Financial Performance 2 Mark Fielding-Pritchard 1

Balanced Scorecard Kaplan & Norton Vision & Strategy Financial Perspective Internal Procedures Innovation & Learning Customer Perspective 2

Examples GoalsMeasures Customer PerspectiveFast response Good publicity Donors named Feet on the ground in 1 week Number of positive press releases Internal PerspectiveGood roster Fast response Good information system Number of people available on 10 days notice Accurate information provided to donor in 10 days of period end Innovation & LearningCutting edge proceduresNo of research articles published in learned journals No of sponsored pieces of legislation passed Financial PerspectiveQuick spends No returns Increased donations Proportion of funds received and spent per plan No returns % of donations year on year 3

Make strategy explicit Choose measure s Define & refine Deal with people Implementation 4

5 Identify Objective Determine How Value Is Created Financial Strategies Customer Strategies Support Strategies Skills Strategies Strategy Mapping

Q56 Royal Botanical Gardens a)  Structure  Draw picture, explain each of the boxes 5-6 marks  Why is it useful? 6

Q56 Royal Botanical Gardens a)  So why is it useful?  Focuses on all areas of the business  Not just short term profitability  Improving processes  Innovation, long term growth of organisation  Answer assumes the scorecard will be publicly available- shows willingness to improve, increases buy in from staff, better communication, more focused planning and budgeting 7

Q56 Royal Botanical Gardens b) So design standard step through process 8 Set mission statement Steering Committee Define terms Define business units Apply perspectives to business units

Q56 Royal Botanical Gardens b) So design standard step through process 9 Design procedures in business units Set KPIs Obtain Steering Committee Approval Change Staff Approval Process Measure Change and Improve

Q56 Royal Botanical Gardens b) So design standard step through process  Remember!  Training and communication at every step of the process! 10

11 Fitzgerald & Moon Building Blocks Only used in service organisations

12 Fitzgerald & Moon Building Blocks DimensionType of Measure CompetitivenessMarket share Financial PerformanceRise in donations Quality of ServiceSpeed of reaction FlexibilityAbility to move from region to region Resource UtilisationStaff utilisation InnovationNew methods of procurement

BLA Q57a) Dimensions/standards/measures- service industry Competitiveness Financial Performance Quality of Service Flexibility Resource Utilisation Innovation 13

BLA Q57b) BudgetActualVariance Revenue New (285) Revenue Repeat Consultants Ex Des (810)(675)135 Consultants Int Des (810) - Consultants Land (405)(540)(135) 14

BLA Q57b) Competitiveness Client enquiries higher than budget Ability to turn enquiries into work lower 15 BudgetActual New24300/67500= 36%22400/84000= 26.67% Repeat16200/32400= 50%19600/28000= 70%

BLA Q57b) Financial Performance Increased revenue Quality of Service Increased complaints Flexibility Non chargeable consultations Increased/decreased number of consultants 16

BLA Q57b)  Resource Utilisation 17 BudgetActual Exterior Design16200/18= /15= 922 Interior Design16200/18 = /18 = 957 Landscape8100/9= /12 = 912

BLA Q57c)  Controllable  Achievable  Time constrained 18