The Balance Scorecard (BSC): Facilitating Organizational Alignment & Focus Daniel Hayden, Rare dhayden@rareconservation.org

Agenda Outcomes Agenda & Outcomes Why does this matter BSC Basic Rare’s BSC Questions & Answers Understand the basics of the BSC See where you and your team fit in

Because it effects what activities your team does and does not do Why should I care about the BSC? Because it is how Rare measures its success toward achieving its mission Because it effects what activities your team does and does not do It effects how you are evaluated Hmmmm … you are still not convinced?

We can make this statement because: BSC informs “how are we doing?” Good (on balance) We can make this statement because: We have made explicit our objectives We have set targets We can make comparisons year-to-year We have reported on those goals People are being held accountable for those goals We are making improvements based on data 50 Pride campaigns launched … but none planned for FY13 99 of campaigns running at some point in FY12 … though this will decline over the next 12 months $40 Million raised for challenge pool … and nearly hit our FY12 target 91% of partners who’d recommend us … an improvement over prior years 75% of campaigns on track with impact measures … and higher standards every year

YES! Does the BSC Change Anything? Initiatives influenced and supported by BSC: Emphasis on staff engagement and Rare values was a result of plummeting staff satisfaction A better IT team was a result of cross functional surveys Focus on social marketing is due (in part) to low scores around behavior change New processes to measure Threat Reduction and Conservation results supported by BSC YES!

Agenda Why does this matter BSC Basic Rare’s BSC Questions & Answers

Balance & Scorecard Photo of acrobat: http://kaleidoscope.cultural-china.com/en/223Kaleidoscope11044.html Photo athletes: http://al.china-embassy.org/eng/zggk/t525844.htm

Balance Scorecard Basics The Balanced Scorecard methodology is an approach that recognizes that organizational sustainability is not about delivering results one year, but the ability to create results over many years. Mapping Strategy: Mission Strategic Themes Strategic Results Organizational Alignment Vision/Mission Financial Customer Learning & Growth / Human Capital Internal Business Processes http://www.balancedscorecard.org/Portals/0/PDF/BalancedPerformance_Article1.pdf

Fully implemented Balanced Scorecard http://www.balancedscorecard.org/Portals/0/PDF/BalancedPerformance_Article1.pdf Source: © 2007 by the Balanced Scorecard Institute, a Strategy Management Group company. All rights reserved.

Standard Key Definitions Rare follows method nearly exactly Each of these elements must be in “in balance” to ensure organizational sustainability A mission statement defines why an organization exists; the organization's purpose Vision/Mission Financial Timely and accurate funding is essential, but it is “in balance” with other organizational objectives. Financial measures should focus on current and future needs. Customer Recognizes the importance of customer focus and customer satisfaction are leading indicators. If customers are not satisfied, they will eventually find other suppliers. http://www.balancedscorecard.org/Portals/0/PDF/BalancedPerformance_Article1.pdf Learning & Growth / Human Capital Includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. Metrics that allow managers to know how well their team is running, and whether its products and services conform to customer requirements (the mission). Internal Business Processes

Agenda Why does this matter BSC Basic Rare’s BSC Questions & Answers

Rare’s Strategy Map The Strategy Map Defines the Elements that Support Our Mission Mission: Influencing behavior to protect biodiversity Strategy: Build Capacity, Change Constituencies and Reduce Threats to achieve Conservation results Enabling Processes: Maximize the effectiveness of each Pride campaign, take Pride to Scale, Unlock alumni … raise money

Departmental Measures Rare’s Balance Scorecard: Cascades & Cross Cuts the Organization Rare Measures Most Strategic Cross-cutting Measures Priorities Information Departmental Measures Strategy & Ops Individual Measures Ops Supporting Strategy

BSC Governance Structure BSC Now Sits within Global Programs CEO & COO Sets strategy and priorities Signs off on goals Manage processes Aligns groups Quality assurance Note in most for profits, the BSC is managed by Finance team Sr. Director Global Programs Divisional Heads Align with global goals Set divisional goals Ensure sound methodology Align with key process Ensure quality assurance Internal Experts

TBD based on monitoring charter team Rare’s Balance Scorecard: 3C Mission Lasting Conservation results require engaged Communities and organizations with the Capacity to lead and sustain change Reduce Threats and Achieve Conservation Results 1 % of Active Campaigns with Documented Plans on track to Monitor Threat Reduction 100% 2 % of Active Campaigns in Each Cohort that have a Scientifically Rigorous Conservation Result Monitoring Plan on track 50% 3 % of campaign sites with significant TR and CR results within 5 years of the completion of the original campaign TBD based on monitoring charter team Change Constituency Attitudes and Behaviors 4 % of total population that have discussed the benefits of the campaign strategy Based on surveys during the campaign this measures seeks to gauge grass roots buzz for the Pride campaign TBD based on pilot 5 % of Primary (Threat-Causing) Target Audiences Adopting New Behaviors The average percentage of our campaigns' target audiences that change their behavior after a Pride Campaign. 30% Build Local Capacity 6 # Pride trained graduates in current year The total number of Campaign Managers (CM's) and Fishery Fellows (FFs) or similar who complete the Pride training program and graduate, usually receiving a Masters Degree. (This is cumulative, annual measure). 16 7 % of CM's achieving a passing level on skills assessment CM's will take a skills assessment after each university phase and will receive a cumulative measure.  The % of CM's receiving a passing grade after each university phase will be calculated. 85% 8 Rare validated MoUs or plans in place for post-graduation campaigning, monitoring, fundraising, and related activities for 3 to 5 years. A measure of LAP investment in post-campaign activities based on MoUs and plans in place and validated within three months of campaign graduation. 50% Note: The 3Cs is how Rare achieves its impact, while the theory of change shows how each campaign will create impact

Partner / Customer Focus Maximize the effectiveness of each Pride campaign Pride is a our signature product and we want each campaign to make an impact on community and our partner Partner / Customer Focus Maximize the Effectiveness of each Pride Campaign 9 % Campaigns "Green" on the Pride Scorecard Based on the Pride Scorecard, how many campaigns are on track to achieve the 3C objectives according to QMI standards. 50% 10 Partner leadership satisfaction index rating % of Rare partner leadership (executive director, or equivalent) who would recommend to another organization that they should apply for a Pride campaign 80% 11 CM Satisfaction Index Rating % of Rare partners who would recommend to another organization that they should apply for a Pride campaign Business Process Human Capital Financial

Partner / Customer Focus Take Pride to Scale We want to ensure a steady pipeline of new high quality partners who will bring Pride to their communities Take Pride to Scale 12 # of New Campaigns Launched The total number of campaigns that are launched in a Fiscal Year 13 Average final score of accepted campaigns Average score of all accepted campaigns based on criteria set in the application form 3.50 14 # of Expressions of Interest Average number of Expressions of Interest for partnering with Rare submitted (per cohort) 36 15 # of PINs in pipeline (average) Total number of Project Idea Notes (PINs) in the pipeline over a three month period. 16 # of Feasibility or Country Studies # of approved Feasibility or Country Strategies that are approved 2 Partner / Customer Focus Business Process Human Capital Financial

Partner / Customer Focus Unlock the Potential of the Network Great campaigns should inspire people to run more campaigns, teach others … and lay the foundation to address new threats Partner / Customer Focus Unlock the Potential of the Network 17 % Of Rare Conservation Fellow Alumni and Local Implementing Partner Alumni that continue to Significantly Utilize Pride Methodology Percentage of Rare Conservation Fellow and Local Implementing Partner Alumni that continue to significantly utilize Pride methodology as defined by survey response 80% 18 % of recent alumni marine campaigns adopting FF strategies Percentage of alumni marine campaigns that will be upgraded to a FF strategy 25% Business Process Human Capital Financial

Funding and people are the essential pre-requisites of all we do Expand Fundraising & Organizational Capacity Funding and people are the essential pre-requisites of all we do Expand Organizational Capacity 21 % of PPMs passing at least 3 packets per year Percentage of PPM's passing at least three packets of the Certification in Social Marketing for Conservation 75% 22 % of New Hires Successful in Their Jobs % of new hires who are still employed and score well (2.50 or higher) on their first annual performance and values review (new hire plan, mind and year-end - or yearend and midyear) 80% 23 Median number of hours of formal training Median number of hours of formal training that staff complete towards their professional development objectives set with their supervisor 40 24 % of Staff Satisfied with Department Performance From the staff survey: "% of Staff Satisfied with Department, based on the average response to, "How satisfied are you with the responsiveness of x department" and "How satisfied are you with the quality of product of x department." Expand Fundraising 19 % of Required Cohort Funding Identified 50% of cohort cost raised or in pipeline by CPP approval or proposals for loan to bridge funding gap (not to exceed 9 months after cohort launch).   50% 20 % of Projects within Budget % of all Rare projects that come in within budget 100%

Funding and people are the essential pre-requisites of all we do Expand Organizational Capacity Funding and people are the essential pre-requisites of all we do

BSC improves decision making … it does not make decisions BSC Provides Balance Annual perspective Multi-year perspective Financial Non-financial Programmatic Operational Leading indicators Lagging indicators Results: Clear goals Priorities Tradeoff Smarter questions Better decision making BSC improves decision making … it does not make decisions

Interesting metrics for FY13 % of Primary (Threat-Causing) Target Audiences Adopting New Behaviors https://www.clearpointstrategy.com/#35,measure,drill,1629 % of recent alumni marine campaigns adopting FF strategies https://www.clearpointstrategy.com/#35,measure,drill,55431 Staff Engagement https://www.clearpointstrategy.com/#35,measure,drill,330

Agenda A bit about Rare What are Balanced Scorecards What is Rare’s Balanced Scorecard How Rare uses the Balanced Scorecard Execution Tricks Questions & Answers

Clarity Explains How to Implement Our Strategy Four Pillars of Rare’s Strategy: Scale Pride Improve Impact of Pride Leverage networks Build an enduring institution Strategy maps explain how we create value Highlight what we believe are the key organizational ingredients Visually show how elements interact The Balanced Scorecard drives action Links to the strategy map Shows the objectives Shows the measure Clarity Clarity does NOT equal agreement – it just focuses us on specific issues

Rare and Departmental Balanced Scorecard Programmatic Reporting Flow Connects Strategy with Execution Rare and Departmental Balanced Scorecard Strategy Flows Down Summary Report Pride Scorecard Average status of a group of campaigns Summary of status of a group of campaigns Comprehensive view of the long-term status of an individual campaign Data Flows Up from Regions

BSC measure … which then translates to your IBSC You and the BSC In our Work Planning Process all initiatives (and budget items) must align to a BSC measure … which then translates to your IBSC

BSC Everywhere … Part of every Board pack Part of all Board committee meetings One measure discussed regularly at Leadership Team meetings Part of every monthly reporting pack to Dale and RVPs Key questions in the Monthly Pride Scorecard Basis of the annual work plan Integral to the IBSC Core part of the bonus system

See Updates in January Reporting Tool: ClearPoint Browser Password Online Reporting Tool for BSC See Updates in January Browser Password website: www.clearpointstrategy.com username: browser@rareconservation.org password: rare1234

Agenda Why does this matter BSC Basic Rare’s BSC Questions & Answers

Questions…. dhayden@rareconservation.org

Have We Achieved the Desired outcomes? Understand the basics of the BSC See where you and your team fit in 31

Appendix

Definitions of Balanced Scorecard Strategic Planning & Management Terms Customer Value Proposition - The Customer Value Proposition is the unique added value an organization offers customers through its operations; the logical link between action and payoff that the organization must create to be effective.  Three aspects of the proposition include Product/Service Attributes (Performance/ Functionality considerations such as quality, timeliness or price), Image and Relationship. Mission - A mission statement defines why an organization exists; the organization's purpose Performance Measures - Performance Measures are metrics used to provide an analytical basis for decision making and to focus attention on what matters most.  Performance Measures answer the question, 'How is the organization doing at the job of meeting its Strategic Objectives?'  Lagging indicators are those that show how successful the organization was in achieving desired outcomes in the past.  Leading indicators are those that are a precursor of future success; performance drivers. Perspectives - A Perspective is a view of an organization from a specific vantage point.  Four basic perspectives are traditionally used to encompass an organization's activities.  The organization's business model, which encompasses mission, vision, and strategy, determine the appropriate perspectives.  Strategic Initiatives - Strategic Initiatives are programs or projects that turn strategy into operational terms and actionable items, provide an analytical underpinning for decisions, and provide a structured way to prioritize projects according to strategic impact.  Strategic Initiatives answer the question, ‘What strategic projects must the organization implement to meet its Strategic Objectives?’ Strategic Objectives - Objectives are strategy components; continuous improvement activities that must be done to be successful.  Objectives are the building blocks of strategy and define the organization's strategic intent.  Good objectives are action-oriented statements, are easy to understand, represent continuous improvement potential and are usually not 'on-off' projects or activities. Strategic Result - Strategic results are the desired outcome for the main focus areas of the business.  Each Strategic Theme has a corresponding Strategic Result. Strategic Theme - Strategic Themes are key areas in which an organization must excel in order to achieve its mission and vision, and deliver value to customers.  Strategic Themes are the organization's "Pillars of Excellence.“ Strategy Map - A Strategy Map displays the cause-effect relationships among the objectives that make up a strategy.  A good Strategy Map tells a story of how value is created for the business.  Strategy - How an organization intends to accomplish its vision; an approach, or “game plan”. Targets - Desired levels of performance for performance measures Vision - A vision statement is an organization's picture of future success; where it wants to be in the future Source: © 2007 by the Balanced Scorecard Institute, a Strategy Management Group company. All rights reserved.

Technology: Enables Information Flow A mix or proprietary and off-the-shelf tools support Rare Purpose: Project management of campaigns, organizing and storing campaign data Audience: Leadership team, Quality Management Reports: Pride Scorecard, Summary Reports, Weekly Flash Reports Purpose: Managing fundraising and the Pride application process Audience: Development team, Recruiting/Partnerships team Reports: Fundraising status, cohort development Purpose: Managing timesheets, vacations, etc. Audience: Finance team Reports: Hours of training, vacation balances, expenses Purpose: Budgeting, tracking expenses, handling payroll Audience: Finance team Reports: Budget-to-actual, expense summaries Purpose: Outline organization’s Balance Scorecard Audience: Department heads, Board Reports: Organization-wide and departmental balanced scorecards

Fully implemented Balanced Scorecard http://www.balancedscorecard.org/Portals/0/PDF/BalancedPerformance_Article1.pdf Source: © 2007 by the Balanced Scorecard Institute, a Strategy Management Group company. All rights reserved.