BALANCED SCORECARD Annual Report - FY2013 Using Performance Measurement to Align Goals, Strategy, and Budget Decisions “Value gained & value expected”

What is the Balanced Scorecard A group of measures used to implement and test an organization’s strategy. A group of measures used to implement and test an organization’s strategy. Communicates the actions and results by which the organization will achieve its mission and vision. Communicates the actions and results by which the organization will achieve its mission and vision.

If It’s Not Broke, Why Are We Fixing It?

It’s easier to make changes if you can identify problems, issues, and concerns early enough while they are still manageable. It’s easier to make changes if you can identify problems, issues, and concerns early enough while they are still manageable. “Excellent firms don’t believe in excellence – only in constant improvement and constant change.” “Excellent firms don’t believe in excellence – only in constant improvement and constant change.” How do you know if you are being successful if you don’t “keep score.” How do you know if you are being successful if you don’t “keep score.” What’s more dangerous – good news or bad news? What’s more dangerous – good news or bad news? Good news, it risks complacency and inaction. Bad news can alert you to potential problems and motivate action. Both make you aware of opportunities for progress. Some things are indeed broke and need fixing! Some things are indeed broke and need fixing!

Connecting Goals & Action To Performance Measurement Town-Wide Strategy Map Departmental Strategy Map Departmental Scorecards Objective Action Measure Target

Better Decision-Making Through The “Strategic Learning” Cycle Implement Idea/ Test Hypothesis Post-Game Analysis: Debate & Question Results “What’s Next”: Change, Abandon, or Stay the Course? 1.“What’s Next:” Mayor & Board provide direction during 1) review of Balanced Scorecard Report at October/November workshop, 2) Annual budget planning retreat February or March, and 3) budget review & adoption in May through June. 2.Implementation: Strategy and ideas are operationalized during the budget year (i.e., hypotheses tested). 3.Post-Game Analysis: Information shared in annual report. Staff, board, public, and others question/debate results at October/November workshop.

Values Gained & Expected from Scorecard & Annual Review Triage: Focus on Priorities Triage: Focus on Priorities Reduce time and effort wasted on distractions and lower priority itemsReduce time and effort wasted on distractions and lower priority items Align time, money, and resources with top prioritiesAlign time, money, and resources with top priorities Motivation/AccountabilityMotivation/Accountability Leadership & Communication: Linking Goals, Actions, Measures, & Targets Leadership & Communication: Linking Goals, Actions, Measures, & Targets Less time “in the weeds” (simple format & everyone has same information)Less time “in the weeds” (simple format & everyone has same information) Policy deliberation and decisions are based more on facts than perceptionPolicy deliberation and decisions are based more on facts than perception Improved Operations Improved Operations Encourage experimentation & innovation (“fail forward”)Encourage experimentation & innovation (“fail forward”) Early warning systemEarly warning system Flexibility: better able to adjust to changing conditionsFlexibility: better able to adjust to changing conditions Easier to manage – expectations are clearly established at the beginning of the cycle, then evaluated at the end during the annual report reviewEasier to manage – expectations are clearly established at the beginning of the cycle, then evaluated at the end during the annual report review Highlights importance of running efficient and effective operationsHighlights importance of running efficient and effective operations Credibility & Confidence Credibility & Confidence Follow-through: identify/debate successes, failures, and “grey” areasFollow-through: identify/debate successes, failures, and “grey” areas Publicly report and discuss scorecard resultsPublicly report and discuss scorecard results Welcome community participation and feedback (use Citizen Survey results, etc.)Welcome community participation and feedback (use Citizen Survey results, etc.)

Future Challenges Focus on top priorities, avoid spreading resources too thin Focus on top priorities, avoid spreading resources too thin “Weed-out” non-contributing measures & initiatives “Weed-out” non-contributing measures & initiatives Finding the right measures Finding the right measures Targets: Fair yet motivational Targets: Fair yet motivational Organization-wide understanding (i.e., cascading) Organization-wide understanding (i.e., cascading) Effectively use annual report to ignite analysis/adjustments Effectively use annual report to ignite analysis/adjustments Maintaining acceptance of “trial & error” strategy Maintaining acceptance of “trial & error” strategy