BALANCED SCORE CARD NOTES Balanced Score Card is a management TOOL that provides feedback about your organizational

health - about how you are moving forward, successfully or not Requires the right environment - Must understand what factors (financial and non-financial) drives your operations - Struggle between past present-future in developing measures (forward vs lagging indicators of performance) - Struggle with how much does and indicator measure (all the organization or part of it) - Willingness to question and even disregard old premises, ideas, practices - Being willing to be responsible & accountable - Understanding measurement driver of future movement o NOT a judgment about past performance (it is a way to learn) o NOT a basis for doing performance reviews o NOT - Culture of trust and open communications - Employees and Managers alike o Cannot play agendas / be secretive must be open and trusting with wide open communications channels o Cannot be command & control (inhibits open communication & information sharing) - Managers & employees alike must be willing to tackle change regardless of old ways or the rules; must be willing to look in the mirror and see oneself for who one is as an organization the goal is to understand yourself Organization must have top support Organization must have a clear future direction that is depicted in practical/ functional / realistic terms doable Values Vision Mission Strategy for implementation is it too focused (income, TAT, specifics)? Requires that you know what you want to do and how you want to do it - Must be clear in the meaning of vocabulary o Monitoring observing behavior and coaching o Measuring o Managing vs. Performance Management motivating, coaching, facilitating, enabling, empowering individuals /teams knowing specifically what/how resources are to be deployed at all times o Direction setting defining strategic directions in a realistic, practical, manner that everyone in the organization can identify with and relate to in day-to-day operations o Performance measurement - Must be clear about the limits of the Requires maturity, as an organization, to implement. We had to mature there was fear about measuring processes & results. The measures were viewed as outcomes of something more important (TAT vs Process Components) Going in circles Listed too many things waste Required a long learning curve 1

Created some stress / pitfalls We were bogged down in defining the right measures Not enough to develop it, it must be used at all levels in decision making for it to be functional and effective Must relate decisions to results Not something that an organization can just do or jump into Not a stagnant process it is ever changing ever growing and requires the organization to be willing to adapt according to the data/findings sometimes requires fast change/ other slower; sometimes $ investment in change Best is to first focus on 1 or 2 clearly defined projects prove the concept and tehn expand to more complex operations