Performance Measurement

If you wanted to climb Mount Everest What would you do? Where would you start? What would keep you going when it gets tough? How would you know you are successful?

The Balanced Scorecard

In 1990 the Nolan Norton Institute sponsored a multicompany study: Measuring Performance in the Organization of the Future Nolan Norton and Robert Kaplan: believed that reliance on measuring financial performance hinders the ability of organisations to create economic value. introduced the Balanced Scorecard in 1992 as a business performance system designed to implement organisational strategy. The scorecard uses the process of setting specific and challenging goals that translate an organisation's mission and strategy into a comprehensive set of performance measures.

The Balanced Scorecard

It is Balanced: financial and non-financial measures internal and external constituents lagging and leading indicators
It is a Scorecard: measures progress against chosen targets

The Strategy Pyramid: Making Strategy Measurable

Why do we exist? What are our beliefs? What is our aim?

Mission
Core Values Vision

To explore new mountains

Respect nature

To summit that mountain To climb up the north side during the day Climb fast

How will we achieve our goal? What must we achieve to meet our goals? How do we know that we are going to reach our goals? What do we need to reach our goal?

Strategy
Objectives BSC Measures

The speed that I am climbing (m/h) Buy ladders and ropes to allow you to climb faster

Strategic Initiatives (Project Plans)

Key Principles
1. Translate the Strategy into Operational Terms
2. Align the Organisation to the Strategy 3. Make Strategy Everyone's Everyday Job

4. Make Strategy a Continual Process

5. Mobilize Leadership for Change

BSC Components

Financial Measures
Operational Measures

A tool to measure the performance of an organization in four key areas: Financial: How do we look to shareholders? Customers: How do customers see us? Internal process: What must we excel at? Learning and growth: Can we improve?

Components

B A

C D E

Measuring Objectives
The Key Result Areas are the focus points critical to the success of the business.

The objective should be convertable into action and should also be measurable, ie. what do we want to achieve?

Needs to be able to be consistently applied to yield reliable results Needs to be valid in that it will measure attainment of objective Must have control over the measure

Future targeted figures

Who is responsible for actioning the planned measure?

The current figure of performance

Frequency of reporting

G
Financial

The Strategy Map: An Example

Return on Investment
Cash Management

Customer / Stakeholder

Partner of Choice

Partnership across the De Beers pipeline

EXCO Exploration Appetite

Internal Business Processes

The right people in the right place at the right time

Delivering Diamond Deposits

Technolog y and Practice

Organisation & Learning

Employee Wellness

Culture

Knowledge Sharing & Learning

Managing Performance

Dashboard: An Example
Student Success
1.18 Freshman Success 1.18 1.18 0.828 1 Retention Recruitment

Enrollment
1.067 1.067 1.067 1 1 1

Initiative Achievement

Diversity

0.828 1 General Education (Academic Profile) 1 0.828 1.052 1

Enrollment Management

0.942 1 Teacher Education - Overall aggregation 0.74 1 1.718 Major Field 1.132 -0.1 0.978 Graduation Rates 0.96 0.947 2 1 #

Financial
1.167 Appropriations 1.167 1.167 1.233 Capital 1.233 1.233 1.2

Financial Flexibility

Technology

Human Resources

Satisfaction
1.156 Students 1.081 0.74 1.036 Faculty 0.924 0.896 1.01 Staff 0.975 0.94

Operations - E&G

1 0.6 0.94

Teacher Education

Operations - Auxiliary

0.94 0.94 0.438

Communication

Fund Balance

0.438 0.438 11.5

Endowment

6.23 0.964

Key: Performance Above Target; Performance At Target; Performance Below Target; Performance Well Below Target

The Balanced Scorecard in the Non-Profit Sector

The Balanced Scorecard in the Non-Profit Sector

The Strategy Pyramid

Mission Why we exist Core Values What we believe in Vision What we want to be Strategy What our game plan will be Balanced Scorecard What our strategy implementation looks like

Strategic Initiatives What we need to do Personal Objectives What I need to do as an individual

Mission: Sonlife Africa exists to establish church-based disciplemaking youth ministry in each country in Africa to help fulfil the Great Commission.

Values: We value the church as the hope of the world, the life and ministry of Christ as the model for ministry, the ability of young leaders to develop ministries in local churches that demonstrate the priorities of disciplemaking (winning, building, equipping and multiplying), and the empowerment of servant leaders passionate about the Great Commission and the Great Commandment.
Vision: We will achieve our mission by training, coaching and mentoring young leaders in each country in Africa to develop disciplemaking youth ministries that grow healthy churches and start a disciplemaking movement that covers each country. Strategy: Our strategy is to connect with key leaders in countries in Africa, present consecutive levels of training in disciplemaking, coach and mentor leaders to develop ministries that make disciples, and identify key leaders who will be equipped to train, coach and mentor other leaders.

Mission: Develop Healthy Disciplemaking Youth Ministries in Local Churches in Africa Impact Youth Leaders Customers and Stakeholders Track Seminar Progress Build Ministry Capacity Monitor Presenters Monitor Leader Training Monitor Leader Coaching Monitor Leader Mentoring Mobilise Donors Develop Active Partnerships Secure Ongoing Funding

Equip Presenters Internal Processes Supply Quality Tools Provide Effective Training

Develop Regional Directors Facilitate Regular Gatherings Find New Regional Directors Oversee Regional Training

Support Country Leaders Provide Ongoing Training Maintain Consistent Contact

Develop Structures Learning and Growth Cascade Balanced Scorecard Develop Board Ownership

Evaluate Knowledge Gather Seminar Feedback Analyse Seminar Feedback Share Insights Gained

Develop Material Create Seminar Material Translate Seminar Material

Raise Funds Financial Secure Donor Funding Grow Donor Base

Control Expenses Evaluate Operating Expenses Maintain Operating Surplus Reduce Cash Expenses

RACI Charting: An Example

Sonlife Africa: Key Performance Indicators

Key Result Area Financial Income Raised Costs Incurred Training Costs Learning and Growth Board governance Develop training material Measurement 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Goal Total

Amount raised Amount spent Cost per leader trained

R 524,600 R 669,747 R 403,265 R 460,304 R 379,165 R 251,969 R 792,720 R 479,225 R 513,897 R 266 R 1,598 R 487 R 1,034

R 2,437,080 R 2,037,811 R 846

% partipation # seminars translated

60 2

70

80

90

100

100

Internal Processes Develop Regional Leaders # of regional leaders Expand Regionally # of seminar events Customers Train Leaders Expand Training Coach Leaders Mentor Leaders

0 1

0 2

0 4

0 5

2 5

3 8

4 12

4 16

5 20

5 24

5 28

# of leaders trained # countries operating # churches impacted % delegates mentored

87 3 5

360 4 5

949 10 5

496 11 10

985 12 20

497 15 300 25

700 20 400 50

1000 2000 27 35 500 750 75 100

3000 10000 42 52 1000 5000 100 100

3,374

RACI Charting
RACI is an acronym that stands for: (1) Responsible The person who has to do the work. (2) Accountable The person who has to make sure the work gets done. (3) Consulted The person who must be consulted before the work is started. (4) Informed The person who must be informed after the work has been completed.

% of Leaders Trained Target: 10,000

45 40 100 90 80 70 60 50 40 30 20 10 0 35 30 25 20 15 10 5 0

No. of Countries Operating

Actual Projection

Sources of Income 2006 Other 1%

Support 39%

Grants 50%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Consultancy 10%

No. of Regional Training Events

18 20

Expenses Breakdown 2005

16 14

22

24 26 28

300 Churches Im pacted

12 10

Travel 17%

Equipment 1% Salary 37%

8 6 4

2 0

Admin 45%

Implementing the Balanced Scorecard

A. Provide leadership from the top B. Make strategy everyone's job

C. Unlock and focus hidden assets

D. Make strategy a continuous process

Recommended Reading
Books by Robert S. Kaplan and David P. Norton: (1) The Balanced Scorecard: Translating Strategy into Action (2) The Strategy-focused Organisation

(3) Strategy Maps: Converting Intangible Assets into Tangible Outcomes

Perspective Intent KRA

Financial
To generate finances to accomplish our mission and develop systems to control spending. Objective
Nurture exisiting donors.

Measurement
No. of monthly connections made with current donors. No. of new (local and international) donors found. No. of new funding proposals written/presented each year. No. of board approvals for new year budgets.

Measure FreqCollator uency

MD
Quarterly

Target by Year End

2005 2006
8 10

Goal

2007
12

2008
12

2009
12 12

Raise Funds

Find new donors.

MD

Quarterly

10

12

16

Write/present funding proposals. Develop annual budgets.

MD

Quarterly

10

12

12

MD/FD

Yearly

Control Expenses

Present audited accounts to board. Evaluate operating expenses.

No. of AGMs where audited accounts are presented. No. of monthly reports completed to evaluate costs.

MD/FD/C M

Yearly

MD/FR

Monthly

10

12

12

Perspective Intent KRA Develop Corporate Structure

Learning and Growth

To grow organisational capacity to be able to effective delivery our ministries. Objective Measurement Target by Year End Measure FreqCollator uency 2005 2006 2007 2008 2009
MD/RD
Quarterly

Goal
100

% of awareness of the Cascale the Balanced Scorecard Scorecard among stakeholders. Develop board governance. Gather feedback from delegates. % of attendance and particpation at meetings % of evaluation forms collected at each seminar. % of feedback analysed per seminar. % of country leader insights received. No. of seminars revised based on insights gained. No. of new training modules developed. Seminars translated into local languages.

20

50

75

100

100

MD Trainers

Monthly

60

70

80

90

100

100

Every Seminar

100

100

100

100

100

100

Evaluate Intellectual Capital

Analyse seminar feedback. Discover insights being gained. Revise existing training material.

CL

Monthly

60

70

80

90

100

100

MD/RD

Quarterly

30

50

70

90

100

100

MD

Quarterly

1 2 Equip Destiny Strategy: Portug.

Develop Training Material

Create new training material. Translate training material.

MD

Annually

1 1 Harmony Accredit.

1 Adv3

CL/RD

Annually

Foundat: Vision: Multipl: Portug. Portug. Portug. Chichew. Chichew. Chichew.

10.

Perspective Intent KRA

Internal Processes
To mobilise people who deliver and oversee our training, coaching and mentoring. Objective
Find equipping tools and resource. Train and support presenters. Provide ongoing training for leaders.

Measurement
No. of modules created to train presenters. No. of training and support events implemented. No. of regional training events held for country leaders.

Target by Year End Measure FreqCollator uency 2005 2006 2007 2008 2009
MD/RD
Annually

Goal

Equip Ministry Presenters

MD/RD

Quarterly

Support Country Leaders

RD

Quarterly

10

12

Maintain regular No. of monthly email and contact with leaders. telephonic support to leaders. Arrange regional gatherings. No. of gatherings held for regional leaders. Total no. of regional leaders operating in Africa. No. of training events presented by regional leaders.

RD

Monthly

10

12

12

12

MD

Quarterly

Develop Regional Leaders

Find new regional leaders. Oversee regional training.

MD MD/RD

Quarterly

Monthly

12

15

18

24

Segment Intent KRA

Customer
To deliver training, coaching and mentoring to grow healthy youth ministries. Objective
Provide excellent training seminars

Measurement
# of leaders receiving training in Africa

Measure FreqCollator uency

MD/RD
Quarterly

Target by Year End

2005
4000

Goal
2009
8000 10000

2006
5000

2007
6000

2008
7000

Train Leaders

Track progress through training Oversee expansion to countries in Africa Develop coaching strategy

% delegates invited to next training level # countries that Sonlife Africa is operating in No. of new modules developed for coaching % of training delegates being coached No. of churches where the strategy is being implemented No. of new modules developed for mentoring

MR/RD/CL Quarterly

40

60

80

100

100

100

MD/RD

Quarterly

15

19

23

27

31

52

MD

Quarterly

Coach Leaders

Implement coaching strategy Evaluate coaching impact Develop mentoring strategy

Trainers MD Trainers MD

Quarterly

40

60

80

90

100

100

Quarterly

100

250

500

750

1000

5000

Quarterly

Mentor Leaders

Implement mentoring % of seminar delegates being strategy mentored Evaluate mentoring strategy % of trained leaders evidencing life change

Trainers

Quarterly

40

60

80

90

100

100

MD Trainers

Quarterly

500

1000

2000

4000

7000

10000