using bsc for universities

8/13/2019 Using BSC for Universities

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USC Rossier School of Education

hierarchy of relations in Vladivostok University

Content

basics 4 principles

BSC concept

differences & obstacles why use BSC for universities?

BSC for non-profit organizations

Examples of BSC map for University


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BSC is like the dials in an airplane cockpit: itgives managers complex information at a

glance.

R. S. Kaplan and D. P. Norton

Basic BSC premise is:

FINANCIAL

RESULTS

ALONE

CAN NOT

CAPTURE

VALUE ADDING

ACTIVITIES!!!


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BSC basics

Idea of BSC evolved in 1990-th, when rising dependence on non-material

resources asked for new management instruments which used non-financial

indicators.

o Brand identification, competence, processes flow = intangibles

o BSC is a mechanism of giving every particular employee a view of

company strategic goals allowing to control implementation through Key

Performance Indicators (KPI)

o If measures are successful and truly adopted credibility for internal and

external shareholders rises ability to satisfy externally driven

demands for accountability(especially important for non-profit org.).


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BSC: 4 perspectives

Measures addressed to: Answer the question:

1 The FINANCIAL perspective How should we appear to ourshareholders?

2 The CUSTOMER perspective How should we appear to our

customers?3 INTERNAL business PROCESSES perspective What processes must we excel

at?

4 LEARNING and GROWTH perspective How can we sustain our abilityto change and improve?

NB:A critical factor for an effective BSC is the alignmentof the 4 perspectives

with the company `s visionand strategic objectives.

BSC shows how results are achieved. Because even best objective can be

achieved badly (one area improved at the expense of another) .


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BSC for non-profit organizations

Obstacles:

o Poor Oversight

o Strategy

o

Transparencyo Incentive cooperation

o Causal linkages

o Integrated themes

Nevertheless:Those public sector groups that have started

working on BSC report- the process of defining a strategy and

building BSC is far more valuable than particular measures used.


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Why apply the BSC to Education?

o Unlike goodold times,universities today face growing expectations and

mustprovide increased accountability for the outcomes they produce.

o Central administration: academic scorecard makes easier for University to

accomplish strategic goals though assigning metrics to every academic unit. Is

very important for decentralized (to the deans level without provost

involvement into budget decisions) institution to see that unit is increasing or

declining.

o It offers a format within which to establishcommon measures across

academic units, that have shared characteristics (ex.: cluster of schools within

University of Southern California)

o Simplicity of system enables to explain budget decisionsby showing

relationship to academic scorecard indicator.


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University Stakeholders

o Prospective students

o Current students

o Organizations and Individuals seeking for new knowledge

o Families

o Alumni

o Employers

o Colleagues at other Institutions

o Governing boards

o Local community

o Friends, Donors, Legislators, the General Public

o Faculty

o Staff


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Common University mission

Fundamental missionof research universities excellence in creation, sharing and application ofknowledge.

o distinguished facultieso high-level research facilitieso innovative teaching processo support technologieso

capable studentso competent staffo legislative and public supporto excellent communication and service-oriented cultureo sense of community


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Higher education dashboard indicators

Programes / Courses

Student outcomes

TEACHING AND LEARNING SCOLARSHIPS AND RESEARCH

Productivity

Impact

University / Professions / Alums

State / Pros Students / Families

Employers

SERVICE / OUTREACH

Faculty

Stuff

WORKPLACE / SATISFACTION Revenues

Expenditures

FINANCIAL


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Observations

o 5 dashboard indicators - not prescriptive:

Depending on mission and goals University needs different components of

the board.

o Individual units might have their own set of indicators:

administrative vs academic units.

o Traditional indicators can`t reflect comprehensive image of current status of a

university and the scope of areas for control (market position especially)

o

Can`t reflect key success factors and don`t offer strategic view ofdevelopment:

Ex.In most colleges little attention is paid at measuring students expectations andsatisfaction, thus attracting the brightest people is considered a critical success

factor.


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Ex.: USC

RossierSchool ofEducation

Map contains 4classical BSCperspectives
http://localhost/var/www/apps/conversion/tmp/scratch_2/4.skphttp://localhost/var/www/apps/conversion/tmp/scratch_2/OSU.skp


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Ex. OSU
http://localhost/var/www/apps/conversion/tmp/scratch_2/OSU.skphttp://localhost/var/www/apps/conversion/tmp/scratch_2/vladivostok.skp


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Ex.Vladivostok
http://localhost/var/www/apps/conversion/tmp/scratch_2/vladivostok.skp


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Summary

2 main differentiating features of BSC:

1. Simple format of strategic map describes with limitedset of indicators for

every perspective.

2. Focus on mutual relationshipof perspectives and indicators. Well articulated

map reflects strategic logics of causality between current activities and long-

term success.

The whole process of dialogue focuses, energizes and informs faculty and staff

thus broadening responsibility for leadership within the unit.


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Y O U R Q U E S T I O N S

Thank you for the attention!

using bsc for universities

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