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![Page 1: The Library Balanced Scorecard: The Results Please! Joe Matthews American Library Association June 2007.](https://reader036.fdocuments.in/reader036/viewer/2022081421/56649db05503460f94a9e89c/html5/thumbnails/1.jpg)
The Library Balanced
Scorecard:The Results Please!
Joe Matthews
American Library AssociationJune 2007
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The Challenge
There is no framework or predictive model for a library and the services it provides.
No understanding of cause-and-effect
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The Balanced Scorecard
Is a strategic management tool that assists a library in aligning all of its activities towards meeting the needs of its customers.
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The Balanced Scorecard
The idea of the scorecard is to
describe the essential ingredients
of organizational success.
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Who is Using the Scorecard?
Companies Federal government State and local
government Non-profit agencies A few libraries
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Translating Vision and Strategy: Four Perspectives
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The Library Balanced Scorecard
Customer Perspective
Financial Perspective
Internal Processes
Learning & Growth
Service attributes & satisfaction
Accountability & value
Efficiency & productivity
Staff skills, technology & climate for action
Information Resources Perspective Collection (physical & electronic)
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Why Adopt a Balanced Scorecard?
Change – Formulate and communicate a new strategy for a more competitive environment
Alignment – Each staff member’s actions are guide by the strategies and goals of the library
Focus – Provides management with a tool for monitoring progress towards achieving the library's vision
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Starting Point
Mission Statement (the present) Values Statement The Vision (the future) Service responses (PLA Planning for Results)
The gap between now and the future leads to a plan of action to achieve the vision. How we get to the future involves strategies.
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The Failure of Strategy
"You can either take actionor wait for a miracle to happen. Miracles are great butthey are unpredictable."
Peter Drucker
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Barriers to Strategic Implementation
9 of 10 companies
fail to execute
strategy
The Vision BarrierOnly 5% of staff members
understands the strategy
The Management Barrier85% of top management teams
spend less than 1 hour
per month discussing strategy
The People BarrierOnly 25% of managers have
incentives linked to strategy
The Resource Barrier60% of organizations don’t link
budgets to strategy
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is largely about
accomplishing more with less,
and that requires focus!
Strategy
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Types of Strategies
Customer
Intimacy
Operational
Excellence
Innovative
Services
Creating a sustainable differentiated valueproposition is the heart of strategy
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Customer Focused Strategies
Product/Service Attributes Quality, Availability,
Selection, Functionality, Price
Relationship Service, Partnering
Image Brand
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Brands Are …
A name A logo Your beliefs Most importantly, the
experiences you provide to your customers
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Do You Know Your Customers?
Customers Segment by
Demographics Segment by Use Market penetration
“Lost” Customers Non-Customers
Do You Listen to the Voice of the Customer?
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Internal Focused Strategies
Operational Efficiency Supplier relationships, produce
products & services, distribute to customers, manage risk
“Are we doings things right?”
Customer Relationships Provide desired services/products,
provide convenient processes, provide customized services
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Innovation Focused Strategies
Process innovation, manage capital projects
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For Most Public Libraries
Strategy = Tradition!
Full Service Library (& vary size) vs. Specific Function Libraries
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Strategies translate what
customers want
into what libraries must deliver!
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Strategies answer the question:
“How is the library going to
deliver services?”
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Strategy Is A Hypothesis About What Drives Organizational
Success
Mission
Vision
Customer Requirements
Strategy
Operations
Results or Outcomes
Identify the key performance drivers that lead to successful strategy executionIdentify the key performance drivers that lead to successful strategy execution
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Sample Strategy Map
Financial Perspective
Readiness Perspective
Internal Processes Perspective
Information Resources Perspective
Customer Perspective
Funding
Skilled Staff
Productivity Improvements
Right Collection
Satisfaction
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Interrelationships
Strategy maps tell where we are going and why
Scorecards explain how well we are doing and provide guidance for what can be next
Budgets tell how we allocate resources
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Performance Measures Problems
Too many measures and no focus
Entrenched or no measurement systems
Unjustified trust in informal feedback systems
Fuzzy objectives
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Performance Measures
Should be a combination of:
Leading and lagging measures Financial & non-financial
measures Input, process, output and
outcome measures Internal & external measures
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Select Measures
that reflect on the strategies
chosen by the library
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Scorecard Measures
3-4 measures per perspective Simple rather than complex
measures Automated or existing measures New measures Rely on staff counts as a last resort
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Thus, the scorecard assists the library
in selecting the “right data” –
data that reflects the library’s strategies.
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Targets
The 80% rule
SWAG targets
Stretch targets (BHAG)
Organizations that use targets improve performance by an average of 16%
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Select Initiatives Have an impact on achieving your
strategies
Identify responsible individual, implementation schedule, resources required, budgetary implications
Look for ways to eliminate it, simplify it, or automate it
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Knowing the score is not the objective –
changing it is.
C.J. McNair
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Sustaining the Scorecard
Management’s Focus – use the scorecard to drive meeting agendas
Develop a “culture of assessment”
Cascade the scorecard
Communicate your scorecard
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Use of Library Scorecards
Early
Adopters
Early
Majority
Late
Majority
Laggards
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Scorecard = Change
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Remember!
The Library Balanced Scorecard is about
management and change first;
the use of performance measures
is second.
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Resources
For more information about scorecards, visit www.ci.carlsbad.ca.us/imls
Joseph R. Matthews. Scorecard for Results: A Guide for Developing A Library Balanced Scorecard. Carlsbad, CA: Carlsbad City Library, May 2007.
Joseph R. Matthews. Measuring for Results: The Dimensions of Public Library Effectiveness. Westport, CN: Libraries Unlimited, 2004.
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Questions?