What is a Balanced Scorecard The balanced scorecard
What is a Balanced Scorecard? • The balanced scorecard is a tool that aligns an organization’s activities to its vision and strategy • Used to monitor performance against strategic goals • Focuses on key performance indicators: – Key Performance Indicators: made up of two or more metrics that indicate overall performance – Key Performance Metrics: Represent finite and measurable items Category Financial Customer Internal Process Learning and Growth 1
Steps to Deriving a Balanced Scorecard • Define Core Values and Purpose **Today’s Discussion** • Objectives Definition • Define 1 to 3 year objectives or goals • Initiatives Definition • The organized efforts that will help COHBE reach the objectives • Strategic Performance Measurement • Balanced Scorecard: the mechanism that will track objective success • A tool to inform the ongoing performance management plan 2
Core Values and Purposes • Core Purpose: an organization’s reason for being • Core Values: timeless guiding principles that have intrinsic value to those inside the organization 3
Core Values and Purposes DRAFT Core Mission: (as defined by SB 200) • To increase access, affordability and choice for individuals and small employers purchasing health insurance in Colorado. Core Purpose • To help people be healthy and more secure. Core Values • Keep the customer at the heart of all we do; • Be open, honest and respectful; and • Act with courage and excellence. 4
Next: Strategic Objectives, Initiatives and KPIs • Strategic objectives are defined to achieve shorter term goals (1 -5 years) – Strategic objectives are created to achieve operational focus in the organization and must be measurable • Strategic initiatives are programs designed to meet strategic objectives – Strategic initiatives are small in number (no more than 5) and measurable • Key Performance Indicators – Can be leading and lagging indicators – Finite and manageable 5
- Slides: 5