2 BALANCED » ‘SCORECARD INSTITUTE ‘Strategy Management Group The Benefits of Balanced Scorecard Strategic Planning and Management Return on investment is an important consideration before investing a significant amount of money to build and implement a new strategic management system, Based on our experience with over 100 organizations — public sector, business, and nonprofits — in different industries and businesses, the following major tangible benefits have been Identified by our clients Organizational Alignment to Build Collective and Individual Accountability - From Vision to the Desktop The process of developing a strategy-focused organization using internal cross-functional Learn More! teams who “own” the management system creates a multi-level aligned organization, starting with a shared vision ofthe future down to the work that employees do on a day-to- | Tianing Workshops atthe ino and day basis. The scorecard process better aligns and integrates the different areas of a | — qdvanced levels re comeiy being business. According to one of our clients, *...the balanced scorecard links the work we do | fed in Weshington DG Alona, more closely to our strategic plan. Also, performance data provides an “early-warning radar system’, to identify potential problems early enough to take action to mitigate adverse consequences. Individual and collective accountability low from alignment, tos Angeles and other loans al 919.460.8180 to resene your seat Improved Communications and Transparency - Build Employee Buy-In len Fastback and Incentivize Desired Behavior Building and implementing a balanced scorecard system is a transformation and change | “The BSC program was one ofthe ‘management initiative that builds employee buy-in and improves communications intemally | _ best profssional development and externally. A wel crafted strategy map “tells the story" of how the organization creates | —gpainces ve ever had.” value for customers, business owners, employees, and other stakeholders. ..and it adds a (Fabra gong) new level of clarity to conversations around performance and results. Factual performance data allows stakeholders (and the media) to view governance and performance results that are easy to understand and actionable, According to one of our clients, “the balanced scorecard provides a better way of communicating with our employees and external stakeholders by providing a common language.” Performance information provides a basis “ove the case study exercises” 1P, Energy Company for executives and other staff to be evaluated fairly against standards, andor incentives to be | “Vey useful for developing linked to performance. Performance information also improves transparency, an element in strategic performance measures.” the ethical dimension of governance. WO, Non-Profit Orgniaton Set Strategic Priorities — Prioritize Your Projects. Developing a prioritization framework for initiatives “levels the playing field” when it comes to budget requests and making strategicchoices. "You helped us finda fairer way of saying No", said one of our clients, who was struggling with too many projects competing for too few dollars. “Your framework provides a stronger rationale for doing the things we should be focusing on, said another client. The balanced scorecard isa disciplined way to translate an organizations strategic intent into actionable programs, products, and services. (coniuedonage2) 975 Walt Stet Site 360. Cay Nah Colina 27511 USA. Phone: 919.460.6180 Fox: 919.460.0867 ww boards. rgBalanced Scorecard Strategic Planning and Management Benefits, continued Data-Driven Decision Making — Measure What Matters and Focus on Results Performance data better informs decision making, and the balanced scorecard helps focus attention on the ‘most important things to measure, The infusion of performance information into the resource allocation process yields a budget process that links dollars with expected results, not just inputs and actives. According to one of our clients, *...the balanced scorecard adds discipline to the budget process. .1e are not as fragmented as we were before”. Planning, and managing strategically puts the emphasis on individual and collective accountability for results, and levates planning and management from primarily ‘operational thinking to. strategic thinking....from “fixing potholes to enhancing public safety” Additional Government Benefits: Enhanced Credit Ratings Rating agencies look favorably at local governments that use performance management systems. and performance reporting to monitor accomplishments, track results against goals, and transparently report progress and problems to citizens. Community Involvement and Dialogue Community forums informed by performance information improve the assessment of needs and service levels, and allowa deeper understanding of the process of government. Performance information helps determine programand service priorities. Program and Service Effectiveness Becoming more strategy focused shifts emphasis from effort and outputs (“what did { produce?”) to program, product, and service cost-effectiveness and outcomes (Cwhat did we accomplish?”), The balanced scorecard isa disciplined framework for saying “no” to programs and projects that are not “carrying their weight”, and for saying “yes” to efforts that strongly support the organization's strategic direction, Better Manage the Environment Program prioritization and performance tracking allow executives to anticipate "grcen’ issues and address challenges strategically. 975 Wal Set Suite 360. Cay, Nath Cactna 27511 USA Strategy Management Group » Phone: 919.460.8180. Fox: 919.460.0867 wm bolero 1g