1. “The key to gauging both the performance and health of an organization and its processes lies with its selection and use of metrics. A well-designed set of metrics provides a meaningful framework for measuring performance both vertically and horizontally. Not only are the metrics linked vertically and horizontally, but they are also balanced to provide different perspectives” Tom Kubiak, Quality Progress

2. Tools for Identifying Measures Balanced Scorecard • Views strategies from five perspectives • Balances competing objectives and expectations • Yields outcome, output and efficiency measures • Links perspectives through the strategy The Value Chain • Links inputs, activities, outputs and outcomes at different levels of influence

3. Public Value and Benefit (ultimate outcome measures) Financial Management (efficiency measures) Customer Service (outcome measures) Internal Process Management (output and process measures) Organizational Learning and Growth (outcomes and outputs related to organizational issues) Washington’s Balanced Scorecard

4. Public Value and Benefit Customer Focus Citizen/Stakeholder Service needs met Service recipient Mission results Internal Process Mgt. Financial Management Results achieved Wait time, quality ROI Process vital signs OFM and Legislators Supervisors Capacity built Units completed $, FTE’s $/unit Organizational Learning Staff/managers Skills acquired Perspectives on Performance Scorecard Perspective Individual or Group Performance Expectation Sample Measure Major Strategy

5. Balanced Scorecard Principles • Examine major strategies from all five perspectives to: • Identify all key requirements • Anticipate issues that could compromise your success • Understand and address competing expectations • Link the perspectives to each other

6. Balanced Scorecard Helps… • Separate and clarify interests and contributions of partners and suppliers, staff, managers, suppliers, customers, stakeholders • Identify ‘output’ ‘outcome’ and ‘efficiency’ measures around each activity • Distinguish between what we can ‘control,’ what we can ‘influence’ and what we can only ‘be concerned about.’

7. Value Chain Drivers Inputs Activities Outputs Immediate Outcomes Intermediate Outcomes Ultimate Outcomes External causes Processes and Roles $$ Employees IT tools Equipment Facilities Statutes Changes in attitudes or beliefs Changes in behaviors of people or systems Products and services delivered Impact on recipient, Changes in technical quality Societal impact

8. Relationship to Strategic Plan Drivers Inputs Activities Outputs Immediate Outcomes Intermediate Outcomes Ultimate Outcomes Strategies Goals/Objectives Mission Financial Plan Environmental Scan

9. Drivers Inputs Activities Outputs Immediate Outcomes Intermediate Outcomes Ultimate Outcomes Agency Control Agency Influence Agency Concern Levels of Accountability Stake- holders Fiscal & Budget Line Staff Super- visor Managers Customer Media Stakeholder Citizens

10. Department of CorrectionsValue Chain We offer work skills training to inmates… # of classes taught …so that… Inmates will have a marketable skill when they leave prison… # of inmates certified in the skill Output Ultimate Policy Intent …so that… Inmates choose gainful employment over crime… % of inmates finding a job after release Immediate Outcome …so that… Degree of Influence by Department of Corrections Recidivism rate declines. % of inmates who commit crimes after release Intermediate Outcome UltimateOutcome