Difference between revisions of "Balanced Scorecard"

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According to the Balanced Scorecards.com<ref><small>Balanced Scorecards.com (2019)</ref>, the Balanced Scorecard is a management system. It’s a way of looking at your organization that focuses on your big-picture strategic goals. It also helps you choose the right things to measure so that you can reach those goals.Traditionally, companies have judged their health by how much money they make. Financial measures are definitely important, but they only give you part of the picture. They focus on the short-term, and you’re trying to build an organization to stand the test of time. The name “balanced scorecard” comes from the idea of looking at strategic measures in addition to traditional financial measures to get a more “balanced” view of performance.<br><br>
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According to the Balanced Scorecards.com<ref><small>Balanced Scorecards.com (2019)</small></ref>, the Balanced Scorecard is a management system. It’s a way of looking at your organization that focuses on your big-picture strategic goals. It also helps you choose the right things to measure so that you can reach those goals.Traditionally, companies have judged their health by how much money they make. Financial measures are definitely important, but they only give you part of the picture. They focus on the short-term, and you’re trying to build an organization to stand the test of time. The name “balanced scorecard” comes from the idea of looking at strategic measures in addition to traditional financial measures to get a more “balanced” view of performance.<br><br>
  
 
It’s this focus on both high-level strategy and low-level measures that sets the balanced scorecard apart from other performance management methodologies. It takes your big, fuzzy strategic vision and breaks it down into specific, actionable steps to take on a day-to-day basis.<br><br>
 
It’s this focus on both high-level strategy and low-level measures that sets the balanced scorecard apart from other performance management methodologies. It takes your big, fuzzy strategic vision and breaks it down into specific, actionable steps to take on a day-to-day basis.<br><br>
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== References ==
 
== References ==
 
<small>
 
<small>
Balanced Scorecards.com (2019). ''What is the Balanced Scorecard''. Retrieved April 02, 2019 from https://balancedscorecards.com/balanced-scorecard.<br>
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1. Balanced Scorecards.com (2019). ''What is the Balanced Scorecard''. Retrieved April 02, 2019 from https://balancedscorecards.com/balanced-scorecard.<br>
Balanced Scorecard.org (2019). ''Who Uses the Balanced Scorecards (BSC)?''. Retrieved April 02, 2019 from https://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard.<br>
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2. Balanced Scorecard.org (2019). ''Who Uses the Balanced Scorecards (BSC)?''. Retrieved April 02, 2019 from https://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard.<br>
 
</small>
 
</small>
  

Latest revision as of 15:13, 11 June 2021

According to the Balanced Scorecards.com[1], the Balanced Scorecard is a management system. It’s a way of looking at your organization that focuses on your big-picture strategic goals. It also helps you choose the right things to measure so that you can reach those goals.Traditionally, companies have judged their health by how much money they make. Financial measures are definitely important, but they only give you part of the picture. They focus on the short-term, and you’re trying to build an organization to stand the test of time. The name “balanced scorecard” comes from the idea of looking at strategic measures in addition to traditional financial measures to get a more “balanced” view of performance.

It’s this focus on both high-level strategy and low-level measures that sets the balanced scorecard apart from other performance management methodologies. It takes your big, fuzzy strategic vision and breaks it down into specific, actionable steps to take on a day-to-day basis.

BSCs are used extensively in business and industry, government, and nonprofit organizations worldwide. Gartner Group suggests that over 50% of large US firms have adopted the BSC. More than half of major companies in the US, Europe, and Asia are using the BSC, with use growing in those areas as well as in the Middle East and Africa. A recent global study by Bain & Co listed balanced scorecard fifth on its top ten most widely used management tools around the world, a list that includes closely-related strategic planning at number one. BSC has also been selected by the editors of Harvard Business Review as one of the most influential business ideas of the past 75 years.[2]

2016 - 2020 Thematic Perspectives

In Pustaka Negeri Sarawak (Pustaka), the concept of themes is introduced to encompass the four traditional perspectives of the Balanced Scorecard (BSC). The following diagram illustrates this concept is manifested in our practice of the Balanced Scorecard.

Vision To be the reservoir and fountain of information and knowledge to the State.
Mission To provide access to information resources and to preserve Sarawak’s intellectual heritage for the people of Sarawak.
Themes Knowledge Management Excellence Service Excellence Collaboration Excellence
Strategic
Results
  • To increase the quantity and diversity of information resources from 0.2 to 1.5 per capita by 2020 and increase the rating of information resources.
  • To improve public library services in the State.
  • To improve records management practices in the State agencies.


  • To achieve a 5 star rated agency by 2020.
  • To ensure the public libraries meet the Public Library Service: IFLA/UNESCO Guidelines for Development.
  • To ensure all State agencies meet records management practices.



  • To maximize multi-party synergy to establish the image of Pustaka as an effective centre of reference for the State of Sarawak.
  • To maximize multi-party synergy to establish and improve the library services in the State.
  • To maximize multi-party synergy to establish and improve records management standard in the State agencies.

Perspectives Customer Financial Internal Process Organisational Capacity
Strategic
Objectives
  • Enhance Stakeholder’s Satisfaction






  • Enhance Budget Utilization
  • Enhance Financial Compliance
  • Diversify Source of Funding




  • Enhance Internal Process
  • Leverage on Inter-agency Collaboration
  • Enhance Quantity and diversity of Information Resources
  • Improve State’s memory Management
  • Enhance Stakeholder’s Communication
  • Enhance Training and Development
  • OC2: Enhance Shared Values
  • Leverage on ICT




2021 - 2025 Thematic Perspectives


Vision To be the reservoir and fountain of information and knowledge to the State.
Mission To provide access to information resources and to preserve Sarawak’s intellectual heritage for the people of Sarawak.
Themes Knowledge Management Excellence Service Excellence Collaboration Excellence
Strategic
Results
  • Maintain the rating of information resources at 85 percent until 2025.
  • Maintain a 5-star rated organisation until 2025.


  • Enhancement of collaborative programs to maintain Pustaka as an excellent centre of information for Sarawak until 2025.

Perspectives Customer Financial Internal Process Organisational Capacity
Strategic
Objectives
  • Enhance Stakeholder’s Satisfaction






  • Enhance Budget Utilization
  • Enhance Financial Compliance
  • Diversify Source of Funding




  • Enhance Internal Process
  • Leverage on Inter-agency Collaboration
  • Enhance Quantity and diversity of Information Resources
  • Improve State’s memory Management
  • Enhance Stakeholder’s Communication
  • Enhance Training and Development
  • OC2: Enhance Shared Values
  • Leverage on ICT




Establishment of Key Performance Indicators (KPI)

Each strategic objective indicated in the strategy map in section two above will be measured with a special tool to know its performance. This special tool is called KPI. Every strategic objective has to have at least one KPI. A KPI can be written in the form of a long statement, encompassing attributes such measure and target, for example

'' To do complete cataloguing of purchased library books within 5 working days from the date of receipt of the library books ''

or written in table form as illustrates below

Statement of KPI Measure Intervention Value Target Stretch Target

Complete cataloguing of library books.

Number of working days to do complete cataloguing.

7

5

3


Both KPI refer to the same subject, but written differently. Example 2 is preferred as it is easy to understand and measure. A good quality KPI has got to have the following characteristics:

a) Specific - focusing on the subject matter.
b) Measurable - quantitative in nature, such as figures, number, percentage, range
c) Accurate - based on performance records
d) Realistic - not too high making it hard to achieved, but too low making it hard to reap its true potential
e) Time sensitive - describing the current situation and circumstances

Establishment of Initiatives

Initiatives are activities or action plans carried out to achieve the KPI. The most common approach to determine, identify and select initiatives is to study the core business activities and supporting activities of a business function. These initiatives are determined and develop on annual basis at the beginning of the year. Developing initiatives for the coming year at the end of the current year is a rare practice, but not uncommon.

The process flow below is just one of the ways to determine and develop initiatives:

01) Study the core business activities and supporting activities
02) Identify activities that directly affect the KPI
03 Develop new activities, if they are in the system yet
04) Determine how many of the activities you want to do in a specific period, for example to accept 200 books delivered in a day
05 Determine the frequency of an activity in a specific period, for example 15 times in one day, once every quarter

Implementation of Initiatives

Once the initiatives are determined and formalised in the business process, they are to be implemented according to planned arrangements to achieve the planned targets. Implemented initiatives are to be recorded in official report as proof of successfully implementation. Evidences must also be recorded to prove that the initiatives have achieve their targets. In the event that the targets are not achieved, justifications must be recorded to explain the causes of non-achievement.

Governance Structure

In Pustaka, the implementation of the BSC is governed by Pustaka BSC Governance Structure, which was formally established on 23 April 2021. The establishment of the Governance Structure warranted the establishment of Pustaka BSC Committee.

2021 Pustaka BSC Committee Members

Positions Names
Chairman Pn. Arpah Adenan (Acting Chief Executive Officer)
Deputy Chairman Pn. Arpah Adenan (Deputy Chief Executive Officer(Services))
BSC Champion En. Japri Bujang Masli (Deputy Chief Executive Officer(Operations))
Members






a) En. Japri Bujang Masli (Deputy Chief Executive Officer(Operations))
b) En. Wan Mazli Wan Razali (Head of ICT Sector)
c) Cik Salina Zawawi (Regional Manager, Miri)
d) En. Razak Rambili (Head of Library Services Sector)
e) Pn. Hayati Sabil (Head of Depository Services Sector)
f) Pn. Laurena Aloh (Head of Corporate Management Sector)
g) En. Fairul Azli Banchit (Regional Manager, Sibu)

Secretariat Corporate Communications Division

References

1. Balanced Scorecards.com (2019). What is the Balanced Scorecard. Retrieved April 02, 2019 from https://balancedscorecards.com/balanced-scorecard.
2. Balanced Scorecard.org (2019). Who Uses the Balanced Scorecards (BSC)?. Retrieved April 02, 2019 from https://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard.

Notes

  1. Balanced Scorecards.com (2019)
  2. Balanced Scorecard.org (2019)