Balanced Scorecard = MC4 = Managing Customers, Colleagues, Core Processes and Massey University
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1 Balanced Scorecard = MC4 = Managing Customers, Colleagues, Core Processes and Massey University Leonie Hapeta, Director - Projects Office, Massey University, Palmerston North, New Zealand Mary Downes, Director National Student Administration and Teaching Support Section, Massey University, Palmerston North, New Zealand Abstract Managers and staff need access to up-to-date information on aspects of their operations that contribute to overall effectiveness and performance. In response to this, Kaplan and Norton (1992) developed a performance model called a Balanced Scorecard. This performance model involves more than just financial indicators, and it goes beyond searching for a single measure of performance. The Balanced Scorecard is a strategic management tool that organisations can use to formulate a strategy and them implement and monitor this strategy. The methodology for the Balanced Scorecard is that it defines an organisation s vision and strategy in terms of specific measurable goals and objectives. It also describes how to map these strategic objectives into a set of key performance measures that are tracked by decision makers within the organisation. The Balanced Scorecard methodology provides an effective tool for managing an organisation s performance by focusing attention on four key performance indicators - customer, internal business, learning and growth, and financial - thereby shifting focus from the traditional financial perspective to include other key factors that contribute to an organisation's well-being. This presentation will be split into three sections. The first section will focus on how Massey University has implemented a pilot project for the introduction of this performance model. It will outline the process Massey University went through as it introduced and implemented the Balanced Scorecard within selected areas of the University. In the second part of the presentation we will examine the development of the Balanced Scorecard for one of the Student Administrative Sections of the University, namely the National Student Administration and Teaching Support Section. We will outline the way in which the Scorecard was able to effectively integrate planning initiatives and the opportunities that the performance model provided to involve staff in planning for their areas of operation. Finally, the presentation will address the lessons learned during the implementation process, the benefits achieved, and the future direction of the scorecard within Massey University. About Massey Massey University is one of New Zealand s leading educational institutions. A state funded university, with a proud 75-year tradition of academic excellence and a strong national and international reputation, Massey University is an important part of New Zealand s post-high school state education system. Campuses in Palmerston North, Wellington and Auckland at Albany, cater for some 19,000 local and international students. Further, in excess of 18,000 New Zealand students study by distance education. The five college structure provide a diversity of degrees, diplomas and certificates. Massey University 2002 Hapeta/Downes 1 ATEM September 2002
2 Massey University is a leader in the fields of sciences, design, social sciences, education and business - with the biggest business college in the country. Staff in many areas are internationally renowned and leading edge research is being undertaken on all three campuses. Massey has over twenty national shared service providers within its structure, namely Information Technology, Human Resources, Student Administration, Student - Liaison Publications and Call Centre, Finance Operations, Strategic Finance and Planning, Marketing, Public Relations, Alumni, Research Services, Facilities Management, International, English Language Centre, Printery, Projects Office, Academic Policy and Equity. These sections provide services for students, staff and the community for the five colleges and three campuses. What is Balanced scorecard? The balanced scorecard is a management system (not only a measurement system) that enables organisations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise. Kaplan and Norton describe the innovation of the balanced scorecard as follows: "The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation." The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives: The Learning and Growth Perspective The Business Process Perspective The Customer Perspective The Financial Perspective Massey University 2002 Hapeta/Downes 2 ATEM September 2002
3 The Balanced Scorecard and Measurement-Based Management The balanced scorecard methodology builds on some key concepts of previous management ideas such as Total Quality Management (TQM), including customerdefined quality, continuous improvement, employee empowerment, and -- primarily -- measurement-based management and feedback. Double-Loop Feedback In traditional industrial activity, "quality control" and "zero defects" were the watchwords. In order to shield the customer from receiving poor quality products, aggressive efforts were focused on inspection and testing at the end of the production line. The problem with this approach -- as pointed out by Deming -- is that the true causes of defects could never be identified, and there would always be inefficiencies due to the rejection of defects. What Deming saw was that variation is created at every step in a production process, and the causes of variation need to be identified and fixed. If this can be done, then there is a way to reduce the defects and improve product quality indefinitely. To establish such a process, Deming emphasized that all business processes should be part of a system with feedback loops. The feedback data should be examined by managers to determine the causes of variation, what are the processes with significant problems, and then they can focus attention on fixing that subset of processes. The balanced scorecard incorporates feedback around internal business process outputs, as in TQM, but also adds a feedback loop around the outcomesof business strategies. This creates a "double-loop feedback" process in the balanced scorecard. Where are we now (in early 2001) and where do we want to be (in 2002 and beyond) The University wanted to move towards a more coordinated and transparent approach to its planning and measurement. During 2001 senior management of the University commenced work on developing a ten-year plan and this plan has been based on the Massey University 2002 Hapeta/Downes 3 ATEM September 2002
4 University s primary aims. At this stage (in July 2002) this plan has been given to Council for approval. As a result of this, each section involved in the scorecard project, has developed scorecards which, have been aligned to the University s ten-year plan and have subsequently developed operational plans. In 2002 and beyond we would like to align more of the areas of the University with this planning, reporting and measurement process. Benefits of the scorecard methodology The value of metrics is in their ability to provide a factual basis for defining: Strategic feedback to show the present status of the University from many perspectives for decision makers, Diagnostic feedback into various processes to guide improvements on a continuous basis, Trends in performance over time as the metrics are tracked, Feedback around the measurement methods themselves, and which metrics should be tracked, Quantitative inputs to forecasting methods and models for decision support systems. Management by Fact The goal of making measurements is to permit managers to see their section more clearly -- from many perspectives -- and hence to make wiser long-term decisions. The Baldrige Criteria (1997) booklet reiterates this concept of fact-based management: "Modern businesses depend upon measurement and analysis of performance. Measurements must derive from the company's strategy and provide critical data and information about key processes, outputs and results. Data and information needed for performance measurement and improvement are of many types, including: customer, product and service performance, operations, market, competitive comparisons, supplier, employee-related, and cost and financial. Analysis entails using data to determine trends, projections, and cause and effect -- that might not be evident without analysis. Data and analysis support a variety of company purposes, such as planning, reviewing company performance, improving operations, and comparing company performance with competitors' or with 'best practices' benchmarks." A major consideration in performance improvement involves the creation and use of performance measures or indicators. Performance measures or indicators are measurable characteristics of products, services, processes, and operations the company uses to track and improve performance. The measures or indicators should be selected to best represent the factors that lead to improved customer, operational, and financial performance. A comprehensive set of measures or indicators tied to customer and/or company performance requirements represents a clear basis for aligning all activities with the company's goals. Through the analysis of data from the tracking processes, the measures or indicators themselves may be evaluated and changed to better support such goals." Pilot scorecard Massey during 2001 During 2001 it was decided to pilot the scorecard methodology into six areas of the University namely Library (90 staff across three campuses); Finance Operations Massey University 2002 Hapeta/Downes 4 ATEM September 2002
5 section (40 staff); National Student Administration and Teaching Support (60 staff); National Student Relations (30 staff across three campuses); Albany administration (60 staff) and a Hostel group in Palmerston North where over 90% of staff are casuals. Within this pilot each area developed a helicopter scorecard and are in the process of developing team scorecards. During 2002 our task is to work out how we will carry out the measurement and then record it for the University. We would like to put the scorecards on an intranet website. During 2001 we also instigated a staff satisfaction survey with the pilot group of 300 staff. We developed a paper-based survey and surveyed the total population and received a 74% response rate from this group. The overall satisfaction level was around 63%. During 2002 we will be extended the satisfaction survey to around 600 staff (within the regions and national shared service providers) and the survey will be administered online. What is NSATS? NSATS is short for the National Student Administration and Teaching Support Section. The Section employs a total of 62 permanent staff, with up to 35 additional temporary staff employed to help out at peak periods of operation. NSATS was established in 1999 when Massey implemented its new Multi-campus Management Structure. An important principle of this restructuring was the separation of front-office roles and responsibilities from those that are primarily back-office. In order to more effectively deal with direct enquiries from students, a National Call Centre was established, along with Regional contact centres on each of the three main campuses, thus freeing back-office staff to get on with their primary tasks. At the same time, NSATS was set up to provide effective and integrated delivery of a number of core student administration and teaching support back-office processes on behalf of the University. These processes are grouped into three units: Assessment, Enrolment, and Learning Resources, and include: Extramural Materials Preparation, Coordination, and Dispatch; Enrolment; Contact Courses; Assignment Management (primarily extramural); Examinations Management (internal and extramural); Graduation management; Scholarships administration; DRC; and Academic Records. These processes were drawn from three former sections: Academic Section, CUES and Student Affairs, which meant that staff for this new section came from three different cultures and three different sets of systems and ways of working. One of the first challenges for the Section has been the move towards the establishment of a single culture and a single set of systems. Another significant challenge has been the need to develop an enhanced client focus, ensuring that processes are focused on outcomes/results from the student s perspective, rather than from our own perspective of what we think students want (or what we want!) this has been a definite paradigm shift, particularly for those staff who had been with the University for quite some time. Another paradigm shift for many was the need to move from specialisation, and an individual task focus, to looking at the entire collection of tasks that contribute to the successful delivery of core processes. NSATS Performance Scorecard development The Performance Scorecard provided the NSATS Management Team with a way of helping to address these three challenges. Massey University 2002 Hapeta/Downes 5 ATEM September 2002
6 Feedback received from staff in a climate survey, implemented soon after NSATS was established, indicated that many staff were keen to be involved in planning within the Section but wanted clear direction and frameworks to work to. Because of this, and the fairly tight timeframe we were working in, I prepared an initial draft of the Section Performance Scorecard the high-level or helicopter scorecard. A planning workshop was then held with the NSATS Management Team where the team discussed the way in which the scorecard linked with other section planning initiatives and reviewed (and modified where necessary) the objectives, critical success factors and measures in the scorecard. The outcome of this was a clearly defined Performance Scorecard for NSATS, and a Management Team committed to achieving these objectives and to the Scorecard process and framework. All staff within the Section were encouraged to participate in the Performance Scorecard workshops put on by the Project Office. These workshops were followed up by Unit and operational team meetings, which gave the Management Team an opportunity to demonstrate both their commitment to the scorecard and how the scorecard integrated the other planning initiatives that had been developed within the Section. The next stage was to drive the scorecard down to an operational level. As NSATS is primarily a processing Section, this was done on a process by process basis, with a scorecard developed for each of the core operational processes for which NSATS is responsible. In developing the process scorecards, it was agreed that the measures in three of the four quadrants: customer, organisational learning and finance/planning, were not going to differ significantly (if at all) from those in the helicopter scorecard. The main differences are in the measures for the internal processes. In this quadrant, the specific measures which were important for each process, and which would contribute the achievement of success in the internal process measures in the helicopter scorecard, were identified. Some of the measures are quite detailed (too much so for a helicopter scorecard) but provide staff involved in the delivery of the processes with clear indicators of the success of their processes. The next three pages provide the helicopter scorecard for NSATS, as well as examples of two of the process scorecards. Massey University 2002 Hapeta/Downes 6 ATEM September 2002
7 NSATS Helicopter Performance Scorecard KEY OBJECTIVES AND MISSION UNIT OBJECTIVES CRITICAL SUCCESS FACTORS Statement of Objectives Treaty of Waitangi Create a Massey reality that identifies the University as a Maori-relevant University and a place where Maori language and culture can flourish 3.6 Staff To strengthen Massey University as an employer of choice for outstanding general staff 3.8 Organisation and Management To have management at all levels which is competent, effective and accountable To support teaching, learning and research activities of a high international standard through provision of quality infrastructure, national shared services and regional support activities. Vision: To be the FIRST CHOICE in the services we provide for Students, Staff, Colleges and Regions Mission: ADDING VALUE from application to graduation Strategic Goals: To understand the importance of SERVICE EXCELLENCE and deliver it consistently To create an ENVIRONMENT where people know how they contribute to making Massey University first choice, take personal responsibility for their contribution and are recognised for the value they add. To understand what part EFFICIENCY plays in first choice, and make it an integral part of the way we work CUSTOMER ORGANISATION L EARNING FINANCIAL INTERNAL PROCESSES Deliver services that meet customers changing needs and expectations within operational constraints. Improved relationship with customers Support Massey University s Section leaders provide strategic direction and an environment conducive to the achievement of University, Section and individual goals. Knowledgeable, skilful and empowered staff are committed, and contribute, to service excellence and innovation. Staff are supported and their achievements are recognised. Contribute to Massey s financial goals through effective policy development & implementation. Resources are managed efficiently and effectively. Expenditure remains within budget allocation. Core operational processes are effective and efficient. A process orientation and a commitment to continuous process improvement exists within the Section. Massey University s Students, Colleges and Regions are confident that the services provided by NSATS are meeting their needs and expectations. Clear & accessible two-way communication channels are developed and maintained. Staff understand how they contribute to the delivery of University and Section goals; are empowered to take personal responsibility for improving services; feel valued and their contributions to the success of Section and University goals are recognised; are provided with developmental opportunities. Effective performance management systems are implemented across the Section. Operational and strategic plans contribute to the University s strategic goals and objectives and identify resource requirements for the Section. Use of resources is maximised in order to reduce costs of operating without compromising service levels. Process deliverables and outputs meet customer needs and expectations. NSATS systems and processes are easy to understand and access. Process performance information is collected and analysed with a view to continuous improvement. Problem management processes are transparent & problems are resolved promptly & effectively. MEASURES % Student satisfaction with service delivery and communication channels % Internal customer (Colleges, Regions, NSR) satisfaction with service delivery and communication channels % active Service Level Agreements with identified customers and suppliers % NSATS staff who feel satisfied with their workplace features, from unit totals: % staff who have met/exceeded individual performance targets % staff satisfied with implementation and review of the Performance Scorecard % Section PRPs completed within the University timeframe # staff undertaking identified training and development programmes % staff with basic grasp of Te Reo Maori # staff attending Treaty of Waitangi programme % strategic & operational planning initiatives which are implemented within budget Number of processes for which there is a decrease in average cost per transaction % variance of actual to budget expenditure % process outputs provided to specification % processes with current and communicated documentation and performance measures Number of process improvement initiatives that are implemented Ratio of the number of problems resolved/total number of problems % problems resolved within allocated timeframes # online bi-lingual administrative services Massey University 2002 Hapeta/Downes 7 ATEM September 2002
8 Assignments Process Performance Scorecard KEY OBJECTIVES AND MISSION UNIT OBJECTIVES CRITICAL SUCCESS FACTORS MEASURES Statement of Objectives Treaty of Waitangi Create a Massey reality that identifies the University as a Maori-relevant University and a place where Maori language and culture can flourish 3.6 Staff To strengthen Massey University as an employer of choice for outstanding general staff 3.8 Organisation and Management To have management at all levels which is competent, effective and accountable To support teaching, learning and research activities of a high international standard through provision of quality infrastructure, national shared services and regional support activities. Vision: To be the FIRST CHOICE in the services we provide for Students, Staff, Colleges and Regions CUSTOMER ORGANISATION L EARNING FINANCIAL Deliver services that meet customers changing needs and expectations within operational constraints. Improved relationship with customers Section leaders provide strategic direction and an environment conducive to the achievement of University, Section and individual goals. Knowledgeable, skilful and empowered staff are committed, and contribute, to service excellence and innovation. Staff are supported and their achievements are recognised. Contribute to Massey s financial goals through effective policy development & implementation. Resources are managed efficiently and effectively. Expenditure remains within budget allocation. Massey University s Students, Colleges and Regions are confident that the Assignments process is meeting their needs and expectations. Clear & accessible two-way communication channels are developed and maintained. Staff understand how they contribute to the delivery of University, Section and Assignments goals; are empowered to take personal responsibility for improving services; feel valued and their contributions to the success of Section and University goals are recognised; are provided with developmental opportunities. Effective performance management systems are implemented within Assignments teams. Operational plans contribute to the University s strategic goals and objectives and identify resource requirements for the Assignments process. Use of resources is maximised in order to reduce costs of operating without compromising service levels. % Students, Colleges, Regions, NSR satisfaction with Assignments service delivery and communication channels % process outputs clearly specified and agreed to % reports provided to specification and to agreed timeframes % Assignments staff who feel satisfied with their workplace features % staff who have met/exceeded individual performance targets % staff satisfied with implementation and review of the Performance Scorecard % Assignments staff PRPs completed within the University timeframe % strategic and operational Assignments planning initiatives which are implemented within budget decrease in average cost per transaction % variance of actual to budget expenditure Mission: ADDING VALUE from application to graduation Strategic Goals: To understand the importance of SERVICE EXCELLENCE and deliver it consistently To create an ENVIRONMENT where people know how they contribute to making Massey University first choice, take personal responsibility for their contribution and are recognised for the value they add. To understand what part EFFICIENCY plays in first choice, and make it an integral part of the way we work INTERNAL PROCESSES Core operational processes are effective and efficient. A process orientation and a commitment to continuous process improvement exists within the Section. Process deliverables and outputs meet customer needs and expectations. Assignments systems and processes are easy to understand and access. Process performance information is collected and analysed with a view to continuous improvement. Problem management processes are transparent & problems are resolved promptly & effectively. % assignments distributed to internal markers within 24 hours of receipt % assignments distributed to off campus markers within 48 hours of receipt % marked assignments dispatched to students within 24 hours of receipt % assignments dispatched and distributed accurately % assignment records maintained accurately in SMS % decrease in rework and double-handling % processes with current and communicated documentation and performance measures Number of process improvement initiatives that are implemented Ratio of the number of problems resolved/total number of problems Massey University 2002 Hapeta/Downes 8 ATEM September 2002
9 Linkages with planning The Performance Scorecard provided NSATS with a framework with which to integrate all planning activities, including the NSATS contribution to the University 10 year plan and Statement of Objectives. Prior to our involvement with the Performance Scorecard, very limited formal planning had been done in the Section. However, the Performance Scorecard linked well with, and integrated, the planning initiatives we had developed (which had tended to focus primarily on vision, mission and some broad strategic goals). In particular, our three core strategic focus areas of Service Excellence, the Environment and Efficiency related well to the four quadrants of the scorecard: Service Excellence to the Customer quadrant, the Environment goal (with its focus on staff) to the Organisational Learning quadrant and the Efficiency goal to both the Financial and Internal Process quadrants. Following the development of the NSATS helicopter scorecard, a 2-day planning workshop was held with the NSATS Management Team, during which the Performance Scorecard was used as a framework for developing the Section Strategic Plan this is quite a simple plan (only 14 pages in total), but one which staff will read and can easily relate to. Within this plan, each quadrant of the Performance Scorecard was analysed in terms of strengths, weaknesses, opportunities and threats, and strategies and initiatives by which the Section s strategic goals and the objectives could be achieved were also identified. The Strategic Plan, using the Performance Scorecard framework, then formed the basis for developing the NSATS Operational Plan and this, in turn, has facilitated the development of more clearly identified budget needs and requirements. The Operational and Strategic plans are clearly linked by the numbered strategies so staff and other stakeholders can readily see the relationship between the two plans. Unit Operational plans have also been developed using the Scorecard approach and these have incorporated the key performance measures as outlined in the individual process scorecards. Work has also begun on integrating the Section and Unit operational plans into our Performance Review and Planning process (or PRP as it is commonly referred to). Again, the Performance Scorecard has made this easier to do. In essence, the Section Operational plan became my PRP plan for the year, and the Unit Operational plans have become the performance plans for each of the Section s Managers. Managers have also incorporated the Performance Scorecard framework into the PRPs for their Team Leaders, though this is an area which does need further development. The following two pages provide extracts from the NSATS Strategic and Operational plans to demonstrate how they have incorporated the Performance Scorecard framework. Massey University 2002 Hapeta/Downes 9 ATEM September 2002
10 Extract From the NSATS Strategic Plan NSATS and Organisational Learning Goal 2: To create an environment where people know how they contribute to making Massey University first choice, take personal responsibility for their contribution and are recognised for the value they add Objectives Section leaders provide strategic direction and an environment conducive to the achievement of University, Section and individual goals Knowledgeable, skilful and empowered staff are committed, and contribute, to service excellence and innovation Staff are supported and their achievements are recognised Critical Success Factors Staff understand out they contribute to the delivery of University and Section strategic goals Staff are empowered to take personal responsibility for improving services Staff feel valued and their contributions to the success of Section and University goals are recognised Staff are provided with developmental opportunities Effective performance management systems are implemented across the Section Measures % staff satisfied/very satisfied with their workplace features % staff who have met/exceeded individual performance targets % staff satisfied with implementation and review of the Performance Scorecard % Section PRPs completed within the University timeframe # staff who have undertaken identified training and development programmes % staff with basic grasp of Te Reo Maori # staff attending Treaty of Waitangi programme Strategies/Initiatives S2.1 Establish staff development and career progression plans and integrate the Performance Scorecard into the PRP and staff development processes (2003) S2.2 Involve staff in section planning and improvement initiatives (ongoing) S2.3 Develop and implement internal NSATS communication plan (2003) S2.4 Develop and implement performance management and reward systems this includes a clear framework for determining exceptional performance for each role/staff member (2003) S2.5 Develop and implement a job evaluation plan (2003) S2.6 Develop and implement a recruitment profile and plan, including provision for succession planning (2003) S2.7 Establish consistent administrative policies and procedures within NSATS (2003) S2.8 Develop a comprehensive staff induction and training plan, with tools this includes the implementation of 360 evaluation process for all members of the NSATS Leadership Group and star performers, provision of support during this process and a development programme following the outcome of the evaluation (2003) S2.9 Develop and implement annual action plans to increase staff morale within the Section (annual basis) S2.10 Continue work on the review of workload issues within the Section (2003) S2.11 Provide staff with opportunities to attend staff development programmes aimed at providing a wider understanding of the Treaty of Waitangi (2003) Massey University 2002 Hapeta/Downes 10 ATEM September 2002
11 Key Result Area: ORGANISATIONAL LEARNING Extract From the NSATS Operational Plan 2003 Goal 2: To create an environment where people know how they contribute to making Massey University first choice, take personal responsibility for their contribution and are recognised for the value they add Objectives: Section leaders provide strategic direction and an environment conducive to the achievement of University, Section and individual goals Knowledgeable, skilful and empowered staff are committed, and contribute, to service excellence and innovation Staff are supported and their achievements are recognised Critical Success Staff understand how they contribute to the delivery of University and Section strategic goals Factors/Outcomes: Staff are empowered to take personal responsibility for improving services Staff feel valued and their contributions to the success of Section and University goals are recognised Staff are provided with developmental opportunities Effective performance management systems are implemented across the Section Measures: % staff satisfied/very satisfied with their workplace features % staff who have met/exceeded individual performance targets % staff satisfied with implementation and review of the Performance Scorecard % Section PRPs completed within the University timeframe # staff who have undertaken identified training and development programmes % staff with basic grasp of Te Reo Maori # staff who have attended Treaty of Waitangi programme Strategy Action Measurement Responsibility Resources 2.1 Establish staff development and career progression plans and integrate the Performance Scorecard and staff development processes(s2.1) Review staff development and career progression plans for all staff Ensure consistent implementation of Performance Scorecards into PRPs Plans for all staff are developed/updated by end April Performance Scorecard is consistently implemented into PRPs for all staff within the Section by end December 2003 Fiona Chard 2.2 Involve staff in section planning and improvement initiatives (S2.2) Hold a series of workshops for staff input into development of Section Statement of Objectives, and Strategic/Operational plans Workshops are held by end April (Statement of Objectives and Strategic Plan) and by end May (Operational Plan) Mary Downes 2.3 Develop and implement internal NSATS communication plan 2.4 Develop and implement performance management and reward systems (S2.4) 2.5 Develop and implement a job evaluation plan (S2.5) Establish a project team to develop internal communication plan Identify scope of communication plan, including needs analysis Identify and develop tools for internal communications (including NSATS web site related to S1.6) Develop framework for determining exceptional performance for each role Develop performance measurement systems Review reward systems for team and individual performance Develop a process to review individual duties and responsibilities in relation to job profiles Identify University policy and practice for job evaluation Develop process and timelines for review of all job profiles within NSATS Project team established by end March Scope of plan and needs analysis completed by end June Communication tools developed and implemented by end November Framework developed by end May Performance management system implemented by end August Reward systems updated by end July Duties and responsibilities for all staff are aligned with job profiles Job evaluation plan developed and implemented by end November 2003 Management Team Leadership Group / Kim Allan Anne Weir $5,000 development of web site and other tools HR input Massey University 2002 Hapeta/Downes 11 ATEM September 2002
12 Staff involvement As mentioned before, staff were encouraged to participate in the Project Office workshops on the Performance Scorecard and were then involved in Unit and Team meetings on the Scorecard. Actual participation in the workshops varied across the Section, with some teams strongly represented and others deciding they were either too busy or not interested (just one more management fad!). Perhaps the most significant staff involvement to date has been in the development of the performance measures for the individual process scorecards. This was something many staff felt comfortable with as it involved the processes for which they were directly involved though it was still a challenge for some as they were not used to the idea of measuring performance in such a tangible way. Two staff members were also involved in the design of the Staff Satisfaction Survey which, in turn, required them to discuss this with, and seek feedback from, other staff within the Section. The Staff Satisfaction Survey has also provided staff with increased opportunities to be involved with planning in the Section. For instance, feedback from the 2001 survey identified a number of improvement suggestions. At a section meeting, staff prioritised these suggestions and came up with the four suggestions that were the most important to them. Staff then developed action plans to address these issues, and the plans were presented at a Section meeting a few weeks later. The outcome of these plans was a set of behaviours which all staff in the Section have committed to. This has served to reassure staff that the scorecard and the survey are positive tools for addressing issues and also give staff some personal responsibility for creating the environment they want. NSATS benefits The Performance Scorecard has provided the Section with a framework for all performance planning, measurement and review within the Section from the wider University perspective right down to the individual level. This then has helped to ensure that planning is integrated rather than haphazard and has clarified how everyone in the Section contributes, not only to Section goals and objectives, but also to University objectives. The focus on important processes and the critical success factors and measures of success for these processes is leading to operational efficiencies. For instance, turnaround time has been identified as being important for the production of academic transcripts. The resulting focus on the activities involved in the process has led to a decrease in turnaround time from an average of 7-10 days at peak periods to 1-2 days during the same busy time. The focus on all four quadrants of the scorecard provides us with a more balanced picture of the Section s performance. We are not just focusing on bottom line success but are now also measuring success in terms of customer satisfaction (both student and internal stakeholder), staff satisfaction and effectiveness, and operational Massey University 2002 Hapeta/Downes 12 ATEM September 2002
13 effectiveness. Measuring and reporting on success in these quadrants has helped us to address the challenges discussed earlier the need to develop a single culture, an enhanced customer focus and a process orientation. In addition, the introduction of the scorecard has given us an opportunity to increase staff involvement in Section planning activities, while providing them with clear direction. Furthermore, the subsequent use of tools such as the staff satisfaction survey has meant that staff have had a non-threatening opportunity to have a say in the way in which we work together. This has led to an increase in staff satisfaction with their workplace features. Examples of this include: non-solicited feedback from staff following recent performance planning meetings about their confidence in and satisfaction with the improved clarify of direction personally and for the Section; comments from staff recognising the efforts that the Management Team have been making to model the behaviours and activities suggested in the action plans that staff prepared earlier on, and positive feedback about my working with staff in different parts of the Section on a fortnightly basis this followed from a suggestion in the action plans that Managers work on the shop floor on a regular basis. Other benefits arising from the introduction and implementation of the scorecard have been an increase in team-work, within both the Management team and operational teams, and improved consistency in practice and reporting across the Section. NSATS and the Scorecard where to from here? While a number of measures have been identified, both high-level as indicated in the helicopter scorecard, and lower-level as in the process scorecards, these measures must be reviewed to ensure they are, in fact, the right ones. Furthermore, we are not yet able to actually report on some of the measures that have been identified. So, we have to first ascertain those measures that we can readily report on and develop targets for them staff will be involved in this exercise. We then also have to begin work to identify how we can report on the other measures in the future what systems do we have to redefine, what new reports do we need etc. We would like to work with other external organisations, preferably universities, both in New Zealand and Australia, to establish a benchmarking relationship. In this way we can consider how we are performing against others and can share best practice. We plan to extend staff understanding of the Performance Scorecard. Although we have spent some time with staff on the importance and benefits of the scorecard, and some staff have contributed to the development of the process scorecards, there is still some work to do to ensure that all staff have a clear understanding about the scorecard process, the benefits it offers and how it impacts on them. We hope to do this by identifying training and coaching opportunities for staff in relation to the Performance Scorecard, Massey University 2002 Hapeta/Downes 13 ATEM September 2002
14 benchmarking and process improvement we will also ensure that staff are given every opportunity to participate in such sessions. As mentioned earlier, we have begun to incorporate the Performance Scorecard framework into our Performance Review and Planning process. While this has been done to a certain extent within the Management Team and with Team Leaders, I am not sure that we have got this quite right yet. We now have to review this process and the measurements that have been included in individual PRPs. Once this is done, the Performance Scorecard will be integrated within all individual staff performance plans. In this way, all staff should be able to readily see how their performance contributes to the successful delivery of the processes for which they are responsible, and how this, in turn, contributes to success for the Section and for the University overall. Finally, we would like to encourage further staff involvement in a number of ways. The first is to extend opportunities for bottom up planning. The integration of the Performance Scorecard framework into our strategic and operational planning process increases our ability to do this effectively. The framework and the strategic initiatives identified in our Strategic Plan provide staff with the direction they need to contribute in a non-threatening way. Unit managers are now working with their staff to develop their Unit Operational plans which will then provide the basis for the Section Operational plan, rather than vice versa. Staff will also be involved in various projects, the successful completion of which will contribute to the achievement of the objectives in our Performance Scorecard. An example of one of these projects is the development and implementation of a problem management process within the Section a project team has been established from across the Section and is now working on this process. Conclusions and lessons learnt Ideally before this process commences you need to know and understand the strategic direction of the University. The rationale for this is that this process needs to be working on strategy and implementing such strategy into operations. We carried out a number of meetings and workshops about the scorecard methodology with staff and management. The purpose of this was to instil a good level of understanding from line managers about this measurement methodology. The reason for this is that these managers need to be able to competently explain terms and the measurement approach to staff. The success of this project has been the way in which we involved the line managers throughout the process and got them to lead the process within their own sections. The best buy-in has come from the sections who have included all staff in the process, from the start. We need to have constant reinforcement of the scorecard methodology with staff. This includes regular team/unit/section meetings where staff have a chance to discuss progress and become involved in planning using the scorecard methodology as staff Massey University 2002 Hapeta/Downes 14 ATEM September 2002
15 become involved in the day to day activities of their jobs, they can quickly lose sight of the bigger picture and the part that their job plays in contributing to overall success. While the scorecard can help with this, regular communication about this does need to be maintained in order for it to be truly effective. Probably one of the most difficult things that the managers involved in the pilot Performance Scorecards faced was the development of the high-level measures identifying what to measure and how to measure it. There were a number of different perspectives, as well as a tendency to look at measures that were either too detailed (more suitable to lower-level scorecards) or more like objectives and it took a lot of discussion before a level of consistency was established. In order to implement the scorecard within sections of the University, we need a high level of commitment from managers and staff to collect and monitor the measurement, otherwise the process will stop and may be seen as another quality management failure. Where to from here? We would like to set up benchmarking with other Universities & organisations within the next year. Start the performance scorecard process with Colleges and other national shared service providers who have not implemented this methodology. Develop a Massey scorecard website for intranet and internet. Link the reporting of the measures to the formal University reporting process i.e. Statement of Objectives process (in NZ), which reports to the Ministry of Education on performance on an annual basis. Massey University 2002 Hapeta/Downes 15 ATEM September 2002
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