Managing Performance: Creating
an IT Balanced Scorecard
Phil Watson
Senior Consultant
ProActive Services
Agenda
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Caveats and Approach
The Balanced Scorecard
Quality Management Frameworks
Linkage to ITIL
Benefits
The Balanced Scorecard Process
Develop the SPUSC University IT
Balanced Scorecard
• Workshop Review
Caveats and Approach
• Development of the Strategy and Balanced Scorecard is
lots of work
• This workshop is a run through the process/steps
• Focus is on understanding and working the process not
achieving the Balanced Scorecard itself
• It is not a substitute for doing it properly and tailored to
your needs
• We will need to compromise quality for speed (only have
90 minutes to explain BSC and work through a virtual
example
• Questions as we go with a wrap up at the end
The Balanced Scorecard
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Translates Strategy into Action
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Four perspectives:
– Customers
– Financial
– Internal [business] processes
– Learning And Growth [people]
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Focus on measuring Performance
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Balance should exist between these four perspectives
The Balanced Score Card Perspectives
Organisations Vision, Mission, Values and Behaviours
Customer Perspective
To be seen as
successful what
do we need to
deliver?
To achieve our
strategies how must
we look to our
customers?
Financial Perspective
Internal Processes Perspective
To achieve our
strategies how
must our
organisation
develop?
Learning & Growth Perspective
To satisfy our
customers, what
business processes
must we excel at?
Quality Management Frameworks
• European Framework for Quality Management (EQFM )
• Australian Business Excellence Framework (ABEF)
• Baldridge Awards
Organisational Profile: Environment, Relationships and Challenges
2. Strategic Planning
5. Human Resource Focus
1. Leadership
7. Business Results
3. Customer & Market Focus
6. Process Management
4. Information and Analysis
• Total Quality Management (TQM)
The Balanced Scorecard and ITIL
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QM, BSC and ITIL (& PRINCE2 etc) are all
complementary
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Linkages to:
– Customer with ITSM and SLM
– Internal (business) processes with ITSM as
a process framework
– Financial with ITSM and Financial
Management
– Learning and Growth with People and
Continuous Improvement
The Process
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Assumptions
Values and Behaviours
Business Model
Customer Segmentation
Stakeholder Identification
Vision/Purpose and Strategic Intent/Mission
Objectives and Priorities
Map Objectives to BSC Perspectives
The SPUSC IT Service Chain
Select and design measures for each objective
Produce Measurement Plan to collect data and link to databases
and MIS
Produce DIS-SR Strategic Intent Brochure
Produce the Change (Implementation) Management Plan
Assumptions
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We will struggle to win support from all areas (business and IT) no matter
what we do
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We will never have enough resources to do everything we need to do
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IT is not central to the thinking or planning of the business – the focus is on
ribbon cutting and sod turning
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Business demands on IT will always be varied and difficult to prioritise
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The ‘existing’ will always be in competition with the new and exciting
(keeping it going vs keeping it growing)
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We can get Business IT representatives to understand and support IT
requirements
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Customers will expect us to commit to (and deliver on) specific service
levels
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Central IT and faculty IT – can work together and fulfill our parts
Values (Belief)
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We are one team – we have one voice
We are punctual and always report back to people quickly
We respect our customers and our fellow team members
We see Requests, Incidents, Problems, Changes etc from the
customer’s perspective
We take pride in the quality of our work and our technical expertise
We are a learning organisation – we aim to continuously improve
We always complete all of the job to all of the standard
We will never backstab!
Behaviours (Act)
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A sense of urgency
Clear thinking and intent
Courtesy and loyalty
Ownership and Accountability
Honesty, integrity, ethical and pride
Adaptability
Clear, concise customer driven communication
Attention to minor detail
Proactive Vs reactive
Business Model
CUSTOMER
PROCESSES
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CUSTOMER
SEGMENTS
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Resolve Incidents and Problems
Manage Systems Availability
Manage IT&T Assets
Liaise with Customers
………………………….?
………………………….?
Teaching
Learning
Research
Admin/Support
External Agencies
…………….?
…………….?
Support Functions
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Information Services
Personnel Services (staffing, training)
Security (accreditation, advice, investigation &
enforcement)
Infrastructure
Finance
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Facilities (accommodation)
Fleet Management
Service Delivery Support
…………………..?
…………………..?
Customer Segmentation
Which location has priority?
Which customer has priority?
Location
Campus A
Campus B
Campus C
Campus D
Site 1
Site 2
Site 3
Site 4
Magnitude
Operational Indicator
High
Medium
Low
12000 Email, Enrollments Law (500), Bus/Ec (700) Agr (200)
21000 Library, Payroll
Medicine (R&D)
250 Labs
Education
1300
25 NW Infra
144
99
256
• Needs to link in with the Service Catalogue
• This is indicative only
Stakeholders
Accreditation
Authorities
Students
Staff
Government
SPUSC
University
Unions
………?
Community
Employees
Vision and Purpose
SPUSC Vision
To be one of the finest universities in the
world
IT Purpose
As an integral part of SPUSC, IT is
committed to delivering on the technology
aspects of the University Business Plan
Strategic Intent and Mission
SPUSC Strategic Intent
The University will be an internationally
recognised thought and practice leader in
the field of teaching, learning and research
IT Mission
To be the preferred technology partner in
the achievement of the University’s
teaching, learning and research objectives
Example Objectives and Priorities
1. Identify Objectives
B1 - implement a Service Improvement Plan based on ITIL
L1 - involve and develop staff
C1 - prompt response & resolution of customer concerns
F1 - produce well researched and justifiable financial plans
L2 - foster and develop a customer focused culture
C2 - engage the customer proactively and regularly
2. Prioritise – impact, urgency,
cost/benefit analysis
B1
L3 - recruit, train and retain only the right people
B2 - implement and sustain a responsive and effective Service Desk
F2 - develop a culture of good financial management practices
C3 - market SPUSC IT to customer and stakeholders
B3 - implement SPUSC policies, practices and procedures
F3 - develop financial competency
F4 - capture resource usage against specified activities
L1
C1
F1
L2
C2
L3
B2
B4 - continuously improve activity plans based on review processes
L4 - develop staff to maintain capability
B5 - benchmark against best practice
F2
C3
B3
F3
F4 B4 L4 B5
SPUSC IT Objectives and Priorities
1. Identify Objectives
B1 – Implement a Service Improvement Programme based on ITIL
L1 – Recruit, train and retain only the right people
C1 – Support specialist faculty IT
F1 – Develop 3 year technology development plan
L2 - ……………………………………..
C2 - Staff and student retention (and growth)
2. Prioritise – impact, urgency,
cost/benefit analysis
B1
L3 - ……………………………………..
B2 - ……………………………………..
F2 - ……………………………………..
C3 - ……………………………………..
B3 - ……………………………………..
F3 - ……………………………………..
F4 - ……………………………………..
L1
C1
F1
L2
C2
L3
B2
B4 - ……………………………………..
L4 - ……………………………………..
B5 - ……………………………………..
F2
C3
B3
F3
F4 B4 L4 B5
Map Objectives to BSC Perspectives
Customer
C1 - prompt response & resolution of customer concerns
C2 - engage the customer proactively and regularly
C3 - market SPUSC IT to customer and stakeholders
Financial
Business Processes
B1 - implement a Service Improvement Plan
based on ITIL
B2 - implement and sustain a responsive and
effective Service Desk
B3 - implement SPUSC policies, practices
and procedures
B4 - continuously improve activity plans
based on review processes
B5 - benchmark against best practice
SPUSC
University
F1 - produce well researched and justifiable
financial plans
F2 - develop a culture of good financial
management practices
F3 - develop financial competency
F4 - capture resource usage against specified
activities
Learning and Growth
L1 - involve and develop staff
L2 - foster and develop a customer focused culture
L3 - recruit, train and retain only the right people
L4 - develop staff to maintain capability
Learning & Growth Perspective
Cause & Effect
Customer Satisfaction
External Service Value
Employee Retention
Employee Productivity
Employee Satisfaction
Learning & Growth
L1 L2 L3 L4 -
involve and develop staff
foster and develop a customer focused culture
recruit, train and retain only the right people
develop staff to maintain capability
Attitude of obtaining
results for Customers
Business Processes Perspective
Cause & Effect
Customer Satisfaction
External Service Value
Employee Retention
Employee Productivity
Employee Satisfaction
Business Processes
B1 B2 B3 B4 B5 -
implement a Service Improvement Plan based on ITIL
implement and sustain a responsive and effective Service Desk
implement SPUSC policies, practices and procedures
continuously improve activity plans based on review processes
benchmark against best practice
Services designed and
delivered to meet Targeted
Customers Needs
System Productivity
Financial Perspective
Cause & Effect
Stakeholder Advocacy
Stakeholder Loyalty
Stakeholder Satisfaction
Financial
Customer Satisfaction
External Service Value
F1 F2 F3 F4 -
produce well researched and justifiable financial plans
develop a culture of good financial management practices
develop financial competency
capture resource usage against specified activities
Funding preference
Standard setting
Reputation for Best
Practice
Customer Perspective
Cause & Effect
Customer & Stakeholder Advocacy
Customer Loyalty
Customer
Customer Satisfaction
External Service Value
C1 C2 C3 -
prompt response & resolution of customer concerns
engage the customer proactively and regularly
market SPUSC IT to customer and stakeholders
Retention
Repeat business
Referral
The SPUSC IT Service Chain
Purpose
Strategic Intent
Customer & Stakeholder Advocacy
Customer & Stakeholder Loyalty
Customer Satisfaction
Customer
Stakeholder Satisfaction
Financial
External Service Value
Learning & Growth
Business Processes
Select and Design Measures for each objective
Learning & Growth
L1 L2 L3 L4 -
involve and develop staff
foster and develop a customer focused culture
recruit, train and retain only the right people
develop staff to maintain capability
Measures
Staff Development (vs Plan)
Percentage of staff trained in customer
service
Employee satisfaction
Staff Retention
Staff trained as a percentage of
Succession Positions identified
Performance
Driver
Outcome
Objectives & Measures
Business Processes
B1 B2 B3 B4 B5 -
implement a Service Improvement Plan based on ITIL
implement and sustain a responsive and effective Service Desk
implement SPUSC policies, practices and procedures
continuously improve activity plans based on review processes
benchmark against best practice
Measures
Service Desk problem resolution percentage
System Productivity (measures to be developed)
Customer satisfaction with having needs
understood
Service Desk customer satisfaction
Standards compliance
Critical processes benchmarked as a
percentage of critical processes identified
Comparisons with world class Service Desk
Operations
Performance
Driver
Outcome
Objectives & Measures
Financial
F1 F2 F3 F4 -
produce well researched and justifiable financial plans
develop a culture of good financial management practices
develop financial competency
capture resource usage against specified activities
Measures
Funding Authority Level of Satisfaction
Achievement of expenditure against specified
activities
Achievement of the endorsed budget plan
Accuracy and compliance of financial
transactions
Percentage staff completed financial
competency training
Staff financial competency (self and audit
assessment)
Performance
Driver
Outcome
Objectives & Measures
Customer
C1 C2 C3 -
prompt response & resolution of customer concerns
engage the customer proactively and regularly
market SPUSC IT to customer and stakeholders
Measures
Customer Liaison Schedules
developed and achieved
Customer Satisfaction
Value of SPUSC IT as provider of choice
Customer understanding of SPUSC IT
services
Performance
Driver
Outcome
10.
Select and Design Measures for each Objective and Measurement Plan - Business
perspective example
Measure
Target
System Availability
Incident Response Time Telephony
< SLA
Source
Develop availability reports
Collect report data
Compile report
Analyse
Accountable
Person
JG
SM
SM
Various
Request report
RVM
Analyse
Develop reports
Various
BN
Peregrine (DVN)
Generate reports
Analyse
Develop reports
SM, BN
Various
RVM
Service Centre
Generate reports
Analyse
Develop reports
FM, RVM
Various
BN
Generate reports
Analyse
Develop reports
SM, BN
Various
BN
Generate reports
Analyse
Liaise with DISG regarding
National Survey
Conduct survey
Analyse survey
Include relevant questions
regarding customer satisfaction
SM
Various
TBD
98% Server Logs
Local Help Desk
Service Centre
NMS
DISG (Net Admin
Reports)
Peregrine (DVN)
Incident Response Time - IT < Agreed
time frames
Service Centre
Local Help Desk
Incident Resolution Time Telephony
Incident Resolution Time IT
< SLA
< Agreed
time frames
Local Help Desk
Helpdesk Incident
Resolution (Immediate Fix)
70% Service Centre
Local Help Desk
Customer Satisfaction
(Having Needs Understood)
85% Customer
Satisfaction
Survey
Method to Collect Data
TBD
TBD
TBD
How will we know when we have arrived?
Financial
goals
performance indicators
Ability to control costs
Economy of IT
Accuracy of IT forecasts
Competitiveness of IT
costs to the business
Costs of IT used in value
adding business activities
vs costs of IT used in
overhead activities
Value of IT
goals
Availability of IT services
(in IT users’ perception)
Compliance to SLAs
Reliability of IT services Number and severity of IT
service interruptions
Performance of IT
On-time IT service delivery
services
(defined by the customer)
Business (internal)
goals
goals
performance indicators
Change control
Business productivity
Percentage of ‘first time
right’ IT changes
Hours spent on IT matters by
non-IT managers vs total
hours of IT use by non-IT
staff
number of reported security Service culture
violations
Security
performance indicators
Quality of IT services
People (learning and growth)
Manageability
Customer
performance indicators
Annual business turnover
vs cost of running business
Improvements in business
turnover ascribable to IT
Reduction in business costs
ascribable to IT
Number of business improvements initiated by IT provider