8/4/2019 40533405

1/11

OECD

Ajointinitiativ

eo

ftheO

Un

ion,princip

allyfinancedby

1

Linking Quality toLinking Quality to

Strategy: Benefits ofStrategy: Benefits of

Balanced Scorecards inBalanced Scorecards in

the Public Sectorthe Public Sector

Seminar on

Quality Manager in the Public Sector

Romania, 10-20 March 2008

8/4/2019 40533405

2/11

OECD

Ajointinitiativ

eo

ftheO

Un

ion,princip

allyfinancedby

Origin of BalancedOrigin of Balanced

ScorecardsScorecards

n The original Balanced Scorecard

(Kaplan and Norton, 1992) was

focused on reportingperformance and very private-

sector oriented

n

Now, it is a tool for strategydevelopment and testing and is

applicable for public and

nonprofit sectors, as well

8/4/2019 40533405

3/11

OECD

Ajointinitiativ

eo

ftheO

Un

ion,princip

allyfinancedby

3

A GOAL SETTING TOOL+A DEVICE TO BUILD

CAUSE AND EFFECT

WITHIN YOUR BUSINESS

STRATEGY

Financial

Customer

Operational and

process

Learning andinnovation

Financial

Customer

Operational and

process

Learning and

innovation

Figure 3.2 General flow of the Balanced Scorecard. (SOURCE: The Balanced Scorecard, David Norton,

Renaissance Strategy Group, Lincoln, MA, and Robert Kaplan, Harvard Business School).

8/4/2019 40533405

4/11

OECD

Ajointinitiativ

eo

ftheO

Un

ion,princip

allyfinancedby

4

Community First

Customer First Funding the Future

Performance Counts

People Matter

8/4/2019 40533405

5/11

OECD

Ajointinitiativ

eo

ftheO

Un

ion,princip

allyfinancedby

5

What are we trying to achieve?

(Community Priorities)

What key things do we need to get right to achieve

them? (Strategic Objectives)

How do we know if we are getting there?

(Measures and Targets)

Developing the Scorecard

8/4/2019 40533405

6/11

OECD

Ajointinitiativ

eoftheO

Un

ion,princip

allyfinancedby

The Barking and DagenhamThe Barking and Dagenham

Balanced Scorecard Strategy MapBalanced Scorecard Strategy Map

6

Community First

Funding the Future- Financial & Resource Perspective

People Matter - Learning & Growth Perspective

Performance Counts - Organisational Processes Perspective

Customer First

Raising

Pride

Developing

Rights &

Responsibilities

Improving

Health,

Housing,

Social Care

Cleaner,

Greener,

Safer

Promoting

Equal Opps,

Celebrating

Diversity

Regenerating

Local

Economy

Better

Education

& Learning

for all

Meeting

CustomerNeedsFirst

Providing

Accessible,Local

Services

ImprovingStandards

Investmentthrough

Partnerships

Allocating

resources tosupport

priorities

EveryPound

Counts

SupportingInnovation,

Risk &Reward

BuildingConfidence,EnhancingReputation

ProvidingStrategic

Leadership

Embedthe Core

Competencies

BuildingProject

ManagementSkills

EmpoweringDecisions,InformingChoice

Performance&

Accountability

RedesignProcesses &Programmes

to putCustomers

First

Excellencethrough

Partnerships

IntegratedFinancial &

ServicePlanning

CommunityLeadershipRole

8/4/2019 40533405

7/11 OECD

Ajointinitiativ

eoftheO

Un

ion,princip

allyfinancedby

The Scorecard Performance IndicatorsThe Scorecard Performance Indicators

7

% of interactions with the public that are delivered

electronically e.g. by telephone, internet. % of staff who are set performance targets as a

result of appraisal/appointment

% of reports to members that are appropriate & of

good quality

% of Balanced Scorecard actions implemented on

time and as planned

% of partnership strategies/action plans delivered

on time & as planned

% of residents with a positive perception of the Borough

The level of the Equalities standard for local government to which the Council performs

The level of the Equalities standard to which B&D public sector bodies perform

Numbers of citizens involved in Council consultations

Number of deaths by Heart Disease in B&D

% of homes that meet the decency standard as a percentage of total public & private stock

% of residents with a positive perception of public safety

% of residents with a positive perception of the overall appearance of the Borough

% of education & learning indicators at above national average

% of education & learning indicators at or above top quartile

Average income of B&D citizens

Community

First

% of residents satisfied with the quality of services

% of access indicators at or above top quartile

% of quality & service outcome indicators at or

above top quartile

% of community strategy actions delivered on time

& as planned

Customer First % of cost indicators in best quartile

% of Capital schemes delivered on time & withinbudget

% of overall budget which is re-directed to priorities

% of capital funding generated from external

sources

% of revenue funding generated from external

sources

Funding the Future

Performance Counts 1-10 rating by key stakeholders against reputation

drivers

% of staff satisfied with the quality of their appraisal& personal development planning

% of managers trained in project management

techniques

% of staff who are satisfied that the leadership of

their manager enables them to place their work in

the context of the Community Priorities and/or

strategic objectives

% of BV inspections that indicate confidence in theCouncils ability to make improvement

People Matter

8/4/2019 40533405

8/11 OECD

Ajointinitiativ

eoftheO

Un

ion,princip

allyfinancedby

8

Each of the 29 Service Heads produce a

scorecard, which translates the corporate

scorecard to the service level and takes

account of specific service pressures e.g.

from government departments.

Each Service Scorecard sets out:

strategic service objectives and measures

an implementation plan of how the targets will be

delivered.

Service Scorecards

8/4/2019 40533405

9/11 OECD

Ajointinitiativ

eoftheO

Un

ion,princip

allyfinancedby

9

Patients and Community

Financial

Organisational DevelopmentService Delivery

Objectives

Objectives

ObjectivesObjectives

Measures

Measures

MeasuresMeasures

Targets

Targets

TargetsTargets

Example of a Balanced Scorecard in

a UK hospital

8/4/2019 40533405

10/11 OECD

Ajointinitiativ

eoftheO

Un

ion,princip

allyfinancedby

10

8/4/2019 40533405

11/11 OECD

Ajointinitiativ

eoftheO

Un

ion,princip

allyfinancedby

Group exerciseGroup exercise

Strategicobjective

Performanceindicator

Target

Customers

Staff

Financialresources

Performance

[Your choice]