Session 8 Balanced Scorecard and Communication Protocol

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1 Session 8 Balanced Scorecard and Communication Protocol

2

3 How to Create a Successful Balanced Scorecard What is a Balanced Scorecard The balanced scorecard is a concept and tool first conceived by by Robert Kaplan and David Norton. The balanced scorecard idea debuted in the Harvard Business Review in "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." It allows managers a tool on which view critical operational factors and their inter-relationships with current and future performance in mind. When developing your Balanced Scorecard, the focus should be on organizational vision and long-term success, not on control and compliance (see Recommendations for Success in this document. The Process for Developing a Balanced Scorecard Get enthusiastic support and commitment from top management Carefully design the design team Cross-representation Get your IT support on board early Determine what the true drivers of performance are Enlightening process Defines the heart of the organization Focus in on cause and effect relationships Determining how to measure (would you like that in pounds, inches, pieces or adjectives?) Identify the design and functionality criteria? Create consistent definitions Rolling Out Your Balanced Scorecard Create a Communication Plan let people know why it s there and how to use it Avoid an identity crisis Conduct a training session or at least an overview and tour for all employee The Employee Engagement Group 8-1 Session 8

4 Maintaining Your Balanced Scorecard On-going investment will be different in every organization Constant communication and integration with internal processes IT resources to update and maintain Keeping the Balanced Scorecard Vibrant Reference the Balanced Scorecard in monthly CEO communication See information on Communication Protocol for more information about CEO communications Use the information and, if possible, the live tool in the quarterly operations review Create a prominent place for the tool on your intranet Link from home page make it easy to access Make the scorecard page your default intranet home page (at least for a while) Point employees to the Balanced Scorecard page instead of answering their questions If they want to know something that is on the Balanced Scorecard, refer them (even if you know the answer) Empower them to find their own answers Communicate positive trends visible on scorecard, as well as negative trends as an early warning system Recommendations for Success Before anything else, seek management buy-in! Make sure someone owns it it is best to have one person own and be responsible for the project Keep the Balanced Scorecard simple and focused Think one screen and one page Metrics (drivers) have to be aligned with goals, especially at company level. Answer the question: What will fulfill the mission of the organization? Include the Balanced Scorecard link in as many communications and activities as possible or conceivable. Get it in front of the employees at every opportunity, especially as it is rolled out Numbers are the drivers of the Balanced Scorecard but pictures are essential for effective communication and ongoing use Establish meaningful benchmarks/ comparisons to historical data Make it relevant and understandable to all employees When trends go south engage employees in correcting the course (it s about vision and long-term success) Treat it as a learning tool not a control tool! The Employee Engagement Group 8-2 Session 8

5 To Buy or to Build your Balanced Scorecard Pros Buy Off the shelf ready Professional look and feel May include design support List other pros to buying you can think of below Build Design and customize to your specific needs Ties easily to your data Changes done quickly at a minimum cost List other pros to building you can think of below: Cons Maintenance comes from the outside Difficult to customize Programming changes can be expensive Needs tied to costs List other cons to buying you can think of below: Significant investment of IT resources May not have the professional look and feel Longer development time List other cons to building you can think of below: The Employee Engagement Group 8-3 Session 8

6 Establish a Communication Protocol Companies need to minimize communication gaps, build alignment with all levels of leadership, and ensure that employees receive consistent messages. The Communication Protocol outlines the types of information to be communicated to the organization, as well as identifying the person(s) responsible for communicating particular topics. In addition, the audience, frequency, and suggested communication vehicles are also outlined. Prominently displayed in all common areas such as lobby s and conferences, and distributed to all new hires, the Protocol ensures that communications will align with the company s key strategic priorities. As importantly, the Protocol represents a set of company commitments to employees: Leaders will be held accountable for fulfilling their communication responsibilities and assessed on the effectiveness and timeliness of their communication. Employees will receive regular updates about the progress, initiatives, and changes that affect them. And (most importantly for this step of the engagement process), each communication milestone provides opportunities for employees to ask questions, contribute ideas, and give or receive feedback. In turn, the expectations for employees are clear. All employees are responsible to share information and give feedback to help the company reach its goals, thereby reinforcing the desire for employees to communicate up and bolstering the mutual commitment shared by employer and employee. A Communication Protocol will reinforce that one s culture needs to be one of mutual commitment and high performance. All new hires should receive a copy of the Protocol, demonstrating the company s promise to communicate on day one. The Employee Engagement Group 8-4 Session 8

7 Goals of a Communication Protocol Establish Communication Expectations Build consistent messaging Create alignment with employees at all levels Create circular communication Build shared accountability (from the top to bottom) Reinforce a culture of achievement Minimize duplicate work Reinforce key messages 13 times Leverage different communication venues and tools Keys to a Successful Communication Protocol Begin by creating one presentation template from the office of the CEO Include the key elements of your strategic plan. Examples: o Profit o Growth o Engagement o Etc. Support with a Balanced Scorecard Link with your strategic plan and update annually Post in all public areas Give to all new hires The Employee Engagement Group 8-5 Session 8

8 Sample Communication Protocol Scope Message/Topic Leader Venue Audience Frequency Company Update: General Info Corporate -Review of Company Metrics (e.g., health & safety performance to plan, net sales growth, etc.) -Recent Awards/Opportunities -Organizational Development Update -International News -Recognition CEO All Employees Monthly Regional Quarterly Review Meeting to include: -Review of Company Metrics -BD Review (inc. recent awards) -Recognition -Organizational Development Update Regional VP On-site, conference call, or WebX meetings All employees of the region Quarterly Office Update: Office -Review of Key Metrics (e.g. performance to plan, net sales growth, etc.) -Recent Awards/Opportunities -Workload leveling -Organizational Development Update -Recognition Office Manager On-site, conference call, or WebX meetings All employees of Office Quarterly/Monthly Workload leveling: Department -Recent Wins Proposal Activity -Professional Developmental Opportunities -Health & Safety -Recognition Dept. Mgr. On-site meetings All employees of department Weekly/Bi-weekly The Employee Engagement Group 8-6 Session 8

9 Scope Message/Topic Leader Venue Audience Frequency General Info Corporate Company Update CEO Conference Call Sr. Mgt. Team Bi-weekly Corporate Strategy Update CEO On-site meetings Sr. Mgt. Team Quarterly Operations Review: Bi-annual Regional -Performance vs. Plan -Key Account Update -Strategic Initiatives -Staff Development Update CEO On-site meeting or conference call EVP, CFO, Sr. VP Sales, RVPs, Office Managers Sales Corporate Must Win Sr. VP Sales Conference Call RVPs, RSDs, KAMs Bi-weekly Regional Regional BD Review: -BD Plan Review -Account Plan Review -Sales Training RSD Conference Call CSCMs, KAMs Monthly CSC CSC BD Review CSCM On-site meeting DMs, Sr. Seller-Doers Bi-weekly Corporate Service Line/Industry Sectors - Bookings and Sales Trends - Overall Performance - Key Wins - Professional Development Opportunities Applicable Leader /Intranet All Employees Quarterly The Employee Engagement Group 8-7 Session 8

10 Other Communication Corporate Professional Development Calendar and Employer of Choice Committee Updates EVP-OD , OD Quarterly All Employees Bi-weekly Corporate Indirect Labor Team VP-Quality All Employees Quarterly Scope Message/Topic Leader Venue Audience Frequency Corporate Organizational Development Update HR and IS Depts. "OD Quarterly" Newsletter All Employees Quarterly Corporate "Inside Company" Mktg. Dept. All Employees Bi-weekly Scope Message/Topic Leader Venue Audience Frequency Board of Directors BOD -Performance to plan -Forecast -Sales & Marketing CEO On-site meeting BOD Members & Guests Quarterly BOD Bi-weekly Shareholder Update CEO Conference Call Shareholders, CEO, EVP, CFO Bi-weekly Information Dynamic The Employee Engagement Group 8-8 Session 8

11 Example: Strategic Communications The Employee Engagement Group 8-9 Session 8

12 What and how we re doing Example: Tactical Communications The Employee Engagement Group 8-10 Session 8

13 Example: Tactical Communication The Employee Engagement Group 8-11 Session 8

14 What and how we re doing Example: Tactical Communication The Employee Engagement Group 8-12 Session 8

15 Thought-Provoking Questions: Message Who Delivers Venue Audience Frequency 1. What are your specific strategic and tactical elements? 2. What opportunities will staff have to communicate up? 3. How will this tool build alignment? 4. How will you leverage social media 5. How will people delivering the message be held accountable? The Employee Engagement Group 8-13 Session 8

16 Creating a Communication Protocol (Part 1) Imagine you are sitting with your CEO what are the 4 key elements that he/she would want to communicate to the organization? In the form below, write the: Message or key topic Venue how it s delivered Audience who receives this directly (does it go to all employees, high level management, etc?) Frequency how often will the message go out (will the CEO commit to this time table?) Message Who Delivers Venue Audience Frequency The Employee Engagement Group 8-14 Session 8

17 Creating a Communication Protocol (Part 2) Look at the next level down from the CEO (Director, VP, Department Leader, etc.)? What messages or key topics should this level communicate and how does it tie to the CEO message? In the form below, write the: Message or key topic Venue how it s delivered Audience who receives this directly (does it go to all employees, next level only, etc?) Frequency how often will the message go out (will the CEO commit to this time table?) Message Who Delivers Venue Audience Frequency The Employee Engagement Group 8-15 Session 8

18 Creating a Communication Protocol (Part 3) Look at two levels down from the CEO (this could be line managers, department managers, or even supervisors)? What messages or key topics should this level communicate and how does it tie to the CEO message? In the form below, write the: Message or key topic Venue how it s delivered Audience who receives this directly (does it go to all employees, next level only, etc?) Frequency how often will the message go out (will the CEO commit to this time table?) Message Who Delivers Venue Audience Frequency The Employee Engagement Group 8-16 Session 8

19 Keeping your Protocol Vibrant Reference in monthly CEO communication Keep the same sequence Leverage the same template where and when possible Use social media in partnership with other forms Update annually Show communication graphically where possible Maintain ongoing communication using a balanced scorecard The Employee Engagement Group 8-17 Session 8 Session 8

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21 Action Plan And Pre-Work

22 Session 8 Action Plan Create a draft Communication Protocol addressing 3 levels from the CEO down. Level 1 (CEO, C-Suite) Message Who Delivers Venue Audience Frequency Level 2 Message Who Delivers Venue Audience Frequency Level 3 Message Who Delivers Venue Audience Frequency The Employee Engagement Group All Rights Reserved. 1 Session 8 Action Plan Use additional pages if needed. Please finish all sections and be prepared to discuss during session 9

23 Session 9 Pre-work 1. What % of your population is eligible for bonuses? % 2. What % of bonuses paid are based on: % based on qualitative results How are each of these results measured? % % based on quantitative results % 3. What types of ongoing reward / recognition programs to you have in your organization? Ongoing reward /recognition programs might include: Employee of the month Spot bonuses (cash for outstanding work) Gift cards Time off The Employee Engagement Group All Rights Reserved Work Session 9 1 Pre- Use additional pages if needed Please finish all sections and be prepared to discuss during session 9

24 The Employee Engagement Group All Rights Reserved Work Session 9 2 Pre- Use additional pages if needed Please finish all sections and be prepared to discuss during session 9

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