University of Texas at El Paso Balanced Scorecard 2007 Division of the Vice President for Business Affairs

Why are you here?? Who are the key figures in this initiative? What is the Balanced Scorecard? Why is UTEP VPBA adopting the Balanced Scorecard? How do you play a role in the Balanced Scorecard initiative? What is our goal as a division? Who are the key figures in this initiative? What is the Balanced Scorecard? Why is UTEP VPBA adopting the Balanced Scorecard? How do you play a role in the Balanced Scorecard initiative? What is our goal as a division?

Executive Leadership Team Balanced Scorecard Team Cynthia Vizcaíno Villa Vice President for Business Affairs Carlos Hernandez Associate Vice President/Comptroller Dr. Victor Pacheco Assistant Vice President Greg McNicol Associate Vice President for Facilities Services Patty Reyes Organizational Development Specialist Balanced Scorecard Team Cynthia Vizcaíno Villa Vice President for Business Affairs Carlos Hernandez Associate Vice President/Comptroller Dr. Victor Pacheco Assistant Vice President Greg McNicol Associate Vice President for Facilities Services Patty Reyes Organizational Development Specialist

Survey Team Albert Ruiz Balanced Scorecard Assistant Dashboard Team Dan Clouse Technology Implementation Luis Contreras Technology Coordinator Swapnil Samant Systems Administrator Survey Team Albert Ruiz Balanced Scorecard Assistant Dashboard Team Dan Clouse Technology Implementation Luis Contreras Technology Coordinator Swapnil Samant Systems Administrator Executive Leadership Team

What is a Balanced Scorecard? Balanced Scorecard is a management tool that provides everyone involved in an organization with a comprehensive view of progression towards the achievement of goals. Communication tool to relay information across as organization. Implement departmental goals. Performance Measurement tool that provides feedback on the success of key measurements, or provides information for areas that need attention. Balanced Scorecard is a management tool that provides everyone involved in an organization with a comprehensive view of progression towards the achievement of goals. Communication tool to relay information across as organization. Implement departmental goals. Performance Measurement tool that provides feedback on the success of key measurements, or provides information for areas that need attention.

Balances financial and non-financial measures Balances short and long-term measures Balances performance drivers (leading indicators/current real time information) with outcome measures (lagging indicators/historical information) Should contain just enough data to give a complete picture of organizational performance… and no more! Leads to strategic focus, goals, and organizational alignment. Balances financial and non-financial measures Balances short and long-term measures Balances performance drivers (leading indicators/current real time information) with outcome measures (lagging indicators/historical information) Should contain just enough data to give a complete picture of organizational performance… and no more! Leads to strategic focus, goals, and organizational alignment. What is a Balanced Scorecard?

Who Discovered the Balanced Scorecard? In 1990 Robert S. Kaplan, a professor of accounting at the Harvard Business School, and David P. Norton, cofounder of a Massachusetts-based strategy consulting firm called Renaissance Worldwide, Inc., conducted a year-long research project involving 12 large companies.." Kaplan and Norton looked at the way these companies used performance measurements to control the behavior of managers and employees. They used their findings to devise a new performance measurement system that would provide businesses with a balanced view of financial and operational measures. Kaplan and Norton laid out their balanced scorecard approach to performance measurement in three Harvard Business Review articles beginning in In fact, the Harvard Business Review called it one of the most important and influential management ideas of the past 75 years. In 1996 Kaplan and Norton expanded upon their original concept in a book, The Balanced Scorecard: Translating Strategy into Action. In 1990 Robert S. Kaplan, a professor of accounting at the Harvard Business School, and David P. Norton, cofounder of a Massachusetts-based strategy consulting firm called Renaissance Worldwide, Inc., conducted a year-long research project involving 12 large companies.." Kaplan and Norton looked at the way these companies used performance measurements to control the behavior of managers and employees. They used their findings to devise a new performance measurement system that would provide businesses with a balanced view of financial and operational measures. Kaplan and Norton laid out their balanced scorecard approach to performance measurement in three Harvard Business Review articles beginning in In fact, the Harvard Business Review called it one of the most important and influential management ideas of the past 75 years. In 1996 Kaplan and Norton expanded upon their original concept in a book, The Balanced Scorecard: Translating Strategy into Action.

Kaplan and Norton recommend looking at the business from four perspectives: the customer's perspective; an internal business perspective; an innovation and learning perspective; and the financial (or shareholder's) perspective. Using the overall corporate strategy as a guide, managers derive three to five goals related to each perspective. Then they develop specific measures to support each goal. Ideally, the scorecard helps managers to clarify their vision for the organization and translate that vision into measurable actions that employees can understand. The balanced scorecard concept has enjoyed significant success since its introduction. It was adopted by 60 percent of the top 100 U.S. companies as of 1996, and by half of the Fortune 1000 companies by the beginning of Kaplan and Norton recommend looking at the business from four perspectives: the customer's perspective; an internal business perspective; an innovation and learning perspective; and the financial (or shareholder's) perspective. Using the overall corporate strategy as a guide, managers derive three to five goals related to each perspective. Then they develop specific measures to support each goal. Ideally, the scorecard helps managers to clarify their vision for the organization and translate that vision into measurable actions that employees can understand. The balanced scorecard concept has enjoyed significant success since its introduction. It was adopted by 60 percent of the top 100 U.S. companies as of 1996, and by half of the Fortune 1000 companies by the beginning of Who Discovered the Balanced Scorecard?

Who’s using the Balanced Scorecard Sears Mobil American Express Fidelity Investments University of California San Diego University of California at Berkeley Sears Mobil American Express Fidelity Investments University of California San Diego University of California at Berkeley

Balanced Scorecard Exercise Give an example of a BS measures you are aware of in your departments? How do those measures impact your departments? What is your role in those measures? Do these measure meet your departmental goals? Give an example of a BS measures you are aware of in your departments? How do those measures impact your departments? What is your role in those measures? Do these measure meet your departmental goals?

Balanced Scorecard Perspectives Financial Perspective How do we look to resource providers? Customer Perspective How do customers see us? Internal Process Perspective Are we productive and effective? Employee & Learning Perspective How do our employees feel? Source: Kaplan and Norton

Customer Perspective What are the needs of our customers ? Who are our customers? Both Internal and External? How do customers see us? Possible Performance Measures… Customer Satisfaction Surveys Secret Shoppers Internal Departmental Surveys

Financial Perspective To satisfy our constituents, what financial and regulatory objectives must we accomplish? Possible Performance Measures… To satisfy our constituents, what financial and regulatory objectives must we accomplish? Possible Performance Measures… Cost / Unit Cost of Service Net Profit

Internal Process Perspective To satisfy our customers, in which business processes must we excel? Possible Performance Measures… Cycle Time Number of Errors or Rework Completion rate of internal process Number transactions per employee

Employee Perspective To achieve our goals and accomplish core activities, how must we learn, communicate and work together? Are our employees happy? Possible Performance Measures… Employee Satisfaction Survey Retention and Turnover Staff Training and Development

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Where did we start? Departmental Strategic Plans Satisfied Stakeholders Delighted Customers Effective Processes Motivated Workforce Balanced Scorecards Divisional VPBA Mission & Values Measurable Outcomes - Dashboard University Compact

What is the University Compact? Summary of the Universities planning efforts with an emphasis on major initiatives. Includes long term and short term priorities and progressive measures and objectives. What is the University Compact? Summary of the Universities planning efforts with an emphasis on major initiatives. Includes long term and short term priorities and progressive measures and objectives.

VPBA Mission and Values Mission Statement The Office of the Vice President for Business Affairs serves as a resource of information and assistance to students, faculty, staff, and external entities and ensures the availability of effective support services to the University. The office provides leadership and direction in evaluating the effectiveness and efficiency of the University’s administrative and financial processes and promotes responsible stewardship of the University’s financial, physical, and human resources Vision Statement To achieve excellence in providing proactive administrative support services to The University of Texas at El Paso so that accountability, effectiveness, efficiencies, and performance are optimized. Mission Statement The Office of the Vice President for Business Affairs serves as a resource of information and assistance to students, faculty, staff, and external entities and ensures the availability of effective support services to the University. The office provides leadership and direction in evaluating the effectiveness and efficiency of the University’s administrative and financial processes and promotes responsible stewardship of the University’s financial, physical, and human resources Vision Statement To achieve excellence in providing proactive administrative support services to The University of Texas at El Paso so that accountability, effectiveness, efficiencies, and performance are optimized.

Departmental Strategic Plans Why do we have departmental Strategic Plans? Take a moment to look over the Strategic Plan examples Align all objectives to University Compact and departmental Balanced Scorecards. Identify Strengths and Weaknesses. Identify departmental goals and measures. Assign individual accountability to all employees. Why do we have departmental Strategic Plans? Take a moment to look over the Strategic Plan examples Align all objectives to University Compact and departmental Balanced Scorecards. Identify Strengths and Weaknesses. Identify departmental goals and measures. Assign individual accountability to all employees.

Balanced Scorecards What measures are being identified in each perspective? How will the department identify improvement of objective measures? Who plays a role in the success of this objective measure? Lets view some LIVE Balanced Scorecard measurements in each perspective. What measures are being identified in each perspective? How will the department identify improvement of objective measures? Who plays a role in the success of this objective measure? Lets view some LIVE Balanced Scorecard measurements in each perspective.

Customer Perspective Miner Voice Survey Sent to random Students, Faculty, and Staff Miner Voice Survey Sent to random Students, Faculty, and Staff

Customer Perspective

Employee Perspective Fall 2005 Fall 2006

Financial Perspective Miner Gold Card Objective – Increase Patron Dollars Deposits Measurement – Dollar amount of Patron Deposit current months vs same month prior year Dashboard Measurement - 2% Increase - Green 1.0% – 1.9% - Yellow 1.0% - 0% - Red Miner Gold Card Objective – Increase Patron Dollars Deposits Measurement – Dollar amount of Patron Deposit current months vs same month prior year Dashboard Measurement - 2% Increase - Green 1.0% – 1.9% - Yellow 1.0% - 0% - Red

Internal Process Perspective Sodexho Catering Objective – Online Automotive of Catering ordering process Measurement – 75% online ordering process Dashboard Measurement – 70% - 75% Green 70% - 50% Yellow 50% - 0% Red Sodexho Catering Objective – Online Automotive of Catering ordering process Measurement – 75% online ordering process Dashboard Measurement – 70% - 75% Green 70% - 50% Yellow 50% - 0% Red

Measurable Outcomes Cognos Dashboard

Why are we adopting the Balanced Scorecard? Align the University Compact with Division Goals. Incorporate team work and accountability within departments. Implement departmental goals and measure continual growth. Enhance operational day-to-day decision- making by regularly reviewing Balanced Scorecard. To increase quality and efficiency. Align the University Compact with Division Goals. Incorporate team work and accountability within departments. Implement departmental goals and measure continual growth. Enhance operational day-to-day decision- making by regularly reviewing Balanced Scorecard. To increase quality and efficiency.

What’s is your role? How does my department contribute toward University goals? How is my department doing? Is my department measuring the right things? What initiatives does my department need to implement to get us where we want to go? Is my department accomplishing its goals? What daily activities in my department can be improved? How does my department contribute toward University goals? How is my department doing? Is my department measuring the right things? What initiatives does my department need to implement to get us where we want to go? Is my department accomplishing its goals? What daily activities in my department can be improved?

What is your manager’s role? Solicit feedback from staff. Empowerment of staff. Always be accountable for Balanced Scorecard measurements. All measures should demonstrate a trend. The BSC is a “Living Document” that requires regular revision of objectives, measures and initiatives: Solicit feedback from staff. Empowerment of staff. Always be accountable for Balanced Scorecard measurements. All measures should demonstrate a trend. The BSC is a “Living Document” that requires regular revision of objectives, measures and initiatives:

Successful outcomes due to your efforts. Continual prioritization of daily activities. Improved assessments to measure your progress of current measurements. Improved ensure delivery of high quality services to all campus community. Continual improvement of your day to day operations. Continual prioritization of daily activities. Improved assessments to measure your progress of current measurements. Improved ensure delivery of high quality services to all campus community. Continual improvement of your day to day operations.

What is the VPBA GOAL? Always provide excellent customer service. Adapt to continual improvement of all financial processes and support innovation and change. Safe Guard all University assets and resources. Maintain positive “Can Do” attitudes. Always provide excellent customer service. Adapt to continual improvement of all financial processes and support innovation and change. Safe Guard all University assets and resources. Maintain positive “Can Do” attitudes.

Questions?