1. Indianapolis Life. Insurance Company. The Balanced Scorecard
Indianapolis Life Insurance Company The Balanced Scorecard Phase I Management Presentation February 5, 1999 e

2. Agenda What has been Accomplished? Recommended Path Forward
Enterprise Level Scorecard
Tier II Scorecard
Recommended Path Forward
Transition Plan
Immediate Next Steps
Printed on: 1/11/2019

3. The Balanced Scorecard Process
Our focus during Phase I has been in measurement definition (Enterprise & Tier II) and in the development of a prototype manual reporting system
Measurement Definition :
Process
Strategic
Individual
What measures reflect strategy execution?
Reporting & Analysis:
How to report & analyze performance measures most effectively?
Stakeholder
Value
Evaluation & Improvement:
Given performance signals, what can be done to improve results?
Improvement
Portfolio
Quick
Continuous
Focus
Re-engineer
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4. Critical Success Factor Relationships
To be an innovative, growing, high performance, public financial services enterprise that makes the future better for all our stakeholders.
Objectives: Win through people, Grow profitably, Create value
Financial Perspective
Earnings growth
Unleveraged GAAP ROE
Risk Based Capital
Capital plan
Product Mix
Distribution Mix
Customer Perspective
Rating within Peer Group
Customer Satisfaction
Producer and Policyholder Retention
Sales vs. Plan (Sales Variance)
Policies under Administration
Internal Process Perspective
Growth in Target Markets
Expense to Premium Ratio
Expense to Average Assets Ratio
Technology ROI
Learning & Growth
Personal Development Plans Completed
Incentive Alignment
Employee Satisfaction
Leadership Strength
Employee ROI
Change Initiative Status
Printed on: 1/11/2019

5. Tier II Scorecards
The objectives of the Tier II pilot scorecards were to:
1) Pilot and validate a “drilldown” approach for developing Tier II scorecards that are aligned with the enterprise
2) Identify Tier II objectives, critical success factors and measures
3) Determine next steps in the Tier II scorecard development
Printed on: 1/11/2019

6. Cascading & Aligning Scorecards
Scorecards are cascaded and aligned through the critical success factors
Enterprise Critical Success Factors (CSF’s)
Enterprise
Strategies
Enterprise
Measures
Enterprise
Portfolio & Process Objectives
Portfolio & Process CSF’s
Portfolio & Process Measures
Tier II*
Tier IIa Goals
Tier IIa CSF’s
Tier IIa Measures
Tier IIa
Linkage
Alignment
*Tier II currently contains: Product-Market Portfolios (Financial Protection & Wealth Accumulation), Business Process Outsourcing, Customer Care (Operations and Distribution), Shared Services and Financial. Tier IIA currently encompasses products (Term UL, WL, VUL, Annuity)
Printed on: 1/11/2019

7. Enterprise -- Tier II Mapping
Identify enterprise critical success factors that may be influenced at the Tier II level
Draft * *
Sample ** **
* New market development & increasing value to existing customers ** Customer refers to internal customers: operations & distribution
High Level of Influence Lower Level of Influence
Printed on: 1/11/2019

8. Establishing Tier II Objectives
Draft
Enterprise critical success factors that are “highly influencable” become “Tier II” objectives… additionally, there may be other objectives which are aligned with the enterprise scorecard
Product-Market Portfolio Objectives: 1) Meet portfolio ROE and earnings growth goals 2) Ensure capital plans are in place for new products and that products are built with assumptions that the organization can support 3) Develop products that deliver value and are aligned to target customer segments 4) Identify and develop new markets and increase value to existing customers 5) Win through people
Product-Market Balanced Scorecard
Printed on: 1/11/2019

9. Product-Market Balanced Scorecard
Identify Tier II critical success factors and key performance indicators for the objectives
Draft
Product-Market Portfolio Objectives: 1) Meet portfolio ROE and earnings growth goals 2) Ensure capital plans are in place for new products and that products are built with assumptions that the organization can support 3) Develop products that deliver value and are aligned to target customer segments 4) Identify and develop new markets and increase value to existing customers 5) Win through people
Printed on: 1/11/2019

10. Set Targets and Identify Tactics to Reach Targets
Each measure should have a target (short term and long term) and an identified initiative/tactic to bridge the performance gap (current performance - target performance)
Printed on: 1/11/2019

11. Transition Plan - Deployment Principles
Roles and Responsibilities
Development accountability lies with the respective areas
Participants include future scorecard owner and his or her direct reports, and internal and external customers
Participants from Indianapolis Life and AUL
Project Team comprised of and led by key employees in the respective area
Trained Balanced Scorecard team provides training, support and templates
Oversight steering committee to ensure alignment (vertical and horizontal)
Method and Approach
Standardized method
Pre-workshop interviews, a workshop and the assignment of a scorecard “owner” in the area
Knowledge reuse*
A scorecard “logic” aligned with AUL affiliation plans and design team implementation recommendations
“KISS”
* Knowledge reuse refers to scorecard design templates, measurement dictionaries with definitions and data source, and output reports
Printed on: 1/11/2019

12. Potential Project Structure
A Balanced Scorecard Steering Committee would be part of an overall Indianapolis Life Program Management Steering Committee
Steering committee members providing:
Coordination with other initiatives
Ensure horizontal and vertical alignment
Project management oversight
Responsible for trained balanced scorecard team resources
Comprised of AUL and Indianapolis Life personnel
Trained resources to assist in scorecard development.
Interviewing & Facilitating
Scorecard development packages
Maintain measurement dictionaries
Day-to-Day project management
Indianapolis Life & AUL
Printed on: 1/11/2019

13. Scorecard Logic
Determining which areas and “who” will have a scorecard is dependent on the organizational roles and structure.
Follows proposed organization redesign
Portfolio and product scorecards (Tier II Product-Market and Tier IIA) focus on new product development, maintenance of existing products and portfolio and product profitability - excludes core operational and distribution related measures
Printed on: 1/11/2019

14. High Level Implementation Plan
Denotes work completed
Printed on: 1/11/2019

15. Enterprise Scorecard Next Steps
Develop Missing Measures
Measure Owners
Assign Measure Owners
Larry Prible
Set Targets
Measure Owners
Respond to questions regarding their measures
Measure Owners
Create Data Gathering Forms
Scorecard Team
Receive Data from Measure Owners
Scorecard Team
Publish Scorecard Report
Scorecard Team
Implement Scorecard System to Support Future Scorecards and Automate Data Gathering
Build Awareness through Communication & Education
Printed on: 1/11/2019