Creating knowledge-based environments

in the public service by using

the Balanced Scorecard

- An APS Implementation Case Study -

Centrelink Communication, Media & Marketing

Cascading the Balanced Scorecard from corporate level to business group level

• Centrelink corporate BSC was introduced in July 1998

• The Communication, Media and Marketing Group in Centrelink began the BSC cascading project in July 2002

• Same perspectives, same strategies as in the corporate scorecard

• Different activities, KPIs and targets

• CM&M data feeds back in the corporate scorecard each quarter

• CM&M Balanced Scorecard aligned with the corporate scorecard at the beginning of each financial year

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard Centrelink Communication, Media & Marketing Case Study

Cascading the Balanced Scorecard

Challenges and solutions

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Challenges

• CM&M executive team commitment

• Middle management level of involvement in the implementation

Centrelink Communication, Media & Marketing Case Study

Leadership Support

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Solutions

• Communication: constant updates on the implementation to the sponsor

• Gradual process: team by team measure development and activation

• Leadership training

• Middle management involvement in measure refinement

Centrelink Communication, Media & Marketing Case Study

Leadership Support

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Challenges

• Availability of the staff (especially managers) through the process

• The complex nature of our operations

Centrelink Communication, Media & Marketing Case Study

Implementation timeline

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Solutions

• BSC implementation acknowledged as a key work objective for team managers

• Top and middle management trained in the BSC methodology

Centrelink Communication, Media & Marketing Case Study

Implementation timeline

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Challenges

• Team business plans developed using a different methodology

• Pressure to transpose existing business plans in the Balanced Scorecard

Centrelink Communication, Media & Marketing Case Study

Business plan integration

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Solutions

• The Performance Management team gradually took control over the business planning process

• The Performance Management team started to be used as a resource of strategic information

Centrelink Communication, Media & Marketing Case Study

Business plan integration

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Challenges

• Balance cost, usability and fit in the corporate IT framework

• Intermediary solution until the launch of the Staff Portal

Centrelink Communication, Media & Marketing Case Study

IT solution

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Solutions

• The least sophisticated option preferred

• IT solution components separated by function: tracking, organising and communication

Centrelink Communication, Media & Marketing Case Study

IT solution

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Challenges

• Availability of historical data

• Speed of measure activation

• Adoption of activation protocols

Centrelink Communication, Media & Marketing Case Study

Measure activation

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Solutions

• Teams assisted in identifying appropriate tracking mechanisms

• Flexibility in refining measures to adapt to data availability constraints

Centrelink Communication, Media & Marketing Case Study

Measure activation

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Challenges

• Data gathering deadlines

• Timeliness of performance reporting

Centrelink Communication, Media & Marketing Case Study

Data gathering

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Solutions

• Two data gathering deadlines used

• Data gathering templates created

Centrelink Communication, Media & Marketing Case Study

Data gathering

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Challenges

• The use of monthly performance reports

• The profile of the BSC in the team

Centrelink Communication, Media & Marketing Case Study

BSC communication

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Solutions

• Network hosted Resource Centre used as a repository of strategic documents

• Updated Strategy Map promoted each month

• Weekly team newsletter used to highlight BSC results

Centrelink Communication, Media & Marketing Case Study

BSC communication

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Challenges

• Team structure and workflow

• The use of initiatives

Centrelink Communication, Media & Marketing Case Study

Initiatives

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Solutions

• Multifunctional virtual teams used for implementing initiatives

• Initiative catalogue (database) establish for initiative tracking

Centrelink Communication, Media & Marketing Case Study

Initiatives

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Challenges

• Alignment with the governance framework

• Team-wide reshape process

Centrelink Communication, Media & Marketing Case Study

Governance framework

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Solutions

• Governance framework updated to incorporate changes necessary after the launch of the BSC

• Performance Management team repositioned within CM&M

Centrelink Communication, Media & Marketing Case Study

Governance framework

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Challenges

• Business planning process alignment with the BSC

• Yearly update of the BSC

Centrelink Communication, Media & Marketing Case Study

Renewing the scorecard

Leadership support

Timeline

Business Plan Integration

IT Solution

Measure activation

Data gathering

BSC Communication

Initiatives

Governance framework

Renewing the scorecard

Solutions

• Business planning and BSC updates aligned

• BSC constantly updated through the year

Centrelink Communication, Media & Marketing Case Study

Renewing the scorecard

Centrelink Communication, Media & Marketing Case Study

Cascading the Balanced Scorecard

Towards a knowledge based environment

Impact on staff

Centrelink Communication, Media & Marketing Case Study

In the biannual staff survey CM&M had the best results for:

• You understand how your work contributes to meeting the objectives in your local Business Improvement Plan.

• You understand organisation's purpose and how it applies to your work

Organisational structure evolution

Centrelink Communication, Media & Marketing Case Study

CM&M organisational structure evolving towards:

• Flat and network structure

• Team orientation - emphasis on cross-functional teams

• Open and distributed information system

• Distributed decision making

Knowledge enabling environment

Centrelink Communication, Media & Marketing Case Study

Characteristics of the knowledge enabling environment emerging in CM&M:

• Emphasis on change

• Emphasis on empowered self-leadership

• Grouping together functions and separating roles to support the expert in each area.

• Collaborative environment that supports workflow communication.

Thank you!