A COMPREHENSIVE ANALYSIS OF RELATIONSHIPS BETWEEN INSTITUTIONAL LEADERSHIP AND PERFORMANCE�

THE BALANCED SCORECARD

APPROACH

Ruel B. Reid

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“INSTITUTIONS COME AND INSTITUTIONS GO. THOSE THAT LAST AND ARE EFFECTIVE ARE AS A RESULT OF EFFECTIVE LEADERSHIP AND PERFORMANCE”.

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IN AN EFFORT TO ENSURE GREATER PREDICTABILITY INSTITUTIONAL LEADERSHIP HAS INCREASINGLY BECOME MORE OF A SCIENCE THAN AN ART.

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PERFORMANCE MANAGEMENT SYSTEMS

THIS HAS LED TO A RELIANCE ON STRONG PERFORMANCE MANAGEMENT SYSTEMS THAT CAN EFFECTIVELY MEASURE THE RELATIONSHIP BETWEEN INSTITUTIONAL LEADERSHIP AND PERFORMANCE.

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STRATEGIC PLANNING SYSTEM

THE BALANCED SCORECARD (BSC) IS ONE SUCH SYSTEM.

IT IS A STRATEGIC PLANNING AND MANAGEMENT SYSTEM WHICH IS NOW BEING USED EXTENSIVELY BY VARIOUS ORGANIZATIONS TO ALIGN BUSINESS ACTIVITIES TO THE VISION AND STRATEGY OF THE ORGANIZATION.

CREATING A PERFORMANCE MANAGEMENT PROCESS

• INSTITUTIONAL LEADERS AT JAMAICA COLLEGE (JC) HAVE UTILISED THE BSC APPROACH TO CREATE A PERFORMANCE MANAGEMENT PROCESS.
• THIS IS A CRITICAL SUCCESS FACTOR WHICH AIDS IN HIRING THE BEST CANDIDATE FOR THE JOB.

CREATING A PERFORMANCE MANAGEMENT PROCESS

• THE MOST EFFECTIVE WAY TO MANAGE PERFORMANCE AND KEEP EMPLOYEES ENGAGED IS TO HIRE PERSONS WHO HAVE THE REQUISITE TALENTS, SKILLS, BEHAVIOURAL CHARACTERISTICS AND DRIVE THAT YOU NEED.
• BEAR IN MIND THAT “A PERSON’S TALENTS DO NOT CHANGE MUCH AFTER HE/SHE IS HIRED AND
• THAT A PERSON WILL IMPROVE THE MOST IN HIS AREAS OF GREATEST TALENT”

DRIVE FOR EXCELLENCE

• JC RECOGNIZES THE IMPORTANCE OF DELIVERING EXCELLENCE IN ALL ITS OPERATIONS
• THE BSC WAS USED AS A TOOL TO DEVELOP MORE EFFECTIVE AND EFFICIENT INSTITTUTIONAL MANAGEMENT PRACTICES.

BALANCED SCORECARD

• THE BSC PROVIDES THE FRAMEWORK AROUND WHICH THE ORGANIZATION TRANSFORMS THROUGH THE EXECUTION OF ITS STRATEGY.

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• IT CAPTURES THE CAUSE AND EFFECT RELATIONSHIP THROUGHOUT EVERY PART OF THE ORGANIZATION

BALANCED SCORECARD

• IT TELLS THE KNOWLEDGE, SKILLS AND SYSTEMS THAT THE EMPLOYEES WILL NEED TO INNOVATE AND BUILD THE RIGHT STRATEGIC CAPABILITIES AND EFFICIENCES THAT DELIVER SPECIFIC VALUE TO THE CUSTOMERS WHICH LEAD TO HIGHER STAKEHOLDER VALUE.

THE BSC

BSC BALANCES

• FINANCIAL AND NON-FINANCIAL MEASURES
• SHORT TERM AND LONG TERM MEASURES
• PERFORMANCE DRIVERS WITH OUTCOME MEASURES

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THE BSC

THE BSC CONTAINS JUST ENOUGH DATA TO GIVE A COMPLETE PICTURE OF ORGANIZATIONAL PERFORMANCE ……AND NO MORE

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LEADS TO STRATEGIC FOCUS AND ORGANIZATIONAL ALIGNMENT

CRITICAL ELEMENTS OF BSC

A CLEAR STRATEGY

A STRATEGIC PLAN IS CRITCAL TO THE PROCESS

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REMEMBER A CLEAR STRATEGY REQUIRES TWO THINGS:

• SPECIFIC

OBJECTIVES

(II) SET OF TARGETS

RATIONAL STRATEGIC PLANNING

• AT JAMAICA COLLEGE WE STARTED OUT BY ASSESSING THE ORGANIZATION THROUGH A RATIONAL STRATEGIC PLANNING PROCESS

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Rational Strategic Planning Process � Turning Vision Into Action

VISION

&

MISSION

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External Analysis

Internal Analysis

CORE VALUES

Winning

Strategy

Performance

Metrics and

Targets

Action Plan

Resources

Implementation

Monitoring

VISION

TO BECOME A FINANCIAL SELF SUSTAINING INSTITUTION IN WHICH EVERY STUDENT ACHIEVES HIS POTENTIAL,

DISPLAYS POSITIVE CHARACTER TRAITS AND

IS SUPPORTED BY A HIGHLY MOTIVATED AND WELL-TRAINED TEAM THAT IS COMMITTED TO PRODUCING LEADERS IN AN ETHICALLY POSITIVE ENVIRONMENT IN WHICH TEACHING AND LEARNING THRIVE.

MISSION

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TO PROVIDE A HIGH QUALITY WORLD CLASS EDUCATION, THROUGH EXCELLENCE IN TEACHING AND LEARNING, THAT ENSURES SUCCESS FOR EVERY STUDENT AND PROVIDES THEM WITH THE SKILLS NECESSARY TO BECOME PRODUCTIVE CITIZENS WHO CAN PLAY INTEGRAL ROLES IN THE ONGOING DEVELOPMENT AND ENRICHMENT OF OUR COUNTRY.

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STRATEGIC AREAS

• IT IS IMPORTANT TO HAVE A ”FENCE LINE” OF STRATEGIC AREAS.
• THIS RESTRICTS THE ORGANIZATION TO A SELECTED AREA FOR ACHIEVING STRATEGIC SUCCESS.
• WHY IS THIS IMPORTANT?

STRATEGIC AREAS

• THE ORGANIZATION MAY FIND ITSELF TRYING TO DO TOO MANY THINGS WHICH IT IS UNABLE TO ACHIEVE.
• BEAR IN MIND THAT STRATEGY IS ABOUT CHOICES AND MAKING DECISIONS ABOUT THOSE THINGS THAT THE ORGANIZATION CAN DO AND CANNOT DO.

STRATEGIC AREAS

• THE STRATEGIC THRUST OF THE ORGANIZATION SHOULD BE CONFINED TO A FEW MAJOR AREAS.
• THIS WILL PROVIDE THE “SCOPE” FOR BUILDING A SET OF BALANCED SCORE CARDS.
• IN THE CASE OF JC THE STRATEGIC THRUST REVOLVED AROUND CUSTOMERS, INTERNAL PROCESSES, LEARNING AND GROWTH AND FIDUCIARY RESPONSIBILITY

MEASURES

• ARE PERFORMANCE INDICATORS FOR MEASURING OUR SUCCESS
• TO MANAGE AND CONTROL AN ORGANIZATION PERFORMANCE INFORMATION IS OF VITAL IMPORTANCE.

WHY MEASURE?

• TO DETERMINE HOW EFFECTIVELY AND EFFICIENTLY OUR SERVICES SATISFY THE CUSTOMER
• TO IDENTIFY IMPROVEMENT OPPORTUNITIES
• TO MAKE DECISIONS BASED ON FACT AND EMPIRICAL DATA

PERFORMANCE MEASURES

TO MEASURE IS TO KNOW

TO GUESS IS TO MISS

MEASUREMENTS

• TRANSLATE CUSTOMER EXPECTATIONS INTO GOALS
• EVALUATE THE QUALITY OF PROCESSES
• TRACK OUR IMPROVEMENT
• SUPPORT STRATEGIES
• FOCUS OUR EFFORTS ON OUR CUSTOMERS.

TARGETS

• TARGETS ARE SET FOR ALL MEASURES
• TOOLS FOR TRANSFORMING THE ORGANIZATION
• SHOULD HAVE A SOLID BASIS

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INITIATIVES

• ONCE MEASURES AND TARGETS ARE ESTABLISHED IT IS THE RESPONSIBILITY OF THE LEADERSHIP TO DETERMINE HOW THE ORGANIZATION WILL ACHIEVE ITS GOALS
• INITIATIVES ARE ACTION PROGRAMMES THAT ARE CRITICAL TO ACHIEVING OUR PERFORMANCE GOALS.

INITIATIVES

• PRIORITIZED STRATEGIC INITIATIVES DRIVE PERFORMANCE IMPROVEMENT

JC’S STRATEGY MAP

C3

DISCIPLINED STUDENTS

C2

SCHOOL COMMUNITY ORDERLY, SAFE, BUSINESS LIKE AND NURTURING

C1

EXCELLENT INFRASTRUCTURE ADEQUATE MATERIALS AND A CLEAN ENVIRONMENT

C4

EXCELLENT ACADEMIC AND EXTRA CURRICULAR PERFORMANCE

I2

EFFECTIVE GUIDANCE COUNSELLING

I1

EFFECTIVE DISCIPLINING OF STUDENTS

I3

EFFECTIVE MAINTENANCE OF FACILITIES

I5

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EFFECTIVE TEACHING DELIVERY

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EFFECTIVE PLANNING FOR TEACHING

L4

EFFECTIVE MANAGEMENT INFORMATION SYSTEM

L2

COMPETENT STAFF

L3

EFFECTIVE LEADERSHIP AT ALL LEVELS

L1

SATISFIED AND MOTIVATED STAFF

F1

EFFECTIVE MANAGEMENT OF FINANCIAL RESOURCES

F2

EFFECTIVE FUND RAISING

F3

TRANSPARENCY AND ACCOUNTABILITY

CUSTOMER PERSPECTIVE

• A CRITICAL STEP IN THE PROCESS IS IDENTIFYING OUR CUSTOMERS AND THEIR NEEDS WHICH MUST BE SERVED IN ORDER TO ACHIEVE OUR VISION. IT WAS AGREED THAT OUR MAIN CUSTOMER IS THE STUDENT. OTHER CUSTOMERS INCLUDE PARENTS AND TEACHERS.

CUSTOMER PERSPECTIVE

OBJECTIVES

• EXCELLENT INFRASTRUCTURE, ADEQUATE MATERIALS AND A CLEAN ENVIRONMENT
• SCHOOL COMMUNITY ORDERLY, SAFE, BUSINESS LIKE AND NURTURING
• EXCELLENT ACADEMIC AND EXTRA CURRICULAR PERFORMANCE

PERFORMANCE MEASURES

• % BUILDINGS AND GROUNDS MEETING BASIC SECURITY REQUIREMENTS
• % LABS WITH STATE OF THE ART EQUIPMENT AND THE REQUIRED MATERIALS
• % GROUNDS PROPERLY SURFACED

INTERNAL PROCESSES

• TO SATISFY OUR CUSTOMERS IN WHAT INTERNAL PROCESSES MUST WE EXCEL?

INTERNAL PROCESSES

OBJECTIVE

• EFFECTIVE DISCIPLINING OF STUDENTS
• EFFECTIVE GUIDANCE COUNSELLING
• EFFECTIVE MAINTENANCE OF FACILITIES
• EFFECTIVE PLANNING FOR TEACHING
• EFFECTIVE TEACHING DELIVERY

PERFORMANCE MEASURE

• STAFF DISCIPLINING SURVEY
• % CASES FOR WHICH ACTION IS TAKEN
• % REPEAT CASES
• % ANNUAL MAINTENANCE PROGRAMME IMPLEMENTED
• % CLEARLY DEFINED SYLLABI FOR ALL SUBJECTS FOR ALL YEAR GROUPS PER TERM IN PLACE FOR THE 1^ST DAY OF SCHOOL.

INTERNAL PROCESSES

CRITICAL SUCCESS FACTORS INCLUDE

• CREATING A PERFORMANCE MANAGEMENT PROCESS
• COMMUNICATING GOALS AND EXPECTATIONS
• SELECTING APPROPRIATE TEACHERS
• PROVIDING EFFECTIVE ORIENTATION, EDUCATION AND TRAINING
• PROVIDING ON-GOING COACHING AND FEEDBACK
• CONDUCTING QUARTERLY REVIEWS

INTERNAL PROCESSES

• HOLD PERSONS ACCOUNTABLE FOR PERFORMANCE OUTCOMES THROUGH REGULAR PERFORMANCE REVIEWS
• TEACH ALL EMPLOYEES TO IDENTIFY AND DEVELOP THEIR STRENGTHS
• ALIGN PERFORMANCE APPRAISAL/REVIEW SYSTEMS AROUND IDENTIFYING AND DEVELOPING EMPLOYEES STRENGTHS
• DESIGN AND BUILD EACH ROLE TO CREATE WORLD CLASS PERFORMERS.
• STRENGTHEN WORK TEAMS

LEARNING AND GROWTH

• IN ORDER TO ACHIEVE OUR GOALS AND ACCOMPLISH CORE ACTIVITIES WE MUST LEARN, COMMUNICATE AND WORK TOGETHER.
• IT IS IMPORTANT TO COMMUNICATE AND EDUCATE EVERYONE WITHIN THE ORGANIZATION ABOUT THE KEY STRATEGIES AND HOW EACH INDIVIDUAL CONTRIBUTES TO THE ACHIEVEMENT OF THESE STRATEGIES

LEARNING AND GROWTH

• BUILDING NEEDED WORKFORCE SKILLS AND COMPETENCIES
• BUILDING POSITIVE WORK ENVIRONMENT

LEARNING AND GROWTH

OBJECTIVES

• SATISFIED AND MOTIVATED STAFF
• COMPETENT STAFF
• EFFECTIVE LEADERSHIP AT ALL LEVELS
• EFFECTIVE MANAGEMENT INFORMATION SYSTEMS
• EFFECTIVE AND EFFICIENT MANAGEMENT OF RESOURCES

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PERFORMANCE MEASURES

• STAFF SATISFACTION SURVEY
• % OF TEACHERS ATTENDING SCHOOL ON TIME.
• % OF TEACHERS ATTENDING CLASS ON TIME EVERY DAY
• PERFORMANCE APPRAISAL SCORE OF 3.5 GRADE POINTS AND OVER

LEADERSHIP TEAM

• THE LEADERSHIP TEAM IS CRITICAL TO THE PROCESS
• THE TEAM DEVELOPS THE VISION, STRATEGY AND GOALS
• DEVELOPS ORGANIZATIONAL OBJECTIVES
• PROVIDES LEADERSHIP, ENDORSEMENT AND CLEARS BARRIERS TO SCORECARD PROGRESS
• AT JC LEADERSHIP IS VIEWED AS INSTITUTIONAL CAPACITY WHICH IS DEVELOPED, NURTURED AND INCREASED THROUGH APPROPRIATELY DIRECTED EFFORT.

INSTITUTIONALIZE LEADERSHIP BEHAVIOUR

• PERFORMANCE MANAGEMENT PROCESSES ARE USED TO INSTITUTIONALIZE LEADERSHIP BEHAVIOUR FROM THE HIGHEST TO THE LOWEST LEVEL WITHIN THE ORGANIZATION.

BUILDING LEADERSHIP QUOTIENT (LQ)

• OUR FOCUS IS BUILING LQ OR KNOW HOW.
• LEADERSHIP BEHAVIOUR IS THEREFORE INSTITUTIONALIZED AND BECOMES A HABIT OR WAY OF LIFE WITHIN THE ORGANIZATION.

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INSTITUTIONAL LEADERSHIP

• THE MAINTENANCE AND IMPROVEMENT IN THE DELIVERY OF SERVICES AT JC IS THE RESPONSIBILITY AND FULL COMMITMENT OF INSTITUTIONAL LEADERS.
• JC RECOGNIZES THAT LEADERSHIP IS AN ORGANIZATIONAL QUALITY AND THAT EFFECTIVE PERFORMANCE AND ORGANIZATIONAL QUALITY ARE THE CHARACTERISTICS OF EFFECTIVE LEADERSHIP.

FIDUCIARY RESPONSIBILITY

• OUR INSTITUTIONAL LEADERSHIP IS DIRECTLY LINKED TO OUR FIDUCIARY RESPONSIBILITY.

FIDUCIARY RESPONSIBILITY

OBJECTIVES

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PERFORMANCE MEASURES

• EFFICIENT AND EFFECTIVE MANAGEMENT OF RESOURCES
• EFFECTIVE FUNDRAISING
• TRANSPARENCY AND ACCOUNTABILITY

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• BOARD PERFORMANCE SCORE OF SCHOOL LEADERSHIP
• % OF STAFF IN LEADERSHIP POSITIONS COMPLETING LEADERSHIP DEVELOPMENT PROGRAMMES
• % STUDENT LEADERSHIP COMPLETING LEADERSHIP DEVELOPMENT PROGRAMMES

STRATEGY IS A CONTINUAL PROCESS

• AT JC WE MAKE STRATEGY EVERYONE’S BUSINESS
• IT IS A CONTINUAL PROCESS

WHICH MOBILIZES CHANGE THROUGH EXECUTIVE LEADERSHIP

CREATING A STRATEGY FOCUSED ORGANIZATION

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Process

STRATEGY

STRATEGY: �WE made strategy the central organization agenda

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FOCUSED: �WE created incredible focus on the strategy

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ORGANIZATION:

WE mobilized our employees to act in fundamentally different ways, guided by the strategy

The Balanced Scorecard Is a Performance Management Program That Puts Strategy at the Center of the Process

COMMITMENT TO PERFORMANCE BASED MANAGEMENT

FROM

CONTROL AND COMPLIANCE

• RULE DRIVEN

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• RIGIDITY
• NON-PREVENTIVE (REWORK BASED ON FEEDBACK)
• NEGATIVE FOCUS
• CONTROL OF INDIVIDUALS

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TOWARD

PERFORMANCE AND ACCOUNTABILITY

• MISSION/CUSTOMER DRIVEN
• FLEXIBLE
• PREVENTIVE

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• POSITIVE TEAM
• AUTONOMOUS/EMPLOYEE RESPONSIVE

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CULTURAL CHANGE

• THIS PROCESS REQUIRES A SIGNIFICANT CULTURAL CHANGE!!!!!!!!!

BALANCED SCORECARD

• BSC = STRATEGY + OPERATIONS + CHANGE
• STRATEGY = DOING THE RIGHT THINGS
• OPERATIONS = DOING THINGS RIGHT
• CHANGE = DOING THINGS DIFFERENTLY

SUCCESS

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SUCCESS = EFFECTIVE, WELL EXECUTED STRATEGY + EFFICIENT OPERATIONS + MEANINGFUL CHANGE

FINANCIAL SUCCESS & POSITIVE OUTCOMES

WINNING WITH EFFECTIVE LEADERSHIP

References

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• Anyamele Stephen Chukwu , (2007). Applying Leadership Criterion of the European Excellencemodel for achieving Quality Management in Higher Education Institutions. Retrieved on October 25, 2010 from Academic Leadership The Online Journal.
• Evans, Matt H. (2002). Excellence in Financial Management, Course 11: The Balanced Scorecard. Retrieved on October 20, 2010 from www.exinfm.com/training.
• Rohm, Howard (2009). Effective Strategy Formulation, Planning and Management Using the Balanced Scorecard. Retrieved on October 20, 2010 from www.balancedscorecard.org
• Rohm, Howard (2002) . Improve Public Sector Results With A Balanced Scorecard: Nine Steps to Success. Retrieved on October 22, 2010 from www.balanced scorecard.org
• Sanders, John . The Balanced Scorecard. Retrieved on October 19, 2010 from www.csusm.edu/qi/tipsand tools/qipresentations/bscbasics.ppt

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