose

Belief
Systems

Staking out the

Territory

Core
Values

Risks to be
Avoided

Boundary
Systems

Business
Strategy
Interactive
Control
Systems

Critical
Performance
Variables

Strategic
Uncertainties
Positioning for
tomorrow

Levers of Control: How Managers

Use Innovative Control Systems to
Drive Strategic Renewal , R. Simons,
Harvard Business School, 1995

Diagnostic
Control
Systems

Getting the job

done

Internal Controls
55/104

Strategy

The Balanced Scorecard: To Adopt or not to adopt? Kevin Hendricks, Larry Menor
and Christine Wiedman, Ivey Business Journal, Nov/Dec 2004

56/104

Strategy

Mission and Vision provide the anchors for developing strategy. Without
a mission and vision the underlying performance metrics dont have a
foundation on which to stand. Why are we measuring this activity? Ask
the Mission and Vision for the answer

57/104

Strategy

To be effective, the scorecard should have attributes like these

Implementing
The connection
betweenScorecard,
scorecardJessica
performance
compensation
Balanced
Keys, and
Auerbach,
2005 is important, but it is also important to
understand that this connection comes ONLY in a mature organization where the scorecard and the resulting
performance has been operational for some time. Without this maturity the expected benefits will not appear

58/104

Strategy

Use

Reporting

Collection

Selection

It is easy to fall into the trap of being metrics focused rather than strategy
focused. Make sure these sins are not present in the BSC. If they are,
take explicit actions to remove them
Common Pit Falls

Impact on the Performance Initiative

An IT centric view of IT
performance

Lack of senior management involvement in metrics

selection and refinement

Measures that dont

matter to the business

No explicit link between metrics and IT strategy

Lack of common ground

Lack of common metrics definitions complicates

aggregation

An over reliance on tools

Lack of focus on data collection processes leads to

inaccurate and outdated data

No drilldown capability

Unavailable context for scorecardlevel metrics

hinders interpretation

Too many metrics

Lack of aggregation and screening of lowlevel

metrics results in cumbersome reports

No individual impact

Individual lack incentives to impact scorecard

performance

Implementing Balanced Scorecard, Jessica Keys, Auerbach, 2005

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Strategy

It is VALUE were after with the IT Balanced Scorecard

The MarketBased Adaptive Enterprise: Listening, Learning and Leading Through Systems Thinking, Vincent
P. Barabba, in Proceedings Russell L. Ackoff and The Advent of Systems Thinking, March 1999

60/104

Strategy

In order to deliver value we must first be ready to deliver value

61/104

Strategy

s of the BSC value comes from intangible assets.

Only the financial quadrant can be traced to tangible assets

62/104

Strategy

An example of intangible asset manage built around a scorecard

Strategy converts intangible assets into tangible outcomes

63/104

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Planning

Planning is a continuous improvement process

Information Outlook Online, March 2005

66/104

Planning

Role Responsibilities

Assumes ownership for the Balanced Scorecard project

Provides background information to the team on the strategy and methodology
Maintain communication with senior management
Commit resources to the team
Provide support and enthusiasm for the Balanced Scorecard throughout the
organization

Balanced
Scorecard
Champion

Coordinates meetings; plans, tracks and reports team results to all audiences
Provides thought leadership on the Balanced Scorecard methodology
Ensures that all relevant background material is available to the team
Provides feedback to the executive sponsor and senior management
Facilitates the development of an effective team through coaching and support

Team Members

Provide expert knowledge of business unit or functional operations

Inform and influence their respective senior executives
Act as Balanced Scorecard ambassadors within their business units
Act in the best interest

Organizational
Change Expert

Increase awareness of organizational change issues

Investigates change-related issues affecting the Balanced Scorecard project
Works with the team to produce solutions mitigating change-related risks

Executive
Sponsor

Balanced Scorecard Diagnostics: Maintaining Maximum Performance, Paul R.

Niven, John Wiley & Sons

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Planning

Planning Phase
1

Develop objectives for the BSC

Determine the appropriate business unit

Gain executive sponsorship

Build the BSC team

Formulate the project plan

Develop the communication plan

1
0

1
1

1
2

1
3

1
4

1
5

1
6

1
7

1
8

1
9

2
0

Development Phase
1

Gather and distribute background material

Develop or confirm, mission, values, vision, & strategy

Conduct executive interviews

Develop objectives and measures

4a

Executive workshop

4b

Gather employee feedback

Develop cause and effect linkages

5a

Executive workshop

Establish targets for measures

6a

Executive workshop

Develop ongoing Balance Scorecard plan

Balanced Scorecard Diagnostics: Maintaining Maximum Performance, Paul R.

Niven, John Wiley & Sons

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Beneficial Outcomes

The benefits appear soft at first, they are booked as well

Allan R. Bailey, Chee W. Chow, and Kamal M. Haddad,

"Continuous Improvement in Business Education: Insights from the
For-Profit Sector and Business School Deans," Journal of
Education for Business, January-February 1999, pp. 165-181

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Beneficial Outcomes

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Measurement

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Measurement

Information Needs

Techncial &
Management
Processes

User Feedback

Core Measure Processes

Establish
Commitment

Plan

Perform

Evaluate
Analysis
Results

Improvement Actions

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Measurement

People

Procedures

Owner of the
PMS
People
accountable for
the units of
measure
People who set
up and
maintain the
PMS
Data suppliers
Internal and
external users
of the PMS
Internal and
external
stakeholders

Procedures
and rules for
the definition of
the
performance
indicators
Rules for data
management
Rules for data
communication
Rules for the
use of the
performance
results

Data
Performance
relevant data,
the as is
values
To be values
of the
performance
indicators
Performance
results
(calculated
data)
Meta data
description of
the
performance
indicators

Software

Hardware

Software for
the extraction,
transformation
and loading of
the data
Database
management
software. Data
warehousing
software
Data analysis
software
Presentation
and
communication
software

Personal
computers
Servers
Communication
infrastructure
Storage

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Measurement

Guide to a Balanced Scorecard

Performance Management Methodology,
National Partnership for Reinventing
Government, U. S. Department of
Commerce, 1999

77/104

Measurement

78/104

Measurement

Its easy to create ugly measures, so test the outcomes of each measure before use

What to do with your ugly measures!, Stacey Barr, www.staceybarr.com

79/104

Measurement

Too many CXOs judge implementations by measuring the technical

capacity of a project, instead of considering how it has improved their
companies' business
The Metrics Trap, CIO Magazine, Feb 15, 2004

80/104

Measurement

Each metric needs to be tested against these attributes

1.

2.
3.
4.

5.
Two Mistakes Most Professional Services Organizations Make, Thomas Lah,
Technology Professional Services Association (TPSA)

81/104

Measurement

Perverse metrics, linked to perverse incentives, always yields to perverse results

1.
2.
3.
4.
5.

Implementing Balanced Scorecard, Jessica Keys, Auerbach, 2005

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Measurement

Metrics are useful, indicators are better suited for strategy

Deriving Enterprise-Based Measures Using the Balanced Scorecard and Goal-Driven measurement
Techniques, Wolfhart Goethert and Matt Fisher, Software Engineering and Measurement Analysis Initiative,
CMU/SEI-2003-TN-024, October 2003

83/104

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Stakeholder Perspective
Service Attributes

Application Quality

Time to Delivery

System Capabilities

Relationships

Image

Recognition
of Value

Stakeholder
Relations

Internal Processes Perspective

Operations
Management

Stakeholder
Management

Innovation
Processes

Regulatory
Processes

Learnings & Growth Perspective

Human Capital
Information Capital
Organizational Capital
Culture

Leadership

Alignment

Teamwork

Budget Perspective
Project
Performance

Budget
Management

Resource
Management

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Business
Results
Project
Expectations

Do the right things, do them well, do them with less, to

enable
enable profitable
profitable
operations
operations -- R1
R1

reduce
reduce overall
overall
operating
costs
operating costs -- R2
R2
Competency
Competency
Keep
Keep my
my
systems
systems running
running
-- E1
E1

Understand
Understand my
my
operation
operation -- E3
E3

Internal Processes

Operational
Operational Excellence
Excellence
Reduce
Reduce the
the cost
cost of
of
providing
services
providing services -- P1
P1

Improve
Improve
processes
processes for
for
efficiency
efficiency
and
and quality
quality -P4
P4

Contribution
Contribution

Credibility

Manage
Manage to
to
corporate
corporate goals
goals
-- E2
E2

enable
enable firm
firm to
to accelerate
accelerate
market
deployment
market deployment -- R3
R3

Project
Project // IT
IT Alignment
Alignment

Implement
Implement timely
timely and
and costcosteffective
effective solutions
solutions -- E4
E4

Solutions
Solutions Leadership
Leadership

Provide
Provide appropriate
appropriate technology
technology to
to
enable
success
enable success -- P2
P2

Provide
Provide innovative
innovative
solutions
solutions -- P3
P3

Deliver
Deliver solutions
solutions
on
schedule
on schedule -- P6
P6

Manage
Manage
requirements
requirements -- P7
P7

Leverage
Leverage
knowledge
knowledge and
and
best
best practices
practices -- P10
P10

Centralize
Centralize IT
IT
resources
resources -- P5
P5

Enhance
Enhance customer
customer
relationships
relationships -- P9
P9

People and
Tools

Strategically
Strategically deploy
deploy services
services -- P8
P8

Develop
Develop and
and
retain
retain critical
critical
skills
skills -- S1
S1

Build
Build aa high
high performance
performance
culture
culture -- S2
S2

Recognize
Recognize team
team
and
and individual
individual
performance
performance -- S3
S3

Provide
Provide employees
employees with
with
the
the tools
tools and
and knowledge
knowledge
they
they need
need -- S4
S4

88/104

89/104

90/104

91/104

Enterprise mission
goals

% mission improvement (cost, time, quantity) attributed to

Portfolio Analysis
and Management

IT solutions and services

% planned IT benefits achieved
% IT strategies fully matched to enterprise strategies
% IT portfolio reviewed and disposed
% compliance to approved IT solution deployment
% reusability of core modules
% total IT costs by major asset categories (hardware,
software, personnel, facilities, management)
IT budget as % of operational budget and compare to
industry average net present value, internal rate of return,
return of investment, return on assets percentages
(aggregate or by project)

Financial and
investment
performance

IT resources
usage

% databases that can be shared

% hardware/software with interoperability capabilities

92/104

Customer
partnership and
involvement

Customer
satisfaction

Business
process support

% cooperative customer and IT applications design

% joint development service level agreements
% customers attending IT investment meetings
% customers reporting full use of applications
% customers satisfied with IT application design
% customers satisfied with IT maintenance and
support
% of problems resolved within target time
% products launched on time taken to fulfill service
requests
degree to which IT solution support process
improvement plans
degree to which IT aids process analysis
degree to which IT solutions can adapt to new
requirements
incremental cost to transfer application to new
hardware platform
93/104

 % procurement exception to architecture

Architecture
standards
compliance

Project
performance

Infrastructure
availability

standards
N variations from standards detected by
review and audit per year
% increase in systems using standard
architecture
% projects on time, on budget
% projects using standard methodology for
systems analysis and design
N backlog on enhancement and
maintenance requests
% system availability
% applications availability
on-line system response time
94/104

Workforce
competency
and
development

Employee
satisfaction

N staff trained by skill area

% staff training uses new technologies and

techniques
% staff professionally certified
% IT budget devoted to training and staff
development
% employees satisfied with the existing
technical and operating environment to
deliver quality products or services
% employees satisfied with training
% employee turnover by function

95/104

96/104

97/104

http://www.balancedscorecard.org/
http://www.bscol.org
http://www.continuinged.uncc.edu/certificate/proc_mgmt/procmgmt.htm

http://www.scip.org/
http://www.academyci.com/scip.html

98/104

http://www.casewise.com/index.php

99/104

100/104

101/104

These books are Mandatory reading for anyone claiming to practice the discipline of
Balanced Scorecard

102/104

These papers and articles are reading for background, ideas, and guidance

www.ejise.com

103/104

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