Balanced Scorecard for Applications Technology May 2002 Presentation

Balanced Scorecard for Applications Technology May 2002 Presentation for CUMREC 2002 Judy Caruso, University of Wisconsin Copyright Judy Caruso, 2002. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author. 1

Agenda • UW-Madison, Applications Technology • What is a Balanced Scorecard and why do it? • Actual Balanced Scorecard for Applications Technology • Measures • Recommendations 2

University of Wisconsin-Madison Photo © UW-Madison University Communications, 608 -262 -0067 Est. 1848 Enrollment 41, 219 Employees 18, 866 3

Applications Technology (AT) • Part of Division of Information Technology (Do. IT) • Do. IT includes administrative and academic computing, network and telecom • Applications Technology (AT) – 110 programmer/analysts, project mgrs, administrative application software development 4

What is a Balanced Scorecard? 5

Traditional Measures – Financial Only Past Performance Measured 6

Objectives of Balanced Scorecard • Derived from Organization Vision and Strategy • 4 Perspectives: – Financial – Customer – Business Process – Learning and Growth 7

Building a Scorecard • For Strategic Business Unit • It’s a mechanism for strategic implementation, not strategic formulation • Create Mission/Vision and Strategies • Create Objectives • Create Measures 8

Scorecard Communicates Business Unit’s Strategy • Creates a model of the strategy that allows all employees to see how they contribute to organizational success 9

Scorecard Communicates Business Unit’s Strategy • Focuses change efforts. If the right objectives and measures are identified, successful implementation will likely occur. 10

AT Department – in the Context of UW-Madison • There is no Balanced Scorecard at the University or the Division of Information Technology level • Used UW-Madison Strategic Plan and Do. IT Strategic Plan for the foundation to build upon 11

UW-Madison’s Priorities • • • Promote Research Advance Learning Accelerate Internationalization Amplify the Wisconsin Idea Nurture Human Resources 12

Information Technology Strategic Directions • • Easy Access to Web-Based services Advance learning by integrating technology Easy access to data Evolving the network Outstanding applications Robust middleware Customer service 13

Applications Technology Mission: to be an exceptional source for application systems analysis, design, development, implementation, integration, and support for the University 14

Applications Strategies • EBUS – E-Business – To be a key partner in e-business transformation for the university • APBS – Appointment Payroll and Benefits System – To be the primary implementation partner for the APBS project • TECH – Technology – To quickly and effectively adopt emerging applications and infrastructure technologies • SYST – System Support – To provide technical expertise and support for the university’s application data and systems 15

E-Business Strategy Objectives • Financial Perspective – Sustain at least current revenue levels (F 1) – Break even (F 5) 16

E-Business Strategy Objectives • Customer Perspective: – Increase the number of satisfied web applications customers (C 1) – Increase customer awareness of web accessibility (C 2) – Enhance student access to data – MUM, Web Reg (C 10) – Enhance faculty and staff access to data – query, reports, etc. (C 11) – Deliver products within customer contracted amount (C 13) 17

E-Business Strategy Objectives • Internal Perspective: – – – – – Understand Customer Segments (I 1) Utilize quick-hit response methods (I 2) Develop Middleware interface components (I 3) Assist in development of requirements for Middleware components (I 4) Develop MUM interface components (I 5) Develop & utilize Web accessibility guidelines (I 6) Organize for rapid response (I 7) Utilize My. UWMadison as the e-business framework (I 17) 18 Partner with Do. IT staff (I 18)

E-Business Strategy Objectives • Learning and Growth Perspective: – Develop AT experts in key technologies(L 1) – Improve staff understanding of AT business/functions(L 2) – Align with personal goals (L 3) – Provide professional growth for staff (L 4) – Sharing expertise with technical forums (L 5) 19

Implement APBS Strategy Objectives • Financial Perspective: – Get the contract for implementation (F 2) – Get contracts for integrating with other systems (F 3) – Break even (F 5) 20

Implement APBS Strategy Objectives • Customer Perspective: – Increase customer confidence in our expertise and systems knowledge (C 3) – Participate in customer APBS committees (C 4) – Develop communication with APBS leadership (C 5) – Deliver products within customer contracted amount (C 13) 21

Implement APBS Strategy Objectives • Internal Perspective: – Create good communication mechanisms between core team and AT (I 8) – Strengthen project management (I 9) – Organize AT APBS team (I 10) 22

Implement APBS Strategy Objectives Learning and Growth Perspective: – Obtain Lawson training (L 6) – Strengthen project management skills(L 7) – Align with personal goals (L 3) – Provide professional growth for staff (L 4) 23

Emerging Technologies Strategy Objectives Financial Perspective: – Obtain minimal number of tools as inexpensively as possible (F 4) – Break even (F 5) 24

Emerging Technologies Strategy Objectives Customer Perspective: – Participate in shared architecture(C 6) – Expand customer acceptance of a broader range of technologies(C 12) – Deliver products within customer contracted amount (C 13) 25

Emerging Technologies Strategy Objectives Internal Perspective: – Identify Strategic technologies (I 11) – Partner with other Do. IT groups for technology rollout (I 12) – Organize for technology experts (I 13) – Develop effective technology rollout plans and implement (I 14) 26

Emerging Technologies Strategy Objectives Learning and Growth Perspective: – Develop AT experts in key technologies (L 1) – Provide training in new technologies (L 8) – Align with personal goals (L 3) – Provide professional growth for staff (L 4) 27

Applications Systems and Data Strategy Objectives Financial Perspective: – Sustain at least current revenue levels (F 1) – Break even (F 5) 28

Applications Systems and Data Strategy Objectives Customer Perspective: – Participate in existing customer support-type committees (C 7) – Assist other Do. IT groups when needing integration with applications systems and data (C 8) – Ensure data integrity and accuracy (C 9) – Enhance student access to data-MUM, Web Reg (C 10) – Enhance staff access to data – query, reports, etc. (C 11) – Deliver products within customer contracted amount (C 13) 29

Applications Systems and Data Strategy Objectives Internal Perspective: – Identify Application System and Data Experts for each application (I 15) – Provide applications Best Practices information for all Do. IT applications developers regardless of organizational department (I 16) 30

Applications Systems and Data Strategy Objectives Learning and Growth – Training for the Application System and Data Experts for each application (L 9) – Provide applications Best Practices information for all Do. IT applications developers regardless of organizational department (L 10) – Align with personal goals (L 3) – Provide professional growth for staff (L 4) – Training for release 8. 0 of PS (L 11) 31

Measures – Be Careful! • Two scientists Schaefer and Zare observed that 107 bubbles in a beer glass reached the top of the glass in 58 seconds, that one bubble left the side of the glass where it formed every. 54 seconds and, the radius of the bubbles grew 4/100 of a millimeter per second. [Source: University Aerosol Course] 32

Measure? ? ? • For every six people in Quebec, there is one river. In other words, there about exactly six times as many people living in Quebec as there are rivers. • WHO CARES? ? 33

Examples of Measures • Financial – Income – Return on assets • Customer – Satisfaction – Response rate 34

Examples of Measures • Internal – Estimating accuracy – Response time – Error free code • Learning and Growth – Training investment – Retention rates – Productivity 35

Measures for Applications Technology • Possible to get/find - New vs. old customers, growth/retention - Customer satisfaction (survey) - New technologies deployed 36

Measures for Applications Technology • Easy – already available – Net income – Productivity of staff – Cost of software acquisition from year to year – Training provided to staff 37

Measures for Applications Technology • Impossible – Depth of the relationship with customer – Response time to customer – Estimates versus actuals – Web accessibility of delivered apps 38

Things We Plan on Measuring • • Cost of tools APBS contracts Break even income Number – customers new and old • New technologies • Revenue mix of web/non-web • Customer satisfaction • Committee participation • Staff training 39

Employee Productivity 2001 -2002 (thru March) 40

Employee Productivity by Quarter 41

APBS Staff Work FY 01 -02 42

Measure – Net Income 43

Software Purchases/Maintenance 44

Training in 2001 -02 in key areas 45

Summary and Recommendations • Create a Balanced Scorecard within the context of your University’s mission/vision and strategies • Start Small • Keep it Simple • Measure only the things you want to control • Start measuring early so you can refine • Communicate the plan 46

Summary and Recommendations • Involve staff and customers • Tie measures to existing activities such as customer and staff surveys • The process of creating the scorecard is valuable in its own right • Try using your existing strategic items and putting them into the Balanced Scorecard method, including measures 47

Summary and Recommendations • Opportunity to think about what is really important • A good way to communicate with staff and customers • Good luck and ‘borrow’ any of AT’s scorecard! 48

Resources • “The Balanced Scorecard” by Robert S. Kaplan and David P. Norton • “Balanced Scorecard, Step by Step: Maximizing Performance and Maintaining Results” by Paul R. Niven • http: //www. balancedscorecard. org • http: //wiscinfo. wisc. edu/doit/at/ • judy. caruso@wisc. edu 49