What Gets Measured Gets Done:

Strategic Planning & Balanced Scorecards

Christopher Bradie, Ed.D.

Associate Vice PresidentDivision of Business Services

regarding the process of developing the scorecard

What Were Hoping to Accomplish?

We Needed a Consistent Methodology to Formalize Goal Setting

and to Chart Progress•Inconsistency of data from report to report•Process changed from year to year, causing some frustration

Traditional Goal Setting Process Focused Almost Exclusively

on Financial Goals•Did not include provisions for service, operational efficiency or staff development

Department Day-to-Day Operations Not Necessarily Tied to

Established Goals

We Needed to Integrate Goal Setting and Measuring Progress Towards Targets -- A Cultural Change for the Division

regarding the process of developing the scorecard

Balanced Scorecard: Overview

What is the BALANCED SCORECARD?

• Management tool providing an organization with an at-a-

glance view of its progress toward its strategic goals

• “Balances” financial and non-financial measures

• Includes performance drivers (lead measures) with outcome

measures (lag indicators)

• Importantly, it is a decision making tool and not a report

card (gives guidance on what you are presently doing so that

you can make course corrections as necessary)

regarding the process of developing the scorecard

Balanced Scorecard as a SolutionThe Benefits

• Necessitated that departments perform an intensive

business-analysis clear mission and vision, define their goals,

identify specific initiatives, and to “measure the un-

measurable”

• Allows a consistent framework that can be used as a

repository for information and or reporting

• Links actual work activity to goals and also establishes links

BETWEEN goals

• Provides rationale for task delegation and performance

management

regarding the process of developing the scorecard

Why We Like It• Links Actual Work to Goals

• Encourages Participation

• Facilitates Performance Management/Conversations

• Measures the “Un-measurable”

• Provides Macro and Micro Level Views of Organization Performance

• Provides a Consistent Framework for Information and Reporting

• Once established, relatively easy to maintain

Anatomy of a ScorecardWhy are we here? What's the purpose?

Mission Statement: To be a source for books and materials that support the academic mission of the University; to distribute merchandise that promotes the University’s brand identity; and to provide a facility that serves as a place of gathering for the campus community.

What do we want to become? Where do we want to go?

Vision Statement To be the Penn community’s preferred gathering place and retail destination for goods and services.

Category

Strategic Objectives (Broad Goals)

What ACTIVITIES (initiatives) should we engage in this year to achieve our goal?

What should the target MEASURE be?

Type Lag/Lead

FY14 Budget

FY13

Forecast 3

Financial ($$) What are your financial objectives with respect to achieving the vision?

Maximize Operating Margin Increase Sales Volume

Active outreach to faculty and coordinators regarding adoptions. Promotion of rental as a retention strategy. Focus on relationship building with departments focusing on retention of existing customers and reclaiming those that may have been lost. Leverage reporting to target opportunities for adoption. Explore expansion of rental strategies. Ensure availability of titles of non-adoptions. Trade: Work with B&N corporate to re-balance assortment into best selling categories and titles. Enhanced event room to attract faculty author Reposition spirit apparel and increase sq. ft. allocation from 6,434 to 8,644. Introduce convenience grab-and-go concept shop within café. Expand space sq. ft. 3,762 to 4,246.

$ Operating margin $ Gross Sales Retail $ Textbook Sales $ New Textbooks $ Used Textbooks $ Textbook Rentals $ Digital Textbooks $ Trade Sales $ General Merchandise Sales $Clothing $Gifts $Cafe Sales

Lag Lag Lag Lag Lag Lag Lag Lag Lead Lead Lag

$

$

Anatomy of a ScorecardCategory

Strategic Objectives

(Broad Goals) What ACTIVITIES (initiatives) should we engage in this year to achieve our goal?

What should the target MEASURE be?

Type Lag/Lead

FY14 Budget

FY13

Forecast 3

Customers/ Stakeholders (Processes, products, service) At what customer and/or stakeholder measures do you need to excel to produce the designed financial performance?

Build Customer Loyalty

Targeted point-of-sale and coupon efforts: - New students – Penn Preview - New students – NSO - Graduating students - Faculty & Staff - Athletic events

Improve upon Social Networking site by promoting the bookstore FB page.

- All marketing media - In store signage - Weekly promotions on FB

Café frequent buyer program; crate “value meal” menu Establish customer advisory group consisting of faculty, staff and student organization representatives

# Coupon redeemed (measured monthly) # New friends # Transactions (completed cards)

Lead Lead Lead

Internal Business Process (Processes, products, service, technology) At what internal processes must you excel in order to satisfy your customers?

Increase Web Utilization Market, Develop and Promote Innovative services

Increase direct marketing efforts including list-serves; Utilization of web promo codes; pop-sales via social media Marketing efforts for Buy-Back via: – Student Portal – College House mailbox stuffers – DP advertising – Final Exam classroom announcements – Campus Express – UA & GAPSA Support

$ Website/merchandise mail-order sales $ Buy-back – Spring –(measured semesterly) $ Buy-back – Fall – (measured semersterly)

Lag Lag Lag

Learning and Growth (People, technology training, internal communication, internal support)) What must you do to develop internal resources in order to excel at these processes?

Develop Employee Service Delivery

Penn team/B&N store management team to meet monthly as a means of sharing ideas/brainstorming Enhance service experience for call-in as well as engagement post-order.

# Monthly Meetings # Redemption web bounce-back

Lead Lead

regarding the process of developing the scorecard

regarding the process of developing the scorecard

Experiences/LearningWe wanted our measures to be a specific expression that helped us understand our progress toward a goal

•We learned that there were many different measures that were relevant, but only a few that were actually important

Departments initially went into measurement-frenzy

•Often no process for collection, measure really wasn’t part of normal operating activity, IT systems did not actually capture data we were seeking

Too much lag (outcomes), not enough lead (drivers)

Establishing measures & targets was a challenging process

•Departments had a tendency to believe their activities couldn’t be measured•Fear of being held accountable preempted meaningful conversations•Targets sometimes unrealistic (too aggressive, too reserved)

regarding the process of developing the scorecard

Maxims

“Sometimes when you have a hammer, everything starts looking like a nail”

•The scorecard is extremely versatile, but it’s not a panacea

“When you’re hungry, half a sandwich is better than nothing at all”

•“If the pieces are not in place to implement the entire philosophy don’t ditch the whole concept. Use the parts that will help the organization get better” (Ralph Smith, Orion Development Group)