The Balanced Scorecard at the University of Akron
Presented to the University Community 5/21/2002
What is the Balanced Scorecard?
The Balanced Scorecard is a methodology by which operational procedures are aligned with strategic vision.
Interviewees
Dr. Proenza Dr. Hickey Dr. Newkome Dr. Roney Dr. Gaylord Dean Aynes Dean Creel Mr. Nettling Mr. Curtis Mr. LaGuardia Council of Deans Dr. Sheffer Faculty Senate/General Faculty (2) Mr. Mallo Student Affairs Directors Business/Finance Directors Athletics CPAC Facilities Directors Planning and Budget Committee IT Directors Associate/Assistant Deans Diversity Group SEAC HR Department Chairs/Directors
Interview Questions
1. 2. 3. 4. 5. What 3-5 critical things do we need to do to most effectively implement the strategic vision outlined in Charting the Course? What capabilities should individual employees have in order to execute the strategies of the institution? What kind of infrastructure do you need to execute the strategies of the institution? What kind of culture should develop to energize people to achieve the strategies and/or objectives of the institution? Considering a 3 year time frame: Which strategic objectives would ideally be achieved and what are specific targets (achievement levels). (These should be stretch targets.) Who are the internal stakeholders? Who are the external stakeholders? What does it mean to be a good steward for the university?
6. 7.
BSC Timeline
Interview leadership team members Interview constituent groups Construct draft of strategy map Second round of interviews Refinement of strategy map and development of measurements and targets
Initiate BSC training
First draft to larger team and leadership group Revision of draft Core team Reflection on and continues revisions of draft strategy map based on reflection and revisions feedback received
Presentation of completed Draft to Leadership Team
September 2001
October/ November 2001 December 2001
January/ February 2002
April 2002
April 18
well educated grads
quality improvement
cost of scholarships/financial aid matrix UA viewed as selective
develop all to participate in workforce motivate students to excel
endowment
career development (mentoring) sense of community (sense of belonging, diversity issues, caring) tell the story build awareness of excellence among students/employees competitive advantage for students supervisory training
meets students goals
good public relations (advertising/telling the story) operating cost reduction employees perceive fairness in reward and accountability systems recruitment/retention diversity establish benchmarks tuition & subvention
student satisfied with quality of education reputation of specific unique programs grants and contracts create undergraduate tiered access computer literacy
maintain academic integrity increased productivity
good teachers are fundamental, effective instruction faculty
increase alumni giving
leadership
comparative advantage
effective evaluation/rewards for employees documented excellence financial aid
employers see grads as good hires program review with consequences
leading edge technology
scholarships/financial aid matrix effective supervision of employees productivity
organizational development (evaluation of EES, compensation models, career paths)
cost-saving through retention of quality employees
convenience in student services (e.g. enrollment, financials) pride in UA effective student academic support creative & scholarly activities culture of service ease/convenience good public relations
effective evaluation of students appropriate consequences achieve positive work climate students perception of institutional quality (open admissions w/selective institution) effective business processes cross-training for employees recognition (there are great things going on) leverage presence of Fortune 500 companies advising & monitoring student progress build selective grad programs citizenship competent faculty
scholarship funding
open access/accessible
training employees (coping strategies, change management) increase revenues (image, gifts, tuition, subvention) tell the story - build image in community fair and supportive environment for students
recognized as good neighbor and community steward alternative revenue sources: corporate partnerships, royalties, commercialization quality of life
civic engagement
develop human potential
real world work experience
engaging to students shared leadership infrastructure
prioritize among graduate programs
contribute to regional economic development revenue enhancement through student retention
safe, inviting campus
revenue diversification and enhancement
image the public research university for northern Ohio satisfied students employee retention-satisfied employees economic development of region cultural advantage of E.J. Thomas Hall Summit College (or community college C&T, UC) viewed as accessible to all enhance teaching effective business processes (the enterprise that we call UA) faculty tracking (research/teaching) develop research park culture of good intention empathy faculty entrepreneurship integrated into curriculum develop ability to work in a diverse community information sharing timely and accurate provide employees with new tools enhance student learning assessment campus enhancement (physical, social) ERP focus on science & engineering increase external revenues (tuition and fees) unique urban campus with access to greenways endowed chairs technology
leverage clusters of excellence start-up new companies
reducing costs associated w/conflicts (lawsuits/lost productivity) enhance NIH funding faculty development
rewards for employees who learn technology
increase scholarly/creative output cost savings related to employee turnover faculty data/ERP/warehouse
constructive participation in professional arenas research culture
competent faculty/employees streamlining quick turnaround, space reallocation, human resources implications distributed learning on the job training for students culture of service
opportunities to build relationships environment of trust
public/private partnerships personal responsibility for accessing information leverage urban setting Career Advantage Network
Strategic Themes
Student Success
The University of Akron will be recognized for satisfied students and alumni who are welleducated, wellcompensated, and who contribute to society.
Differentiation
The University of Akron will be recognized for its clusters of excellence, opportunities unique to its metropolitan setting, and specific points of differentiation that will identify us as the university of choice.
Research and Scholarship
The University of Akron will be recognized for the generation of new knowledge through scholarly and creative activities, for high quality focused research programs, and for contributions to regional economic development and public policy.
Information Technology
The University of Akron will be recognized for its leading-edge use of information technology to enhance teaching, learning, and scholarly activities, to provide students with an IT competitive advantage, to streamline business processes, and to document our excellence.
Communications
The University of Akron will be recognized by effectively telling the story and for building shared leadership through open, timely, and accurate communications to all its constituents, both internal and external.
Standards
The University of Akron will be recognized for providing opportunity, while upholding high standards of achievement and accountability for students, faculty, and staff.
Strategic Vision: The University of Akron will be recognized as the public research university for northern Ohio.
Public Stakeholders Internal Processes Learning & Growth
How will we know when the general public recognizes that we are the public research university for northern Ohio?
What stakeholder needs must we serve to achieve our mission/vision objectives?
What financial objectives must we accomplish to satisfy our stakeholders?
At which internal processes must we excel to satisfy our stakeholders?
What must we learn and how can we motivate UA constituents to achieve our vision/mission?
Financial
Strategic Theme: Student Success
Public Stakeholders Internal Processes Learning & Growth
well educated grads leadership
citizenship
employers see grads as good hires
develop all to participate in workforce
open access/accessible
meets students goals
tuition & subvention Financial endowment
student satisfied with quality of education quick & accurate service response sense of community (sense of belonging, diversity issues, caring) Motivate students to excel
grants and contracts increase alumni giving
recruitment/retention pride in UA
good public relations scholarship funding
effective business processes financial aid
good teachers are fundamental, effective instruction faculty creative & scholarly activities culture of service ease/convenience ERP
organizational development (evaluation of EES, compensation models, career paths) computer literacy achieve positive work climate
campus enhancement (physical, social) diversity competent faculty
Strategic Theme: Differentiation
recognized as good neighbor and community steward
civic engagement
develop human potential
real world work experience
Public Stakeholders Internal Processes Learning & Growth
unique urban campus with access to greenways
cultural advantage of E.J. Thomas Hall
contribute to regional economic development
revenue diversification and enhancement
Financial
quality of life
safe, inviting campus
public/private partnerships
leverage clusters of excellence
leverage presence of Fortune 500 companies
leverage urban setting
Career Advantage Network
develop ability to work in a diverse community
on the job training for students
culture of service
Strategic Theme: Research and Scholarship
reputation of specific unique programs Public economic development of region enhance student learning Stakeholders Internal Processes Learning & Growth Financial
recognition (there are great things going on)
endowed chairs
enhance teaching
alternative revenue sources: corporate partnerships, royalties, commercialization
focus on science & engineering develop research park increase scholarly/creative output
enhance NIH funding start-up new companies faculty entrepreneurship
prioritize among graduate programs faculty tracking (research/teaching) faculty development
technology
research culture
infrastructure
faculty
Strategic Theme: Information Technology
leading edge technology
comparative advantage
tell the story - build image in community
Public Stakeholders Internal Processes Learning & Growth
competitive advantage for students engaging to students provide employees with new tools Financial
increased productivity
operating cost reduction
convenience in student services (e.g. enrollment, financials)
increase external revenues (tuition and fees)
effective business processes (the enterprise that we call UA)
streamlining quick turnaround, space reallocation, human resources implications
rewards for employees who learn technology
tell the story build awareness of excellence among students/employees
integrated into curriculum
competent faculty/employees
data/ERP/warehouse
training employees (coping strategies, change management)
distributed learning
assessment
Strategic Theme: Communications
Public Stakeholders Internal Processes Learning & Growth satisfied students constructive participation in professional arenas opportunities to build relationships environment of trust
image the public research university for northern Ohio
increase revenues (image, gifts, tuition, subvention) Financial
reducing costs associated w/conflicts (lawsuits/lost productivity) cost savings related to employee turnover
employee retention-satisfied employees
information sharing timely and accurate
shared leadership
good public relations (advertising/telling the story)
personal responsibility for accessing information
culture of good intention empathy
Strategic Theme: Standards
Summit College (or community college C&T, UC) viewed as accessible to all
UA viewed as selective
documented excellence
Public Stakeholders Internal Processes Learning & Growth
employees perceive fairness in reward and accountability systems Financial fair and supportive environment for students students perception of institutional quality (open admissions w/selective institution)
revenue enhancement through student retention
cost of scholarships/financial aid matrix
cost-saving through retention of quality employees
effective supervision of employees productivity build selective grad programs create undergraduate tiered access
scholarships/financial aid matrix
effective evaluation of students appropriate consequences
maintain academic integrity effective student academic support
establish benchmarks
quality improvement
program review with consequences
effective evaluation/rewards for employees
supervisory training
cross-training for employees
career development (mentoring)
advising & monitoring student progress
Strategic Destination: Within three years, The University of Akron will be recognized as the public research university for northern Ohio, the university devoted to the education and success of its students and to the production, integration and dissemination of knowledge for the public good.
We will achieve the strategic destination by pursuing the principles of Charting the Course which are integrated in the institutional strategy map. Fulfill student and alumni needs -Individualized attention -Service ethic -Safe/inviting/accessible campus -Sense of community Discovery and Innovation Fulfill Public needs Financial -Asset for Public Good -Reputation for Excellence/Access -Contributions to Economic Development Increase revenue Diversify revenue Decrease costs
Public Stakeholders Internal Processes Learning & Growth
Cultural Enrichment
Community Well Being
Economic Development
Student Success
Differentiation
Research and Scholarship
Information Technology
Communications
Standards
Student Success + Community Engagement = Akron Advantage
Fulfill faculty and staff needs -Personal/professional development -Recognition for success -Fairness in treatment -Resources & tools to be productive
Valuing the use of technology -Knowledge sharing -Efficiency and effectiveness -Communication/project collaboration -Competitive advantage -Data for informed decision-making
Enhance UA shared leadership culture -Collaboration -Accountability -Service -Diversity -Trust
Objectives
Student Success
provide opportunity for educational success for all increase exceptional success through mentoring expand applied learning opportunities produce contributors to society well compensated
Differentiation
Research and Scholarship
generate, share, and apply new knowledge and discovery
Information Technology
Communications
Standards
leverage specific points of differentiation
develop student competitive IT advantage
telling the story
create unique institutional identity
develop focused research programs that lead to economic development
leverage IT for operational excellence
provide open, timely, and accurate information
maintain high standards of achievement and accountability throughout the university
document our excellence through IT
provide opportunity for at-risk students to achieve the standard
Going Forward
communicate strategies and priorities to the University community cascade the University scorecard to administrative units, colleges & departments use the BSC to implement the strategic vision of Charting the Course throughout the University
Summary of Comments on PowerPoint Presentation
Page: 1
Sequence number: 1 Author: Nancy Stokes Date: 5/28/2002 11:28:02 AM Type: Note Thank you very much for your interest in the Balanced Scorecard project. The University has begun an important, new initiative to refine and operationalize the strategic vision expressed in Charting the Course. Experts warn that strategic planning exercises often fail because plans are frequently not implemented and strategy is often forgotten. President Proenza has proposed a Balanced Scorecard project to be used as a cohesive framework that will: *focus attention on strategic initiatives *highlight University, college, and departmental goals and objectives *foster implementation of strategic initiatives *use performance evaluation metrics that reflect achievement of strategic objectives *enable more effective resource allocation, based on achievement of strategic organizational objectives. Balanced Scorecards are not static documents. They are not used only to report past performance. Balanced Scorecards are dynamic. They are updated regularly to document and communicate current strategy, objectives, initiatives, performance metrics, and targets.
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Sequence number: 1 Author: Nancy Stokes Date: 6/3/2002 8:45:51 AM Type: Note Definition - Balance Scorecard The Balanced Scorecard is a methodology by which operational procedures are aligned with strategic vision. It is a framework that helps organizations translate strategy into operational objectives that drive both behavior and performance. The concept of "Balance" is an important one. For example, to achieve our vision we must "balance" several things: *growth and innovation with cost and efficiency *short term and long term objectives *internal and external views *tangible and intangible results The Balanced Scorecard Strategy map balances vision and implementation. The vision tells us the institutional destination - where we are going; the strategy tells us how we will get there. The project was begun last fall. Balanced Scorecard methodology involves a Leadership Team which provides leadership, endorsement and vision for the project. The Leadership Team "owns" the institutional scorecard and will make the institutional strategic decisions regarding the themes, objectives, measures, targets, and initiatives. The Core Team recommends and the Leadership Team decides. Our Leadership Team members are: The President, all of the Vice-Presidents, Dean Roger Creel, Dean Richard Aynes, and Dr. Dan Sheffer. The Core Team collects and analyzes the initial data needed to drive the process. Our Core Team members are: Becky Herrnstein (HR), Brian Davis (business and finance), Julia Philips (student affairs), Gerry Parker (institutional research), Phil Brown (institutional planning), Thomas Calderon (faculty) and myself. The Core Team began their job last fall by conducting interviews with a broad base of constituents from the university family. The groups to be interviewed were suggested by the NCA Steering Committee and include (see next slide)
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Sequence number: 1 Author: Nancy Stokes Date: 5/28/2002 11:29:27 AM
Type: Note A set of questions was sent to each person or group and at least one hour was scheduled for each interview.
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Sequence number: 1 Author: Nancy Stokes Date: 5/28/2002 11:29:56 AM Type: Note The initial direction given to the interviewees was that this BSC process was to facilitate the implementation of Charting the Course.
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Sequence number: 1 Author: Nancy Stokes Date: 6/3/2002 8:48:11 AM Type: Note The timeline shows the progress that has been made from the beginning of the project to today. Following the interviews, the Core Team spent over 30 hours codifying, analyzing, and synthesizing the information from the original interviews We reviewed all of the notes from the interviews and created "sticky notes" for each identifiable concept and/or idea. Then we stuck these "sticky notes" all over the walls of the meeting room. (see next slide)
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Sequence number: 1 Author: Nancy Stokes Date: 5/28/2002 11:31:44 AM Type: Note From this mass of sticky notes, we proceeded to create an Affinity Diagram by grouping notes with similar ideas and/or concepts. (notes continue on next slide)
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Sequence number: 1 Author: Nancy Stokes Date: 5/28/2002 12:32:25 PM Type: Note From this grouping exercise, six strategic themes emerged. In Balanced Scorecard terminology, a strategic theme is the way an organization seeks to achieve its vision and mission. It is a set of goals and objectives coupled with a method involving people, resources, and processes. A strategy will define what you do and what you don't do. The definition of each strategic theme reflect the vision/destination "to be recognized as the public research university in northern Ohio" as outlined in Charting the Course.
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Sequence number: 1 Author: Nancy Stokes Date: 6/3/2002 8:52:20 AM Type: Note The Balanced Scorecard for a public educational institution provides a view of the organization from five critical perspectives. It is "read" from the bottom up with the "learning and growth" and "internal perspectives" being internal perspectives or things the organization does. And the upper three perspectives, "stakeholders," "financial," and "public" perspectives being external perspectives or things that the organization delivers.
The "Learning and Growth" perspective answers the question: What must we learn and how can we motivate UA constituents to achieve our vision/mission?" It focuses on people, technology and the cultural climate. The "Internal Processes" perspective answers the question: "At which internal processes must we excel to satisfy our stakeholders? " The "Stakeholder" perspective answers the question: "What stakeholder needs must we serve to achieve our mission/vision objectives?" The "Financial" perspective answers the question: "What financial objectives must we accomplish to satisfy our stakeholders?" The "Public" perspective answers the question: "How will we know when the general public recognizes that we are the public research university for northern Ohio?" We then grouped the sticky notes within each theme into one of the five perspectives of the balanced scorecard framework This is how the "sticky note" versions of each strategic theme looked. (see following six slides - see slide 15 for the next commentary)
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Sequence number: 1 Author: Nancy Stokes Date: 6/3/2002 8:53:32 AM Type: Note The next step was to create the institutional strategy map. The strategy map is NOT a hierarchy because it is a tool to explain and communicate the strategy. The first strategy map to be developed is at the institutional level and creates the umbrella for the institution. The strategies define value for the institution. The Core Team again synthesized all of the individual sticky notes for each perspective and charted a draft of the institutional map. This draft was presented to the Leadership Team on April 18th and has been approved as the official strategy map for The University of Akron. Please remember, Balanced Scorecard strategy maps are not static documents. They are not used only to report past performance. Strategy maps are dynamic. They are updated regularly to document and communicate current strategy, objectives, initiatives, performance metrics, and targets. So, the Leadership Team presents this as our first iteration -- a working model.
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Sequence number: 1 Author: Dr. Luis Proenza Date: 9/13/2002 6:47:11 AM Type: Note We have, Dear Colleagues. . . . . . made clear progress in our strategic thinking, planning and implementation efforts, thanks to the efforts of faculty, staff and administrators throughout the University. The first byproduct of those efforts was Charting the Course, a broad description of what uniquely defines us as a university, including traits that set us apart and strengths upon which we can build. To maintain our momentum, we continue to evaluate and modify the statements within that document, as well as adopting more detailed strategies and action steps. To provide the quantitative tools that we need to effectively evolve and implement our strategic thinking, the University is using the Balanced Scorecard. The Balanced Scorecard can be used by each college, division, school, department and unit (and even individuals) to establish specific and quantifiable goals, objectives, and measures of success. Thus, the Balanced Scorecard process will enable each of us to determine how he or she can best support the important work of the University. Through a highly collaborative process, the Balanced Scorecard template has been blended with the broad overview of Charting the Course to develop an institutional Strategy Map with six strategic themes -- student success, differentiation, research and scholarship, information technology, communication, and standards -- under which specific objectives and measures can be grouped at every level of the University The six strategic themes of the institutional strategy map are interwoven in ways that clearly demonstrate the Akron Advantage the Universitys full commitment to our students success, linked with the outstanding community investment and engagement made possible by our metropolitan setting and history. The interaction of faculty and staff, the culture of shared leadership, and the use of leading-edge technology to help support learning and better communication, all come together to differentiate us from other institutions of higher learning. In addition, the Balanced Scorecard also examines our Clusters of Excellence in Discovery and Innovation, Cultural Enrichment, Community Well-Being, and Economic Development. It will help assess the extent to which these cross-disciplinary clusters enrich the greater community. The Balanced Scorecard process will enable us to better track the effectiveness of our internal processes and the learning and growth our students, faculty, and staff, and then to establish how these factors support institutional excellence and increase the value delivered to our stakeholders and sponsoring society. The work that we have done, together, with Charting the Course and the Balanced Scorecard, has helped us to focus on what is most important to The University of Akron as an institution and how our progress should be measured. This focus will enable us to monitor our progress toward realizing the Universitys destiny to become recognized as the leading public university for northern
Ohio.
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Sequence number: 1 Author: Nancy Stokes Date: 6/3/2002 9:54:56 AM Type: Note Once the map is in place, the next step is to identify objectives, measures, targets, and initiatives. This step is the actualization of the vision. The institutional objectives for each of the six strategic themes are expressed thusly:
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Sequence number: 1 Author: Nancy Stokes Date: 5/28/2002 12:40:22 PM Type: Note The next steps are to cascade the institutional scorecard through all the levels of the institution. You will remember, the strategy map is NOT a hierarchy because it is a tool to explain and communicate the strategy. The first strategy map -- or scorecard -- is developed at the institutional level and creates the umbrella for the institution. So, the next step is for each administrative unit to create their own scorecard that aligns with the institutional scorecard. In the academic area, the Office of Senior Vice President and Provost will create a scorecard aligned with the institutional scorecard, then each College will develop aligned scorecards, then each department, and if taken to the farthest extreme, each faculty and/or staff member could develop a personal scorecard. The goal is to have administrative unit level scorecards developed over the summer, and College and Departmental scorecards developed during fall semester 2002.