Slide 1

Understanding the Balanced Scorecard

Mario D. Wallace 2015 Todays AgendaBreak up into 2 Groups of 3; Designate one scribe per group10 minutes - Align Departments Mission to Organizations20 minutes - Complete two SWOT analysis (5 min per quadrant)15 minute break10 minutes - Compare and discuss SWOTS analysis amongst groups 10 minutes - Convert weaknesses and opportunities into objectives10 minutes - Populate objectives onto Strategy Map

Learning Goals At the end of the workshop, you will be able to: Explain what is a Balanced Scorecard and its purpose Discuss the concept of strategic alignment Explain what is a Strategy Map and its purposeName and discriminate the four perspectives of a Strategy MapDemonstrate knowledge of the BSC by converting opportunities and weaknesses into objectivesDemonstrate knowledge of the BSC by populating a Strategy Map with objectives

Balanced Scorecard Story What is the purpose of the Balanced Scorecard? To hold managers accountableTo measure the progress of goals that aligns the strategic mission if the institutionTo establish a strategic planning and management systemAll of the aboveIce Breaker 1

What is the BSC?Thebalanced scorecardis a strategic planning and management system that is used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization

The Purpose of the BSC

Strategic Alignment Align Departments Mission to Organizations MissionOrganizations Mission Departments MissionFedEx Corporationwill provide high value-added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards."To facilitate the growth and renewal of our client organizations by providing services that positively impact organizational effectiveness and employee productivity, motivation, job satisfaction, and personal fulfillment."

Strategic Alignment Strategic Alignment Activity Organizations Mission Departments MissionThe mission of UAMS is to improve the health care and well-being of Arkansans and of others in the region, nation and the world.Strategic Alignment

10 minutes- Align Departments Mission to OrganizationsConduct a SWOT Analysis

Mission: Our mission is to promote the overall organizational health of UAMS to better serve our patients and families.

SWOT Analysis ActivitySample healthcarea new and/or innovative servicecapabilities or cost advantagescultural connectionsextraordinary reputationother aspects that add valuespecial expertise and/or experiencesuperior location or geographic advantage

absence of marketing plandamaged reputationgaps in capabilities or service areaslagging in technologymanagement or staff problemsown known vulnerabilitypoor location or geographic barriersundifferentiated service linesa market vacated by a competitoravailability of new technologychanges in population profile or needCompetitor vulnerabilitieslack of dominant competitionnew market segment that offer improve profitnew vertical, horizontal, or niche markets

competitor has an innovative product or servicea new competitor(s) in your home marketadverse changes in reimbursement or regulationschanging insurance plans and/or contracts for major area employerseconomic shiftsloss of key staff or associatesStrengths Threats Opportunities Weaknesses

20 minutes- complete SWOT (5 min per quadrant)Converting SWOT Analysis Items to Objectives

Objectives are brief verb-noun statements that describe a specific goal of your strategic plan. Make sure that they reflect your most recent strategic plan and SWOT Analysis (a review of your current Strengths, Weaknesses, Opportunities, and Threats). SWOT Analysis ItemObjectiveWeaknesses Staff Development (baseline 38%) Increase Talent Management across the Organization Weaknesses

Evaluation skills (baseline 65%)

Optimize Managers knowledge of Staff EvaluationsOpportunity Strategic Planning (baseline 15%) Develop Middle Managers strategic planning skills Activity for Converting SWOT Analysis Items to Objectives

SWOT Analysis ItemObjectiveWeaknesses Weaknesses

Opportunity 10 minutes- Convert weaknesses and opportunities into objectivesWhat is a Strategy Map?

A strategy map is a cause and effect diagram that is used to document the primary strategic goals being pursued by an organization.

The Purpose of a Strategy Map Bring visualization to life in a business context in a generalized but highly integrated manner.Describe how organizations create value by building on strategic themesProvide a way to describe and communicate strategy systematicallyDescribe how the organization plans to meet its strategic plan

Elements of a Strategy Map Mission/VisionFour Perspectives (Customer, Internal Process, Learning & Growth, and Finance) Objectives Cause and Effect Linkage

Strategic Alignment Activity

10 minutes - Populate objectives onto Strategy Map What questions do you have?