Cascading The Balanced Scorecard

Government Summit 2006
Cascading the Balanced Scorecard
The IMF/TGS Experience:

Aligning a Diverse Department to a
Performance Management Framework
Tim Jones Paul Durn

Service Manager Manager
International Monetary Fund Palladium Inc.
October 10-12, 2006 Washington, D.C.

Balanced Scorecard Collaborative/Palladium • 55 Old Bedford Road • Lincoln, MA 01773 • Tel: 781.259.3737 • Fax: 781.259.3389 • bscol.com
>>>Executing the Balanced
Strategy Alignment Scorecard
and Cascade Management in a Service Organization
Introduction and Objectives
Discuss the challenges and opportunities faced by

Government and Not-for-Profit service organizations in
implementing the Balanced Scorecard and associated
performance management systems
Review the challenges involved in the deployment of
Balanced Scorecards, and in integrating and aligning
these through cascading
Learn how the International Monetary Fund,
Technology and General Services Department
integrated scorecards and performance management
tools across disparate service organizations, and
succeeded in aligning and cascading multiple
scorecards in an overall performance management
framework
08-2_061011_Jones_Tim_IMF.ppt © 2006 Balanced Scorecard Collaborative, Government Solutions, A Palladium company Page - 2
Agenda
Integrating Strategy and Performance Management
Strategy Alignment and Cascading
The IMF Technology and General Services Department Experience
Discussion and Conclusion
What Is Strategy?
Strategy is the way an organization seeks to achieve

its core purpose:
– A set of goals or objectives
– A method involving people, resources, and processes
Strategy includes:
– Identification of the directions and areas that are most
important in pursuit of the mission
– Recognition of the operating environment in which the
agency or organization operates
– Determination of priorities for resources and communication
Strategy specifies what you do and what you don’t do
Strategy is about change
Change Agenda for Canadian Blood Services
from… …to
Blood products Mission Expanded products and services
Tactical, operational, crisis EMT focus Longer term strategic dialogue
Implementation
Resisted and not understood of Quality Championed and owned
Systems
Multi-source funding, strategic
Short term, single source funding Funding
investments
Refurbished, modern, purpose-
Inherited, ineffective, Infrastructure
built
Targeted, strong and visible
Responsive and limited visibility Medical R&D
thought leadership
Manual Core Processes Standardized and automated
Top down Leadership Identify, develop, empower
unclear benchmark Unit Cost Well defined, near benchmark
Priorities and strategy unclear People Connected to the strategy
What is a Strategy Map and Balanced Scorecard?
At the highest conceptual level, the Strategy Map and Balanced
Scorecard provide a framework that helps organizations

translate strategy into operational
objectives that drive both behavior and
performance.
The Balanced Scorecard is part of a continuum that translates core

purpose, values, and vision into desired outcomes
Core Purpose
Our Mission – Why We Exist
Core Values
What we believe in
Vision
What we want to be
Strategy Map
Our game plan
Balanced Scorecard
Implementation and focus
Strategic Initiatives
What we need to do
Personal Objectives
What I or my team need to do
STRATEGIC OUTCOMES – RESULTS
Efficient and
Satisfied Delighted Motivated & Prepared
Effective
STAKEHOLDERS CUSTOMERS EMPLOYEES
PROCESSES
Strategy Maps Help Us Achieve Our Mission and Vision
EXECUTIVE
EDUCATE AND
CONSENSUS AND
COMMUNICATE
ACCOUNTABILITY
Building the strategy map STRATEGY Communicate with, and

eliminates ambiguity and educate the workforce
clarifies responsibility. about, the strategy.
Army Strategy Map
“Provide necessary forces and capabilities to the Combatant Commanders in support of the National Security and Defense Strategies.”
Mission
Provide Relevant and Ready Land
Core Competencies Train and Equip Soldiers Power Capability to the Combatant
and Grow Leaders
Commanders and the Joint Team
Essential and Enduring Capabilities
Stakeholder
“Support Global Operations”
Sustained
Shape Security Execute Prompt Mobilize the Conduct Land Support Civil
Environment Response Army Forcible Entry Dominance Authorities
“Adapt/Improve Total Army Capabilities”

Ready Force for
Today and
Tomorrow
“Develop Joint, “Build the “Optimize Reserve

“Adjust Global Interdependent Component Contributions”
Future Force”
Internal Process
Footprint” Logistics Structure”
Sustain the Man the Army
Equip the
Army Army
Provide Organize the
Infrastructure Army
Communicate
Train the Army
across the Army
Improve Leverage Technologies Optimize Delivery of

Improve Business
Acquisition with into Key Processes and Non-Core
Practices
Industries Equip Army Competencies
“Adapt Institutional Army”

Resources Learning & Growth
“Sustain Right All Volunteer Force”

People Opportunity Competitive Pride and Sense Personal Leader Training and
for Service Standard of Living of Belonging Enrichment Leader Development
Secure Secure Resources
CREATE PROMOTE
People, Dollars, Infrastructure, Installations, Institutions(I3) and Time
Resources
9 StratMaps-eab-3.23.04DOCID# ©2004 Balanced Scorecard Collaborative, Inc. • bscol.com 16 JAN 04
ALIGNMENT TRANSPARENCY
MAP
Each part of the Communicate with, and
organization and each educate, stakeholders, the
individual link their public, and oversight
objectives to the bodies.
strategy map.
A Strategic Objective or ‘Objective’ is:
• A short (3-8 word) statement that

describes a strategy, something that an
organization wants to be able to do well
Provide reliable and
• An action statement that clarifies what consistent service
strategy is to be implemented
• Enduring, relevant for 3-5 years
• Part of a linked set of priorities that
deliver the overall strategy
Perspectives in Not-for-Profit Organizations
Mission / Core Purpose

The Balanced Scorecard
framework can be adapted to
describe the value creation
process in Government, or not-
Stakeholder Perspective for-profit organizations
“To achieve our mission and vision, how
should we appear to our stakeholders
and customers?”
Internal Process Perspective
To satisfy our stakeholders and customers, at

what business processes must we excel?
Learning and Growth Perspective

To implement our key business processes,
what tools, knowledge, and culture do our
employees need to learn and improve?
How should we manage our non-financial
assets?
Resource Perspective
"To successfully support our

stakeholders, what financial and labor
resources do we need?”
IMF Technology and General Services Department Performance Map
Executive Directors, Management, and Fund Staff agree that TGS effectively supports the Fund’s work
Effective and Efficient Consultative Customer Relationships Innovative Services and

Operations Solutions
Customer
C1:
C1: “Maintains
“Maintains an
an Effective
Effective and
and C2:
C2: “Understands
“Understands Staff
Staff C3:
C3: “Is
“Is Easy
Easy to
to Do
Do C4:
C4: “Provides
“Provides New
New and
and
Efficient
Efficient Work
Work Environment”
Environment” and
and Institutional
Institutional Needs”
Needs” Business
Business With”
With” Innovative
Innovative Services”
Services”
I1:
I1: Provide
Provide reliable
reliable and
and I3: I5:
I5: Collaborate
Collaborate with
with customers
customers
I3: Establish
Establish and
and maintain
maintain mutually
mutually agreed
agreed
Internal Processes
consistent
consistent service
service upon to
to develop new solutions
develop new solutions
upon expectations
expectations
I6:
I6: Investigate
Investigate the
the potential
potential
I2:
I2: Deliver
Deliver specified
specified level
level of
of value
value of
of leading
leading edge
edge
service I4:
I4: Segment,
Segment, understand,
understand, and
and address
address
service in
in the
the most
most cost-
cost- technologies
technologies and
and work
work
effective complex
complex customer
customer needs
needs
effective way
way possible
possible practices
practices
of TGS Staff
and Growth
Learning
L3:
L3: Provide
Provide the
the Appropriate
Appropriate Tools
Tools
L1:
L1: Maintain
Maintain and
and Enhance
Enhance Skills
Skills L2:
L2: Nurture
Nurture aa Customer
Customer Focused,
Focused, and
and Information to
Information to “Get
“Get the
the Job
Job
and
and Knowledge
Knowledge Solutions
Solutions Oriented
Oriented Culture
Culture Done”
Done”
Resources
Financial
F1:
F1: Strive
Strive to
to Maintain
Maintain aa Baseline
Baseline F2:
F2: Manage
Manage Expenses
Expenses versus
versus
Budget
Budget Plan
Plan
Strategy Description and Performance Management are

Founded on Two Basic Components:
The Strategy Map The Balanced Scorecard
Targets
CBS Corporate Strategy Map Example Strategic

Measures FY06 FY07 FY08 Initiatives
Fulfill our
Canadian Blood Services operates Canada's blood supply in a manner that gains the trust, Objective
Mission commitment and confidence of all Canadians by providing a safe, secure, cost-effective,
affordable and accessible supply of quality blood, blood products and their alternatives.
to
ensure Safety Operational Excellence Product & Service Innovation
we
Customer
Service
C1. Provide safe
products and services
C2. Deliver the right
product, at the right
C3. Provide
value for
C4. Meet
changing • Strategic
Excellence to Canadians place, at the right time money clinical needs
Build primary business
• Center of
which S10. Promote the optimal utilization development testing volume $115
S3. S6. Optimize donor S7. Deliver
$85M $100M
+
drive
S4. Protect
against risks
Continuously
improve our
recruitment and
retention
efficiency
and
of product
capabilities and through M
Excellence
S9. Develop or adopt new
the
Strategic
quality systems productivity
gains products and services
technology platforms test work Project Plan
Actions S5. Forecast demand
S2. Monitor known and
emerging threats
to align with clinical
drivers
S8. Anticipate LT changes in future
needs for products and services ($)
S1. Build and sustain facilities that support our business requirements
enable People and Culture Information Technologies

us to
execute I1. Use information technology
P1. Attract and P2. Foster a work P3. Promote and advance
to enable
select the right environment that engages the development of leaders
innovation and business
people and retains our people and successors
Our
Resources
improvements
Adopt best-in-class • Cost
Financial Management and Accountability
laboratory savings
F1. Ensure adequate funding F2. Secure long-term funding F3. Ensure a healthy financial structure
• Infrastructure
CBS Values management systems reinvested $13M $26M $40M
and information through the Implementation
technology process ($)
CBS Corporate Strategy Map
Canadian Blood Services operates Canada's blood supply in a manner that gains the trust,
Fulfill our
to
we
Customer C1. Provide safe C2. Deliver the right C3. Provide C4. Meet
Service products and services product, at the right value for changing
which S10. Promote the optimal utilization

S3. S6. Optimize donor S7. Deliver
drive of product
S4. Protect Continuously recruitment and efficiency
against risks improve our retention and
quality systems productivity S9. Develop or adopt new
the
Strategic
S2. Monitor known and to align with clinical S8. Anticipate LT changes in future
emerging threats drivers needs for products and services

us to
to enable
improvements
Our
Resources
CBS Values
Strategy Maps Were Extended Throughout CBS
Fulfill our
Mission
commitment and confidence of all Canadians by providing a safe, secure, cost-effective,
Board
to
ensure
we
Safety Operational Excellence Product & Service Innovation
Strategy Map
Corporate
Strategy Map which

drive
S4. Protect
against risks
S3.
Continuously
improve our
quality systems
S6. Optimize donor
recruitment and
retention
S7. Deliver
efficiency
and
productivity
S10. Promote the optimal utilization
of product
S9. Develop or adopt new

the
Strategic

us to
to enable
CEO Strategy
improvements
Our
Resources
CBS Values Map
Operations MSRA QARA
Canadian Blood Services operates Canada's blood supply in a manner that gains the trust, Canadian Blood Services operates Canada's blood supply in a manner that gains the trust, QARA provides assurance that Canadian Blood Services is operating Canada's blood supply in a manner
Fulfill our Fulfill our Fulfill our
Mission commitment and confidence of all Canadians by providing a safe, secure, cost-effective, Mission commitment and confidence of all Canadians by providing a safe, secure, cost-effective, Mission that gains the trust, commitment and confidence of all Canadians by providing a safe, secure,
affordable and accessible supply of quality blood, blood products and their alternatives. affordable and accessible supply of quality blood, blood products and their alternatives. cost-effective, affordable and accessible supply of quality blood, blood products and their alternatives.
to
to to ensure
ensure ensure we
we Customer Value Proposition we
Customer C1. Assure the quality of products and C2. Provide CBS with effective and responsive
Customer C1. Provide safe C2. Promote the optimal C3. Integrate transfusion Service
Operating
Customer Donors Hospitals services delivered to Canadians quality and regulatory leadership and expertise
Service products and services to and appropriate utilization science with transfusion Excellence
Service C1. “Giving is really Canadians C3. “CBS helps us succeed
Excellence Canadians of blood products medicine
Excellence important and CBS makes it C2. “We trust the blood system by understanding and
an outstanding experience” responding to our needs” We provide this value by partnering with divisions to support CBS’ quality and compliance goals by assuring:
that CBS manages”
Continuous Process Continuous Process Quality System & Regulatory Compliance
Enhancing Patient and Donor Safety through Services, Advice, Education, Innovation and Research
Control Improvement
which
Production and Distribution S1. Excel at S2. Determine S6. Provide physicians, other CBS divisions, and the S8. Develop or adopt drive
Divisions
Recruitment, Retention and Collections which
S6. Provide efficient and S10. Provide expert guidance and S14. Perform relevant audits to
which drive responsive, state of the appropriate public with scientific, technical, and medical information new products, services
drive
value added reviews and responsive support for continuous determine compliance with quality
S1. Maximize donor S8. Deliver the right product, at art donor testing donor eligibility and knowledge regarding blood products or approaches approvals improvement initiatives systems and regulatory requirements
retention and frequency the right place, at the right time
the S9. Apply best practices for process S13. Maintain and effectively utilize a current
S2. Make the most of S3. Make giving a S9. Leverage a national inventory to meet demand through the S3. Proactively monitor and S7. Forecast long term demand for S9. Advance Strategic S4. Perform S5. Perform
problem solving and comprehensive quality system standard
every donor’s gift positive experience integrated planning of collections and production Strategic respond to known and emerging threats products based on clinical needs transfusion Actions reliable periodic consistent and
the
Actions medicine through review of reliable QC
Strategic S8. Identify and characterize S12. Manage the timely provision of thorough
Actions S4. Optimize new donor S5. Optimize efficiency and quality of the collection, leading-edge records testing
recurring problems reports of adverse events
recruitment production and distribution processes S4. Excel at S5. Provide state-of-the-art research,
laboratory patient stem cell transplantation development and
S3. Effectively manage S7. Provide timely and accurate S11. Manage the timely submission
S6. Understand S7. Build S10. Increase understanding of hospital blood S11. Enhance services services evaluation projects
key quality support measurement and reporting of of changes by CBS divisions and
the drivers the CBS brand product management and demand relationships systems quality performance indicators acceptance by the regulator
of donor with hospital enable enable
enable us to us to
behavior S12. Involve Canadians in our decision making and tell them our story customers S10. Anticipate and plan for changes in future needs for products and services execute
us to execute Leadership and Support
execute
S1. Promote understanding of how to S2. Establish a collaborative relationship with divisions to
effectively utilize quality systems to gain results meet CBS’ regulatory and quality objectives
R1. Create R2. Align R3. Build capacity to gather R4. Develop an environment where R1. Increase automation R2. Recruit, retain R3. Build a
Our Our R4. Align and
community our skills to and utilize strategic people understand and execute our to drive safety, quality and develop skilled unified and strategic Our R1. Equip our employees with the necessary skills, R2. Foster business and R3. Embrace
Resources Resources allocate skills
ambassadors our strategy information customer focused strategy and efficiency people MSRA culture Resources behaviours and attitudes to create a flexible culture customer-focused culture standardization
CBS Values CBS Values CBS Values
IT HR
IT provides the technology solutions that help CBS achieve its mission to operate Canada's blood supply in a HR provides the strategic human resource solutions that help CBS achieve its mission to operate Canada's blood
Fulfill the Fulfill the
CBS mission manner that gains the trust, commitment and confidence of all Canadians by providing a safe, secure, cost- CBS mission supply in a manner that gains the trust, commitment and confidence of all Canadians by providing a safe,
effective, affordable and accessible supply of quality blood, blood products and their alternatives. secure, cost-effective, affordable and accessible supply of quality blood, blood products and their alternatives.
to to
ensure ensure
we we Management and Employees
Customer C1. “Keep my C2. “Help me C3. “Show the C4. “Understand C5. “Lead C1. “Deliver C5. “Help us
Customer
Service business deliver the ‘big business value of my business to with IT Service quick and C2. “Know me C3. “Help me get C4. “Make CBS a ensure we have
Excellence running” stuff’” my IT investment” provide solutions” innovation” reliable customer and my business and manage the place where I leaders for today
Excellence
service” needs” right people” want to stay” and tomorrow”
Enabling which
drive
Operational Excellence
S4. Maintain and renew a

secure and reliable
S5. Meet quality
standards and
Business Alignment Innovative Solutions
S8. Proactively monitor IT

market trends and products
which
drive
Operational Excellence
S4. Standardize practices, policies

Customer and Stakeholder
Relationships
S7. Equip managers
One of the Best Employers
S11. Identify and develop
Divisions
infrastructure that ensures ensure regulatory for relevant solution and processes to gain efficiencies and to utilize best current and future leaders
business operations compliance opportunities to be cost effective people management practices
S10. Establish and implement a
the
the S3. Create and implement a national labour relations strategy national recruitment strategy
Strategic S3. Understand and S7. Partner with S9. Partner with
Strategic
Actions manage unit cost customers to our customers to Actions S9. Develop and deliver programs
and demand ensure optimal realize solutions that S2. Establish an HR organizational S6. Understand and know our
to inspire and retain employees
for IT services operations maximize business value structure that optimizes the delivery customer’s business needs and
of services and programs requirements
S8. Help CBS develop and
S1. Effectively evaluate S2. S6. deliver training and development
and manage Optimize IT Know the S1. Create and leverage the HR technological S5. Develop relationships to programs that meet business
(HR and IT)

enable enable infrastructure to meet the business needs create better business outcomes
us to external providers processes CBS business us to needs
execute execute
People and Culture Innovative Technologies People and Culture Innovative Technologies
R1. Continually R2. Enhance and R3. Foster a business- R4. Provide tools and R1. Embrace R2. Equip our employees with the R3. Be accountable for R4. Provide access and
Our Our
enhance formalize methodology and customer-focused techniques to improve standardization necessary skills, behaviours and your role in executing the training to utilize existing
Resources Resources
technical skills skills culture IT efficiencies across HR attitudes to create a flexible culture CBS / HR strategy and new technology
CBS Values CBS Values
Core Service “Mini-Scorecards”

ID Core Service Service Objective Volume Metric Cost Metric Service Quality Customer
Metric Satisfaction
Food Services
AS-1 Cafeteria and Provide the best possible food # of transactions Administrative cost per Quarterly Review -- Customer Satisfaction
Executive Dining and service quality at the lowest (customers and/or meals meal served (AD) – based External Performance Survey Score – bi-
Room (EDR) cost possible for cafeterias and served) per day (utilization on # of positions in Audit (quality rating for annual – captures
cafes in HQ and I-Square rates) Hospitality section Food services by area) overall satisfaction
Service Standard N/A TBD Depends on individual 71% - contractual

service 80% - “Stretch”
Average number of cafeteria transactions per day (HQ &

5,000 IS)
1,296
1,209
4,000
1,028
Once standards have been defined, a small set of

945
838
885
3,476
3,412
796
3,000
critical performance indicators – a “mini-scorecard” –
3,116
711
2,907
2,866
2,779
2,621
will be developed for each Core Service. Note this

2,247
2,000
1,000
example uses illustrative data.
0
May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03
Monthly average Monthly target
[Food] Quality Assurance Audit Scores -- FY 2004
Cafeteria: Overall customer satisfaction rating for food
Administrative cost per transaction (Cafeteria)
services
2.72
3
2.67
2.61
2.7
100%
2.58
2.52
2.48
2.5
2.5
2.5
$0.20
2.31
2.4
2.5
2
80%
69%
$0.16
1.5
$0.16
60%
69%
1
$0.14
60%
$0.13
$0.12
$0.13
60%
0.5
$0.12
$0.11
0
$0.10
1Q04 2Q04 40%

$0.09
$0.08
IS Cafeteria 2.5 2.37
IS Bistro 2.5 2.31 20%
$0.04
Macro Cafeteria 2.58 2.61
Micro Cafeteria 2.5 2.52
$- 2.67 2.7
0%
Atrium Bistro
May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Exec Dining Room 2.72 2.48 1Q04 2Q04 3Q04 4Q04
Monthly average Monthly target Actual rating Target rating
Agenda
Objective Cascade Methods

Agency Line of Business
Identical
Identical Objectives
Contributory
Translated, but Congruent
Objectives
Unique
New Objectives do not Link
Directly to the Parent
Shared
An Objective Jointly Owned
by More than one Scorecard
Cascade by Theme – U.S. Army
HQDA Operations Center

Army 36 Major Commands
Scorecard
300+ Subordinate commands
Major Commands Themes stayed consistent

& Staff throughout the process
Directorates
Army developed a language
and a culture around the
themes of “readiness”,
Subordinate “transformation” and “business
Commands practices”
Which elements of the BSC architecture become mandatory?
Theme Objective Measure Initiative
Readiness &
Transformation P1. Ready
Force For
Today and
Tomorrow
Readiness & Transformation Ready Force For Today % Forces meeting “Force Restructuring”
and Tomorrow required Army
readiness objectives
May be mandated May be mandated May be mandated May be mandated

across the organization in various places in as part of a drill- where necessary to
to align everyone to a the organization down or as a tool to ensure the success
common, high-level that have strong increase visibility at of a strategic
strategic focus impact on a specific lower levels of the project
strategic driver organization
Cascading Provides a Framework for Aligning Performance Goals
Customer Example Financial Example
Agency
• Budget Management
• Customer Operating Division • Capital Budget

Satisfaction • Operating Budget
• Operating Costs
• Customer VP of Operations • Overhead
Input
Plant Manager • Variable Costs
• On time • Overhead
delivery
Shift Supervisor
• Scrap rate
• Schedule • Labor/Unit
Adherence
• Line Availability
Example – TGS used one strategy map with identical objectives, but allowed
customized objective descriptions and measures
The “what” Top-down

(strategic
priorities) is articulation
Vision / Mission Department Scorecard cascaded
down through
the
organization
Service Area Scorecards
Group 1
Group 2
Group 3
The “how”
(measure-
ment results)
Bottom-up is rolled back
execution up.
The Balanced Scorecard is part of a continuum that translates

core purpose, values, and vision into desired outcomes
Core Purpose
Our Mission – Why We Exist
Core Values
CBS Corporate Strategy Map
What we believe in
Fulfill our
Vision
to
we
which
drive
S4. Protect
S3.
Continuously
S6. Optimize donor
recruitment and
S7. Deliver
efficiency
S10. Promote the optimal utilization
of product
What we want to be
against risks improve our retention and
quality systems productivity S9. Develop or adopt new
the
Strategic
enable People and Culture

Information Technologies
Strategy Map
us to
Our game plan

to enable
improvements
Our
Resources
Financial Management and Accountability >>>Executing the Balanced
for Service Organizations
Core Service “Mini-Scorecards”
CBS Values
ID Core Service Service Objective Volume Metric Cost Metric Service Quality Customer
Metric Satisfaction
Balanced Scorecard Food Services

AS-1 Cafeteria and
Executive Dining
Room (EDR)
Provide the best possible food
and service quality at the lowest
cost possible for cafeterias and
cafes in HQ and I-Square
# of transactions Administrative cost per Quarterly Review --
(customers and/or meals meal served (AD) – based External Performance
served) per day (utilization on # of positions in
rates) Hospitality section
Audit (quality rating for
Food services by area)
Customer Satisfaction
Survey Score – bi-
annual – captures
overall satisfaction
Implementation and focus 5,000

Average number of cafeteria transactions per day (HQ &
IS)
Service Standard N/A TBD Depends on individual
service
71% - contractual
80% - “Stretch”
1,296
1,209
4,000
1,028
Once standards have been defined, a small set of
945
838
885
3,476
3,412
796
3,000
critical performance indicators – a “mini-scorecard” –
3,116
711
2,907
2,866
2,779
2,621
will be developed for each Core Service. Note this
2,247
2,000
Strategic Initiatives
1,000
example uses illustrative data.
0
May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03
Monthly average Monthly target
[Food] Quality Assurance Audit Scores -- FY 2004
Cafeteria: Overall customer satisfaction rating for food
Administrative cost per transaction (Cafeteria)
services
2.72
3
2.67
2.61
100%
2.7
2.58
2.52
2.48
What we need to do
2.5
2.5
2.5
$0.20
2.31
2.4
2.5
2 80%
69%
$0.16
1.5
$0.16
60%
69%
1
$0.14
60%
$0.13
$0.12
$0.13
60%
0.5
$0.12
$0.11
0
$0.10
1Q04 2Q04 40%
$0.09
$0.08
IS Cafeteria 2.5 2.37
IS Bistro 2.5 2.31 20%
$0.04
Macro Cafeteria 2.58 2.61
Micro Cafeteria 2.5 2.52
$- 2.67 2.7
0%
Atrium Bistro
May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 2.72 2.48
1Q04 2Q04 3Q04 4Q04
Exec Dining Room
Monthly average Monthly target Actual rating Target rating
Personal Objectives
EIG 2006 © 2006 Balanced Scorecard Collaborative, A Palladium company Page - 19
What I or my team need to do
STRATEGIC OUTCOMES – RESULTS
Efficient and
Satisfied Delighted Motivated & Prepared
Effective
STAKEHOLDERS CUSTOMERS EMPLOYEES
PROCESSES
Agenda
The IMF/TGS Experience:
Aligning a Diverse Department to a
Performance Management Framework
The views expressed in this paper are those of the author and
should not be attributed to the International Monetary Fund,
its Executive Board, or its management.
© 2005 International Monetary Fund

What is the IMF?
¾ The International Monetary Fund (IMF or the Fund) is an

international organization of 184 member countries.
¾ Established in 1946 to
foster global monetary cooperation
secure financial stability
facilitate international trade
promote high employment and sustainable economic growth
reduce poverty
© 2005 International Monetary Fund 25

Facts about the IMF
Offices
• Two adjacent headquarters buildings in Washington, DC
• Small offices in Paris, Geneva, Tokyo and New York
• Five regional technical assistance centers—in the Pacific, the Caribbean,
East and West Africa, and the Middle East
• Six regional training centers
• Resident Representative offices in approximately 90 countries
Staff
• Approximately 2,700 staff, most in Washington, DC
• Additional on-site personnel include contractual employees and some
vendor company employees who work at IMF facilities on a daily basis

IMF’s Technology and General Services Department
• TGS formed as a department in 1999 by merging functions from

several departments and bureaus
• Handles most operational support functions (but not HR and finance)
• Approximately 400 staff plus an additional 900 contractual and vendor
personnel
• Some work is outsourced
• Annual budget of approximately $190M
• Customers: primarily IMF staff and other on-site personnel, with
broader constituencies for certain services

TGS Service Groups and Divisions
Front Office
Administrative Services Technology Services Language Services
Facilities Management Client Services Arabic & Russian
General Services Economic Systems Chinese, English and Portuguese
Information Services Financial & Admin Systems French
Security Services Infrastructure Spanish
Multimedia Services Interpretation
Reference & Terminology

Performance Management Program: Key Issues
• Defining common objectives for a broad range of services
• Creating alignment, especially with service managers from different

disciplines and organizational backgrounds
• Determining the scope of coverage for the program (all services?)
• Cascading the program to the service groups and individual service

managers
• Creating meaningful reports for each organizational level

Strategic Decisions
¾ Commit to a single strategy map for the department and the

three service groups
¾ Focus on a group of “core services”
¾ Develop aggregate measures and stoplight reports to roll up

the data
¾ Institute a survey program that would be useful for all levels of

the organization

TGS Performance Map

Customer
C1:
C1: “Maintains
“Maintains an
an Effective
Effective and
and C2:
C2: “Understands
Staff C3:
C3: “Is
“Is Easy
Easy to
to Do
Do C4:
C4: “Provides
“Provides New
New and
and
Efficient
Efficient Work
Work Environment”
Environment” and
and Institutional
Needs” Business
Business With”
With” Innovative
Services”
I1:
I1: Provide
Provide reliable
reliable and
and I3: I5:
I5: Collaborate
Collaborate with
with customers
customers
I3: Establish
Establish and
and maintain
maintain mutually
mutually agreed
agreed
Internal Processes
consistent
consistent service
service upon to
upon expectations
expectations
I6:
I6: Investigate
Investigate the
the potential
potential
I2:
I2: Deliver
Deliver specified
specified level
level of
of value
value of
of leading
leading edge
edge
service I4:
I4: Segment,
understand, and
and address
address
service in
in the
the most
most cost-
cost- technologies
technologies and
and work
work
effective complex
complex customer
customer needs
needs
effective way
way possible
possible practices
practices
of TGS Staff
and Growth
Learning
L3:
L3: Provide
Provide the
the Appropriate
Appropriate Tools
Tools
L1:
L1: Maintain
Maintain and
and Enhance
Enhance Skills
Skills L2:
L2: Nurture
Nurture aa Customer
Customer Focused,
Focused, and
and Information to
“Get the
the Job
Job
and
and Knowledge
Knowledge Solutions
Solutions Oriented
Oriented Culture
Culture Done”
Done”
Resources
Financial
F1:
F1: Strive
Strive to
to Maintain
Baseline F2:
F2: Manage
Manage Expenses
Expenses versus
versus
Budget
Budget Plan
Plan

Core Services
Definition – a service which meets at least one of these three criteria:
• Very important to our customers/the work of the Fund (the impact of

service failure would be very high)
• Frequently requested (high volume of transactions)
• Requires significant resources (in the aggregate, not per transaction)

Core Services
Facilities Help Desk Application Development Translation

Cleaning Services Application Maintenance Interpretation
Mail Delivery Services Infrastructure Development Publication Translation
Meeting Room Services Telephone Services
Audio Visual Services Network Services
Travel Services Remote Access Services
Shipping Services E-mail Services
Cross-Group/Other
Procurement Services Workstation Services
Services
Info Services, Electronic Resources Client Services
Library Services: Collection Utilization Creative Services
Document Distribution Office Moves
IS: Collection Development & Mgmt
IT Security Services Business Continuity
IS: Institutional Repository Content
Security Services, HQ
IS: Availability of Historical Content
Security Services, Field
Departmental Records Mgmt
The Concordia
Food Services

Key Objectives for Individual Core Services

Customer
C1:
C1: “Maintains
“Maintains an
an Effective
Effective and
and C2:
C2: “Understands
Staff C3:
C3: “Is
“Is Easy
Easy to
to Do
Do C4:
C4: “Provides
“Provides New
New and
and
Efficient
Efficient Work
Work Environment”
Environment” and
and Institutional
Needs” Business
Business With”
With” Innovative
Services”
I1:
I1: Provide
Provide reliable
reliable and
and I3: I5:
I5: Collaborate
Collaborate with
with customers
customers
I3: Establish
Establish and
and maintain
maintain mutually
mutually agreed
agreed
Internal Processes
consistent
consistent service
service upon to
upon expectations
expectations
I6:
I6: Investigate
Investigate the
the potential
potential
I2:
I2: Deliver
Deliver specified
specified level
level of
of value
value of
of leading
leading edge
edge
service I4:
I4: Segment,
understand, and
and address
address
service in
in the
the most
most cost-
cost- technologies
technologies and
and work
work
effective complex
complex customer
customer needs
needs
effective way
way possible
possible practices
practices
of TGS Staff
and Growth
Learning
L3:
L3: Provide
Provide the
the Appropriate
Appropriate Tools
Tools
L1:
L1: Maintain
Maintain and
and Enhance
Enhance Skills
Skills L2:
L2: Nurture
Nurture aa Customer
Customer Focused,
Focused, and
and Information to
“Get the
the Job
Job
and
and Knowledge
Knowledge Solutions
Solutions Oriented
Oriented Culture
Culture Done”
Done”
Resources
Financial
F1:
F1: Strive
Strive to
to Maintain
Baseline F2:
F2: Manage
Manage Expenses
Expenses versus
versus
Budget
Budget Plan
Plan

Sample Mini-Scorecard
Volume Management Issues Cost

Number of Reports Costs per Sq. Ft ($)
VOLUME: $1.00
The problem experienced in 0.75
100 90 Building 1 in 3Q05 has been $0.75
80 resolved. . . .
$0.50
60 46 47 45
QUALITY: 0.77 0.81
44 0.63 0.67
39 35 $0.25
40 31 27 32 Target service levels have been
20 20 achieved in each of the last two
20 quarters. . . . $0.00
0 Q1 Q2 Q3 Q4
COST:
1Q05 2Q05 3Q05 4Q05
The cost per square foot continues Unit Cost - FY04 Unit Cost - FY05
Building 1 Building 2 Building 3 to alternate above and below the Benchmark/Target
target level. . . .
SATISFACTION:
Satisfaction
Quality Scores remain high. . . . How satisfied are you with _____ service?
Percentage of Service Levels Met ACTION ITEMS: 100%
84% 85% 85% >80%-
100% 97.9% Diagnostics on the causes of the 80%
71%
96.7% 96.3% 97.2% Desirable
cost fluctuations are nearly <70%-
95% complete. Next steps. . . . 60%
Unacceptable
40%
90%
20%
85%
0%
Jun 2004 Nov 2004 Feb 2005 May 2005
80%
Very Dissatisfied 5% 0% 1% 0%
1Q05 2Q05 3Q05 4Q05
Dissatisfied 11% 5% 3% 3%
Actuals Industry Avg. (95%) Neither 13% 10% 10% 7%
Target (97%)
Satisfied 41% 46% 46% 45%
Very Satisfied 30% 38% 39% 40%
Departmental Reports
• Draw heavily on data from the mini-scorecards, plus survey results

and administrative and financial information
• Assign stoplight values to mini-scorecard quality, timeliness and

satisfaction measures and report in summary tables

TGS Map
Report I1: Provides reliable and consistent service
TGS G
Administrative Services G Technology Services G Language Services G
Facilities Help Desk Application Development ■ Translation G
Cleaning Services ■ Application Maintenance R Interpretation

Mail Delivery Services ■
Infrastructure Development Publication Translation G
Audio Visual Services *G
Telephone Services G
Catering & Meeting Room Svcs *G Cross-Group / Other Y

Network Services – Core Network G
Travel Services *G Office Moves Y
Network Services – Server Services G
Shipping Services *G
Business Continuity
Network Services – Storage Services
Procurement Services G
Security Services, HQ ■
IS: Electronic Resources Network Services – Print Services G
Remote Access Services Security Services, Field ■

Library Svcs & Collection Utilization G
IS:Collection Development & Mgmt E-mail Services G
Key
IS: Institutional Repository Content Workstation Services Y
(G) Quality goals being achieved
IS: Availability of Historical Content Client Services – Help Desk Y
(Y) Mixed performance
Records Management G
Client Services – CMC Y
(R) Quality concerns
The Concordia G
Client Services – NetAdmin Y ■ = Quality data reported but no target set
Food Services G
Creative Services No Quality Indicator.
Document Printing/Distribution * Survey-based measure
TGS Performance Management Report: 1Q07 IT Security Services G 37

What about Service Group Scorecards?
Facilities Help Desk Application Development Translation

Cleaning Services Application Maintenance Interpretation
Mail Delivery Services Infrastructure Development Publication Translation
Meeting Room Services Telephone Services
Audio Visual Services Network Services
Travel Services Remote Access Services
Shipping Services E-mail Services
Cross-Group/Other
Procurement Services Workstation Services
Services
Info Services, Electronic Resources Client Services
Library Services: Collection Utilization Creative Services
Document Distribution Office Moves
IS: Collection Development & Mgmt
IT Security Services Business Continuity
IS: Institutional Repository Content
Security Services, HQ
IS: Availability of Historical Content
Security Services, Field
Departmental Records Mgmt
The Concordia
Food Services

TGS Map
Report Departmental Reports and Service Groups
• In addition to the roll-up stoplights for the core service summary

pages, include slides with summary data for the three service groups
• Service group managers address issues in the summary data and

highlight performance-related developments in their service group
• May discuss one or more core services in their group if they have:
1. Made significant strides in a performance area
2. Experienced performance problems
3. Completed a service-specific survey and/or
4. Been the subject of Fund management’s attention
TGS Performance Management Report: 1Q07 39

Map
TGS Summary: Service Group
Report
Service Delivery
Nov 04 Feb 05 Aug 05 Nov 05 Feb 06

Customer Satisfaction
C1:
Overview
C1: “Maintains
“Maintains an
an Effective
Effective and
and
Efficient
Efficient Work
Work Environment”
Environment”
78% 76% 75% 78% 80%
Satisfaction:
Overall satisfaction .....
I1:
I1: Provide
Provide reliable
reliable and
Quality consistent
and
consistent service
service
Quality:
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07
Overall quality ....
Number of core services with Timeliness:

Quality indicators and targets:
Overall timeliness ....
8 8 8 8 8 8 8
I1:
I1: Provide
Provide reliable
reliable and
and
Timeliness consistent
consistent service
service
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07
Number of core services with

Timeliness indicators and targets:
2 2 2 2 2 2 2

Map
TGS Summary: Service Group
Report
Cost Management
Administrative Cost Per Capita
$30,000
Cost-Effectiveness 20,000 20,000 20,500 20,500

$20,000
I2:
I2: Deliver
Deliver specified
specified level
level of
of
$10,000
service
service in
in the
the most
most cost-
cost-
effective
effective way
way possible
possible
$0
FY03 FY04 FY05 FY06
Group V - Unanticipated Budget Demands

($000s)
Baseline Budget (Absorbed within existing budget envelope)
$600
F1:
F1: Strive
Strive to
to Maintain
Maintain aa
Baseline
Baseline Budget
Budget $400
$200
$0
SG TGS Total (Net)
1Q07 Estimate 100,000 500,000
FY07 Working Budget vs. Projected Outturn

Manage Expenses (Millions)
$150
F2:
F2: Manage
Manage Expenses
Expenses versus
versus
Plan
Plan $100
$50
$0
SG TGS
Working Budget 40.0 100.0

Q1 Projected Outturn 40.0 100.0 41
TGS Performance Management Report: 1Q07
TGS Map
Report Key Objectives for Service Groups

Customer
C1:
C1: “Maintains
“Maintains an
an Effective
Effective and
and C2:
C2: “Understands
Staff C3:
C3: “Is
“Is Easy
Easy to
to Do
Do C4:
C4: “Provides
“Provides New
New and
and
Efficient
Efficient Work
Work Environment”
Environment” and
and Institutional
Needs” Business
Business With”
With” Innovative
Services”
I1:
I1: Provide
Provide reliable
reliable and
and I3: I5:
I5: Collaborate
Collaborate with
with customers
customers
I3: Establish
Establish and
and maintain
maintain mutually
mutually agreed
agreed
Internal Processes
consistent
consistent service
service upon to
upon expectations
expectations
I6:
I6: Investigate
Investigate the
the potential
potential
I2:
I2: Deliver
Deliver specified
specified level
level of
of value
value of
of leading
leading edge
edge
service I4:
I4: Segment,
understand, and
and address
address
service in
in the
the most
most cost-
cost- technologies
technologies and
and work
work
effective complex
complex customer
customer needs
needs
effective way
way possible
possible practices
practices
of TGS Staff
and Growth
Learning
L3:
L3: Provide
Provide the
the Appropriate
Appropriate Tools
Tools
L1:
L1: Maintain
Maintain and
and Enhance
Enhance Skills
Skills L2:
L2: Nurture
Nurture aa Customer
Customer Focused,
Focused, and
and Information to
“Get the
the Job
Job
and
and Knowledge
Knowledge Solutions
Solutions Oriented
Oriented Culture
Culture Done”
Done”
Resources
Financial
F1:
F1: Strive
Strive to
to Maintain
Baseline F2:
F2: Manage
Manage Expenses
Expenses versus
versus
Budget
Budget Plan
Plan

Cascading Strategic Objectives
Departmental Scorecard
Service Group Scorecard
Core Service Scorecard
43
Objectives Addressed by Surveys

Customer
C1:
C1: “Maintains
“Maintains an
an Effective
Effective and
and C2:
C2: “Understands
Staff C3:
C3: “Is
“Is Easy
Easy to
to Do
Do C4:
C4: “Provides
“Provides New
New and
and
Efficient
Efficient Work
Work Environment”
Environment” and
and Institutional
Needs” Business
Business With”
With” Innovative
Services”
I1:
I1: Provide
Provide reliable
reliable and
and I3: I5:
I5: Collaborate
Collaborate with
with customers
customers
I3: Establish
Establish and
and maintain
maintain mutually
mutually agreed
agreed
Internal Processes
consistent
consistent service
service upon to
upon expectations
expectations
I6:
I6: Investigate
Investigate the
the potential
potential
I2:
I2: Deliver
Deliver specified
specified level
level of
of value
value of
of leading
leading edge
edge
service I4:
I4: Segment,
understand, and
and address
address
service in
in the
the most
most cost-
cost- technologies
technologies and
and work
work
effective complex
complex customer
customer needs
needs
effective way
way possible
possible practices
practices
of TGS Staff
and Growth
Learning
L3:
L3: Provide
Provide the
the Appropriate
Appropriate Tools
Tools
L1:
L1: Maintain
Maintain and
and Enhance
Enhance Skills
Skills L2:
L2: Nurture
Nurture aa Customer
Customer Focused,
Focused, and
and Information to
“Get the
the Job
Job
and
and Knowledge
Knowledge Solutions
Solutions Oriented
Oriented Culture
Culture Done”
Done”
Resources
Financial
F1:
F1: Strive
Strive to
to Maintain
Baseline F2:
F2: Manage
Manage Expenses
Expenses versus
versus
Budget
Budget Plan
Plan
Key Customer
Customer Surveys
Surveys TGS
TGS Employee
Employee Surveys
Surveys
C1-C4: Survey Results for the Department and the Service Groups
Satisfaction MEASURE
Average Satisfaction Scores for Services, Service group scores are the average of responses to survey questions
by Service Group and for TGS as a Whole regarding satisfaction with TGS performance on their core services. The
departmental score is the average of a series of questions for TGS as a whole,
based on objectives C1-C4.
100%
85% 85% 85% 85% PRE-MEETING PERFORMANCE ANALYSIS
This graph shows the satisfaction scores for services within each service group
and for the department as a whole. . . .
75% 70% 70% 70% 70%
DISCUSSION NOTES
50%
INITIATIVES
25%
0%
AS IT LS TGS
Nov Feb Target (80%)

Lessons Learned
• Alignment is critical but does not come easily, especially in a diverse

organization.
• The process is evolutionary and takes time.
• It is very important to create value for managers at all levels.
• Keep it as simple and practical as possible.

Some Next Steps
• Continue the evolution

• Implement performance management software
• Continue to obtain/review/update cost and service benchmark data
• Revisit the Strategy Map? (TBD)

Agenda

Cascading The Balanced Scorecard

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Cascading The Balanced Scorecard

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Government Summit 2006

Cascading the Balanced Scorecard

The IMF/TGS Experience:

Tim Jones Paul Durn

October 10-12, 2006 Washington, D.C.

Introduction and Objectives

Discuss the challenges and opportunities faced by

Introduction and Objectives

Integrating Strategy and Performance Management

Strategy Alignment and Cascading

The IMF Technology and General Services Department Experience

Discussion and Conclusion

Strategy is the way an organization seeks to achieve

Change Agenda for Canadian Blood Services

Tactical, operational, crisis EMT focus Longer term strategic dialogue

Manual Core Processes Standardized and automated

Top down Leadership Identify, develop, empower

unclear benchmark Unit Cost Well defined, near benchmark

Priorities and strategy unclear People Connected to the strategy

What is a Strategy Map and Balanced Scorecard?

At the highest conceptual level, the Strategy Map and Balanced

Scorecard provide a framework that helps organizations

The Balanced Scorecard is part of a continuum that translates core

STRATEGIC OUTCOMES – RESULTS

Strategy Maps Help Us Achieve Our Mission and Vision

Building the strategy map STRATEGY Communicate with, and

Essential and Enduring Capabilities

“Adapt/Improve Total Army Capabilities”

“Develop Joint, “Build the “Optimize Reserve

Improve Leverage Technologies Optimize Delivery of

“Adapt Institutional Army”

“Sustain Right All Volunteer Force”

Secure Secure Resources

A Strategic Objective or ‘Objective’ is:

• A short (3-8 word) statement that

Perspectives in Not-for-Profit Organizations

Mission / Core Purpose

Internal Process Perspective

To satisfy our stakeholders and customers, at

Learning and Growth Perspective

"To successfully support our

Effective and Efficient Consultative Customer Relationships Innovative Services and

Strategy Description and Performance Management are

The Strategy Map The Balanced Scorecard

CBS Corporate Strategy Map Example Strategic

enable People and Culture Information Technologies

which S10. Promote the optimal utilization

enable People and Culture Information Technologies

Strategy Maps Were Extended Throughout CBS

Strategy Map which

S9. Develop or adopt new

enable People and Culture Information Technologies

CBS Values Map

Operations MSRA QARA

CBS Values CBS Values CBS Values

S4. Maintain and renew a

S8. Proactively monitor IT

S4. Standardize practices, policies

S11. Identify and develop

(HR and IT)

CBS Values CBS Values

Core Service “Mini-Scorecards”

Service Standard N/A TBD Depends on individual 71% - contractual

HQDA Operations Center

Major Commands Themes stayed consistent