1. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU 1 Linking Quality to Strategy: Benefits of Balanced Scorecards in the Public Sector Seminar on “Quality Manager in the Public Sector” Romania, 10-20 March 2008

2. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Origin of Balanced Scorecards ª The original Balanced Scorecard (Kaplan and Norton, 1992) was focused on reporting performance and very private- sector oriented ª Now, it is a tool for strategy development and testing and is applicable for public and nonprofit sectors, as well

3. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU 3 A GOAL SETTING TOOL + A DEVICE TO BUILD CAUSE AND EFFECT WITHIN YOUR BUSINESS STRATEGY Financial Customer Operational and process Learning and innovation FinancialCustomer Operational and process Learning and innovation Figure 3.2 General flow of the Balanced Scorecard. (SOURCE: The Balanced Scorecard, David Norton, Renaissance Strategy Group, Lincoln, MA, and Robert Kaplan, Harvard Business School).

4. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU 4 Community First Customer First Funding the Future Performance Counts People Matter

5. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU 5  What are we trying to achieve? (Community Priorities)  What key things do we need to get right to achieve them? (Strategic Objectives)  How do we know if we are getting there? (Measures and Targets) Developing the Scorecard

6. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU The Barking and Dagenham Balanced Scorecard Strategy Map 6 Community First Funding the Future- Financial & Resource Perspective People Matter - Learning & Growth Perspective Performance Counts - Organisational Processes Perspective Customer First Raising Pride Developing Rights & Responsibilities Improving Health, Housing, Social Care Cleaner, Greener, Safer Promoting Equal Opps, Celebrating Diversity Regenerating Local Economy Better Education & Learning for all Meeting Customer Needs First Providing Accessible, Local Services Improving Standards Investment through Partnerships Allocating resources to support priorities Every Pound Counts Supporting Innovation, Risk & Reward Building Confidence, Enhancing Reputation Providing Strategic Leadership Embed the Core Competencies Building Project Management Skills Empowering Decisions, Informing Choice Performance & Accountability Redesign Processes & Programmes to put Customers First Excellence through Partnerships Integrated Financial & Service Planning Community Leadership Role

7. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU The Scorecard Performance Indicators 7 % of interactions with the public that are delivered electronically e.g. by telephone, internet. % of staff who are set performance targets as a result of appraisal/appointment % of reports to members that are appropriate & of good quality % of Balanced Scorecard actions implemented on time and as planned % of partnership strategies/action plans delivered on time & as planned % of residents with a positive perception of the Borough The level of the “Equalities standard” for local government to which the Council performs The level of the “Equalities standard” to which B&D public sector bodies perform Numbers of citizens involved in Council consultations Number of deaths by Heart Disease in B&D % of homes that meet the decency standard as a percentage of total public & private stock % of residents with a positive perception of public safety % of residents with a positive perception of the overall appearance of the Borough % of education & learning indicators at above national average % of education & learning indicators at or above top quartile Average income of B&D citizens Community First % of residents satisfied with the quality of services % of access indicators at or above top quartile % of quality & service outcome indicators at or above top quartile % of community strategy actions delivered on time & as planned Customer First % of cost indicators in best quartile % of Capital schemes delivered on time & within budget % of overall budget which is re-directed to priorities % of capital funding generated from external sources % of revenue funding generated from external sources Funding the Future Performance Counts 1-10 rating by key stakeholders against reputation drivers % of staff satisfied with the quality of their appraisal & personal development planning % of managers trained in project management techniques % of staff who are satisfied that the leadership of their manager enables them to place their work in the context of the Community Priorities and/or strategic objectives % of BV inspections that indicate confidence in the Council’s ability to make improvement People Matter

8. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU 8 Each of the 29 Service Heads produce a scorecard, which translates the corporate scorecard to the service level and takes account of specific service pressures e.g. from government departments. Each Service Scorecard sets out: strategic service objectives and measures an implementation plan of how the targets will be delivered. Service Scorecards

9. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU 9 Patients and Community Financial Organisational DevelopmentService Delivery Objectives Measures Targets Example of a Balanced Scorecard in a UK hospital

10. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU 10

11. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Group exercise Strategic objective Performance indicator Target Customers Staff Financial resources Performance [Your choice]