Is a Library  Balanced Scorecard in Your Future

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What Is a Balanced Scorecard?. The Balanced Scorecard. The idea of the scorecard is to describe the essential ingredients of organizational success.Its underlying philosophy

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Is a Library Balanced Scorecard in Your Future

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1. Is a Library Balanced Scorecard in Your Future? Joe Matthews May 2008 Canadian Library Association

3. The Balanced Scorecard The idea of the scorecard is to describe the essential ingredients of organizational success. Its underlying philosophy – Provides a tool for clearly communicating the goals and priorities of the library.

4. The Balanced Scorecard Translates an organization’s mission and strategy into a comprehensive set of performance measures and provides the framework for strategic measurement and management.

5. The Four Perspectives You “read” the scorecard as a Z – Learning & Growth, Internal Processes, Customer to Financial. Sears Mobil OilYou “read” the scorecard as a Z – Learning & Growth, Internal Processes, Customer to Financial. Sears Mobil Oil

6. Customer Perspective: Creating a sustainable differentiated value proposition is the heart of strategy Product/Service Attributes Quality, Availability, Selection, Functionality, Price Relationship Service, Partnering Image Brand Value Propositions: Low total cost, product leadership, customer solutions, system lock-in Relentless repeatability & improvementValue Propositions: Low total cost, product leadership, customer solutions, system lock-in Relentless repeatability & improvement

7. Internal Perspective Operational Efficiency Supplier relationships, produce products & services, distribute to customers, manage risk Customer Relationships Provide desired services/products, provide convenient processes, provide customized services Innovation Process innovation, manage capital projects

8. Learning & Growth Perspective is all about Readiness Competencies Total Quality Management process improvement capabilities, developing a culture of assessment Technology Software, local area network, wide-area network, library information system, Web site, portal Climate for Action Process improvement: Do it better, faster, cheaper

9. Financial Perspective Productivity Strategy Become a cost leader maximize use of existing assets Revenue Growth Strategy Revenues from new customers Increase existing customer revenues Grants, fund raising

11. Who is Using the Scorecard? Companies Federal government State and local government Non-profit agencies A few libraries

12. Library Balanced Scorecard The Mission and Vision drives the library’s strategy Order of perspectives must be a logical progression -- normally “read” the map from bottom to top Service attributes: Wait time, turnaround time, accuracy, cost, access, helpful attitude, formatting of information The Mission and Vision drives the library’s strategy Order of perspectives must be a logical progression -- normally “read” the map from bottom to top Service attributes: Wait time, turnaround time, accuracy, cost, access, helpful attitude, formatting of information

13. Why Adopt a Balanced Scorecard? Change – Formulate and communicate a new strategy for a more competitive environment Alignment – Each staff member’s actions are guide by the strategies and goals of the library Focus – Provides management with a tool for monitoring progress towards achieving the library's vision

14. Starting Point Mission Statement (the present) Values Statement The Vision (the future) The gap between now and the future leads to a plan of action to achieve the vision. How we get to the future involves strategies.

15. “People and their managers are working so hard to be sure things are done right, that they hardly have time to decide if they are doing the right things.” Stephen R. Covey

16. Barriers to Strategic Implementation

17. The Failure of Strategy "You can either take action or wait for a miracle to happen. Miracles are great but they are unpredictable." Peter Drucker

19. Strategies translate what customers want into what libraries must deliver!

20. Types of Strategies

21. Strategy Is A Hypothesis About What Drives Organizational Success

22. Strategy Maps A visual tool for describing and communicating your strategies. The best strategies are a set of themes focused on the value-creation process. The map shows the cause-and-effect relationships of the strategy among the various perspectives

23. Interrelationships Strategy maps tell where we are going and why Scorecards explain how well we are doing and provide guidance for what can be next Budgets tell how resources are allocated

24. Value of the Strategy Map Assists the library in identifying cause-and-effect relationships Helps develop a predictive model

25. Cause-and-Effect Relationships Vision achieved Satisfied customers Efficient internal processes Skilled employees Aligned resources

26. Sample Strategy Map

28. How To Select Performance Measures

29. Problems with Performance Measures Too many measures and no focus Entrenched or no measurement systems Unjustified trust in informal feedback systems Fuzzy objectives

30. What Needs to be Measured Measures are derived from what needs to be accomplished – strategy! There needs to be a balance (not too many measures) and focus (measures that reflect strategy. Trends are more important than the value of a particular measure.

31. Performance Measures Combination of: Leading and lagging measures Financial & non-financial measures Input, process, output and outcome measures Internal & external measures

32. Performance Measures Should Help Us Decide:

33. Identify Targets When targets are used, performance improves an average of 16% SWAG targets Use “stretch” targets

34. Select Initiatives Have an impact on achieving your strategies Identify responsible individual, implementation schedule, resources required, budgetary implications Look for ways to eliminate it, simplify it, or automate it

35. Sustaining the Scorecard Management’s Focus – use the scorecard to drive meeting agendas The scorecard requires a sustaining ongoing commitment Develop a “culture of assessment” Cascade the scorecard Communicate your scorecard

38. Remember! The Library Balanced Scorecard is about management and change first; the use of performance measures is second.

39. Resources For more information about scorecards, visit www.ci.carlsbad.ca.us/imls Joseph R. Matthews. Scorecards for Results. Westport, CN: Libraries Unlimited, 2008. A copy of these slides is available at: www.JoeMatthews.Org

41. Definitions Mission: What we are about (“Our mission is to provide . . . “) Vision: What we want to be in the future (“Our vision is to be the leading providers of . . . “) Perspectives: Different views of our library (Customers, internal processes, employees & capacity, financial and . . . Information resources, Public value and benefit) Customers: Direct beneficiaries of our services or products (citizens) Stakeholders: The universe of people with an interest in what services we provide and how well we do it) Outcomes: What results are desired; our planned accomplishments (Note: Improved customer satisfaction is a by-product when customers received their desired outcomes.) Goals: What we want to achieve by a certain time (increase number of city residents who use the library on a quarterly basis by 10%)

42. Definitions Strategies: How we intend to accomplish our vision and goals; our approach or “game plan” Objectives: Strategy components; action items that must be accomplished (improve staff skills, decrease costs) Strategy Map: A visual tool that shows cause-effect relationships among strategy components Outputs: What is produced (number of reference transactions) Performance Measures – Lagging: Indicators of success (number of customers served last month) Leading: Predictors (performance drivers) of future success (increase in staff skills and knowledge) Target: Desired level of performance for a performance measure (customer satisfaction target = 95%) Initiatives: Action programs that will achieve our performance goals (provide 24/7 online reference service)

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