The Balance Scorecard (BSC): Facilitating Organizational Alignment & Focus

Daniel Hayden, Raredhayden@rareconservation.org

Agenda & Outcomes

• Why does this matter• BSC Basic• Rare’s BSC• Questions & Answers

• Understand the basics of the BSC

• See where you and your team fit in

Agenda Outcomes

Why should I care about the BSC?

1. Because it is how Rare measures its success toward achieving its mission

2. Because it effects what activities your team does and does not do

3. It effects how you are evaluated4. Hmmmm … you are still not

convinced?

BSC informs “how are we doing?”

50 Pride campaigns launched… but none planned for FY1399 of campaigns running at some point in FY12… though this will decline over the next 12 months$40 Million raised for challenge pool… and nearly hit our FY12 target91% of partners who’d recommend us… an improvement over prior years 75% of campaigns on track with impact measures… and higher standards every year

Good (on balance)

We can make this statement because:

1. We have made explicit our objectives2. We have set targets3. We can make comparisons year-to-year4. We have reported on those goals5. People are being held accountable for those goals6. We are making improvements based on data

Does the BSC Change Anything?

Initiatives influenced and supported by BSC:

1. Emphasis on staff engagement and Rare values was a result of plummeting staff satisfaction

2. A better IT team was a result of cross functional surveys

3. Focus on social marketing is due (in part) to low scores around behavior change

4. New processes to measure Threat Reduction and Conservation results supported by BSC

YES!

Agenda

• Why does this matter• BSC Basic• Rare’s BSC• Questions & Answers

Balance & Scorecard

Balance Scorecard Basics

Mapping Strategy: • Mission • Strategic Themes • Strategic Results

Organizational Alignment• Vision/Mission• Financial • Customer• Learning & Growth / Human

Capital• Internal Business Processes

The Balanced Scorecard methodology is an approach that recognizes that organizational sustainability is not about delivering results one year, but the ability

to create results over many years.

Fully implemented Balanced Scorecard

Source: © 2007 by the Balanced Scorecard Institute, a Strategy Management Group company. All rights reserved.

Standard Key DefinitionsRare follows method nearly exactly

Each of these elements must be in “in balance” to ensure organizational sustainability

Vision/Mission

Financial

Customer

Learning & Growth / Human Capital

Internal Business Processes

Includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement.

Metrics that allow managers to know how well their team is running, and whether its products and services conform to customer requirements (the mission).

Recognizes the importance of customer focus and customer satisfaction are leading indicators. If customers are not satisfied, they will eventually find other suppliers.

Timely and accurate funding is essential, but it is “in balance” with other organizational objectives. Financial measures should focus on current and future needs.

A mission statement defines why an organization exists; the organization's purpose

Agenda

• Why does this matter• BSC Basic• Rare’s BSC• Questions & Answers

Rare’s Strategy MapThe Strategy Map Defines the Elements that Support Our Mission

12

Rare’s Balance Scorecard: Cascades & Cross Cuts the Organization

Rare MeasuresMost Strategic

Departmental MeasuresStrategy & Ops

Individual Measures Ops Supporting Strategy

Prio

rities

Info

rmati

on

Cross

-cutti

ng

Mea

sure

s

BSC Governance StructureBSC Now Sits within Global Programs

CEO & COO

Sr. Director Global Programs

Internal Experts

• Sets strategy and priorities• Signs off on goals

• Manage processes• Aligns groups• Quality assurance

• Ensure sound methodology• Align with key process• Ensure quality assurance

Divisional Heads• Align with global goals• Set divisional goals

Note in most for profits, the BSC is managed by Finance team

Lasting Conservation results require engaged Communities and organizations with the Capacity to lead and sustain change

Rare’s Balance Scorecard: 3C Mission

Note: The 3Cs is how Rare achieves its impact, while the theory of change shows how each campaign will create impact

Reduce Threats and Achieve Conservation Results

1% of Active Campaigns with Documented Plans on track to Monitor Threat Reduction

% of Active Campaigns with Documented Plans on track to Monitor Threat Reduction

100%

2

% of Active Campaigns in Each Cohort that have a Scientifically Rigorous Conservation Result Monitoring Plan on track

% of Active Campaigns in Each Cohort that have a Scientifically Rigorous Conservation Result Monitoring Plan on track

50%

3

% of campaign sites with significant TR and CR results within 5 years of the completion of the original campaign

% of campaign sites with significant TR and CR results within 5 years of the completion of the original campaign

TBD based on

monitoring charter team

Change Constituency Attitudes and Behaviors

4% of total population that have discussed the benefits of the campaign strategy

Based on surveys during the campaign this measures seeks to gauge grass roots buzz for the Pride campaign

TBD based

on pilot

5% of Primary (Threat-Causing) Target Audiences Adopting New Behaviors

The average percentage of our campaigns' target audiences that change their behavior after a Pride Campaign.

30%Build Local Capacity

6 # Pride trained graduates in current year

The total number of Campaign Managers (CM's) and Fishery Fellows (FFs) or similar who complete the Pride training program and graduate, usually receiving a Masters Degree. (This is cumulative, annual measure).

16

7 % of CM's achieving a passing level on skills assessment

CM's will take a skills assessment after each university phase and will receive a cumulative measure. The % of CM's receiving a passing grade after each university phase will be calculated.

85%

8

Rare validated MoUs or plans in place for post-graduation campaigning, monitoring, fundraising, and related activities for 3 to 5 years.

A measure of LAP investment in post-campaign activities based on MoUs and plans in place and validated within three months of campaign graduation.

50%

Pride is a our signature product and we want each campaign to make an impact on community and our partner

Financial

Maximize the effectiveness of each Pride campaign

Maximize the Effectiveness of each Pride Campaign

9 % Campaigns "Green" on the Pride Scorecard

Based on the Pride Scorecard, how many campaigns are on track to achieve the 3C objectives according to QMI standards.

50%

10 Partner leadership satisfaction index rating

% of Rare partner leadership (executive director, or equivalent) who would recommend to another organization that they should apply for a Pride campaign

80%

11 CM Satisfaction Index Rating

% of Rare partners who would recommend to another organization that they should apply for a Pride campaign

80%

We want to ensure a steady pipeline of new high quality partners who will bring Pride to their

communities

Financial

Take Pride to Scale

Take Pride to Scale

12 # of New Campaigns LaunchedThe total number of campaigns that are launched in a Fiscal Year

0

13 Average final score of accepted campaignsAverage score of all accepted campaigns based on criteria set in the application form

3.50

14 # of Expressions of InterestAverage number of Expressions of Interest for partnering with Rare submitted (per cohort)

36

15 # of PINs in pipeline (average)Total number of Project Idea Notes (PINs) in the pipeline over a three month period.

0

16 # of Feasibility or Country Studies# of approved Feasibility or Country Strategies that are approved

2

Great campaigns should inspire people to run more campaigns, teach others … and lay the foundation to address new threats

Financial

Unlock the Potential of the Network

Unlock the Potential of the Network

17% Of Rare Conservation Fellow Alumni and Local Implementing Partner Alumni that continue to Significantly Utilize Pride Methodology

Percentage of Rare Conservation Fellow and Local Implementing Partner Alumni that continue to significantly utilize Pride methodology as defined by survey response

80%

18

% of recent alumni marine campaigns adopting FF strategies

Percentage of alumni marine campaigns that will be upgraded to a FF strategy

25%

Funding and people are the essential pre-requisites of all we do

Expand Fundraising & Organizational Capacity

Expand Fundraising

19 % of Required Cohort Funding Identified

50% of cohort cost raised or in pipeline by CPP approval or proposals for loan to bridge funding gap (not to exceed 9 months after cohort launch).

50%

20 % of Projects within Budget % of all Rare projects that come in within budget 100%Expand

Organizational Capacity

21% of PPMs passing at least 3 packets per year

Percentage of PPM's passing at least three packets of the Certification in Social Marketing for Conservation

75%

22% of New Hires Successful in Their Jobs

% of new hires who are still employed and score well (2.50 or higher) on their first annual performance and values review (new hire plan, mind and year-end - or yearend and midyear)

80%

23Median number of hours of formal training

Median number of hours of formal training that staff complete towards their professional development objectives set with their supervisor 40

24% of Staff Satisfied with Department Performance

From the staff survey: "% of Staff Satisfied with Department, based on the average response to, "How satisfied are you with the responsiveness of x department" and "How satisfied are you with the quality of product of x department."

75%

Funding and people are the essential pre-requisites of all we do

Expand Organizational Capacity

BSC Provides Balance

Annual perspective Multi-year perspectiveFinancial Non-financialProgrammatic OperationalLeading indicators Lagging indicators

Results:Clear goalsPrioritiesTradeoffSmarter questionsBetter decision making

BSC improves decision making …it does not make decisions

Interesting metrics for FY13

% of Primary (Threat-Causing) Target Audiences Adopting New Behaviorshttps://www.clearpointstrategy.com/#35,measure,drill,1629

% of recent alumni marine campaigns adopting FF strategies https://www.clearpointstrategy.com/#35,measure,drill,55431

Staff Engagement https://www.clearpointstrategy.com/#35,measure,drill,330

Agenda

• A bit about Rare• What are Balanced Scorecards• What is Rare’s Balanced Scorecard• How Rare uses the Balanced Scorecard• Execution Tricks• Questions & Answers

Explains How to Implement Our Strategy

Strategy maps explain how we create value

• Highlight what we believe are the key organizational ingredients

• Visually show how elements interact

The Balanced Scorecard drives action

• Links to the strategy map• Shows the objectives• Shows the measure

Cla

rity

Clarity does NOT equal agreement – it just focuses us on specific issues

Four Pillars of Rare’s Strategy:1. Scale Pride2. Improve

Impact of Pride

3. Leverage networks

4. Build an enduring institution

Pride Scorecard

Summary Report

Rare and Departmental

Balanced Scorecard

Comprehensive view of the long-term status of an individual campaign

Summary of status of a group of campaigns

Average status of a group of campaigns

Programmatic Reporting FlowConnects Strategy with Execution

25

Data Flows Up from Regions

Strategy Flows Down

You and the BSC

In our Work Planning Process all initiatives (and budget items) must align to a

BSC measure … which then translates to your IBSC

BSC Everywhere …

• Part of every Board pack• Part of all Board committee meetings• One measure discussed regularly at Leadership

Team meetings• Part of every monthly reporting pack to Dale and

RVPs• Key questions in the Monthly Pride Scorecard• Basis of the annual work plan• Integral to the IBSC• Core part of the bonus system

Reporting Tool: ClearPointOnline Reporting Tool for BSC

28

Browser Passwordwebsite: www.clearpointstrategy.comusername: browser@rareconservation.orgpassword: rare1234

See Updates in January

Agenda

• Why does this matter• BSC Basic• Rare’s BSC• Questions & Answers

dhayden@rareconservation.org

Questions….

Have We Achieved the Desired outcomes?

Understand the basics of the BSC See where you and your team fit in

Appendix

• Customer Value Proposition - The Customer Value Proposition is the unique added value an organization offers customers through its operations; the logical link between action and payoff that the organization must create to be effective.  Three aspects of the proposition include Product/Service Attributes (Performance/ Functionality considerations such as quality, timeliness or price), Image and Relationship.

• Mission - A mission statement defines why an organization exists; the organization's purpose

• Performance Measures - Performance Measures are metrics used to provide an analytical basis for decision making and to focus attention on what matters most.  Performance Measures answer the question, 'How is the organization doing at the job of meeting its Strategic Objectives?'  Lagging indicators are those that show how successful the organization was in achieving desired outcomes in the past.  Leading indicators are those that are a precursor of future success; performance drivers.

• Perspectives - A Perspective is a view of an organization from a specific vantage point.  Four basic perspectives are traditionally used to encompass an organization's activities.  The organization's business model, which encompasses mission, vision, and strategy, determine the appropriate perspectives. 

• Strategic Initiatives - Strategic Initiatives are programs or projects that turn strategy into operational terms and actionable items, provide an analytical underpinning for decisions, and provide a structured way to prioritize projects according to strategic impact.  Strategic Initiatives answer the question, ‘What strategic projects must the organization implement to meet its Strategic Objectives?’

• Strategic Objectives - Objectives are strategy components; continuous improvement activities that must be done to be successful.  Objectives are the building blocks of strategy and define the organization's strategic intent.  Good objectives are action-oriented statements, are easy to understand, represent continuous improvement potential and are usually not 'on-off' projects or activities.

• Strategic Result - Strategic results are the desired outcome for the main focus areas of the business.  Each Strategic Theme has a corresponding Strategic Result.

• Strategic Theme - Strategic Themes are key areas in which an organization must excel in order to achieve its mission and vision, and deliver value to customers.  Strategic Themes are the organization's "Pillars of Excellence.“

• Strategy Map - A Strategy Map displays the cause-effect relationships among the objectives that make up a strategy.  A good Strategy Map tells a story of how value is created for the business. 

• Strategy - How an organization intends to accomplish its vision; an approach, or “game plan”.

• Targets - Desired levels of performance for performance measures

• Vision - A vision statement is an organization's picture of future success; where it wants to be in the future

Definitions of Balanced Scorecard Strategic Planning & Management Terms

Source: © 2007 by the Balanced Scorecard Institute, a Strategy Management Group company. All rights reserved.

Purpose: Project management of campaigns, organizing and storing campaign data Audience: Leadership team, Quality ManagementReports: Pride Scorecard, Summary Reports, Weekly Flash Reports

Purpose: Managing fundraising and the Pride application processAudience: Development team, Recruiting/Partnerships teamReports: Fundraising status, cohort development

Purpose: Managing timesheets, vacations, etc.Audience: Finance teamReports: Hours of training, vacation balances, expenses

Purpose: Budgeting, tracking expenses, handling payrollAudience: Finance teamReports: Budget-to-actual, expense summaries

Purpose: Outline organization’s Balance ScorecardAudience: Department heads, BoardReports: Organization-wide and departmental balanced scorecards

Technology: Enables Information FlowA mix or proprietary and off-the-shelf tools support Rare

Fully implemented Balanced Scorecard

Source: © 2007 by the Balanced Scorecard Institute, a Strategy Management Group company. All rights reserved.