1. Performance Management Using the Balanced Scorecard Approach Office of Quality Management Office of Research Services National Institutes of Health September 2005

2. For more information on Performance Management in the Office of Research Services: http://www.nih.gov/od/ors/od/oqm/pm/index_pm.htm Or Contact: Carmen Kaplan [email_address] (301) 402-3440 Acknowledgments This training was developed by the Balanced Scorecard for Government, Inc., in collaboration with the Office of Quality Management.

11. The Value Proposition Generic Model  The value proposition should establish “why” Example: Federal Agency Personal Relationships (Customers) Accessible (Services) Consistent (Products) Dedicated (People) Professional (Staff) Product/Service Attributes Image Relationship Value = (Product / Service Attributes) + Image + Relationship EXAMPLE Service Oriented (Employees) “ We bring value to NIH by providing our customers with convenient, accessible, and consistent services to ensure that visiting scientists acquire the required visas in the least amount of time at the best price to the agency.” VALUE PROPOSITION STATEMENT Functionality Quality Price Time

12. What value do we offer our customers/stakeholders? Value = (Product / Service Attributes) + Image + Relationship Why are you in business? What is the VALUE PROPOSITION for your Service Group? ? ? ? ? ? Product/Service Attributes Image Relationship ? Functionality Quality Price Time

13. Type in value proposition (VP) here. Type your Value Proposition on your Performance Management Plan (PMP)

14. Think of Strategy as a Way to Get to Your Destination What is strategy? Strategy

15. Revisit Strategy

16. The BSC Provides Structure and Context for Effective Strategic Management Informed executives managing a strategic agenda Motivated workforce implementing strategy and documenting progress The Power To Rapidly Implement Strategy, Learn, and Improve

19. Describe your strategy here by expanding on your choice(s( from prior years. Describe Service Group Strategy on your Performance Management Plan (PMP)

20. From Strategy to Objectives….. Next, our focus will be on crafting the objectives. Objectives should enable the achievement of your value proposition and strategy.

21. Constructing the Performance Management Plan Objectives

23. Crafting Objectives By Perspective Financial Learning & Growth Customer Internal Processes

24. Customer Perspective

27. Internal Business Process Perspective

30. Review Process Maps EXAMPLE

34. Learning & Growth Perspective

36. The Learning & Growth Perspective = ƒ People Tools Climate , , Organization Learning & Growth People, Learning & Growth Categories What are the future needs of our Service Group in terms of: Skills & Competencies What do we need in terms of skills & competencies for our employees? What will we need in the future? Knowledge & Technology Assets What do we need in terms of knowledge base and technology tools to assist our employees? What will we need in the future? Climate for Action What do we need in terms of our environment to encourage our workforce to be productive? What will we need in the future?

40. Financial Perspective

45. Enter Your Objectives on your Performance Management Plan (PMP)- available on the web page

47. Enter Your Objectives on your Performance Management Plan (PMP)- available on the web page