Performance Management & Strategy Execution Blog: The Glue

The Fastest Deployment of an Automated Balanced Scorecard Framework I’ve Ever Seen

I very recently helped a client fully deploy an automated balanced scorecard framework from start to finish within just two months. The client has their scorecards built, data loaded, they’re holding effective business reviews across the organization using the framework, and they are self-sufficient moving forward. 

You're probably thinking: "But this is impossible! Many organizations implementing scorecards/ performance management don’t get that far in a year." Really? Just ask Seven Hills Foundation.

So what’s their secret?  They weren’t small (they have 3,000 employees), they weren’t simple (they provide services to 28,000 individuals with disabilities and life challenges through programming at 150 locations), they didn’t have any more extra free time than any other client (Seven Hills was right in the middle of budgeting season).  But Seven Hills did have what I'll call all 5 keys to a rapid, successful deployment:

1. Availability – just scheduling time with project participants (from executive users, to decision makers on strategic content, to data experts) can often take weeks.  But in Seven Hills’ case, they were ready to meet the day the contract was signed and management had made it clear that participants should prioritize time over other items.

2. Skills and Authority – those learning about the software had the skill set to absorb the information, those learning about the methodology had the skill set to appreciate the concepts, and those making decisions on content and direction were given the authority to make those decisions.

3. Scope that Mattered – the client chose to build the first scorecards for affiliates (businesses) that had a burning need immediately.  As an example, one affiliate team needed the automated scorecard solution to score highly on their 3 year CARF accreditation coming up in a matter of months (CARF is an accreditor of health and human services providers).  Though the drill down in some measures was very deep (i.e. thousands of measures), the total number of scorecard-level measures was low -- they focused on what was pressing.
   
4. Content Ready to Go - this client had already picked the measures they wanted to see.  More than that, they had understood what the measures meant, where the data was coming from, and had approval from management to set targets and ownership.
   
5. Reviews – with the scope focused on what was pressing and scorecard teams that had a reason for using the scorecards immediately, we worked quickly to create views and variance reporting that would immediately suit their workflow and live use needs.  The day the scorecard was complete, the affiliate teams were using their scorecards in business reviews and locking in the software skills they had learned.

The result? Seven Hills was reaping benefits from their automated scorecards starting on day 1. Watch for updates on their impressive story soon.

Did You Miss the "Admin Track" at the ActiveStrategy Client Conference?

Our Client Conferences typically feature a range of case studies delivered by the executives, business leaders, and scorecard owners from our clients. This year for the first time, we added a new option, splitting ActiveStrategy Enterprise software administrators into their own dedicated track. It was so popular that we could barely fit in our breakout room, but that didn't stop us from having some great idea sharing and cooperative thinking.

We invited the client scorecard administrators in attendance to present mini case studies. What a great line-up. Here were some of the highlights:

Miami-Dade County shared how their Office of Strategic Business Management guides the agenda, tone, and logistics for hundreds of monthly department and cross-functional scorecard business reviews.  Also exciting was their ability to re-sequence the cascading of strategic objectives ahead of department budget allocation.

Thomas Jefferson University Hospitals demonstrated how they load large amounts of data (everything from finance to satisfaction) within minutes into ActiveStrategy from both structured and extremely unstructured data sources. Also highlighted was how they use project portfolio functionality to implement and sustain Six Sigma efforts at the health system.

Westinghouse Nuclear Services showcased a creative solution for a visually attractive navigation system, allowing executive users to easily find their scorecards, dashboards, and project portfolios using Visual Map functionality.

NATO recapped how they tackled business reviews of the command's very large program of work (POW) using Program Group Portfolio Reports.  Participants then brainstormed NATO-like job titles for themselves (the "Supreme Director of Strategy Management" was a popular pick).

U.S. Department of Veterans Affairs highlighted their approach for cascading strategic objectives throughout the Chief Business Office through the creative use of cascading matrix tools and naming conventions.

If you'd like to learn more about these topics and the presentations, please post a comment below and I'd be happy to get you more details. If you'd like to read an overview of the Executive Track, see this post.

 

5 Helpful Responses to “But that’s not measurable!”

"But that's not measurable!"...it's almost inevitable that this phrase will come up at some point when we're helping one of our clients build scorecards and cascade performance measures.

It happens while we're discussing how a particular area supports an organizational goal. Typically, everyone involved will decide that a new objective should be on that area's scorecard. But when it comes to selecting the best way to measure progress toward said goal, the "not measurable" objection comes out.

If you're involved in building scorecards or helping your organization select performance metrics or KPIs, you've probably run into this issue as well.

Of course the objection tends to arise when something new is being brought to the scorecard. If it's never been measured before, it might be because it seems too "big" or a little too "fluffy" to measure.

So how do you get past this objection and come up with a measure that will make sense to all involved (and will help you track progress toward achieving your strategic goal)?

Ask yourself and/or your team these questions:

   1. What are you specifically trying to impact or change?
   2. Let’s pretend you’ve already reached that goal -- what would be different?
   3. How will not reaching this goal impact other departments?
   4. How will you know when you you’ve reached this goal?
   5. How would you convince your boss that you’ve reached this goal?

By talking through these questions, we almost always come up with a measure and/or improvement initiative that makes sense, drives the right behavior, and can be effectively tracked on the scorecard.

So the next time you’re working hard with your team, and someone says, “we have to do this initiative, but there’s no good way to measure it,” try using these five questions. It should help your team be more specific in their word choices and help identify good measures for some of those more challenging objectives or projects.

And don't just put these away once your scorecards and metrics are cascaded. These same questions can be used effectively during scorecard-based Business Review sessions as well, as teams are formulating initiatives for under-performing measures. 

Keep Your Strategy from Becoming a "Dusty Deliverable"

The slightly warmer weather here in Denver has me thinking of spring...and spring cleaning.  Ever do any “spring cleaning” in your office? Well, here's something to think about when you're taking a critical look at the contents of your bookshelves or filing cabinets: do you have any "Dusty Deliverables?"

This rather colorful phrase was mentioned by Anne McCune, SVP at Ingenix Consulting, when she and I were recently discussing  strategy execution.

I bet you have at least one Dusty Deliverable (DD) within eyesight right now. It could be an impressive 3-ring binder you brought home from a leadership retreat or strategic planning session, or maybe it's a glossy multi-page recommended action plan you received from a consultant. At the time, it held so much promise, but now it's just sitting there. Taking up space on your shelf.

So what turned yesterday's gem into today's DD? Did it contain bad ideas?  Was it foiled by bad timing? Probably not. Failed strategic efforts can almost never be blamed on a lack of creativity, energy, intentions, or insight. Time and again these efforts fail because of poor execution and little or no accountability  (read about the biggest culprits in my previous post: Top 10 Reasons Strategies Fail to be Executed).

What steps have you taken to make sure that this year's plans don’t become Dusty Deliverables? If the answer is "nothing," you might as well save yourself the time and skip the planning from now on!!

Are You In the Game Or Just Riding the Pine?

Well, football season is over – hats off to the Saints for a great year and a strong, determined effort from start to finish. Now we can focus on college basketball. If you're a basketball fan, or just love March Madness, this time of year is great.

One of my favorite leaders of all time is legendary coach, John Wooden. His 10 NCAA National Championships in a 12-year period while at UCLA are unmatched by any other college basketball coach. What's more remarkable to me is the focus and diligence Coach Wooden put into leadership and the management of his teams. Even if you're not a sports fan, his lessons about leadership and successfully managing teams are quite valuable. If you have a few moments, take a look at his website, www.coachwooden.com.

Coach Wooden has published several books – within them, he often refers to his “Pyramid of Success,” which correlates just as well to leading business teams as it does to coaching college athletes.

The base of this pyramid contains key components you must exemplify and ingrain within your team to begin building momentum and establishing open lines of communication: things like loyalty, cooperation, and enthusiasm. If your team members (and your peers) don’t sense your urgency or the importance of your goals, they may not participate at the level you need, so these things form a critical foundation.

The next row on the pyramid focuses on action and control. Not control in the sense of being a control freak, but controlling yourself (displaying disciplined emotions), staying focused, and helping others stay focused.

On this blog, we talk about the many benefits of scorecards and the role they can play in improving overall organizational performance. One of the chief benefits is actually the dialogue that occurs when organizations begin to really use scorecards. They provide a fantastic framework that puts intense focus on solving the the most important issues. Coach Wooden would describe this as having "alertness,"  "initiative," and "intentness." Keeping your eye on the ball, having the attitude that you can and should make positive change, and being firmly focused on your goals. Do your scorecards and your approach help instill an attitude and approach like this?

The next row of blocks on the pyramid speaks to your mental and physical character. Many successful leaders will point out that they take care of themselves (exercise, diet, sleep) in order to continuously lead at a high level. Coach Wooden also points out the importance of life-long learning and “team spirit.” Successful strategy execution is a journey, and many times it's a hard journey. Imagine how much better you and your teams can approach that journey if they have focus on the Wooden pyramid blocks of “condition, skill, and team spirit.”

Near the top of the pyramid, Coach Wooden places “poise” and “confidence,” attributes that are critical to any successful team member or leader. I'm sure Coach was an expert at recognizing false confidence, arrogance, and players who didn't fit in with his program, just as good business leaders must be able to do. As you look to deliver on your strategy, ask yourself if you have the right players on your team. Do your tools and your approach bring out a higher level of accountability, rewarding those who successfully carry out your chosen strategic goals? Or do initiatives and the great ideas from your planning sessions always seem to fall through the cracks because teams don't deliver and aren't being held responsible when they fail?

For Coach Wooden, each block in the pyramid supported the ultimate goal of achieving “competitive greatness.” His quote within the uppermost block of his pyramid says “Perform at your best when your best is required. Your best is required each day." 10 NCAA National Championships in 12 years. It goes to show that when you expect the best and build the right  foundation for achievement, amazing things can happen.

Webinar This Thursday: Balanced Scorecard Fundamentals

If you (or your colleagues) are new to the Balanced Scorecard management framework, this week's free webinar is ideal. We'll be covering these topics:

-Balanced Scorecard terminology review

-Steps to translate a strategic plan into a top-level Balanced Scorecard

-Overview of how to "cascade" Balanced Scorecards to lower levels

-Best practices to think about & pitfalls to avoid

-Live Q&A

Balanced Scorecard Fundamentals

Thursday, September 17th

2:00-3:00 pm Eastern Daylight Time (which is 11:00 am Pacific Daylight Time)

Register here for this free webinar. We'll also record the session, so if you can't make the live event, register anyway and we'll send you a link after the event.

Feel free to forward this to any colleagues or friends who you think might be interested in this topic.

Also check out our list of archived webinars, including more advanced topics on Balanced Scorecards, selecting measures, ActiveStrategy Enterprise performance management software, and client case study webinars.

Scorecards in Government: How Carson City Went From "0 to 60" Fast

Join us this Wednesday, August 26th for a free webinar case study of one small government -- Carson City, NV, population 58,000 -- and their rapid implementation of scorecards, performance measures, and ActiveStrategy Enterprise software to automate the framework.

This session will be helpful for any public sector organization -- as well as other organizations with lean resources -- interested in "kick starting" a performance management and measurement effort.

The webinar runs from 2-3 pm Eastern Daylight Time this Wednesday (8/26). To register follow this link: https://www1.gotomeeting.com/register/685658001

Despite very limited resources, Carson City government has gone from having only a loosely defined strategy and a predominantly reactive culture -- to having a comprehensive top-level scorecard, several cascaded scorecards, and a total of almost 700 new performance metrics automated and reviewed in software -- all in less than one year.

During this webinar, you'll hear directly from Linda Ritter, the former City Manager who is managing this effort for Carson City as a special project. She’ll talk about why and how she got the effort started, who has been involved, and what results they’ve seen to date.

We’ll include time at the end of the session to answer your questions.

If you’re unable to attend the webinar live, but are interested in the topic, please register anyway. We’ll send you a link to view the recording after the webinar.

What’s Cool About Scorecards?

Today I was reminded what the coolest thing is about Balanced Scorecards: THE CONVERSATION

 

The point of a scorecard is to force "the conversation" about the most important “red” measures (those not hitting targets). Sure there are other benefits of scorecards, like communication of strategy and transparency, but for me I’m most excited to see my client have an honest conversation about what they can do to turn “reds” to “greens.” The real reason to develop a scorecard, after all, is that it's not just a report. Reports don’t relieve stress in the organization. The conversation that occurs during a Scorecard Business Review does.

As many of you can appreciate, there are no guarantees that you’ll get to the conversation.

But after the strategic planning, the scorecard cascading, the cultural resistance to “more work,” the gathering of the data, the setting of targets…today we made it!

 

I felt truly happy to listen to a cross-functional conversation about a “red” measure in the purchasing area. At the beginning you could feel the tension in the room.  This measure symbolized the stress behind the process.  But the conversation forced the participants to truly understand the current process and to brainstorm how they could improve it.  Once that happened, the scorecard participants could see the light at the end of the tunnel.  This will be a "green" measure soon.  Their lives will be so much less hectic next year. They finally saw the value that the CEO promised would be there.

 

That's cool.

Four Things You Should Know About Your Scorecard Measures

Measures trigger work. You're either creating measures, gathering data for them, reviewing them, or trying to improve them. That work will often be resisted due to confusion and credibility concerns. I coach my clients to know 4 things about every measure they have:

1. Where does the data come from? This is the most common challenge leaders throw at measures. "I don't trust the source, so I don't need to act." You need to know what department pulls the data, if they transform it in some way, who quality checks the data, and who loads it into your scorecard. 

2. What is excluded from the data? Too often, leaders look at measures for months without really understanding what the numbers mean. Specifically, they don't really know what's included and excluded from the numbers. It's important to know those nuances before you spend time and money on improving the numbers.

3. Why did we set the target? Typically, those who are responsible for acting on measures weren't in the meeting when the target was set. Many times, there's even confusion within the team that set the target. I ask my clients to find out who set the target and what the rationale was for setting it.

4. What accumulation do we care about? Knowing the answer to this subtle question will help you clear up a lot of confusion. Each time the scorecard team meets to discuss the measure, is it more important to talk about performance YTD, performance just this period, or the performance as a snapshot in time?

Let me know if you consider other questions that I didn't mention.

Two Quick Tips to Keep Your Scorecards Alive

Tip #1: Put all scorecard reviews for the year on the calendar now.

I’ve said it many times in the past, but it’s worth repeating. It’s not what gets measured that gets done. It’s what gets reviewed that gets done. Events drive behavior. If measure owners and your data entry people don’t see a date set in stone when managers will meet and review the scorecard, they won’t update the data action items. There are so many other demands on their time that if they can let this one slip, they will.

Tip #2: Always repeat the same agenda.

There are a few agenda topics that are critical to keeping the strategy alive, even late in the year. Too often, these agenda points drop off after the first month because scorecard teams are busy fighting fires and reacting to their daily work. I recommend that every scorecard review contain the exact same topics throughout the year. If some topics need more time, fine, but the scorecard review must touch on all the topics.

Here are some of those topics I see commonly discarded later in the year:

• State the strategy.

• Has the strategy changed?

• How do we measure the strategy?

• Are the targets still valid?

• Who is responsible for meeting the targets?

• What are the most important measures now?

Go forth and review!