BALANCED SCORECARD AND KPI S FOR THE EVALUATION OF UNIVERSITY PERFORMANCE LUISS Guido Carli – Advanced Organization Design - Charlie’s Group

The Balanced Scorecard is a tool which is used to support the management into taking strategic decisions. It allows to translate the mission and strategy of the company in a coherent set of performance measures easing their measurability. It is used for: Exploiting intangible assets; Complementing traditional financial measures with additional perspectives: 1.Customers; 2.Internal business processes; 3.Learning and Growth. It helps managers: To simultaneously see their performance from different perspectives of analysis; To reduce the gap between short terms and long terms strategies; To eliminate the deficiency in traditional management system. LUISS Guido Carli – Advanced Organization Design - Charlie’s Group BALANCED SCORECARD

TRANSLATING VISION AND STRATEGY: FOUR PERSPECTIVES Vision and Strategy Financial/Economical To success financially, how should we appear to our shareholders? Creation of Customers’ Value How should we appear to our customers? Internal Processes Improvement To satisfy our shareholders and customers, what business processes must we excel at? Learning and Growth To achieve our vision, how will we sustain our ability to change and improve? LUISS Guido Carli – Advanced Organization Design - Charlie’s Group

These are the four processes for integrating the balanced scorecard in a firm. To encourage individuals to achieve personal goals which have to be consistent with the organization, they can create a personal scorecard. Balanced Scorecard Helps managers build a consensus around the vision and strategy of the organization: Employees can possibly understand the economic and financial consequences of their decisions. Communic ating and Linking A personal scorecard contains three levels of information: 1.Describes the corporate objectives, indicators and actions; 2.It translates the objectives from the corporate level to each business unit level; 3.It is asked, both to individuals and to groups, to articulate their objectives in line with those of the business unit and the corporate-level Lets managers spread the long term corporate strategy up and down the organization and link it to departmental and individual objectives: Gives managers a way to ensure that both individual and departmental goals are aligned with the strategy. Feedback and Learning Translatin g the Vision Enables companies to integrate their business and financial plans: Aligning strategic initiatives; Allocating resources. Allows real-time measurement of the strategy Consent to evaluate the strategy; Monitors whether the company has met its budget financial goals. MANAGING BALANCED SCORECARD: FOUR PROCESSES Business Planning LUISS Guido Carli – Advanced Organization Design - Charlie’s Group

LUISS’ KEY PERFORMANCE INDICATORS Once an organization has analyzed its vision, identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those goals. Key Performance Indicators are those measurements. N° of students enrolled N° of students completing undergraduate program % of students in course % of students off course N° Technical and Administrative Staff N° lecturers and researchers N° degree courses N° addresses enabled N° teachings activated Faculty credentials Faculty appraisals Faculty development plans Reputation Degree of satisfaction of students on course Teaching awards Course evaluations (casuistry of votes; % attendance incurred during the year) Peer and outside reviews % frequency of courses % exams hold up during the year Quality of teaching and tutoring Promotion rate Desertion rate Redemption rates % of project works, business games Average degree grade Average level of english % students who have done Erasmus etc % foreign students N° staff researchers (professors of I and II section) N° research products N° research grants Level of relationship Between universities and research centers (CERSI) Human resources selection N° students who have done internships and apprenticeships % of employed status one year after graduation Contacts with business and industry Seminars and meetings Job day (% of students who find work after these events) Structure and OrganizationTeaching and LearningResearch U2B LUISS Guido Carli – Advanced Organization Design - Charlie’s Group

Learning and Growth ObjectivesMeasuresInitiatives Teachers Training Teaching awards, peer and outside reviewsSelection of teachers; Continous training; Students Training Average degree grade; Promotion rate; Average level of English; % frequency of courses; Students experience; Selection of students; Appropriate training to the degree program chosen; Technology Growth N° of staff researchers; N° research products; Level of relationship between universities and research centers (CERSI); Knowledge transfer; IT infrastructure and systems; E-learning platform; Luiss Placement etc. Internal Business Process ObjectivesMeasuresInitiatives Innovation % of investment in research; N° of periodic updates for faculty and staff; N° of services developed; Funds in R&D; Quality of Structure % use of computer labs; N° of study halls; N° of working PCs; N° of estates; Structural investments; University to Business N° of students who have done internships and apprenticeships; % of employed status one year after graduation; Placement LUISS and Job Day. Financial ObjectivesMeasuresInitiatives Growth Rate Total of income and expenditure to define the organization and the research; Total students enrolled; Other financial measures; Appeal of faculty Created Value Financial Health Students ObjectivesMeasuresInitiatives Attracting Students% number of students enrolled; Desertion rate; Advertising; Increase reputation; Degree GradeAverage degree grade; Promotion rate; Appropriate training; Students SatisfactionCourse Evaluation;Care to feedbacks. To achieve our vision, how should we appear to our students? Vision and Strategy Ensure adequate training of student, enhancing skills and merits by developing a university model that allows the growth, the design and commitment to building its future. LUISS’ BALANCED SCORECARD To succeed financially, how should we appear to our shareholders? To satisfy our shareholders and students, what business process must we excel at? To achieve our vision, how will we sustain our ability to change and improve? In order to use those KPIs, we must define LUISS vision. LUISS Guido Carli – Advanced Organization Design - Charlie’s Group

Attracting Students Degree Grade Students Satisfaction Innovation Quality of Structure University To Business Professors trainingStudents trainingTechnology Growth Created Value Financial Health Learning and Growth Financial Students Internal Process Business LUISS’ BALANCED SCORECARD KPIs LUISS Guido Carli – Advanced Organization Design - Charlie’s Group

STUDENT’S PERSONAL SCORECARD Student DepartmentClassIndividual Increase the knowledge of students through required stage and apprenticeship effected once during the bachelor’s degree and once during master’s degree; For the teachings of the specialistic, each teacher must ascertain that all students have the same knowledge base; Participate in internal and external initiatives that allows students to fill individual gaps and increase their skills; Provide students english language courses that allows to reach an established level (e.g. b2 level); Teaching materials presented during the lectures will be in english; Each student have to attend a certain number of hours of an english course; Notice a certain percentage of students attending the lecture; Each teacher should encourage the active partecipation of the class; Active participation in lectures will be considered in a positive way by the teacher. LUISS Guido Carli – Advanced Organizazion Design - Charlie’s Group