The Balanced Scorecard BSC and its Possible Application in the State Archives

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The Balanced Scorecard(BSC)and its Possible
Application in the State Archives

• Dr Axel G Koetz
• Senior Expert,
• Public Sector Institutional Reform Project
• Irkutsk, 23 August 2007

This document is complete only together with the
oral presentation and the subsequent
discussion. Methodology is intellectual property
of KPI Cologne and only for use with permission
of KPI Isolated use of individual exhibits might
cause misunderstandings. Questions Dr Axel G
Koetz, KPI, axel.koetz_at_koetz-ag.com Tel 7 495
933 0553 or 49(0)221 94 11801
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The Problem

• Qualitative goals and their achievement are often
  widely discussed, but often remain unmeasured
• Struggle for survival in the day-to-day business
  let us forget to care for future needs
• Top management needs instruments to identify
  problems and backlogs without extensive
  discussions and analyses.

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BSC makes the Difference

• Control trade-off relations between competing
  Goals
• Short term financial / budgetary goals
• Long Term capacity building goals
• Customer Needs
• Efficient processes
• Creating a Balance between present and future
  needs
• Make sure that we leave structures to the next
  generation that are not worse than those we found
  when we started.

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Balanced Scorecard Definition

• BSC organizes a sustainable balanced optimization
  of all performance dimensions, typically
• Clients / Customers / Market Goals
• Financial Goals
• Business Processes
• Organizational Capacity, Learning and Innovation
• BSC helps to define Tasks for the dimensions,
  plan and control the effects of measures to
  achieve Goals and to ensure their balanced
  implementation
• Consequently, BSC is a permanent (rotating)
  process, neither an instrument nor a project

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Key Dimensions of BSC
Mission
Customer
How do we meet our customer needs? How do we
create value for our customer?
Internal Process
Financial
What business processes must we excel at to
satisfy customers while meeting budgetary
constraints?
How do we add value for customers while
controlling costs?
Strategy
How do we enable ourselves to grow and change,
meeting ongoing demands?
Employee Learning and Growth
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The BSC ProcessOverview

• Mission
• Strategy
• Key Success factors related to BSC dimensions
• Indicators for BSC dimensions
• Quantified reporting system for BSC dimensions
• Quantified action plan for BSC dimensions

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The BSC Process(1)

• Mission
• Being the public memory. Ensuring safe
  conservation of documents of public interest.
  Providing ease of access for all legitimate users
• Vision and Strategy
• BSC
• Indicators for BSC dimensions
• Quantified reporting system for BSC dimensions
• Quantified action plan for BSC dimensions

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The BSC Process(2)

• Mission
• Strategy
• Ensure safe and cost efficient storage and
  conservation
• Encourage the use of the archives and provide
  easy, quick and barrier-free access for
  legitimate users
• Support our work by using state-of-the art
  technology
• Invest in long-term quality of staff and make the
  archives an esteemed employer
• Consider cost recovery in marketable archive
  services
• KSF/BSC
• Indicators for BSC dimensions
• Quantified reporting system for BSC dimensions
• Quantified action plan for BSC dimensions

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The BSC Process(3)
Customers -gtDocuments are safely stored and
protected -gtQuick and easy access for the
legitimate user Attraction of new users and
participation in educational projects
Finance -gtEnsure a sufficient budget for
investment in new technologies -gt Consider cost
recovery from customer charges of xx of
particular costs

• Mission
• Strategy
• KSF/BSC
• Customers
• Finance
• Processes
• Capacities
• Indicators for BSC dimensions
• Quantified reporting system for BSC dimensions
• Quantified action plan for BSC dimensions

Capacities -gtCreate attractive work environment
and working conditions -gtInvest in Human
resources development -gtSufficient hardware and
network capacity to implement e-Processes
Processes -gtPhysical storage technologies and
processes are state-of-the-art -gtIT-support in
storage, retrieval and electronic delivery are
state of the art -gt Administrative processes are
streamlined
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The BSC Process(4)

• Customers
• Number of Documents stored
• Number of Inquiries (n)
• Number of documents provided
• Number of promotional courses for pupils and
  students

• Finance
• Investment budget
• Cost recovery (, ) overall and in special
  services

• Mission
• Vision and Strategy
• KSF/BSC
• Indicators for BSC dimensions
• Quantified reporting system for BSC dimensions
• Quantified action plan for BSC dimensions

• Capacities
• Number of training days per staff member and
  year
• Investment in expansion
• and equipment upgrades (, of
• original investment)

• Processes
• Percentage of documents which can be retrieved
  electronically ()
• Average time to answer an information request
  (days)

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The BSC Process(5)

• Mission
• Vision and Strategy
• KSF/BSC
• Indicators for BSC dimensions
• Quantified reporting system for BSC dimensions
• Quantified action plan for BSC dimensions

Comments
Customers
Actual
Plan
/-
No
Number of Inquiries Number of Introductory
courses
100
1000
500
25
-75
5
Comments
Budget
Actual
Plan
/-
No
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The BSC Process(6)

• Mission
• Vision and Strategy
• KSF/BSC
• Indicators for BSC dimensions
• Quantified reporting system for BSC dimensions
• Quantified action plan for BSC dimensions
• ...and back to measuring of effects

Customers Measures Advertise services of the
archives in business Nespapers / magazines
Planned Effect
No
double number of inquiries to 2000
Budget
No
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Analyzing Policy Results Scorecard Quadrant Model
Customer
Finance
Capacities
Processes
Nice situation today, Trouble ahead
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BSC Summary

• BSC, in a variety of forms, is widely used in
  public management
• BSC can be applied in almost all fields of policy
  and public sector institutions, including
  Archives, but...
• it needs the political will to start and some
  devoted people to survive the first reporting
  periods
• it needs a proper collection of data, ideally by
  using appropriate data warehouses and automatic
  data gathering / processing
• it needs an initial budget...but more
  importantly, brains at management level in
  administration
• it needs the will and the ability to take
  consequences, otherwise it is an amusing but
  expensive game
• When the "buts" have been overcome, BSC can in a
  high degree increase manageability and
  transparency of decisions