Adapting the Balanced Scorecard as a Management System in a British Local Authority John Tatam
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© OECD A joint initiative of the OECD and the European Union, principally financed by the EU. 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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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. Scale. Population 164,000 - PowerPoint PPT Presentation
Transcript of Adapting the Balanced Scorecard as a Management System in a British Local Authority John Tatam
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Adapting the Balanced Scorecard as
a Management System in a British Local Authority
John TatamCorporate 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
Environment
Leisure
Culture
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Our Past - Performance Management
Collected PIs
- c. 150 statutory
- over 300 “local”
But, didn’t use
Didn’t 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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• 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
Community Priorities
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Community First
Customer First Funding the Future
Performance CountsPeople Matter
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• 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)
Developing the Scorecard
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The Barking and Dagenham Council Scorecard The Barking and Dagenham Council Scorecard Strategy MapStrategy Map
Community First
Funding the FutureCustomer First
People Matter
Performance Counts
(1) Raising General
Pride in the Borough
(2) Promoting Equal
Opportunities & Celebrating
Diversity
(3) Developing Rights and
Responsibilities with the
Local Community
(4) Improving Health,
Housing and Social Care
(5) Making Barking &
Dagenham Cleaner,
Greener & Safer
(6) Better Education and Learning for All
(7) Regenerating
the Local Economy
(8) Meeting Customer
Needs First
(9) Providing Accessible,
Local Services
(10) Improving Standards
(11) Customer First
Programme
(12) Every Pound Counts
(13) Improving Procurement
Practice
(14) Integrated Financial and
Service Planning
(15) Redesign Processes and Programmes to put Customers
First
(16) Performance and
Accountability
(17) Excellence Through
Partnerships
(18) Building Confidence, Enhancing Reputation
(19) Become an Employer of
Choice
(20) Empowering Staff through Investment
(21) Sharing Learning and Best Practice
(22) Increase Strategic and
Political Leadership Capacity
(23) Supporting and Rewarding Innovation and
Risk
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Customer First
CS8 % of residents satisfied with the overall service providedCS9 % of fair access indicators at or above top quartileCS10 % of quality and service outcome indicators at or above top quartileCS11 % of enquiries dealt with fully on first point of contact
Performance Counts
CS15 The number of types of interactions that are enabled for electronic delivery as a % of interactions that are legally permissible for
electronic deliveryCS16a % 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) CS17a % of available brownfield land used for development purposes CS17b % of PSA targets met on an annual basis
Funding the FutureCS12a % of cost indicators in the best quartileCS12b % of capital budget spent against the programmeCS13a % of residents satisfied with services provided by services provided under
contract" (to focus on external impact of procured services)
CS13b % of spend internal vs external spend CS13c % of improvement in customer satisfaction of services delivered through
contract CS13d % of contract variance compared to contract price (to monitor contract
compliance and process)
CS14 % of key milestones in Medium Term Financial Strategy (MFTS) achieved
CS1 % of residents with a positive perception of the BoroughCS2a The level of the “Equality Standard” for local government to which the Council conforms
CS2b % of public sector bodies operating in the borough that have an Equalities Policy
CS2c % of public sector bodies operating in the borough that monitor the Equalities Policy. CS3 % of residents who feel involved / consulted withCS4a Number of deaths by Heart Disease (per 100,000)CS4b All cancer mortality rateCS4c Under 18 conception rateCS4d % of homes that meet the decency standard as a % of total public stock as at 1 AprilCS4e % of homes that meet the decency standard as a % of total private stockCS5a % of residents surveyed who said that they feel ‘fairly safe’ or ‘very safe’ after dark whilst outside in the local authority areaCS5b % of residents surveyed who said that they feel ‘fairly safe’ or ‘very safe’ during the day whilst outside in the local authority areaCS5c % of residents with a positive perception of the overall appearance of the BoroughCS6a % of education & learning indicators above national averageCS6b % of education & learning indicators at or above top quartileCS7 Average income ranking of B & D citizens in comparison with the rest of London (33 London authorities)
Community First
The Council The Council
Scorecard Scorecard
Performance Performance
IndicatorsIndicators
People MatterCS18 1-10 rating by key stakeholders of average score against 7 reputation driversCS19a The number of working days/ shifts lost de to sickness absence (BV12)CS19b % of staff working flexiblyCS19c Staff Attitude Survey - % stating that B&D is a good employerCS20a Corporate IIP achieved. Yes or No?CS20b Level of IIP accreditation achievedCS21 % of managers able to demonstrate that they share best practice-CS22a Number of members who have a personal development planCS22b % of staff satisfied that the leadership of their manager enables
them to place their work in the context of the Community Priorities and/or strategic objectives
CS23 Number of staff suggestions for service improvement implemented
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“Measurement is the language which gives clarity
to vague concepts”
R. Kaplan
“Measures define success for an organisation”
Andy Neely
Choosing Measures
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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
Regenerating the Local Economy
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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
Definition
To 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
CS22a – 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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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.
Service Scorecards
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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
Scorecard Packs
Each Head of Service produces:
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Lifelong Learning and Inclusion Strategy MapLifelong Learning and Inclusion Strategy Map
Community First
Funding the Future
People Matter
Performance Counts
Customer First
(1) Raising aspirations and
standards (2) Early intervention
(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
(8) Learning opportunities of the
highest quality
(9) Effective use of workplace learning
(10) Statutory compliance
(11) Children First (rights and entitlement)
(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
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Department of Education, Arts and Libraries
Lifelong Learning and Inclusion Balanced Scorecard
Community First
Objectives Csc
Obj(s) PI(s)
a) BV 38 - % of 15 year old pupils achieving 5 or more A* - C grades at GCSE
b) BV 39 - % of 15 year old pupils achieving 5 or more A* - G grades (including English and Maths) at GCSE
1) Raising aspirations and standards 6
c) The average point score of pupils taking 2+ A-levels
a) A reduction in the proportion of pupils with statements of SEN 2) Early intervention 6
b) BV 44 – Number of pupils permanently excluded during the year from all schools maintained by the LEA per 1,000 pupils at all maintained schools
Customer First Funding the Future
Objectives CSc
Obj(s) PI(s) Objectives
CSc Obj(s)
PI(s)
a) Adult learning programmes accurately reflect the outcomes of the annual survey of need (Learning and Skills Council)
3) Focus on full range of learners needs
8, 11
b) Improving educational attainment of looked after children (PSA target 1)
6) Effective use of all available sources
12 a) % variance of actual spend to budget
a) The number of pupils progressing on to HE
b) Enrolments on Adult Education courses per 1000 adult population.
c) BV 45 - % of half days missed due to total absence in primary schools maintained by the LEA
4) Maximise participation rates 9, 11
d) BV 46 - % of half days missed due to total absence in primary schools maintained by the LEA
7) Effective use of national and local initiatives
14 The % of external funding secured, spent on pursuing the Division’s strategic objectives.
5) Work effectively with a range of partners
10 The number of partners formally contributing to the Division’s strategic objectives.
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U. Ensuring the Scorecard drives the
management of the Council
- BVPP
- Response to CPA
- PSA
- Personal Performance Management
Is it in your scorecard?
At the Heart of What We Do
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LEISURE & ENVIRONMENT - Street SceneLPI SS2 - Average number of days taken to remove fly-tips
0.06
7.00
5.00
0.040.060.110.08
2.88
6.31
0
1
2
3
4
5
6
7
8
9
10
97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06
Bottom 25% Middle 50% Top 25%
Redbridge Havering Newham
Barking & Dagenham
How focus improved our performance to above top quartile.
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DRE - Recycling & CA SiteBVPI 82a(i) - Total tonnage of household waste arisings
- %age recycled (cumulative)
11.89%11.18%
9.73% 10.07%
1.96%1.81%
9.86%
5.77%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
01/02 02/03 03/04 04/05 Qtr 1 Qtr 2 Qtr 3 Proj05/06
05/06 06/07
Top 25% Middle 50% Bottom 25%
Redbridge Havering Newham
Barking & Dagenham Local Target Position Last Year
Quartile bandings are shown on the graph. Performance is currently in-between upper and lower thresholds for CPA.
CPA
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SOCIAL SERVICES - Adult & Older Peoples ServicesBV201 [PAF C51] - Direct Payments
170.01
190
24.72
147.05
189.46
110.86
0
50
100
150
200
250
03/04 04/05 Qtr 1 Qtr 2 Qtr 3 05/06 Proj
4 to 5 blobs 3 blobs 1 to 2 blobs
Redbridge Havering Newham
Barking & Dagenham Local Target
MemberPortfolio PI
Key Threshold
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U. 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.
The Impact
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Leadership and Consistency
Keep up the energy
Focus on improvement, not the system
Keep it simple - but not simplistic
Keep restating the basics
The Lessons
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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?
Improving Performance
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Performance BreakthroughsPerformance Breakthroughs
“The strengths in this Authority’s 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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Web site: www.lbbd.gov.uk (Under “About the Council” or Search on “balanced scorecard)
Contacts:
Want to know more?
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John TatamCorporate Director of Resources
and Deputy Chief Executive
