Session 302Adding Balance to your Scorecard

Rae Ann Bruno

rbruno@businesssolutionstraining.com

Today’s Focus Areas

• A Reversed Approach to building your scorecard

– Understand the drivers

– Ask the questions

– Find the data

– Answer the Questions

• Effectively measure and improve efficiency and quality

• Continual Improvement

• Promote Value

• Report and scorecard examples

The Origin

The Balanced Scorecard

• Robert Kaplan and David Norton lay out the approach for measuring business value that goes beyond a simple financial perspective.

• This model, the Balanced Scorecard, incorporates financial, customer, business process efficiency, and organizational capability perspectives

Balanced Scorecard

Financial: How is my department delivering against financial goals?

Customer:How is my team delivering value to customers?

How valuable are those customers?

Balanced Scorecard

Business Process: How effectively is my department executing the right processes to support our business goals?

Organizational Capability: How are my business and its employees becoming more able to deliver value

Why a Scorecard?

• The way to assess and show your team’s:

– Impact and value to the business

– Efficiency

– Success with Improvements

– Maturity of processes

– Quality

– Adherence to procedures

– Service Delivery Consistency

Balanced Scorecard

“Despite all of the data service desk managers have at their fingertips, most can’t answer a very basic question: How is my service desk performing? The balanced scorecard resolves this dilemma by combining the most important service desk KPIs into a single, overall measure of service desk performance.”

Jeff Rumburg, MetricNet

An Unbalanced Scorecard

Balancing the Scorecard

• People will always “hit the numbers”– There is often a direct correlation between metrics

and behavior!

– Align and re-align metrics (based on results/behavior)

• Measure Operations AND Quality AND Value

• No single metric is the “silver bullet”

• Always focus on the big picture– Efficiencies and effectiveness

– Business value

– The customer experience

The Balanced Scorecard

The key is in the balance—understanding how management decisions affect each of the four quadrants.

6-17

Source: HDI SCM Course

Approach

Reverse Your Approach

• Start with questions

• What do you want to know?

• What do you want to show?

• Use metrics and reports as the answers

• What metrics are available? Which are KPIs?

• What else is needed?

• It’s not how much, it’s how useful

Continually Evolve

• Provide what Partners want

• Listen!

• Use their words

• Answer what they ask.

• Learn from their questions and comments

• Quality vs. Quantity

• Adjust and Adapt

Start with the Questions

Ask yourself:

• What do I want to know?

• What do I want to show?

Don’t answer with metrics!

Show Your Value

Can you:

• Site specific business tasks that your team facilitates completing?

• Quantify the amount of time your team has helped them save?

• Measure productivity gains facilitated by your team?

• Show cost savings or an increase in profits or customer retention?

Look for the metrics or information that you can use to quantify each of these.

The Customer Voice

• What do you expect when…?

• How can we make your job easier?

• How do our services currently save you time?

• Where could we help you to gain time?

• What is efficient/inefficient?

• If we could change one thing that would have a large impact on , what would it be?

What the Business may Ask

Senior Management

• Does IT support the achievement of business objectives?

• What value does the expenditure on IT deliver?

• Are IT costs being managed effectively?

• Are risks being identified and managed?

• Are targeted inter-company IT strategies being achieved?

What the Business may Ask

Business Unit Executives

• Are IT services delivered at a competitive cost?

• Does IT deliver on its service level commitments?

• Do IT investments positively impact business productivity or the customer experience?

• Does IT contribute to the achievement of our business strategies?

What IT may Ask

• Are we growing professional competencies needed for successful service delivery?

• Are we creating a positive workplace environment?

• Do we effectively measure and reward individual and team performance?

• Do we capture organizational knowledge to continuously improve performance?

• Can we attract and retain the talent needed to support the business?

Building the Balanced Support Scorecard

The Working Council for Chief Information Officers found that the most advanced scorecards shared these structural attributes

1. Simplicity of presentation

2. Explicit links to IT Strategy

3. Broad executive commitment

4. Enterprise-standard metrics defined

5. Drill-down capability and available context

6. Individual manager compensation linked

High level steps

Select dependable metrics

Distill process-based indicators

Include Project Outcome measures

Incorporate Service Level agreements

Represent new functions

Assign metric ownership

Seven Deadly Sins of the I.T. Scorecard

1. An IT-centric view of IT performance

2. Measures that don’t matter

3. Lack of standard metrics definitions

4. Over-reliance on tools

5. Lack of drill-down capability hindering interpretation

6. Too many metrics

7. No individual impactSource: Working Council for Chief Information Officers

Efficiency Quality Value

• Network speed• First contact resolution

(FCR)• IT hours spent on

projects• Time to resolution• Accuracy• On time, on budget• Transactions per second• Defect removal• Correct routing• Automation• Appropriate prioritization• Maximum duration of

outage• Number of Core system

outages• Reliability• Mea time to repair

• Baseline• System Performance

Monitoring• Incident Monitoring• Knowledge Monitoring• Quality Index• Core System Availability• Coaching• Alignment with goals• Proper sense of urgency• Customer Service Skills• SLA/OLA compliance• Service Review

meetings and improvement plans

• Customer Satisfaction• Saved time• Productivity• Business impact• Correlation to business

needs• WIIFM (What’s in it for

me?)• Accuracy• Trending

• Top types• Priority

• Cost• Per contact• To business

Balanced Scorecard

• Ties performance measurements to strategy

• For each quadrant, show: – Objectives

– Metrics

– Targets

– Initiatives

• Review past performance and trends, and establish optimal forecasting

Financial

How do we look to our

shareholders?

Internal Business

Process

What must we

excel at?

Customer

How do customers see

us?

Learning and Growth

Can we continue to

improve and create

value?

6-16/17

Source: HDI SCM Course

Vision & Strategy

Customer Orientation Scorecard MetricsObjective Measures

Customer Satisfaction Business Unit survey ratingsService quality and responsivenessContribution to business objectives

Development services performed

Major project success scoresGoal attainmentSponsor satisfaction

Operational services performed

Service level complianceMean time to restore service during major incidents

Source: Taylor & Francis Group

Operational Excellence Scorecard Metrics

Objective Measures

Operational process performance

ProductivityResponsivenessChange management effectivenessIncident occurrence levels

Process maturity Assessed level of maturity Delivery and supportMonitoring

ArchitectureManagement

State of the infrastructure assessmentProduct acquisition compliance with technology standardsIncreased reliability as result of architecture changes

Source: Taylor & Francis Group

CRM Scorecard MetricsObjective Measures

Customer Retention percentWin-back percentCustomer acquisitionsCustomer satisfaction

Process Conversion rate per sales channelCost of sales per sales channelService level per channelCost per service encounter

Staff Employee satisfactionEmployee retention

Source: Taylor & Francis Group

Quantify AnswersCustomer Satisfaction Business Value

• Overall satisfaction of IT Services• Projects delivered within budget• Projects delivered on time or

sooner• Results achieved from new or

changed service

• Active projects linked to business initiatives

• Cost or time savings realized• Active projects with approved

funding/business cases• Projects delivering expected

business results/benefits

Operational Excellence Innovation/Future Growth

• Mean time to restore services• Success of user training• % of Security incidents• Incidents related to releases• Reliability of services• Security incidents prevented• Service quality and

responsiveness

• New technology capabilities introduced

• Automation of routine requests/business processes

• Increased number of new ideas• Revenue or results from new

products or services

Samples

Summary

More is not better.

Ask first – don’t guess

Provide what is needed and answer what is asked.

Learn from the questions and comments

Adapt to your audience – internal vs. external

Expect change

Thank you for attending this session.

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Rae Ann Bruno:

BusinessSolutionsTraining.com

rbruno@businesssolutionstraining.com

@raeannbruno

https://www.linkedin.com/pub/rae-ann-bruno/0/395/99b