Adapting the Balanced Scorecard as

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Adapting the Balanced Scorecard as a Management
System in a British Local Authority John
Tatam Corporate Director of Resources and Deputy
Chief Executive Quality Management in the
Public Sector Vilnius, 27-28 March 2006
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Scale
Population 164,000 Gross
Budget 450 m Staff
c9,000
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Service Responsibilities
Education (schools) Social Services Housing Enviro
nment Leisure Culture
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Our Past - Performance Management
Collected PIs - c. 150 statutory - over 300
local But, didnt use Didnt know if
measuring the right things
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Adapting The Balanced Scorecard

• Developed for the Private Sector
• - bottom line at the top
• For local government
• - Finance less critical
• - Community Perspective (well being) as
  well as customers
• - separate services with different
  regulatory
• frameworks

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Community Priorities

• Promoting equal opportunities and celebrating
  diversity
• Better education and learning for all
• Developing rights and responsibilities with
  the local
• community
• Improving Health, Housing and Social Care
• Making Barking Dagenham cleaner, greener and
  safer
• Raising general pride in the Borough
• Regenerating the local economy

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Developing the Scorecard

• What are we trying to achieve? (Community
  Priorities)
• What key things do we need to get right to
  achieve them? (Strategic Objectives)
• How do we know if we are getting there?
  (Measures and Targets)

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The Barking and Dagenham Council Scorecard
Strategy Map







Community First
Funding the Future
Customer First
Performance Counts
People Matter
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Choosing Measures

Measurement is the language which gives
clarity to vague concepts R. Kaplan
Measures define success for an organisation
Andy Neely
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Regenerating the Local Economy

• Definition
• - Creating more wealth for local people.
• - Helping local people with the skills and
  training to get
• good quality jobs.
• - Enterprise and investment in the Borough.
• Measure
• Average income of Barking and Dagenham citizens
  in comparison with the rest of London

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Performance and Accountability
Definition To maximise the number of BVPIs which
are in the top 25. Measure CS16a of BVPIs
in top 25 (excluding cost based PIs). CS16b
of BVPIs in middle 50 (excluding cost based
PIs). CS16c of BVPIs in bottom 25 (excluding
cost based PIs).
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Increase Strategic and PoliticalLeadership
Capacity
DefinitionTo enable members to articulate their
policies internally and externally. Projecting
the Borough in the local/ regional/ national
political stages. Ensuring that all staff are
aware of the policies of the Council. Measure CS22
a Number of Members who have a Personal
Development Plan. CS22b of staff who are
satisfied that the leadership of their manager
enables them to place their work in the context
of the Community Priorities and/ or strategic
objectives.
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Service Scorecards
Each of the 29 Service Heads produce a
scorecard. This both translates the corporate
scorecard at service level and takes account of
specific service pressures e.g. from government
departments.
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Scorecard Packs
Each Head of Service produces

• Service Strategy (or strategies)
• - what are they trying to achieve
• A Scorecard of strategic objectives and
  measures
• An implementation plan of how they will deliver
  the
• Scorecard

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Lifelong Learning and Inclusion Strategy Map
(1) Raising aspirations and standards
(2) Early intervention
Community First
(3) Focus on full range of learners needs
(4) Maximise participation rates
(5) Work effectively with a range of partners
(6) Effective use of all available sources
(7) Effective use of national and local
initiatives
Funding the Future
Customer First
(8) Learning opportunities of the highest quality
(9) Effective use of workplace learning
(10) Statutory compliance
(11) Children First (rights and entitlement)
Performance Counts
(12) High quality training and professional
development
(13) Improve communications
(14) Greater cross-divisional working
(15) Promote equal opportunities and celebrate
diversity
(16) Support Equalities targets and priorities in
the department
People Matter
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At the Heart of What We Do
Ensuring the Scorecard drives the management of
the Council - BVPP - Response to
CPA - PSA - Personal Performance Management Is it
in your scorecard?
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J
How focus improved our performance to above top
quartile.
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K
CPA
Quartile bandings are shown on the graph.
Performance is currently in-between upper and
lower thresholds for CPA.
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MemberPortfolio PI Key Threshold
J
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The Impact

• The scorecards link community priorities to
  strategic objectives and individual performance.
• Staff can see their place in the bigger
  picture.
• Genuine enthusiasm for the Balanced Scorecard.
• A real focus on performance management.
• Elected Councillors can focus on strategy.
• Services are improving 70 of PIs improved.

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The Lessons

• Leadership and Consistency
• Keep up the energy
• Focus on improvement, not the system
• Keep it simple - but not simplistic
• Keep restating the basics

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Improving Performance

• Four tests of Performance Management
• Does it focus on what is important for this
• organisation/service?
• Do the measures define what success means for
  us?
• Do we know if we are making progress?
• Do we act on the information?

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Performance Breakthroughs
The strengths in this Authoritys approach are
that they set out for a simple approach and have
put effort into keeping it simple. They have
worked out how to make the system work for them
and they have encouraged local ownership They
recognised that the discussion people had about
services during the delivery process were as
important as the framework itself
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Want to know more?

• Web site www.lbbd.gov.uk
• (Under About the Council or Search on
  balanced
• scorecard)
• Contacts
• john.tatam_at_lbbd.gov.uk
• sandra.hamberger_at_lbbd.gov.uk

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John Tatam Corporate Director of Resources and
Deputy Chief Executive