Session 8 Balanced Scorecard And Communication Protocol

Session 8Balanced ScorecardandCommunication Protocol

How to Create a Successful Balanced ScorecardWhat is a Balanced ScorecardThe balanced scorecard is a concept and tool first conceived by by Robert Kaplan and David Norton. Thebalanced scorecard idea debuted in the Harvard Business Review in 1992."The balanced scorecard retains traditional financial measures. But financial measures tell the story ofpast events, an adequate story for industrial age companies for which investments in long-termcapabilities and customer relationships were not critical for success. These financial measures areinadequate, however, for guiding and evaluating the journey that information age companies must maketo create future value through investment in customers, suppliers, employees, processes, technology, andinnovation."It allows managers a tool on which view critical operational factors and their inter-relationships with current andfuture 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 onboard early Determine what the true drivers ofperformance are Enlightening process Defines the “heart” of theorganization Focus in on ‘cause andeffect’ relationships Determining how to measure (wouldyou like that in pounds, inches, pieces or adjectives?) Identify the design and functionality criteria? Create consistent definitionsRolling 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 GroupAll rights reserved8-1Session 8

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 maintainKeeping 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 knowthe answer) Empower them to find their own answers Communicate positive trends visible on scorecard, as well as negative trends as an “early warningsystem”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 orconceivable. 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 communicationand 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-termsuccess) Treat it as a learning tool – not a control tool! The Employee Engagement GroupAll rights reserved8-2Session 8

To Buy or to Build your Balanced ScorecardBuyBuildPros Off the shelf ready Design and customize to yourspecific needsProfessional look and feelMay include design support Ties easily to your dataList other pros to buying you Changes done quickly at aminimum costcan think of below List other pros to building youcan think of below:Cons Maintenance comes fromthe outside Difficult to customize Programming changes canbe expensive Needs tied to costs List other cons to buying youcan think of below: The Employee Engagement GroupAll rights reserved8-3 Significant investment of ITresources May not have theprofessional look and feel Longer development time List other cons to building youcan think of below:Session 8

Establish a Communication ProtocolCompanies need to minimize communication gaps, build alignment with all levels of leadership, and ensure thatemployees receive consistent messages.The Communication Protocol outlines the types of information to be communicated to the organization, as well asidentifying 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 aslobby’s and conferences, and distributed to all new hires, the Protocol ensures that communications will align withthe 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 theeffectiveness 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 providesopportunities 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 givefeedback 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 highperformance. All new hires should receive a copy of the Protocol, demonstrating the company’s promise tocommunicate on day one. The Employee Engagement GroupAll rights reserved8-4Session 8

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 toolsKeys 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 Profito Growtho Engagemento 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 GroupAll rights reserved8-5Session 8

Sample Communication onferencecall, or WebXmeetingsAll employeesof the , or WebXmeetingsAll employeesof OfficeQuarterly/MonthlyDept. Mgr.On-sitemeetingsAll employeesof departmentWeekly/Bi-weeklyGeneral InfoCompany Update:Corporate-Review of Company Metrics (e.g.,health & safety performance toplan, net sales growth, etc.)-Recent Awards/Opportunities-Organizational DevelopmentUpdate-International News-RecognitionQuarterly Review Meeting toinclude:Regional-Review of Company Metrics-BD Review (inc. recent awards)-Recognition-Organizational DevelopmentUpdateOffice Update:Office-Review of Key Metrics (e.g.performance to plan, net salesgrowth, etc.)-Recent Awards/Opportunities-Workload leveling-Organizational DevelopmentUpdate-RecognitionWorkload leveling:Department-Recent Wins Proposal Activity-Professional DevelopmentalOpportunities-Health & Safety-Recognition The Employee Engagement GroupAll rights reserved8-6Session 8

onferenceCallSr. Mgt.TeamBi-weeklyCEOOn-sitemeetingsSr. Mgt.TeamQuarterlyGeneral InfoCorporateCorporateCompany UpdateStrategy UpdateOperations Review:Regional-Performance vs. Plan-Key Account Update-Strategic Initiatives-Staff Development UpdateBi-annualOn-sitemeeting orconferencecallEVP, CFO,Sr. VP Sales,RVPs, OfficeManagersSr. VPSalesConferenceCallRVPs, lyCSCMOn-sitemeetingDMs, CSCCorporateMust WinRegional BD Review:-BD Plan Review-Account Plan Review-Sales TrainingCSC BD ReviewService Line/Industry Sectors- Bookings and Sales Trends- Overall Performance- Key Wins- Professional DevelopmentOpportunities The Employee Engagement GroupAll rights reserved8-7Session 8

Other rateProfessional DevelopmentCalendar and Employer of ChoiceCommittee UpdatesIndirect Labor TeamMessage/TopicOrganizational DevelopmentUpdate"Inside Company"ScopeMessage/TopicEVP-ODEmail, EmployeesQuarterlyLeaderVenueAudienceFrequencyHR and udienceFrequencyCEOOn-sitemeetingBODMembers &GuestsQuarterlyCEOConferenceCallShareholders,CEO, EVP,CFOBi-weeklyBoard of DirectorsBOD-Performance to plan-Forecast-Sales & MarketingBi-weekly Shareholder UpdateBODInformation The Employee Engagement GroupAll rights reservedDynamic8-8Session 8

Example: Strategic Communications The Employee Engagement GroupAll rights reserved8-9Session 8

What and how we’re doingExample: Tactical Communications The Employee Engagement GroupAll rights reserved8-10Session 8

Example: Tactical Communication The Employee Engagement GroupAll rights reserved8-11Session 8

What and how we’re doingExample: Tactical Communication The Employee Engagement GroupAll rights reserved8-12Session 8

Thought-Provoking Questions:Message1.2.3.4.5.Who DeliversVenueAudienceFrequencyWhat are your specific strategic and tactical elements?What opportunities will staff have to communicate up?How will this tool build alignment?How will you leverage social mediaHow will people delivering the message be held accountable? The Employee Engagement GroupAll rights reserved8-13Session 8

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 The Employee Engagement GroupAll rights reservedWho Delivers8-14VenueAudienceFrequencySession 8

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 tieto 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?) MessageWho DeliversVenue The Employee Engagement GroupAll rights reserved8-15AudienceFrequencySession 8

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 levelcommunicate 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 The Employee Engagement GroupAll rights reservedWho Delivers8-16VenueAudienceFrequencySession 8