1. Managing Performance: Creating an IT Balanced Scorecard Phil Watson Senior Consultant ProActive Services

2. Agenda Caveats and Approach The Balanced Scorecard Quality Management Frameworks Linkage to ITIL Benefits The Balanced Scorecard Process Develop the SPUSC University IT Balanced Scorecard Workshop Review

3. Caveats and Approach Development of the Strategy and Balanced Scorecard is lots of work This workshop is a run through the process/steps Focus is on understanding and working the process not achieving the Balanced Scorecard itself It is not a substitute for doing it properly and tailored to your needs We will need to compromise quality for speed (only have 90 minutes to explain BSC and work through a virtual example Questions as we go with a wrap up at the end

4. The Balanced Scorecard Translates Strategy into Action Four perspectives: –Customers –Financial –Internal [business] processes –Learning And Growth [people] Focus on measuring Performance Balance should exist between these four perspectives

5. The Balanced Score Card Perspectives Organisations Vision, Mission, Values and Behaviours Customer Perspective Financial Perspective Internal Processes Perspective Learning & Growth Perspective To satisfy our customers, what business processes must we excel at? To be seen as successful what do we need to deliver? To achieve our strategies how must we look to our customers? To achieve our strategies how must our organisation develop?

6. Quality Management Frameworks European Framework for Quality Management (EQFM ) Australian Business Excellence Framework (ABEF) Baldridge Awards Total Quality Management (TQM) 1. Leadership 2. Strategic Planning 3. Customer & Market Focus 6. Process Management 7. Business Results 5. Human Resource Focus 4. Information and Analysis Organisational Profile: Environment, Relationships and Challenges

7. The Balanced Scorecard and ITIL QM, BSC and ITIL (& PRINCE2 etc) are all complementary Linkages to: –Customer with ITSM and SLM –Internal (business) processes with ITSM as a process framework –Financial with ITSM and Financial Management –Learning and Growth with People and Continuous Improvement

8. The Process Assumptions Values and Behaviours Business Model Customer Segmentation Stakeholder Identification Vision/Purpose and Strategic Intent/Mission Objectives and Priorities Map Objectives to BSC Perspectives The SPUSC IT Service Chain Select and design measures for each objective Produce Measurement Plan to collect data and link to databases and MIS Produce DIS-SR Strategic Intent Brochure Produce the Change (Implementation) Management Plan

9. Assumptions We will struggle to win support from all areas (business and IT) no matter what we do We will never have enough resources to do everything we need to do IT is not central to the thinking or planning of the business – the focus is on ribbon cutting and sod turning Business demands on IT will always be varied and difficult to prioritise The ‘existing’ will always be in competition with the new and exciting (keeping it going vs keeping it growing) We can get Business IT representatives to understand and support IT requirements Customers will expect us to commit to (and deliver on) specific service levels Central IT and faculty IT – can work together and fulfill our parts

10. Values (Belief) We are one team – we have one voice We are punctual and always report back to people quickly We respect our customers and our fellow team members We see Requests, Incidents, Problems, Changes etc from the customer’s perspective We take pride in the quality of our work and our technical expertise We are a learning organisation – we aim to continuously improve We always complete all of the job to all of the standard We will never backstab!

11. Behaviours (Act) A sense of urgency Clear thinking and intent Courtesy and loyalty Ownership and Accountability Honesty, integrity, ethical and pride Adaptability Clear, concise customer driven communication Attention to minor detail Proactive Vs reactive

12. Business Model > Resolve Incidents and Problems > Manage Systems Availability > Manage IT&T Assets > Liaise with Customers > ………………………….?  Teaching  Learning  Research  Admin/Support  External Agencies  …………….? CUSTOMER PROCESSES CUSTOMER SEGMENTS  Information Services  Personnel Services (staffing, training)  Security ( accreditation, advice, investigation & enforcement)  Infrastructure  Finance Support Functions  Facilities (accommodation)  Fleet Management  Service Delivery Support  …………………..?

13. Customer Segmentation Which location has priority? Which customer has priority? Needs to link in with the Service Catalogue This is indicative only

14. Stakeholders Accreditation Authorities Staff ………? Unions Employees Community Government Students SPUSC University

15. Vision and Purpose SPUSC Vision To be one of the finest universities in the world IT Purpose As an integral part of SPUSC, IT is committed to delivering on the technology aspects of the University Business Plan

16. Strategic Intent and Mission SPUSC Strategic Intent The University will be an internationally recognised thought and practice leader in the field of teaching, learning and research IT Mission To be the preferred technology partner in the achievement of the University’s teaching, learning and research objectives

17. 2. Prioritise – impact, urgency, cost/benefit analysis B1 - implement a Service Improvement Plan based on ITIL L1 - involve and develop staff C1 - prompt response & resolution of customer concerns F1 - produce well researched and justifiable financial plans L2 - foster and develop a customer focused culture C2 - engage the customer proactively and regularly L3 - recruit, train and retain only the right people B2 - implement and sustain a responsive and effective Service Desk F2 - develop a culture of good financial management practices C3 - market SPUSC IT to customer and stakeholders B3 - implement SPUSC policies, practices and procedures F3 - develop financial competency F4 - capture resource usage against specified activities B4 - continuously improve activity plans based on review processes L4 - develop staff to maintain capability B5 - benchmark against best practice B3 L1 C1 F1 L2 C2 L3 B2 F2C3 B1 F3 F4B4L4 B5 1. Identify Objectives Example Objectives and Priorities

18. 2. Prioritise – impact, urgency, cost/benefit analysis B1 – Implement a Service Improvement Programme based on ITIL L1 – Recruit, train and retain only the right people C1 – Support specialist faculty IT F1 – Develop 3 year technology development plan L2 - …………………………………….. C2 - Staff and student retention (and growth) L3 - …………………………………….. B2 - …………………………………….. F2 - …………………………………….. C3 - …………………………………….. B3 - …………………………………….. F3 - …………………………………….. F4 - …………………………………….. B4 - …………………………………….. L4 - …………………………………….. B5 - …………………………………….. B3 L1 C1 F1 L2 C2 L3 B2 F2C3 B1 F3 F4B4L4 B5 1. Identify Objectives SPUSC IT Objectives and Priorities

19. SPUSC University F1 - produce well researched and justifiable financial plans F2 - develop a culture of good financial management practices F3 - develop financial competency F4 - capture resource usage against specified activities Financial C1 - prompt response & resolution of customer concerns C2 - engage the customer proactively and regularly C3 - market SPUSC IT to customer and stakeholders Customer B1 - implement a Service Improvement Plan based on ITIL B2 - implement and sustain a responsive and effective Service Desk B3 - implement SPUSC policies, practices and procedures B4 - continuously improve activity plans based on review processes B5 - benchmark against best practice Business Processes L1 - involve and develop staff L2 - foster and develop a customer focused culture L3 - recruit, train and retain only the right people L4 - develop staff to maintain capability Learning and Growth Map Objectives to BSC Perspectives

20. Learning & Growth Employee Satisfaction Employee Productivity Employee Retention External Service Value Attitude of obtaining results for Customers Customer Satisfaction L1 -involve and develop staff L2 -foster and develop a customer focused culture L3 -recruit, train and retain only the right people L4 -develop staff to maintain capability Learning & Growth Perspective Cause & Effect

21. Business Processes Employee Satisfaction Employee Productivity Employee Retention External Service Value Services designed and delivered to meet Targeted Customers Needs Customer Satisfaction B1 -implement a Service Improvement Plan based on ITIL B2 -implement and sustain a responsive and effective Service Desk B3 -implement SPUSC policies, practices and procedures B4 -continuously improve activity plans based on review processes B5 -benchmark against best practice Business Processes Perspective Cause & Effect System Productivity

22. Financial Stakeholder Satisfaction Stakeholder Loyalty Stakeholder Advocacy External Service Value Funding preference Standard setting Reputation for Best Practice Customer Satisfaction F1 -produce well researched and justifiable financial plans F2 -develop a culture of good financial management practices F3 -develop financial competency F4 -capture resource usage against specified activities Financial Perspective Cause & Effect

23. Customer Customer Loyalty Customer & Stakeholder Advocacy External Service Value Retention Repeat business Referral Customer Satisfaction C1 -prompt response & resolution of customer concerns C2 -engage the customer proactively and regularly C3 -market SPUSC IT to customer and stakeholders Customer Perspective Cause & Effect

24. Learning & Growth Customer Customer Satisfaction Customer & Stakeholder Loyalty Customer & Stakeholder Advocacy Financial Stakeholder Satisfaction Business Processes External Service Value Purpose Strategic Intent The SPUSC IT Service Chain

25. Learning & Growth L1 -involve and develop staff L2 -foster and develop a customer focused culture L3 -recruit, train and retain only the right people L4 -develop staff to maintain capability Select and Design Measures for each objective MeasuresPerformanceOutcome Driver Staff Development (vs Plan) Percentage of staff trained in customer service Employee satisfaction Staff Retention Staff trained as a percentage of Succession Positions identified

26. Business Processes B1 -implement a Service Improvement Plan based on ITIL B2 -implement and sustain a responsive and effective Service Desk B3 -implement SPUSC policies, practices and procedures B4 -continuously improve activity plans based on review processes B5 -benchmark against best practice Objectives & Measures MeasuresPerformanceOutcome Driver Service Desk problem resolution percentage System Productivity (measures to be developed) Customer satisfaction with having needs understood Service Desk customer satisfaction Standards compliance Critical processes benchmarked as a percentage of critical processes identified Comparisons with world class Service Desk Operations

27. Financial F1 -produce well researched and justifiable financial plans F2 -develop a culture of good financial management practices F3 -develop financial competency F4 -capture resource usage against specified activities Objectives & Measures MeasuresPerformanceOutcome Driver Funding Authority Level of Satisfaction Achievement of expenditure against specified activities Achievement of the endorsed budget plan Accuracy and compliance of financial transactions Percentage staff completed financial competency training Staff financial competency (self and audit assessment)

28. Customer C1 -prompt response & resolution of customer concerns C2 -engage the customer proactively and regularly C3 -market SPUSC IT to customer and stakeholders Objectives & Measures MeasuresPerformanceOutcome Driver Customer Liaison Schedules developed and achieved Customer Satisfaction Value of SPUSC IT as provider of choice Customer understanding of SPUSC IT services

29. 10.Select and Design Measures for each Objective and Measurement Plan - Business perspective example

30. How will we know when we have arrived? Business (internal) People (learning and growth) FinancialCustomer goals performance indicators Ability to control costs Accuracy of IT forecasts Economy of IT Competitiveness of IT costs to the business costs to the business Value of IT Costs of IT used in value adding business activities adding business activities vs costs of IT used in vs costs of IT used in overhead activities overhead activities Quality of IT services Availability of IT services (in IT users’ perception) (in IT users’ perception) Compliance to SLAs Compliance to SLAs Reliability of IT services Number and severity of IT service interruptions service interruptions Performance of IT On-time IT service delivery services (defined by the customer) Change control Percentage of ‘first time right’ IT changes right’ IT changes Manageability Hours spent on IT matters by non-IT managers vs total non-IT managers vs total hours of IT use by non-IT hours of IT use by non-IT staff staff Security number of reported security violations violations Business productivity Annual business turnover vs cost of running business vs cost of running business Improvements in business Improvements in business turnover ascribable to IT turnover ascribable to IT Reduction in business costs Reduction in business costs ascribable to IT ascribable to IT Service culture Number of business improve- ments initiated by IT provider ments initiated by IT provider