Financial Performance 2 Mark FieldingPritchard 1 Balanced Scorecard

Financial Performance 2 Mark Fielding-Pritchard 1

Balanced Scorecard Kaplan & Norton Financial Perspective Customer Perspective Vision & Strategy Internal Procedures Innovation & Learning 2

Examples Goals Measures Customer Perspective Fast response Good publicity Donors named Feet on the ground in 1 week Number of positive press releases Internal Perspective Good roster Fast response Good information system Number of people available on 10 days notice Accurate information provided to donor in 10 days of period end Innovation & Learning Cutting edge procedures No of research articles published in learned journals No of sponsored pieces of legislation passed Financial Perspective Quick spends No returns Increased donations Proportion of funds received and spent per plan No returns 3 % of donations year on year

Implementation Deal with people Make strategy explicit Define & refine Choose measures 4

Strategy Mapping Identify Objective Determine How Value Is Created Financial Strategies Customer Strategies Support Strategies Skills Strategies 5

Q 56 Royal Botanical Gardens a) Structure Draw picture, explain each of the boxes 5 -6 marks Why is it useful? 6

Q 56 Royal Botanical Gardens a) So why is it useful? Focuses on all areas of the business Not just short term profitability Improving processes Innovation, long term growth of organisation Answer assumes the scorecard will be publicly availableshows willingness to improve, increases buy in from staff, better communication, more focused planning and budgeting 7

Q 56 Royal Botanical Gardens b) So design standard step through process Set mission statement Steering Committee Define business units Apply perspectives to business units Define terms 8

Q 56 Royal Botanical Gardens b) So design standard step through process Design procedures in business units Change Staff Approval Process Set KPIs Obtain Steering Committee Approval Measure Change and Improve 9

Q 56 Royal Botanical Gardens b) So design standard step through process Remember! Training and communication at every step of the process! 10

Fitzgerald & Moon Building Blocks Only used in service organisations 11

Fitzgerald & Moon Building Blocks Dimension Type of Measure Competitiveness Market share Financial Performance Rise in donations Quality of Service Speed of reaction Flexibility Resource Utilisation Ability to move from region to region Staff utilisation Innovation New methods of procurement 12

BLA Q 57 a) Dimensions/standards/measures- service industry Competitiveness Financial Performance Quality of Service Flexibility Resource Utilisation Innovation 13

BLA Q 57 b) Budget Actual Variance Revenue New 3645 3360 (285) Revenue Repeat 2430 2940 510 Consultants Ex Des Consultants Int Des (810) (675) 135 (810) - Consultants Land (405) (540) (135) 14

BLA Q 57 b) Competitiveness Client enquiries higher than budget Ability to turn enquiries into work lower New Budget 24300/67500= 36% Actual 22400/84000= 26. 67% Repeat 16200/32400= 50% 19600/28000= 70% 15

BLA Q 57 b) Financial Performance Increased revenue Quality of Service Increased complaints Flexibility Non chargeable consultations Increased/decreased number of consultants 16

BLA Q 57 b) Resource Utilisation Budget Actual Exterior Design 16200/18= 900 13830/15= 922 Interior Design 16200/18 = 900 17226/18 = 957 Landscape 8100/9= 900 10944/12 = 912 17

BLA Q 57 c) Controllable Achievable Time constrained 18