Balanced Score Card
BSC as Instrument for IT Cluster, Ostrava
2nd Cluster Management Workshop, Paderborn February 8-9, 2007
Judith Terstriep – Institute for Work and Technology
Agenda
1. Introduction Balanced Scorecard
2. BSC Workshop Ostrava
“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)
I. Balanced Scorecard:
Overview
Overview
A Balanced Scorecard …
• … can be defined as framework ‘… that translates an
organisations mission and strategy into a comprehensive set of performance measures that provides the frame-
work for a strategic measurement and management system.’ (Kaplan & Norton 1996)
• … addresses both, the strategy development process and continuing monitoring of strategy achievement and performance measurement.
• … comprises financial and non-financial measures.
Evaluation & Monitoring
• Why?
– Strategic allocation of limited human and financial resources – Results deliver arguments for legitimating cluster management
internally and externally
• What? Distinction between cluster management and cluster is important because
– cluster management organisations can influence their own performance directly,
– while the cluster’s performance can only be supported and thus,
only be influenced indirectly
BSC Model
Financial Aspects
Learning &
Growth
Customers Internal
Processes
Vision &
Strategy
BSC for Non-profit Organisations
Community
Learning &
Growth Vision &
Strategy
Mission
Finances Capacity
What is My Vision of the Future?
What does this Vision mean to my …
What are the Critical Success Factors?
What Are the Critical Measurements?
Shareholders
Financial Perspective Shareholders
Financial Perspective
Customers
Customer Perspective Customers
Customer Perspective
Internal Management
Processes Internal Perspective
Internal Management
Processes Internal Perspective
Ability to Innovate and Grow
Innovation and Learning
Ability to Innovate and Grow
Innovation and Learning
T H E B A L A N C E D S C O R E C A R D T H E B A L A N C E D S C O R E C A R D
Statement of Vision 1. Definition of SBU 2. Mission Statement
3. Vision Statement
BSC Process
Building Process
Implementation Process
2 STRATEGY 1 ASSESSMENT
3 OBJECTIVES
4 STRATEGY MAP
5 MEASURES
6 INITIATIVES 7 AUTOMATION
Mission Vision Strategy
COMMUNITY INTERNALPROSSES
FINANCES
LEARNING &
INNOVATION
9 EVALUATION
8 CASCADING
II. Balanced Scorecard:
IT Cluster Ostrava
Workshop Proceeding
Mission &
Vision Statement Mission &
Vision Statement
Definition of Strategic
Themes Definition of Strategic
Themes
Perspectives
& desired Outcomes Perspectives
& desired
Outcomes Strategy Mapping Strategy Mapping
2 3
1 4
Definition of Performance
measures Definition of Performance
measures 5
Developing Strategic Initiatives Developing
Strategic Initiatives
6
Possible Outcomes
• BSC is not suitable for strategic orientation in cluster management.
• BSC is an interesting tool and we will continue its development by ourselves.
• BSC is so interesting that we will realise a complete BSC
system in an ambitious way.
IT Cluster‘s Mission
Make IT Cluster a sustainable network
characterised by self-enforcing processes and
self-organisation.
IT Cluster‘s Vision
Establish the cluster
regionally Establish the cluster
regionally
2006 2008 2011 2014
Establish the cluster nationwide Establish the cluster nationwide
Establish the cluster
in Europe Establish the cluster
in Europe Be a regionally
established cluster Be a regionally established cluster
Be one of the three leading clusters in
Czech Republic Be one of the three
leading clusters in Czech Republic
Be a well-known ICT cluster in Western Europe with
global links
Be a well-known ICT cluster in Western Europe with
global links
IT Cluster’s Strategy Map
= visual representation of cause-and-effect-relationships among the key components (objectives) of the organisation’s strategy
Key questions
• Community: Who are our customers/stakeholders and what do they expect from us?
• Finances: What budget is needed to achieve the objectives and how is it composed?
• Internal Processes: What do we need to do internally to achieve the customer-related objectives? And what processes must we excel at?
• Learning & Innovation: How will we sustain our ability to change and
improve?
Community
C2: IT Cluster growth
C2.1: Deliver high quality services C2.2: Function as Integrator
C2.3: Develop IT Cluster brand
C3.1 Broaden availability of ICT specialists C3.2: R&D cooperation
C3.3: Foster European cooperation C3: ICT company growth C1: Realise comparative
advantage
L3: Improve cluster management practices
Learning & Innovation
L1: Ensure continuous organisational learning L2: Build professional
competences that support strategy
Finances F3: Define joint projects co-
financed by firms F4: Attract potential customers
for IT Cluster F2: Develop membership fees through
related concept
Internal Processes
P2.1: Improve CM-firm communications
P1: Establish cluster management team
F1: Achieve financial independence to proof sustainability advantage P2.2: Foster cross-clustering
P2.3: Identify service and resource gaps
P4: Implement integrated information system P2: Improve quality of service
Initiatives & Measures
• Defined initiatives and measures
Priority*
Initiatives
1 2 3 4 5 Responsibilities Time horizon Indicators
Community Perspective
Development of an integrated concept to enlarge number of ICT specialists focusing on all educational levels
x University in cooperation
with cluster management team
Number of graduates
Number of elementary and secondary school visits
Apprenticeship Model
Market Survey x Cluster management team
in cooperation with one or two companies
Joint Projects among universities, companies &
customers
Company which has the
idea initiates the project, cluster management team moderates the process of cooperation/ matching
Number of established thematic task forces
Number of companies involved in matching process
Development of a Matching Strategy Cluster management team
Thematic Technology Transfer x
Improvement of joint R&D activities between companies and university (bi-directional
communication structure needs to be established)
x University, companies
Cluster Management Team (support of companies)
Number of diploma thesis conducted in/width companies
Number of companies involved in FP7
Establish international links x Number of international projects,
joint ventures, cooperation
Priority*
Initiatives
1 2 3 4 5 Responsibilities Time horizon Indicators
Internal Perspective
Development of a shared idea/ understanding of the tasks and functions of the cluster management
x
Overall: Establishment of a Cluster Management Team based on a consensus
Commitment of Executive Board to establish a CM Team; recruitment should be to assigned to the cluster manager
Development of a business plan for a Cluster Management Agency
x
Space for new ideas
Innovation & Learning
Mapping of companies competencies, products &
services to communicate the clusters profile Establishment of a monitoring system for strategic activities
Mapping of synergies
Financial Perspective
Preparation of feasibility study including definition of joint projects & co-funding by companies
x ARR ongoing Number of paying members
(membership fees)
Contribution of companies to the business plan of structural funds (being a project leader)
Number of employees & firms
Economic indicators (turnover, export etc.)
Communications x To be continued
