Strategy to Action - EACUBO 2010

8/9/2019 Strategy to Action - EACUBO 2010

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20102010

20102010

Translating Strategy Into Action:How to Measure & Communicate Performance

RebekaMazzone, CPADirector Rhode IslandAccounting ManagementSolutions, Inc.

MichaelLochheadVP for Administration andFinanceThe College of the HolyCross

HowardTeibelPresident

Teibel, Inc.


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The College of the HolyCross


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At Teibel, we help institutions

manage and adapt to change

People

Strategic Planning

Team BuildingProcess

Organizational Design

Business Process Mapping

Technology

System ImplementationsTechnology Training


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Accounting ManagementSolutions

For more than a decade, Accounting

Management Solutions, (AMS) has

provided accounting support and

financial management leadership at

the consulting CFO, controller andaccounting manager level to dynamic

companies throughout the Northeast.


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Objectives

Discuss why scorecards are important in translating

strategy into action

Learn how scorecards are used as a form of measure

Understand the differences between scorecards,

dashboards, benchmarks and KPIs

Explore process for getting started

Discuss lessons learned


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Going to School onPerformance

Balanced Scorecards =

Grade Point Average

Dashboards = Report card

KPIs = Class grade

Benchmarks = Class rank


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Inputs &Outcomes


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20102010

20102010

Getting Started


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Why Is This Important?


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Create a Cross-functionalTeam

Project Champion

Clear leadership to drive vision

Core Leadership Group

Assess core processes

and programs

Limit team size

Team orientation

Requires long term commitment

U d d Y


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Understand YourAudience

Who will be usingthe scorecards?

What impact do scorecardshave on resource allocationand program decisions?

What is the key information

they need to understand tomake strategic decisions?

Achievingstrategic goals is the priority


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Create Buy-in andOwnership

Top leadership support

Cross functional /

representative teams

Keep an open dialogue

during planning stage

Keep the process

transparent


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Management System(EPMS)

Departments& Individuals

360 Review

President &

Departments

Divisional Scorecards

Board &

President

Institutional Scorecard

VISION /

MISSION


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Starting Point

1. Examine mission

and strategic plan

2. Set goals tied to your

mission

Short-term

Long-term

1. Remember:Change takes time


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What is the Goal?

Institution-wide scorecard

Used to drive strategic plan objectives

Divisional scorecards

Informed by Institution-wide scorecard

Is generally division-specific (e.g. responsibilities and

measures are unique to each department)

Performance Reviews

Ensures alignment among Executive Team

Measures start with a top down approach, but

ultimately some will rise up from individual plans


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Strategic Goals &Objectives


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Deciding What to Measure

Mission and program

effectiveness

Anticipated growth

Benchmarking / peercomparison

Major financial statement

line items and ratios

Consider the relationshipbetween money and people


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Deciding What to Measure:External Drivers

Legal & compliance Public perception

Going green/sustainability

Campus safety

Tuition rising and public perception IT

Competition

Facilities Remaining life

Capacity

Square foot per student

Student satisfaction

Cost per square foot

(maintenance, utilities)


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Deciding What to Measure:Four Pillars

Financial measures

create value

Profitability by program

Ability to meet obligations

Budget success

Human Capital

Student/Faculty Ratio

Staff Cost per Student Quality of education

Diversity ratios

Operational Capacity

Student social space

square feet per student

Customer(Student/Alumni)

service/satisfaction

Retention

Graduation Rates

% students sent to

collections

i d i i i


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List and Prioritize Critical

LOW HIGH

HIGH

Value to

Institution

& Mission

Value to Customers

No Value to

Mission or

Customers


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Case Study: Holy Cross

H l C S i


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Holy Cross StrategicObjectives

Modernize teaching facilities,

particularly in the sciences

Improve the competitiveness

of faculty compensation

Curricular and co-curricular

enhancements

Enhance the Colleges admissions

and marketing efforts

Increased financial aid

Establish strategic reserves

H l C St t i


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Holy Cross StrategicDrivers

Provide students with a unique

and powerful experience which

reflects Jesuit values

Enhance Holy Cross reputation

and external visibility

Build and strengthen a HolyCross community built on

dignity and respect

23

H l C I tit ti l


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Holy Cross InstitutionalScorecard

Student Graduation Rates

OverallALANA

Student Graduation Rates

OverallALANA

Endowment Market ValueEndowment Market Value

Retention Rates

Faculty

Exempt Staff

Hourly

Retention Rates

Faculty

Exempt Staff

Hourly

v s ona corecar


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v s ona corecar Administration and FinanceMeasures of Performance

A&F Staff - % ALANAA&F Staff - % ALANA

Expendable Resources

To Debt Ratio

Expendable Resources

To Debt Ratio

Student Satisfaction

w/Services

Student Satisfaction

w/Services


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Administration and FinanceMeasures of Performance -Operating

Net Tuition

Growth

Net Tuition

Growth

Maintenance Cost/

Sq Ft

Maintenance Cost/

Sq Ft

H l C 360


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Divisional Scorecard VP Administration and Finance360 Leadership Assessment

Holy Cross 360Performance Review

Commits to

Excellence

Commits to

Excellence

Works For

Common Good ofthe College

Works For

Common Good ofthe College

H l C I tit ti l


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Holy Cross InstitutionalScorecard

JesuitJesuit ReputationReputation CommunityCommunity

v s ona corecar


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v s ona corecar Administration and FinanceMeasures of Performance


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Administration and FinanceMeasures of Performance -Operating

What should measures


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What should measureslook like?


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KPIs - Measures


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Scorecard Example

Exceed Goal

Goal

Moderate

Risk

Key Performance


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Key PerformanceIndicators

KPIs can be both quantitative and qualitative

Cannot simply be the money

Programmatic outcomes are the mission

Finance is the backbone

Need to trend over time

Key Performance


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Key PerformanceIndicators (contd)

KPI Review Cycle

Annual scorecard

Quarterly scorecard

K.I.S.S.

Simple to operate

Simple to understand

Simple call to action


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Review Data For

Reliability

Accessibility / availability

Accuracy

Timeliness past indicators

are one measure to predict

future performance

Communicability Does the

scorecard communicate

effectively to your

audience?


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Challenges

Year One: Benchmark year

Lots of information not available

Goal prioritize and focus

Year Two:

Measurement tools in place

Review measures

Ongoing: Reassessment


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Keys to Success

A strategic plan and

leadership support

Clearly defined goals &

institutional priorities

Transparency across the

organization


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Cautions!

Ensure visions are aligned and that there is ahigh commitment level

Must be driven throughoutthe entire management team

Must be seen as independentof any one department

Requires sustained effort, energyand focus over years

Start small:

Too many measures or indicators can beineffective

Staff time commitment

Project manager vs. project champion

Define consistent measures

Confirm valid data


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Holy Cross: Next Steps

Measure key executive performance

Each division to implement

Share this with staff; help drive

goals and measures

Data warehouse move from Excelto database querying PeopleSoft


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Contacts

Michael LochheadCPA, Vice President for Administration and Finance,The College of the Holy Cross

[email protected]

Howard Teibel

President,Teibel, Inc.

[email protected]

Rebeka J. MazzoneCPA, Director Rhode Island Region,

Accounting Management Solutions, [email protected]

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Strategy to Action - EACUBO 2010

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