The Balanced Scorecard and the Strategic Plan

3/27/14
The Balanced
Scorecard and the
Strategic Plan
Building a Process for Alignment and
Accountability
The Higher Learning Commission
Chicago
April 2014
Introductions
Tim Veenstra
Director of Institutional Research & Analysis
Cleary University
Norma Simons
Adjunct Faculty Cleary University
President, Performance Innovation LLC
Outline
v Background Information
v Feedback from AQIP
v The Journey - Alignment Process
v The Balanced Scorecard
v The Strategy Map
v The Deployment Matrix (Hoshin Kanri)
v The Deployment Process
v Measures
v Summary
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Focus - Alignment
v  Vision – Where are we going?
v  Strategy – How are we going to get there?
v  Balanced Scorecard – What measures should we focus on to
ensure that we are moving in the right direction
v  Deployment – What methods should we use to ensure that
there is consistency throughout the institution.
v  Key Processes – How we work
Focus - Alignment
STRATEGY
DEPLOYMENT
VISION
BALANCED
KEY
PROCESSES
SCORECARD
Feedback Report
“Cleary’s approach to strategic planning, reliance on data
driven decisions and investment in training for Six Sigma
certifications as noted in Category 5 are commendable. . . .
What is less evident from the materials provided is how the Six
Sigma methodology has been used to improve outcomes at
Cleary. The University has an opportunity to develop and
document formal processes used in setting and aligning
its mission/vision/values to program objectives
stakeholder needs, and learning outcomes”
System
Portfolio
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The Team
The Team
Tim Veenstra
Norma Simons
Dawn Fiser
Sheila Thompson
Kathy Spring
An Organization with
Vision but Poor Alignment
Gallop Poll of 1.7 million workers found that 67% could not answer “Strongly agree” with the statement “I know what is expected of me at work” “Great Performance is 1% vision and 99% Alignment” Jim Collins, author of Good to Great Importance of Alignment
v Waste Reduction
v Ease of Communication
v Ability to Respond Quickly
v Improve Efficiency
v Promotes Collaboration across Functional Silos
v Ensure that the Right Results are Achieved
Remember that Alignment is not staJc Alignment is conJnuous 3
3/27/14
The Journey: Aligning the
Balanced Scorecard with the
Strategic Plan
Review
Current
Strategic
Plan
Review
Current
BSC
Start
Summarize
performance
metrics and
problem
solve
Review of
metrics by
process
owners
Collect
data
Interview
stakeholders
for input
and feedback
Establish
BSC
Template
Conduct
Training
Select
Process
Owners
Develop
BSC
metrics
Develop
Integration
Matrix
(Hoshin
Kanri)
Report
results and
action
plans to
cabinet
The Balanced Scorecard
The Balanced
Scorecard
focuses on the
indicators that
drive
performance,
as well as the
financial
measures.
Cleary University
Balanced Scorecard
Mission -­‐-­‐To provide students the knowledge, skills, and credentials to advance their careers.
Vision-­‐-­‐Cleary University will be America's foremost applied-­‐business university, providing practical, project-­‐based education that enriches student l ives and enables an i mmediate alumni contribution to employers, families, and communities.
CUSTOMER SATISFACTION
OPERATIONAL EXCELLENCE
To understand customer expectations and how well the expectations are being met
To understand the internal processes and their performance * Student Satisfaction (Course Evaluations)
* Learning Outcomes (UG-­‐-­‐Includes Trad & Non-­‐Trad, Grad, Core + Major + Project)
* Retention Index (Persistence & Completion Rates)
* Product Relevance (Currency)
* New Student Enrollment (On-­‐ground (Blended) and Online Enrollment)
* Career Advancement
* Enrollment by Major (New & Existing Enrollment by Major)
LEARNING AND ORGANIZATIONAL DEVELOPMENT
FINANCIAL HEALTH
To understand how employees acquire skills and knowledge to advance the University
To understand the fiscal viablity of the University
* Employee Satisfaction
* Financial Ratios (HLC & Compliance Ratios)
* Employee Training & Development
* Expense & Revenue Percentage (Monthly Departmental Expense Reports)
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3/27/14
Strategy Map For the Balanced Scorecard
Vision: America’s Foremost Applied –Business University Customer Sa<sfac<on Increase student sa<sfac<on on the Noel Levitz survey Improve comple<on and persistent rate Increase new student enrollment Improve new and exis<ng enrollment by major Opera<onal Excellence Achieve currency in product porJolio Improve student learning outcomes in all courses Improve job placement rate of graduates Learning and Organiza<onal Development Improve employee Sa<sfac<on Achieve a well-­‐
trained employee base Financial Health Generate sufficient revenue to meet preferred status Monitor & maintain expenses & revenue in each department Deployment Matrix
Legend
Strong Correlation
Medium Correlation
Weak or No Correlation
Metric Owners
Processes
Strategies
Action Projects
BSC Metrics
Accountability
7
4
6
9
1
5
2
3
8
10 5
3/27/14
Deployment Matrix
Legend
Strong Correlation
Medium Correlation
Weak or No Correlation
Improvement of Institutional Scorecard
Reducing Students on Academic Probation
Integration of Adjunct Faculty to University
What i s Important to Students
Institutional Benchmarking
Action Projects
Assistant Controller
Dean, CBIAT
AVP -­‐ Academic Services
Director, Admissions
Dean, College of Management
Dean, Graduate and Professional College
Director, Career Services
Personnel Coordinator
Exec. Director, Communications & Marketing
Curriculum Integration Coordinator
Processes
Strategies
1.0 -­‐ Acquire Students
2.0 -­‐ Teach Students
3.0 -­‐ Support Students
4.0 -­‐ V alue People
5.0 -­‐ Manage Processes
6.0 -­‐ Lead and Plan
(S1) Expand Brand Recongition
(S2) Improve Product and Services
(S3) Increase Enrollment
(S4) Improve Financial Condition
Metric Owners
BSC Metrics
Accountability
(CS) Student Satisfaction
(CS) Retention Index
(CS) New Student Enrollment
(CS) Enrollment by Major
(OE) Learning Outcomes
(OE) Product Relevance
(OE) Career Advancement
(LOD) Employee Satisfaction
(LOD) Employee Development
(FH) Financial Ratios
(FH) Revenue & Expense by Department
Cleary University
Process Inventory
Using the Deployment Matrix at every level A3-X
correlation
correlation / contribution
accountability
(
s
process
strategies
A matrix is developed at each level and main area, integraCng acCviCes of the area with the strategic plan team members
tactics
results
Revenue
$0
Development costs
Material costs
Legend
$0
Conversion costs
Value stream profit
$0
= strong correlation or team leader
$0
= member
™
r =
$0
correlation
important correlation or core team
w eak correlation or rotating team member
correlation / contribution
A3-X
correlation
correlation / contribution
A3-X
accountability
correlation
accountability
(
s
$0
Development costs
Material costs
results
Legend
$0
™ =
r =
$0
$0
correlation
Revenue
= strong correlation or team leader
$0
Conversion costs
Cabinet process
results
Revenue
Value stream profit
team members
tactics
strategies
process
strategies
(
s
correlation / contribution
team members
tactics
important correlation or core team
member
w eak correlation or rotating team member
correlation / contribution
$0
Development costs
Material costs
$0
Conversion costs
$0
Value stream profit
Legend
$0
= strong correlation or team leader
$0
correlation
™ =
important correlation or core team
member
r =
w eak correlation or rotating team member
correlation / contribution
TacCcal Teams A3-X
A3-X
correlation / contribution
accountability
process
results
Revenue
Development costs
Material costs
Conversion costs
Value stream profit
correlation
accountability
team members
tactics
strategies
(
s
correlation / contribution
(
s
team members
tactics
strategies
correlation
process
correlation
results
$0
Revenue
Legend
Development costs
Material costs
$0
= strong correlation or team leader
$0
™ =
r =
$0
$0
correlation / contribution
important correlation or core team
member
Conversion costs
Value stream profit
w eak correlation or rotating team member
correlation
$0
Legend
$0
= strong correlation or team leader
$0
™ =
r =
$0
$0
important correlation or core team
member
OperaConal Teams w eak correlation or rotating team member
correlation / contribution
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3/27/14
Determine the f actors i nfluencing timely registration
Process Metrics
AVP -­‐ Academic Services
Records Office
Academic Advisors
Counselor
Financial Aid Office
Business Office
Information Technology
Processes
Re t e n t io n
Process Owners
Continuing Student Registration
Orientation
Completed Academic Goal
Updated Academic Plan
Transcript Audit
Finanical Aid Packaging
Input of Student Registrations (Add/Drop)
Officially register students
Degree Clearance
Student Complaints
Strategies
Register students unofficially by deadline (S2)
Register students officially by deadline (S2,S4)
Improvement Projects
Accountability
Persistence Rate
Completion Rate
(Leading Indicator) Completion Rate
Orientation Pass Rate
Percent of students unofficially registered by deadline
Percent of students officially registered by deadline
Percent of Up-­‐to-­‐date Academic Plans
Comparison of Academic Plan to Actual
Percent of Advisor-­‐Auditted Transcripts
Timely Packaging of Financial Aid
Timely Input of Student Registrations
Accurate Input of Student Registrations
Percentage of Class Changes
Attrition Reason Report
Risk Analysis Report
Counseling Reason Report
Department Call / Ticket Log ( TBD)
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3/27/14
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3/27/14
The Journey: Aligning the
Balanced Scorecard with the
Strategic Plan
Review
Current
BSC
Start
Review of
metrics by
process
owners
Summarize
performance
metrics and
problem
solve
Review
Current
Strategic
Plan
Collect
data
Interview
stakeholders
for input
and feedback
Conduct
Training
Establish
BSC
Template
Select
Process
Owners
Develop
BSC
metrics
Develop
Integration
Matrix
(Hoshin
Kanri)
Report
results and
action
plans to
cabinet
Summary
v Alignment is built on having a process for Strategic
Management
v The process is Hoshin Kanri (Policy Deployment)
v Promotes total involvement
v Employees are able to see their job in relation to
the overall strategy and direction of the institution
v Fosters a methodology of change
v Demonstrates measures at every level
v Shows the process of alignment and accountability
v Provides a method of communication across the
institution
Questions
Tim Veenstra
Director, Institutional Research &
Analysis
Cleary University
517.586.3014
Norma Simons
Adjunct Faculty
President
Performance Innovation LLC
248 417 0762
9