NASES Conference, Leeds 2008 Business Planning with Balance Scorecard Aidan Grills Director of Membership Services and

1. NASES Conference, Leeds 2008Business Planning with Balance ScorecardAidan GrillsDirector of Membership Services and Development, Leeds University Union

2. Objectives At the end of this session you will have been given a brief(!) overview of the concept of Balance Scorecard as it applies to business planning, and an understanding of how it has been “applied” at LUU. • Performance management • Introduction to Balance Scorecard • Adaptation by LUU • Best practice advice

3. A chance to “network” • In pairs – (after introductions, name, home town, travel issues coming to Leeds…) • Identify what are the key things upon which you make management decisions about your business?

4. Another chance to “network” • Joining with another pairs – (after introductions) • Discuss what are the measures for success for your service?

5. Performance Management “People and their managers are working so hard to be sure things are done right, that they hardly have time to decide if they are doing the right things.” Stephen R. Covey

6. From : A controlling environment Governed by rules Control of individuals Negative focus Towards : Environment of accountability Mission driven Customer driven Positive, team focus Performance Management

7. The Balance Scorecard Approach to Business Planning • In its simplest form, is management by objectives, used to align activities/objectives to strategy = balance • Developed by Kaplan and Norton (Harvard) • Creating links between operational activities and organisational strategy • Financial and non-financial measures • Since the original publication it has developed further

8. Financial The Basic Balance Scorecard : Customer Internal Business Processes Vision and Strategy Learning & Growth

9. Balance Scorecard : Financial Perspective • Financial data • Risk-assessment data • Sales volumes, new customers acquired • Return on investment and capital • Cash flow, gross profit margin

10. Balance Scorecard : Customer Perspective • Performance satisfying the customer directly • Customer satisfaction and market share • Activities directly creating value in what the customer receives

11. Balance Scorecard : Learning and Growth Perspective • The internal skills and capabilities • Human capital and information • Market research • Staff development and employee stats (turnover and absence etc.)

12. Balance Scorecard : Internal Business Process Perspective • The internal processes behind the service/product • Short-term and long-term development • operations management • customer management • innovation • regulatory issues

14. Questions?

15. The LUU Planning Experience • Overview of LUU planning process • New strategic plan in 2006 required new supporting business plans • Devised our own template which had organisational fit for LUU in terms of… • Illustrated our values • Match our communications

16. LUU One Page Plan

17. Learning, Growth & Development Ensure that activities are relevant to the wider and diverse membership Activity Organisers tell us how to improve the services we provide Staff support LUU’s Community Strategy Staff are experts in their area of responsibility. This expertise can be accessed by our members Members & Customers Make getting involved easier and ensure that all activities improve student life at Leeds Support and develop the activities of JCRs Celebrate week is a key event in the Union’s calendar Explore the opportunities around including alumni in activities Ensure assembly structure in the new Student Activities model is supported Department Vision By 2010, our relationship with the members will mean that together we deliver a strong programme of activities, the variety of which meets the needs of our diverse membership • Finance & Resources • Staff supports the financial side of activity groups through sourcing funding and making us financially more sustainable Make our systems as easy as possible for volunteers to understand • Student Activities will aim to provide appropriate space for all activity groups Internal Operations & Innovation Health and Safety practices within Student Activities are best practice The ARC Cash Office provides the highest quality service available The ARC Reception provides a professional and friendly service Student Activities will launch online methods of accessing activities Staff will work on initiatives that support LUU’s CSR Strategy LUU Student Activities Department Plan • Themes of our vision: • Representing & empowering our members • Listening to and informing our members • Making University life easier for our members • Providing key services • Supporting the leisure time activities of our members

19. Internal Operations & Innovation Action Plan

20. Financial The Basic Balance Scorecard : Customer Internal Business Processes Vision and Strategy Learning & Growth

21. Best Practice • Limit the number of measures on your strategy • Include measures for all perspectives and all strategies • Seek balance among measures • Develop measures for past, present, and future • Don’t over-rely on output, process and input measures, but think about outcomes too • Set stretch targets • Beware unintended targets which can incentivise working away from the stated vision/goal • Hold people accountable for results through supported performance management

22. Links and resources : • The Joblink Plan, Gail Hardwick • g.hardwick@luu.leeds.ac.uk • The Balanced Scorecard, Robert Kaplan & David Norton, Harvard Business School Press • The Strategy-Focused Organization, Robert Kaplan & David Norton, Harvard Business School Press • The Balance Scorecard Institute : • www.balancescorecard.org