Balanced Scorecard Institute ™
Understanding Balanced Scorecards and Strategy Maps
April 2017
O V E R V I E W : W H A T I S A B A L A N C E D S C O R E C A R D ?
©1997-2017 Balanced Scorecard Institute.
What is a Balanced Scorecard?
An integrated strategic planning and performance management system that:
• Communicates with clarity an organization’s vision, mission, and strategy to employees and other stakeholders
• Aligns day-to-day work to vision and strategy
• Provides a framework for prioritizing programs, projects, services, products and resources
• Uses strategic performance measures and targets to measure progress
Strategy Map/ Objectives Measures Targets Initiatives
Financial
Customer
Process
Organizational Capacity
Mission/Vision/Values/Strategic Themes/Results
O V E R V I E W : W H A T I S A B A L A N C E D S C O R E C A R D ?
©1997-2017 Balanced Scorecard Institute.
A Strategic Management System Connects the Dots Between Strategy and Action
Strategy Map/ Objectives Measures Targets Initiatives
Financial
Customer
Process
Organizational Capacity
Mission/Vision/Values/Strategic Themes/Results
High Level Strategy Elements
provide high level context
Strategic Objectives Are Continuous
Improvement Activities that we have to
implement for success
Strategy Maps visualize strategy
Measures are used to track organizational
performance.
Targets are the desired level of performance for
each measure.
Strategic Initiates are projects that help you reach your targets.
O V E R V I E W : W H A T I S A B A L A N C E D S C O R E C A R D ?
©1997-2017 Balanced Scorecard Institute.
Strategic Performance Should be Monitored From Different Perspectives
Organizational Capacity or Learning & Growth
Customer & Stakeholder
Internal Process
• Financial Performance • Effective Resource Use
• Customer Value • Satisfaction and/or
Retention
• Efficiency • Quality
• Human Capital • Infrastructure & Technology • Culture
Financial or Stewardship
O V E R V I E W : W H A T I S A B A L A N C E D S C O R E C A R D ?
©1997-2017 Balanced Scorecard Institute.
Government Strategic Planning and Management System Example
Strategic Objectives and Strategy Map Measures Targets Initiatives
Constituent/ Stakeholder
• Livability satisfaction score • >90% this year • Green Space program
• New business startup program
• Community engage committee
• Partnering program
• Program satisfaction score • >85% this year
• Per capita service utilization • 65% this year
• Per capita income • 3% this year
• Tourism revenue • 6% this year
Financial Stewardship
• Controllable expenses •5% this year • Simplify tax payments
• Asset resale program
• Energy savings program
• Asset value • 8% this year
• Strategic projects on time and budget • 95% this year
Business Processes
• Index of program results • 85% this year
• Partner recruitment program
• City marketing program
• Satisfaction surveys
• Shared systems • 35% this period; 50%
this year
• Response time changes • 5% this period
• Audit score of communication effectiveness
• >90% this period
Organizational Capacity
• Recruitment effectiveness • > 80% this period • Customer service training
• Individual development plans
• Porgram evaluation process
• Retention effectiveness • 92% this year
• Training effectiveness • >93% this period
• Employees use of appropriate technology • 45%
Integrity-Based Leadership Ethics Accountability Commitment to Excellence Citizen-Centered Mutual Respect
Be a world-class model for a successful urban community
Provide effective and fiscally responsible services in a manner that promotes high standards for community life
Government Reform Nurturing Children and Families Public Safety Economic Abundance
Maintain an ethical and transparent government that engages its constituents and provides effective and efficient services.
Create a safe, thriving and engaged community so families can flourish through achievement of social, mental, pyshical and cultural well-being.
Create and maintain a safe, secure community-oriented city that is clean and vibrant.
Offer abundant opportunity for financial stability and advancement for all socio-economic levels.
Vision:
Mission:
Strategic Themes:
Strategic Results:
Improve Program
Outcomes
Increase Quality of
Life Improve
Awareness and Accessibility
Reduce Waste
Improve Land and Asset
Management
Improve Delivery Services
Improve Efficiency and Effectiveness
Improve city Promotion/ Marketing
Increase Staff Quality
Improve Utilization of Technology
O V E R V I E W : W H A T I S A B A L A N C E D S C O R E C A R D ?
©1997-2017 Balanced Scorecard Institute.
Government Strategic Planning and Management System Example
Strategic Objectives and Strategy Map Measures Targets Initiatives
Constituent/ Stakeholder
• Livability satisfaction score • >90% this year • Green Space program
• New business startup program
• Community engage committee
• Partnering program
• Program satisfaction score • >85% this year
• Per capita service utilization • 65% this year
• Per capita income • 3% this year
• Tourism revenue • 6% this year
Financial Stewardship
• Controllable expenses •5% this year • Simplify tax payments
• Asset resale program
• Energy savings program
• Asset value • 8% this year
• Strategic projects on time and budget • 95% this year
Business Processes
• Index of program results • 85% this year
• Partner recruitment program
• City marketing program
• Satisfaction surveys
• Shared systems • 35% this period; 50%
this year
• Response time changes • 5% this period
• Audit score of communication effectiveness
• >90% this period
Organizational Capacity
• Recruitment effectiveness • > 80% this period • Customer service training
• Individual development plans
• Porgram evaluation process
• Retention effectiveness • 92% this year
• Training effectiveness • >93% this period
• Employees use of appropriate technology • 45%
Integrity-Based Leadership Ethics Accountability Commitment to Excellence Citizen-Centered Mutual Respect
Be a world-class model for a successful urban community
Provide effective and fiscally responsible services in a manner that promotes high standards for community life
Government Reform Nurturing Children and Families Public Safety Economic Abundance
Maintain an ethical and transparent government that engages its constituents and provides effective and efficient services.
Create a safe, thriving and engaged community so families can flourish through achievement of social, mental, pyshical and cultural well-being.
Create and maintain a safe, secure community-oriented city that is clean and vibrant.
Offer abundant opportunity for financial stability and advancement for all socio-economic levels.
Vision:
Mission:
Strategic Themes:
Strategic Results:
Improve Program
Outcomes
Increase Quality of
Life Improve
Awareness and Accessibility
Reduce Waste
Improve Land and Asset
Management
Improve Delivery Services
Improve Efficiency and Effectiveness
Improve city Promotion/ Marketing
Increase Staff Quality
Improve Utilization of Technology
Communicate Vision, Mission &
Strategy
Communicate Strategy Map is Your
Story of Value Creation
O V E R V I E W : W H A T I S A B A L A N C E D S C O R E C A R D ?
©1997-2017 Balanced Scorecard Institute.
Government Strategic Planning and Management System Example
Strategic Objectives and Strategy Map Measures Targets Initiatives
Constituent/ Stakeholder
• Livability satisfaction score • >90% this year • Green Space program
• New business startup program
• Community engage committee
• Partnering program
• Program satisfaction score • >85% this year
• Per capita service utilization • 65% this year
• Per capita income • 3% this year
• Tourism revenue • 6% this year
Financial Stewardship
• Controllable expenses •5% this year • Simplify tax payments
• Asset resale program
• Energy savings program
• Asset value • 8% this year
• Strategic projects on time and budget • 95% this year
Business Processes
• Index of program results • 85% this year
• Partner recruitment program
• City marketing program
• Satisfaction surveys
• Shared systems • 35% this period; 50%
this year
• Response time changes • 5% this period
• Audit score of communication effectiveness
• >90% this period
Organizational Capacity
• Recruitment effectiveness • > 80% this period • Customer service training
• Individual development plans
• Porgram evaluation process
• Retention effectiveness • 92% this year
• Training effectiveness • >93% this period
• Employees use of appropriate technology • 45%
Integrity-Based Leadership Ethics Accountability Commitment to Excellence Citizen-Centered Mutual Respect
Be a world-class model for a successful urban community
Provide effective and fiscally responsible services in a manner that promotes high standards for community life
Government Reform Nurturing Children and Families Public Safety Economic Abundance
Maintain an ethical and transparent government that engages its constituents and provides effective and efficient services.
Create a safe, thriving and engaged community so families can flourish through achievement of social, mental, pyshical and cultural well-being.
Create and maintain a safe, secure community-oriented city that is clean and vibrant.
Offer abundant opportunity for financial stability and advancement for all socio-economic levels.
Vision:
Mission:
Strategic Themes:
Strategic Results:
Improve Program
Outcomes
Increase Quality of
Life Improve
Awareness and Accessibility
Reduce Waste
Improve Land and Asset
Management
Improve Delivery Services
Improve Efficiency and Effectiveness
Improve city Promotion/ Marketing
Increase Staff Quality
Improve Utilization of Technology
Measure Strategic Progress – Strategy Execution
O V E R V I E W : W H A T I S A B A L A N C E D S C O R E C A R D ?
©1997-2017 Balanced Scorecard Institute.
Government Strategic Planning and Management System Example
Strategic Objectives and Strategy Map Measures Targets Initiatives
Constituent/ Stakeholder
• Livability satisfaction score • >90% this year • Green Space program
• New business startup program
• Community engage committee
• Partnering program
• Program satisfaction score • >85% this year
• Per capita service utilization • 65% this year
• Per capita income • 3% this year
• Tourism revenue • 6% this year
Financial Stewardship
• Controllable expenses •5% this year • Simplify tax payments
• Asset resale program
• Energy savings program
• Asset value • 8% this year
• Strategic projects on time and budget • 95% this year
Business Processes
• Index of program results • 85% this year
• Partner recruitment program
• City marketing program
• Satisfaction surveys
• Shared systems • 35% this period; 50%
this year
• Response time changes • 5% this period
• Audit score of communication effectiveness
• >90% this period
Organizational Capacity
• Recruitment effectiveness • > 80% this period • Customer service training
• Individual development plans
• Porgram evaluation process
• Retention effectiveness • 92% this year
• Training effectiveness • >93% this period
• Employees use of appropriate technology • 45%
Integrity-Based Leadership Ethics Accountability Commitment to Excellence Citizen-Centered Mutual Respect
Be a world-class model for a successful urban community
Provide effective and fiscally responsible services in a manner that promotes high standards for community life
Government Reform Nurturing Children and Families Public Safety Economic Abundance
Maintain an ethical and transparent government that engages its constituents and provides effective and efficient services.
Create a safe, thriving and engaged community so families can flourish through achievement of social, mental, pyshical and cultural well-being.
Create and maintain a safe, secure community-oriented city that is clean and vibrant.
Offer abundant opportunity for financial stability and advancement for all socio-economic levels.
Vision:
Mission:
Strategic Themes:
Strategic Results:
Improve Program
Outcomes
Increase Quality of
Life Improve
Awareness and Accessibility
Reduce Waste
Improve Land and Asset
Management
Improve Delivery Services
Improve Efficiency and Effectiveness
Improve city Promotion/ Marketing
Increase Staff Quality
Improve Utilization of Technology
Prioritize Initiatives/Projects
S T R A T E G I C T H E M E T E A M S W O R K S H O P
©1997-2016 Balanced Scorecard Institute.
Organizational Strategy Can Be Aligned By Cascading to Different Tiers
Tier 1: Organization-wide
Tier 2: Departments
Tier 2: Business Units
Tier 2: Support Units
Tier 3: Teams and Individuals
Personal Objectives Measures Targets Initiatives
Tier 3 Scorecard: Aligned personal
objectives defined by job descriptions and
work assignments
Strategy Map/ Objectives Measures Targets Initiatives
Customer & Stakeholder Financial/ Stewardship
Process
Organizational Capacity
Tier 2 Scorecards: Aligned strategy
defined in business and support unit
scorecards
Strategy Map/ Objectives Measures Targets Initiatives
Customer & Stakeholder Financial/ Stewardship
Process
Organizational Capacity
Tier 1 Scorecard: Strategy defined in a
top-level strategy map and scorecard
Mission/Vision/Values/Strategic Themes/Results