Imbedding and Deploying the Balanced Scorecard in Your Organization

Tuesday, February 3, 2004Tuesday, February 3, 20049:00 am to 12:00 - MAQIN9:00 am to 12:00 - MAQIN

Objectives / Agenda

• I. Introductions

• II. Overview of Learning Maps at CUNA Mutual as a tool for Deploying BSC

• III. Best Practices in Cascading the Balanced ScorecardExamples: Air Force, CUNA Mutual Group

• IV. Open Mike - How Does Your Organization...Group Discussion• Implement the Balance Scorecard• Deploy your strategy• Ensure accountability• How much time and resources did it take?

Introductions

• Name

• Position

• Organization

• How Do You Deploy BSC

John

CUNA Mutual Group Strategy Execution Challenges

• Understanding of our strategy by front-line employees and how they can make a difference

•Understanding the difference between measures/metrics and BSC

• Understanding of how BSC fits into our overall Strategic Planning framework

• Understanding the BSC as a strategy execution tool

• Basic understanding of “What a Balance Scorecard Is”- The head nod

Best PracticesBest Practices

CUNA Mutual GroupCUNA Mutual Group

Jennifer KloeppingJennifer Kloeppingjennifer.kloepping@cunamutual.comjennifer.kloepping@cunamutual.com

(608) 231-8839(608) 231-8839

National Employee Engagement Data

• About 71% of employees today do not consider themselves actively engaged in their work• 37% clearly understand what their organization is

trying to achieve and why• 1 in 5 was enthusiastic about their team and

organization goals• Only 1 in 5 say they have a clear line of sight between

their tasks and their team's and organization's goals• Only 15% felt their organization fully enables them to

execute key goals• Disengaged employees cost the U.S. economy about

$300 billion a year in lost productivity

• Sources: Harris Interactive poll of 23,000 U.S. residents across key industries and The Gallup Management Journal

Title HereThe Chasm

Forces of Change

• Competition (traditional and non-traditional) is getting more fierce

• Members have more choices (e.g. 0% financing)

• Regulation/taxation changes are knocking on credit union’s doors

• Credit union trends• Number of credit unions are declining• By 2009 the number of large credit

unions will double• Number of members is increasing

Learning Map 1: Creating Financial Security

• At the end of the sessions employees would be able to describe the:• Internal and external challenges that

are forcing CUNA Mutual to change,• Changes and challenges facing credit

unions,• Member needs and expectations, and • CUNA Mutual’s strengths and

weaknesses.

Results after Learning Map 1

Level of Understanding Before/After Session

0102030405060708090

100

Item 1 Item 2 Item 3 Item 4 Item 5 Item 6

BeforeAfter

Employee Feedback

• “Well, I have to say my expectations were blown away with the learning map training - I was not sure what to expect, but I didn't think it would be as fun as it was.”

• “…energized me as an employee of CUNA Mutual Group.”

• “…best course at CUNA Mutual Group yet.”• “…one of the best methods of

education/training that I have ever experienced.”

• “For people who don’t think we need to change, this will help them.”

Learning Map 2: Being the Best at Serving Credit Unions and Members

• At the end of the session employees understand:• That everyone at CUNA Mutual contributes

to the success of our strategy, • How in the future we will best serve credit

unions,• What a true solution is and how we’ll deliver

them to our customers,• The elements of our balanced scorecard and

how we use it to monitor how well we’re doing in providing value to credit unions and members.

Planning Process

Learning Map Demo

• Revolution on Beverage Street

Lessons Learned

• Leadership engagement is critical

• The process will surface strategy gaps/inconsistencies

• Time commitment is intense

• Learning Map Process and Method• What we did – how we used LM

Best PracticesBest PracticesAir ForceAir Force

CUNA Mutual GroupCUNA Mutual Group

JackJackjack.mccommon@CUNAMutual.comjack.mccommon@CUNAMutual.com

(608) 231-8715(608) 231-8715

Tips on Deploying BSC

• Air Force Policy• Strategic Planning stops at the wing level

• Government Performance Results Act

• Culture is accustomed to rules and procedures

• Communication Plan

Communication Plan Example

As needed

xxAs Needed

Asneeded

SquadronMonthlyxxMonthlyxWing

MonthlyxKickoffQtrlyxMajor Command

qtrlyxRoadshowAnnuallyxHeadquarters

Periodic

Updates

Media

KickoffsRoadshow

s

ReviewMeeting

s

Monthly Rpts

Strategic Dialogue

TargetAudience

Tips on Deploying BSC

• CUNA Mutual Group• Balanced Scorecard stops at the

Division/Group Level

• Don’t deploy or cascade until the organizational or corporate BSC is completed

• Ensure that you have received buy-in and have commitment of resources

Basic Tips to deploy BSC

• Communication and Education• Have a plan• Set up a team to deploy

• Deep Dive

• Performance System

Deploying the BSC Process at CUNA

NOVEMBER

Deploying Strategy to AIMDate: 8-27-04

Solu

tion

Gro

up

Present BSCto

Departments

Corp

orat

eEL

TEm

ploy

ees

Man

ager

sDe

partm

ent

Start

Develop SolutionGroup/Support

AreaStrategic

Objectives(BSC)

DevelopDepartmentObjectives

Select theCritical Few

Objectives for AIM

Collaboratewith employees

EstablishIndividual

Goal

EnterGoalsinto

IndividualAIM

Agreeto

Goals

Collaboratewith Managers

Present toManagers, Staff,and employees

Assess Structureagainst Strategy

FinalizeCorporateBalanced

Scorecard/Targets& Measures

People LeaderTraining & Prep

After Department/Managers Agree withObjectvies then get approval from LT

How do you?

• Engage employees in your strategy

• Implement the Balance Scorecard• Deploy your strategy• Ensure accountability• How much time and resources did it take?

What Will Try to Apply on Monday?