Quality Improvement QI and Balanced Scorecard

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Quality Improvement(QI)and Balanced Scorecard

• Prepared for the
• Administration and Finance Division
• 8/31/99

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Do you have a plan to maneuver the curves of
change?
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Balanced ScorecardMapping the Road to Success
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Business Challenges in Year 2000

• Enrollment Increases Multiply Transactions
• Regulatory Reporting Increases
• Community Expectations Accountability Rise

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CSU Productivity Initiatives
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What we are doing to meet the challenges

• Reengineering of Many Campus Processes drive
• Decentralization of Decisions Transactions
• Greater Expectations for Electronic Commerce
• Appropriate Skills Training for Staff

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QI Brings Us to the Next Level

• The results of quality improvement include
• Fiscal and public accountability
• The ability to better compete with other
  institutions vying for our students
• Employee satisfaction (WIIFM)

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Building the AF Change Cycle
Baseline/ Ongoing Assessment
Rewards/ Incentives/ Recognition
Identify Improvement Targets
Reporting Measurement
Develop Action Plans, Productivity Proposals
Implement Proposals
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Quality Improvement

• Promote continuous quality and productivity
  through
• Systematic identification and transfer of best
  practices
• Quality enhancement strategies and frameworks
• Assessment of customer needs and satisfaction
• Process measurement and evaluation tools
• Outcomes assessment and performance measures
• Campus and/or system-wide collaboration

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Frameworks - Balanced Scorecard

• Financial
• Internal
• External
• Innovation and Learning

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Frameworks Sample - Balanced Scorecard

• Financial Sample measures include
  profitability, revenue growth/mix and cost
  reduction and ask questions like, How do we look
  to resource providers?
• Internal Sample measures include quality, cost,
  and cycle time and ask question like, Are we
  productive and effective?
• External Sample measures include condition of
  our facilities and grounds, customer assistance,
  and ask questions like, How do customers see
  us?
• Innovation and Learning Sample measures include
  employee skills, process feedback capabilities,
  and employee satisfaction, and ask questions
  like, How do our employees feel?

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Components of The Balanced Scorecard
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A balanced scorecard for departments?
Financial Perspective
How are the units financial resources obtained,
managed and deployed?
Mission Teaching, Research, Public Service
Constituents Perspective
Internal Process Perspective
Has the unit designed key internal processes to
ensure achievement of its vision?
How should the unit appear to key external
constituencies (funders, students, peers)?
Growth and Improvement Perspective
Does the unit have in place the mechanisms to
ensure excellence over time?
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Role of Balanced Scorecard

• Alignment of Customer Priorities Business
  Priorities
• Ability to Track Progress Over Time
• Evaluation of Process Changes
• Identify Opportunities for Initiatives
  Partnerships
• Accountability to Constituents
• Develop Action Plans Set Strategic Direction

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Link Campus Vision With Business
Objectives Academic-Service
Specify Desired Outcomes -Criteria for Success-
Identify Elements of Our Risk Environment -Threat
s to Success-
Develop and Implement Quality Improvement
Framework
Analyze Results and Develop Action Plans
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Key Elements of a Framework

• Translate Campus Vision Into Business Objectives
• Decentralization/Recentralization to Competent
  Level
• Reduce Campus Risk by Transferring Elements to
  Business Units
• Communicate and Link Objectives to Individual
  Performance
• Use a Balanced Scorecard for Accountability,
  Strategic Planning, and Resource Allocation

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How the Framework Differs from a Strategic Plan

• The framework will be more specific than division
  objectives. It calls for goals, targets and
  plans and will add accountability.
• Aligns division and department goals with quality
  service and the Strategic Plan.

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Critical for Success of Any Model

• Leadership Commitment is Essential
• The Process of Goal Setting and Measure
  Development is Vital
• Assessment Does Influence Behavior

• Fewer Measures Are A Good Thing
• Results Should Be Used To Set Planning Priorities
• Results Should Influence Rewards
• Assessment Results Should Be Communicated

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Some Characteristics of Successful Organizations

• Operational Efficiency
• Customer Intimacy
• Product Quality
• Value Creation Group, Inc. 1999

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Notes About Successful Institutions

• Employees must be able to identify company
  targets before exemplifying extraordinary efforts
  towards the targets.
• Successful companies have very strong alignment
• Employees dont just want to work for a company.
  They want to work for a cause.
• Rather than treat employees as a cost to be
  controlled, treat employees as an asset to be
  developed.
• Value Creation Group, Inc. 1999

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What a Balanced Scorecard Accomplishes

• Measures how
• Strategic business units (SBU) create value for
  future and current customers
• They must improve internal processes
• Strategic activities create value
• Value Creation Group, Inc. 1999

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How to Use a Balanced Scorecard

• Clarify and translate vision, mission, values,
  and strategy
• Communicate and gain consensus on strategy
• Align department and individual goals to strategy
• Link performance measures to strategy
• Set performance targets
• Identify and align initiatives to support
  strategy
• Assess whether strategy is working
• Drive organizational change
• Guide where to reengineer
• Integrate budgeting and strategic planning
• Integrates cost centers into customer-based
  business processes
• Provides feedback to improve strategy
• Value Creation Group, Inc. 1999

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Balanced Scorecard

• Informative WebPages --
• Buy the book (The Balanced Scorecard) at
• http//www.windnet.com/mki/books/business/the_bala
  nced_scorecard.html
• http//www.imprintconsulting.com.au/balance.htm
• http//www.bscol.com/

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Quality Improvement

• Informative WebPages --
• CSUs QI web page at
• http//www.calstate.edu/tier3/qi/
• CSU Sacramentos program at
• http//www.csus.edu/admbus/core.htm

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Balanced ScorecardKeeping AF On The Right Road
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Quality Improvement

• For further information, please contact
• Beverly Johnston
• (x3124 or e-mail bjohnsto)
• Campus Quality Improvement Facilitator (QIF)
• Any Questions?