Balanced Scorecards (TAIR Presentation 2007).ppt

7/29/2019 Balanced Scorecards (TAIR Presentation 2007).ppt

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Balanced Scorecards forColleges and Universities:

Development andDeployment


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Balanced Scorecards

Jan W. Lyddon, Ph.D.Executive Vice President

San Jacinto College


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What is a Balanced Scorecard ?

A measurement system Strategic management system, and

Communication tool


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Why A Balanced Scorecard?

Increased requirements foraccountability

Keep our eye on whats most importantFocus especially on major outcomes


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Primary Uses

Monitoring key items

Communication of priority areasfor action

Myth busting real results


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What Is It?

Visual displayof

the most important information needed to achieve

one or more objectiveswhich

fits entirely on a single screen or sheetso it can be

monitored at a glance.Stephen Few, 2006


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What is on it?

Performance Indicators:

From strategic or other plan

Of key decisions or objectives

Usually highly aggregated data

Maximum 15 20

Called Key Performance Indicators (KPIs)


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Kinds of Indicators

Indicators should be:

A balance ofperspectives

Student perspectives, process perspectives,learning perspectives are examples

Also called categories


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Kinds of Indicators, contd

Indicators should be:

A balance of leading and lagging indicators

Inputs as well as outputs or outcomes measures


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Who uses it?

Key decision makers

Monitor regularly

Key policy makers

To make informed decisions

To communicate with external stakeholders

Internal stakeholders

To help align their actions with overall purposes


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Components of the Indicators

The actual performance, expressed innumerical terms

The target, benchmark, or objective

The difference between actual performanceand the objective

Signal values indicate how far from theobjective or target (best, middle, worst)


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Categories for Indicators

Four or five categories:

Strategic plan goals, or

Perspectives, such as:

Stakeholder

Processes

Learning and innovation

Financial


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Examples of Indicators

Stakeholder:

Student satisfaction

Student retention and graduation rates

Community support Processes:

Continuous improvement initiatives

Time required to complete DE

Efficiency measures (e.g., percentage of seats filled)


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Examples of Indicators, Contd

Learning and innovation:

Professional development impacts

New programs

Resources:

Enrollment

Donations

Budget balance


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Date: 5/1/2006Sample Community College - Balanced Scorecard

Goal Measure/Index Title Abov

eTa

rget

AtTarget

Below

Targe

t

FarB

elow

Targe

t

Scoreor

Lev

el

Target

Last

up

I Retention rate (fall to winter return rate) X 71.7% 68.0% Fall 2005

I Persistence rate (fall to fall return rate) X 45.1% 40.0% Fall 2005

I Graduation rate (% of 1st time full time graduating 3 years later) X 13.0% 18.0% Fall 2005

I Transfer rate (% of new students who have transferred 3 years later) X 32.0% 30.0% Fall 2005

I New students X 1,626 1,550 Fall 2005

I % share from Level I & II high schools X 21.1% 32% Fall 2005

I Dual enrolled high school students X 340 325 3/15/2006

I Headcount X 5,915 5,817 4/27/2006

I Student Credit Hours X 45,670 45,977 4/27/2006

II Student satisfaction - academics (satisfaction on a 4.0 scale) X 3.05 3.25 2005-06

II Student satisfaction - services (satisfaction on a 4.0 scale) X 2.98 3.25 2005-06II Employer satisfaction X 90.3% 93% 2004-05

II Financial aid participation rate (% of first t ime full timers receiving any form of financial aid) X 71% 72% 2005-06

II Tuition discounted with financial aid X 79.1% 80% 2004-05

II Alumni satisfaction X 88% 80% 2005-06

II Employee turnover X 0.25% 0.08% 3rd qtr 05-06

III Enrollment of Students of Color X 8.9% 8% 1/2/2006

III Employees of Color X 9.4% 8% Fall 2005

III CIP enrollment rate X 19.1% 20% 2004-05

III Student learning - multiculturalism X 89.8% 83.57% 2004-05

III Student learning - international X 82.3% 87.03% 2004-05

IV Community support

IV Action projects to improve community supportV Budget balance (% of tuition & fees revenue compared to target) X -0.5% 5.0% 3rd qtr 05-06

V Private gifts (dollar value of donations during the quarter) X 138,086$ 80,000$ 3rd qtr 05-06

V Grant funds received (dollar value of the funds received in the quarter) X 80,000$ 75,000$ 3rd qtr 05-06

V Revenue from employer training (revenue received during the quarter) X 24% 25% 3rd qtr 05-06

V Facilities Condition Index (ratio of deferred maintenance to building value) X 4.3 5.0 2005-06

V IT systems response (Ratio of tickets open to completed) X 0.93 1.0 May-06


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DevelopmentProcess

Steps in Building Your

Balanced Scorecard


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Development Process

Identify project partners:

Project champion

Content provider

Technology support


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Development Process

Identify Key PerformanceIndicators (KPIs)

15 20 maximum


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Development Process

Work with process stakeholders

Refine definitions of data

Develop methods of display and update Ensure their understanding


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Development Process

Set benchmarks, targets or signalvalues

Comparisons with other institutions Comparisons with past performance

Comparisons with goals


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Development Process

Signal Values

Three levels

BestMiddle

Worst


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Signal Values Example 1

Fall Headcount

5,700

5,8005,900

6,000

6,100

6,200

6,300

6,400

6,500

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Actual

Best

Middle

Worst


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Signal Values Example 2

Average Semesters to Complete DE

0

1

2

3

4

5

67

8

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Actual

Best

Middle

Worst


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Establishing Signal Values

Base them on:

Institutional past performance

Institutional goalsComparisons with other organizations


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Development Process

Design the display and delivery mechanism

One screen or one page

Avoid clutter

Provide detail by using hyperlinks

Decide who will have access


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Development Process

Hyperlinks example:KPI = overall student satisfaction

Detail = student satisfaction withacademics

services


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Hyperlinks in Excel

Date: 5/1/2006Sample Community College - Balanced Scorecard

Goal Measure/Index Title Abov

eTa

rget

AtTarget

Below

Targe

t

FarB

elow

Targe

t

Scoreor

Lev

el

Target

Last

up

I Overall Student Satisfaction X 3.01 3.25 Fall 2006

Student Satisfaction Trends

98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06

Instruction 3.07 3.14 3.15 3.11 3.16 3.17 3.03 3.05

Services 2.95 3.01 2.95 3.03 2.90 2.96 3.03 2.98

Best 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25

Middle 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15

Worst 3.10 3.10 3.10 3.10 3.10 3.10 3.10 3.10

Student Satisfaction

2.70

2.80

2.90

3.00

3.10

3.20

3.30

98- 99 99- 00 00- 01 01- 02 02- 03 03- 04 04- 05 05- 06

Instruction

Services

Best

Middle

Worst


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Development Process

Usage and updates

Project champion should monitor frequently

Other key decision makers should monitor also

Inform others of how often the data change

Who should access

Wide-spread few users

Help with fear factor


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Benefits of a Scorecard

Useful in guiding strategic plandevelopment:

One college used its scorecard data toidentify areas where it was consistentlybelow targets.

The Board identified five strategic goalsfor the new strategic plan.


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Benefits of a Scorecard, contd

Increased internal alignment:

Visible targets and performance

informs operational unit andindividual plans


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Increased Alignment


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Benefits of a Scorecard, contd

Establishes a culture of evidence atthe college


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Next Steps

Evaluate and improve some of themeasures, such as those that:

Are not a valid measure of what is being

done

Not possible to measure often enough ordifficult to measure

Benchmarks with better measures areavailable


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Next Steps

Evaluate and improve some of the measures

Develop leading indicators:

Measures that indicate progress against a

process or behavior. These measures arehelpful in predicting the future outcome of anobjective.

Balanced Scorecard Collaborative


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Next Steps

Review the signal values:

Develop more robust targets

Achieving the Dream databaseNational CC Benchmark Project

IPEDS Peer Analysis System

State data

Other professional sources


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Next Steps

Increase alignment of departmental or unitdata with overall performance indicators

Develop cascading scorecards


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Lessons Learned

Monitor regularly

Presidential commitment is crucial

Be sure measures are balanced

Align the measures with the plan

Keep the scorecard display straightforward(Keep It Simple & Straightforward KISS)


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Lessons Learned

What is measured gets noticed

What is noticed gets acted on

What is acted on gets improvedDee W. Hook presentationPhenomenon of Measurement


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Want to know more?Contact me: Jan W. Lyddon, Ph.D.

[email protected]

Read: Few, Stephen. 2006. Information Dashboard Design: The Effective Visual

Communication of Data.Sabastopol, CA: OReilly Media, Inc.

Kaplan, Robert S. & David P. Norton. 1996. The Balanced Scorecard: TranslatingStrategy Into Action. Boston: Harvard Business School Press.

Niven, Paul R. 2003. Balanced Scorecard Step-by-Step for Government andNonprofit Agencies. Hoboken, NJ: John Wiley & Sons, Inc.

Balanced Scorecards (TAIR Presentation 2007).ppt

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