eGovernment Strategy Balanced Scorecard

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eGovernment Strategy Balanced Scorecard

• Kamen Spassov
• Coordination Center
• for Information Communication and Management
  Technologies
• kspassov_at_ccit.government.bg

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The Management System
Vision and Strategy
Management System
Fundamentals
Projects
Initiatives
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Elements of a Good Management System

• Derived from the Vision and Strategy of the
  organization
• Planning
• Long term strategic plan
• Short term business plan and budgets
• Measurement
• Focused set of measures
• Measures represent the organizations plan and
  vision
• Review
• Plans are regularly reviewed and suitably revised
• Performance
• Rewards are linked to driving key measures

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What is BSC?
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• A concept that transforms the organizations
  strategy into real actions
• A tool to measure activities of the organization
• A management decision making support system
• A technology that integrates actions of all parts
  around the objectives of the organization

Market Share
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BSC Philosophy
Mission and vision definition
1. Where are we? What are we doing? Where do we
want to go? 2. How will we realize our
intentions? 3. From which points of view can we
look at our organization? 4. What are the
factors influencing development in the right
direction? 5. How will we measure our
activities? 6. What are the results of the
monitoring? 7. What will be our actions? Can we
complete them? 8. What are benefits of the
change? How do we continue?
Strategy development
Perspectives identification
Key success factors
Measures
Evaluation
Action plan
Feed back
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BSC Genesis

• Situation
• Bias towards Financial Measures
• Initiatives not all linkable to financials, hence
• Either not undertaken
• Or too many initiatives
• Top Management need to focus
• The Balanced Scorecard solution - Kaplan
  Norton
• A set of measures based on
• Finance
• Customers
• Internal processes
• Learning and growth
• Linked to vision and strategy
• Balances short and long term needs
• Builds leading and lagging indicators

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BSC Elements
Finance
Internal Processes
Customer
Vision Strategy
Learning Growth
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Finance

• To succeed financially, how should we appear to
  our shareholders?
• Financial measures
• Show economic consequences of actions already
  taken
• Show if strategy implementation has given results
• Typical measures
• Revenue
• Gross Profit
• ROI
• EVA

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Customers

• To achieve our vision, how should we appear to
  our customers?
• Measures typically can be related to
• Customer satisfaction
• Customer retention
• New customer acquisition
• Value delivery - to customer
• Market and account share in targeted segments
• Segment specific drivers could be
• Shorter lead times
• Innovative products and services
• Better quality

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Internal Processes

• To satisfy our shareholders and customers, what
  business processes must we excel at?
• Define key business processes
• Business process analysis
• Business process reengineering
• Typical measures
• Time to complete a service
• Decrease of the total cost of the process

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Learning and Growth

• To achieve our vision, how will we sustain our
  ability to change and improve?
• Employees skills and competences
• Current
• Needed for the future
• Typical measures
• Self Assessment
• Certification

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Cause/Effect Relationship
EVA
Finance
Customer Loyalty
Customer
On-time delivery
Process Quality
Process Cycle time
Internal Processes
Employee Skills
Learning and Growth
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Sears Employee-Customer-Profit Chain
A COMPELLING PLACE TO INVEST
A COMPELLING PLACE TO SHOP
A COMPELLING PLACE TO WORK
Customer recommendations
The rectangles represent survey information, the
ovals hard data
Attitude about the job
Service helpfulness
Return on assets Operating marginRevenue growth
Customer impressions
Employee behaviour
Attitude about the company
Merchandise value
Customer retention
Employee retention
DRIVES DRIVES 5 unit increase in 1.3 unit
increase in 0.5 increase in employee
attitude customer impression revenue growth
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Hypothetical Model
Customer Attitudes
Business Performance
Employee Attitudes

• Job satisfaction
• Commitment
• Service climate
• Training
• Resources
• Culture
• Line mgmt

• Satisfaction
• Loyalty
• Recommendation
• Spending intention
• Retention

• Sales volume growth
• Profitability
• Added value per head
• Return on capital
• Productivity

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Elements to Measure Relationships
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Why Balanced?

• A focus only on financial measures is backward
  looking and restrictive
• Companies have several key stakeholders - not
  just shareholders, but customers and employees
• Measures should look to the future as well as the
  past and the present

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Kaplan Norton Original
Financial
To succeed financially, how should we appear to
our shareholders?
Customer
Internal Business Process
To satisfy our shareholders and customers, what
business processes must we excel at?
To achieve our vision, how should we appear to
our customers?
Learning and Growth

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BSC Use

• Translating strategy into operational terms
• Communicating strategy and targets
• Monitoring direction and progress
• Reporting to stakeholders
• Changing behaviour
• Enabling double loop learning

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Possible Limitations

• Does it have to be 4 quadrants? Dont be
  constrained by the format!
• Are employees adequately represented? Learning,
  growth, positive and forward-looking concepts,
  but what about commitment, attitudes, motivation?
• Designed primarily for the private sector

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Public Sector Differences - 1

• Focus on cash limit rather than profit
• Funded by taxation and/or charges that are
  centrally fixed
• No shareholders
• Regional or national focus rather than global

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Public Sector Differences - 2

• Political influence
• Requirement to respond to central initiatives
• Stakeholders are different or have a different
  emphasis
• Concept of accountability
• Ethos of public service

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Public Sector Stakeholders

• Customers of services
• Employees
• Taxpayers
• Voters
• Wider public
• The Government

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Public Sector Tensions

• Cost versus quality
• Freedom versus regulation
• Spending constraints versus public demand
• Organisational wishes versus political direction

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Barriers

• Understanding the rules
• Data collection issues
• Organisational politics
• Time
• Expertise

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Strategy Description

• Strategic Map
• Perspectives
• Objectives of the organization

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Performance Measures
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Initiatives

• What do we need to do to realize the objectives?

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General View
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Linking All Parts of the Organization
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The Link

• http//obs.is-bg.net
• Username public
• Password welcome

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The Entry Point
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Strategic Management
Management information system for e-government
monitoring and strategic management based on the
Balanced Scorecard methodology
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Strategic Map Model
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Bulgarian eGovernment
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Up-to-Date Achievements
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Functional Advantages

• Several view-points
• User-friendly, web-based interface
• Cause-and-effect relationship
• Quantitative measurement by
• key performance indicators
• Multidimensional analyses
• Qualitative assessment
• Feedback and communication

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Information System Design
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Technological Background

• OLAP cube for each measure provides
• analyses across different dimensions

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Thank You!

• Kamen Spassov
• Coordination Center
• for Information Communication and Management
  Technologies
• kspassov_at_ccit.government.bg