ITC Balanced Scorecard A review

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ITC Balanced Scorecard A review

• Presented By
• Syed Tariq Maghrabi M.S., PMP
• Email stariq_at_kfupm.edu.sa

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What is the balanced scorecard?

• You can improve what you can measure.
• Balanced Scorecards provide a framework for
  communicating strategy in operating terms
  (measurements and targets).
• They provide a method of aligning business
  activities to the strategy, and monitoring
  performance of strategic goals over time.
• Originated by Robert Kaplan and David Norton in
  about 1990.

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Why Balanced Scorecard?

• Modern businesses hold most of their value in
  their intangible assets, namely their people, and
  the knowledge those people have.
• Financial metrics are lagging indicators that
  tell what happened in the past.
• Knowledge workers communicate and innovate in
  complex ways, and their work does not fit the
  supply-chain model.
• Executives now need newer ways to assess how well
  their organization is functioning, how to predict
  future performance, and how to align the
  organization toward new strategies.
• Hence the Balanced Scorecard.
• The Balance Scorecard converts an organization's
  value driverssuch as customer service,
  innovation, operational efficiency and financial
  performanceto a series of defined metrics

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What is not Balanced Scorecard

• It is not a form of project management.
• It is not a tool or technique.
• It is not a piece of software.
• It is not an employee evaluation system.
• It is not the latest "management fad".
• And it is not kept on paper scorecards.

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Are there any issues or problems with the
balanced scorecard?

• It is somewhat difficult and time-consuming to
  implement a comprehensive balanced scorecard
  system in a large organization.
• It will require sustained top-level support and
  commitment to ramp-up and put the system in
  place.
• Takes anywhere from 3-20 months to implement for
  full deployment down to the level of individual
  employees. 
• A sustained effort at change management and
  education is needed

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How is the balanced scorecard implemented?

• Organizational Assessment
• Identify Strategic Themes
• Define Perspectives and Strategic Objectives
• Develop a Strategy Map
• Derive Performance Metrics
• Craft and Prioritize Strategic Initiatives
• Automate and Communicate
• Cascade the BSC Through the Organization
• Collect Data, Evaluate and Revise

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ITC Strategy Map

• Balanced Scorecards are constructed from strategy
  maps
• Four Perspectives
• Before we build strategic maps, we need to define
  four perspectives
• Customer measures having a direct impact on
  customers, for example time taken to process a
  phone call, results of customer surveys, number
  of complaints or competitive rankings
• Internal Processes The values added to
  customers, such as services, training,
  facilitation, etc.
• Financial Represents financial outcomes,
  resource allocations
• Learning Growth The people, systems, and
  organization that enable processes.

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Perspectives
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Key Performance Indicators (KPIs)

• Key Performance Indicators, also known as KPI or
  Key Success Indicators (KSI), help an
  organization define and measure progress toward
  organizational goals
• Key Performance Indicators Must Be Quantifiable
  and should reflect The Organizational Goals

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KPIs Identified for ITC

• IT services cost per student
• IT services cost per faculty member
• IT services cost per staff member
• Percent of Academic IT services cost
• Total hardware cost
• Total software cost (in Millions)
• Total cost of operations
• Total manpower cost (in Millions)
• Organizational maturity level
• Number of certified PMPs
• Number of certified QA Professionals
• Level of project management maturity
• Team development index
• Employee satisfaction index
• Number of ITC processes enabled

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KPIs Continued..

• Number of Enterprise class servers
• Total capacity of SAN (in TB)
• Number of Midrange and Low end servers
• Percent of projects completed on time
• Number of requests handled
• Average close time of a request in hours
• Number of SLA violations
• Number of requests resolved at level 1
• Number of complaints received
• Number of trainers
• Number of courses offered
• Number of IT training hours delivered
• Number of training programs conducted
• Number of participants

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KPIs Contd..
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Microsoft BSC Implementation
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Data Collection

• Manual
• Automation Scripts
• Surveys
• Sources CA Unicenter and NSM, CiscoWorks,HelpDesk
  , Unix scripts, etc

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Summary

• Balanced Scorecards are an efficient way of
  communicating strategy.
• Scorecards rely on a fully integrated approach
  Goals, Objectives, Mapping, Measurements,
  Targets, and Initiatives.
• The building of a balanced scorecard can be
  experimental, whereby we test our strategies,
  refine, and make changes as we get feedback and
  learn what works.