Tracking Towards Success: Strategy Mapping and Balanced Scorecard for Higher Ed
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Continuing Education faces pressure to grow, increase profitability, and reach new markets. However, many departments do not have clear goals and are unsure of which key performance indicators are most effective to measure progress. This presentation examines how to choose the most critical measurements, tie those measurements to efforts within your unit and link metrics with goals. During this presentation we will review several important data points for CE units. We will look at data that can be easily pulled together and we will separate data into data that can be leveraged as a leading indicator and as a lagging indicator. During this presentation we will look at how data can be combined to paint a picture of what’s happening with your program and your unit. Finally, we will also look at ways in which different activities, such as marketing, admissions, and improvements to the overall curriculum can impact what you’re measuring and how.
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Tracking Towards Success: Strategy Mapping and Balanced Scorecard for Higher Ed
- 1. Creating a Roadmap forCreating a Roadmap for Program SuccessProgram Success Presented by: Mercedes Suraty-Clarke from the University of Houston & Nicole Foerschler Horn from JMH Consulting
- 2. Goals should: •Center around mission and vision •Take into account 4 perspectives
- 4. Balanced Scorecard and Strategy Map Work Together • Strategy Map • Sets the goals • Balanced Scorecard • Creates the plan
- 5. Strategy Map and Balanced Scorecard
- 6. Where Do You Want To Go? This is a financial goal 3 to 5 year time frame
- 7. Choose Your Value Proposition
- 8. Value Proposition Models Characteristics Examples University Related Examples Operational Excellence Focus on price Ease of use Walmart Dell IKEA On demand classes Inexpensive classes Product Leadership First to market with advances Unique attributes Apple Google New offerings Cutting edge delivery Experiential learning Customer Intimacy Customer service focus “Best Friend” approach Nordstrom Ritz-Carlton Counselor for students Tailored/custom classes
- 9. Create a Customer Strategy What do you want your customers to think of you? Focus on: •Retaining/Adding customers •Increasing revenue per customer •Decreasing cost per customer
- 10. Customer Strategy Operational Excellence Product Leadership Customer Intimacy Retain and Add Customers Help customers choose the best product. Keep them engaged. Increase revenue per customer Launch the latest and greatest product. Charge a premium. Reduce cost per customer Make it cheap and easy for customers to buy
- 11. Focus on Internal Strategy
- 14. Strategy Map at UH
- 15. Strategy Map and Balanced Scorecard
- 17. Leading Indicator “In process” measurements •Website visitors •Info Session registrants •Program Leads
- 18. Gross Revenue Expenses Student Evals Lagging Indicators
- 20. Your Turn!
- 21. Measure What You Do Determine how to… • Pull measurements • Report Measurements • Hold people accountable
- 22. Contact Us: Mercerdes Suraty-Clarke •msclarke@uh.edu Nicole Foerschler Horn •nfoerschler@jmhconsulting.com
Notas del editor
- My name is Nicole Foerschler and I’m Vice-President of JMH Consulting. When we come back together in Miami, I will be giving this workshop with Mercedes Suraty-Clark from the University of Houston, but she has entrusted me with the responsibility of giving you a sneak peak into the workshop today. Some brief background before we begin. JMH Consulting is a firm that works exclusively in higher education. We help universities market their credit and non-credit programs and we also help universities launch non-credit certificate programs. What I’m sharing with you today is a methodology that can be applied to the management of both credit and non-credit programs. The workshop, in its entirety, will explore how to use data to reach your goals and to diagnose trouble spots along the way. Today we are going to focus on what data you should be tracking and it won’t be limited to how many butts are in those seats.
- We are going to talk about two tools that work together – a Strategy Map and a Balanced Scorecard. UH started with Mission and Vision Began with first Financial Perspective Then moved into customer perspective and business prospective Learning and growing come out of it Both the Strategy Map and the Balanced Scorecard use the Mission and Vision as the glue that holds the strategy together. But, these tools also take into account four distinct perspectives. Financial – To succeed financially, how must we appear to our stakeholders? Customer Perspective – To achieve our vision, how must we appear to our customers? Business Processes – To satisfy our shareholders and customers, at what business processes must we excel? Learning and Growing – To achieve our vision, how will we do we need to grow and improve?
- In a strategy map and balanced scorecard each of these perspectives build on one another to meet the end goal. The top two levels are focused on what we want to accomplish. From a financial perspective it’s how much revenue do we want to generate, if we want to reduce costs, or maximize assets. From a customer perspective it’s how do we want the customers to view us, how do we position our product in the customer mind to support the financial strategy. Here’s where you think about positioning the product to be cutting edge, or inexpensive, or very high touch. Then we move from What We Want to Accomplish to How Will We Get There? With the Internal Processes we are looking at what are the internal processes that we must have in order to deliver the kind of product or service that meets the customers needs. This might be the platforms we need to offer online classes or to take enrollments or the way in which we coach our students through a program. Finally we move from a look at Processes to a look at People. With Learning and Growing its about identifying where there are gaps that prevent us from executing the internal processes. Initiatives at this level focus on training and people development.
- Here’s an example. What you are looking at here is a simplified version of Southwest’s Strategy Map and Balanced Scorecard. The Strategy Map is on your left. It’s a way to visually capture your goal with the events that need to happen in order to support that goal. You can see that Southwest’s goal was PROFITABILITY and they wanted to do that with FEWER PLANES AND MORE CUSTOMERS. From a financial standpoint they wanted to grow their gross revenue and maximize their assetts or their planes. In order to make that happen Southwest decided that they wanted to meet two of their customer’s needs by having planes that run on time and by making the tickets cheap. In order to do that they needed to make sure their was a FAST GROUND TURNAROUND…this also supported the financial goal of fewer planes. To make that happen they invested their Learning and growing in the GROUND CREW. This portion of the chart is the strategy map. It’s very visual and you can clearly see the impact of one thing on another. The balanced scorecard focuses more on the operations and builds off the strategy map by using the strategy map’s objectives as a starting place. You have specific objectives – you are measuring those objectives with clear targets– and you have initiatives that impact the measurements So, for Southwest, when you look at the Customer Objective of – Flight on Time – they are measuring that with the FAA Arrival Rating. The Target is to be #1. To support that goal they are launching a Quality Management Initiative. When you align the Balanced Scorecard with the Strategy Map then your initiatives and where your team is focusing their time is directly related to the strategic plans of the organization. This is important b/c it increases the likelihood that you will not only create a strategy, but will be able to effectively launch it. So today we are going to dive a little deeper into building a strategy map and a balanced scorecard and you will have the opportunity to do both. It’s my hope that when you leave here today, you can go home and work with your team to create one that will further your success with your unit. Now…as with all good initiatives or projects…there is a little pre-work involved… You must answer two big questions…
- So, when we are setting the strategy, you first want to think about where you want to go. The strategy map and balanced scorecard are set up to support the overarching BIG goal as a financial one. I know that I’m talking to non-profits…but this is still applicable for you. Being able to generate revenue will give you the means to create more programs, reach more students, and better support your university - Money powers the ship. So, when you think about “Where do you want to go?” you should have a big picture number of how large you want to grow the department and in what time frame – 3 years…4 years…or 5 years. Great chance for Mercedes to talk about how much she wanted to grow the CE unit when we started working together 4 years ago. This could be the slide where “Aligning with University Mission, leveraging strengths and diversifying” can hit home Again, at this point, we are thinking BIG picture – won’t get to the level of how the finances change until later in this process. Now, before you move from this top line into what that looks like from a financial perspective, customer perspective, internal perspective, and people perspective you need to do one more thing…define your value proposition.
- Your other big question is WHAT IS YOUR VALUE PROPOSITION A value proposition is a positioning statement that explains what benefit you provide for who and how you do it uniquely well. Or in even simpler terms – why a someone will buy from you. As an example, people buy from McDonalds because they know they are getting the same hamburger no matter what part of the country they are in and they also know it’s cheap. You buy an Iphone because it has the latest and greatest features. People buy things off Amazon, b/c the platform has made it possible for buyers to feel more informed, like their hand is being held through the purchase process…Amazon will even suggest things to you based on what you are buying. So, what do our students really want or value when they are looking at engaging with a university? – CALL OUT FROM AUDIENCE? 4 different kinds of value propositions Operational Excellence – Best product for money; typically focus on cost and ease of use – EXAMPLES? Product Leadership – First to market with advances; unique attributes – EXAMPLES? Customer Intimacy – Customer service focus; “best friend” approach – EXAMPLES? WHAT ARE EXAMPLES WITHIN A UNIVERSITY ENVIRONMENT??
- The things that we’ve discussed and pointed out can be broken down into three value proposition models. Operational Excellence will focus on price and ease of use. So, you can think about Walmart and IKEA in terms of price. You have a sense when you go to these stores that you are not going to pay a lot for the product. Dell is fairly inexpensive and will ship the computer to you so you don’t need to leave the comfort of your home. This type of model can be seen with on-demand asynchronous learning. I think of Ed2Go as also fitting in here. Cheap…easy to access… Product leadership focuses on having the latest and greatest. These companies are the first to market with advances. Or, they have unique features that you can’t find anywhere else. In a university setting product leadership could mean the creation of a new program that no one else is offering. Or using a cutting edge delivery method. Or creating experiential learning. – MIT has this approach with their open courseware; UNC Greensborough has some amazing, cutting edge online programs; or Queens University creates in-depth simulations. Finally, the customer intimacy model. This model focuses on customer service. It’s the “best friend” approach to doing business or “trusted advisor”. Nordstrom which provides a very hands on approach to clothes shopping is often used as an example. This is the UH model…This is a great chance for Mercedes to talk about how, even though they are a small shop, CS consistently goes above and beyond. Quick phone call returns…meals for students…classes delivered onsite are customized to needs of client. You will find this kind of model with some universities who have built robust coaching and counselor systems to help support students as they move through their programs. It could also mean tailored or custom classes delivered onsite. Regardless of what you choose, you have to focus on one and be competitive on the other fronts. Your value proposition dictates how you interact with your students and where you invest your time and resources.
- This helps you identify how you are going to interact with your customers in order to meet your financial strategy. WHAT DO YOU WANT YOUR CUSTOMERS TO THINK OF YOUR PRODUCT OR HOW DO YOU WANT YOUR CUSTOMERS TO INTERACT WITH YOUR PRODUCT You are typically focusing on three things with customer strategies Retain and add customers Increase revenue per customer Reduce cost per customer
- YOUR VALUE PROPOSITION WILL HELP FRAME HOW YOU WANT CUSTOMERS TO THINK ABOUT AND INTERACT WITH PRODUCT IDEAS WILL FALL INTO ONE OF THESE THREE BUCKETS OPERATIONAL EXCELLENCE - WALMART customer thinks cheap; NETFLIX wants more customers to use streaming PRODUCT LEADERSHIP – IPHONE customers to buy latest version or more apps CUSTOMER INTIMACY – NORDSTROM buy an outfit UNIVERSITY EXAMPLES???? So what are some examples of things you can do to retain and add customers… If you are focused on an operational model you might have inexpensive classes. If you are focused on a product leadership model you might have classes with 3D or that take places in cool places. If you are customer focused, you might retain or add customers by working with students to create a friends or loyalty program where if students bring their family to the school they get some kind of bonus. What are other examples of customer focused strategy.
- So, up to now we have been focused on WHERE YOU WANT TO GO now our focus shifts more to HOW WILL YOU GET THERE Not surprisingly we want to begin with our value proposition. OPERATIONAL - CREATING PROCESSES THAT KEEP COSTS LOW AND ENSURES THE COMPANY IS RUN INAN EFFICIENT MANNER Walmart – created a system to track margins PRODUCT LEARDERSHIP - RESEARCHING AND DEVELOPING NEW/CUTTING EDGE PROGRAMS Google – Allocated resources to new product development Google Car and Google Glasses CUSTOMER INTIMACY – BEST FRIEND APPROACH AND HAVING SOMEONE ALWAYS AVAILABLE American Express Black – Created a team that served as a 24 hour concierge that you can always call UNIVERSITY EXAMPLES ON FLIPCHART OPERATIONAL EXCELLENCE – Improvements to on-demand delivery platform PRODUCT LEADERSHIP – Create team for program development CUSTOMER INTIMACY – Purchase a CRM to better communicate with prospective students
- The final step in your strategy map is to look for where there are gaps in knowledge or skills in being able to accomplish your goals. This is where you identify areas in which you can develop your people. OPERATIONAL – SIX SIGMA TRAINING PRODUCT LEADERSHIP – LEARNING ABOUT how to identify gaps in product CUSTOMER FOCUSED – CUSTOMER SERVICE TRAINING
- Now that we’ve gone through the process of creating the Strategy Map, we can move to the Balanced Scorecard. The Balanced Scorecard takes the objectives from each section of the Strategy Map and operationalizes how they will be achieved. You’ll notice, we are still working within the four perspectives of Financial: Customer: Internal: Learning and Growing. Where the Strategy Map is designed to highlight, top line goals, the balanced scorecard gets into the specifics of what those goals look like when you are achieving them and what initiatives you need to put into place.
- So, at the top level you have an objective that is taken from the Strategy map and should speak to what the strategy is trying to achieve. Each objective will have MEASUREMENTS…This is where you figure out what you will measure and how you will measure it. WHAT ARE SOME COMMON MEASUREMENTS THAT WE WATCH IN HIGHER EDUCATION…website visitors…leads…click through rate…repeat rate…completion rate… Measurements ensure you are moving toward the goal and are somehow impacting it. You want to try to include objectives and measurements that are leading indicators as well as lagging indicators. Leading indicators are predictive. They help us tell if something is going to happen. WHAT ARE SOME LEADING INDICATORS IN HIGHER EDUCATION…For example, a leading indicator might be the number of people who attend an information session or the number of people who click on a paid search ad. Lagging indicators reflect what has happened. For example, enrollment in a class is a lagging indicator… Aligned with each measurement, you will have a specific Target. Targets tell you what is the level of performance that you need/want in order to be successful. The benefit of the measurements and targets together is that it also tests your assumption about a given objective. If you meet the target and the objective is not having the causal impact that you expected it to, you will know that you need to create a new solution. Finally, each objective will also have an initiative associated with it. The purpose of the initiative is to clearly lay out what needs to change or happen within the company in order for the measurements to change and for the target to be hit.
- As I said earlier, we are going to focus on what data you should consider tracking. Right now, most CE units are tracking the basics – gross revenue, enrollments, and expenses. I still want you to track that information…but let’s blow it up and add some dimension to that. When we talk about gross revenue, enrollments and expenses we are talking about what are called lagging indicators. Lagging indicators measure outcomes. Instead of focusing on just the outcomes or the lagging indicators, my hope is this webinar will get you thinking about leading indicators as well. Leading indicators are data points that talk point to how something will perform and measure leading up to and when a program is “in process”. During our short time together, we’ll talk about how to use both sets of data to paint a complete picture.
- Leading indicators are ‘in process” measurements. These are the measurements that tell us what the end result will be. Leading indicators also give us a chance to impact the end results. In higher education our leading indicators can be found before the program starts in the marketing and recruitment funnel as well as while a program is being offered. Many times these indicators are related to and dependent on one another. For example, before a program starts our leading indicators will include Website visitors – this information tells us how many people are aware of and interested in our program You also want to track data points that indicate how many students are seriously considering the program. For JMH and many of our university partners that indicator is the number of people who registered for an information session or who watched an On Demand webinar. These two indicators are both directly related to enrollment. We know that we will not meet our enrollment goals unless we meet our information session attendee goals and this indicator is directly related to the number of people who visit the website. Once the degree or certificate is underway, a leading indicator that points to the overall success of the program is evaluation scores after each module. As an example, we distribute evaluations after each of our Paralegal certificate modules. It let’s us take the temperature of our students and have a sense of their experience of the program. If you are seeing a trend in bad scores, you know that the overall experience will not be positive. You can get similar information from engagement indicators. Are students signing into Blackboard to participate in discussions. Are they taking the quizzes and handing in homework. If not…you need to know why.
- You want to combine leading indicators with Lagging indicators. Lagging indicators are what we touched on earlier – enrollment, gross revenue, direct expenses. They measure results, outputs, or outcomes. Unfortunately, lagging indicators cannot be changed. They tell you this is what the result is. Here is where you landed. Typically this is where we are focused. Lagging indicators paint the picture of where you are at, but without leading indicators won’t tell the full story.
- So, now that we’ve talked about all of the data points that you CAN work with…let’s begin to talk about what data points you SHOULD work with. When selecting measurements you want to have a fairly comparable number of leading indicators and lagging indicators. You also want to select data points that you are able to pull without taking hours out of your day. Finally, in the ideal world, you will not just be looking at the data points immediately surrounding a program, but also making year over year comparisons. As seasonality is part of performance for many higher education programs. As an example, we offer a grant writing certificate with the University of South Carolina. We know this program does gang busters in the winter and spring and then enrollment begins to taper off toward the fall. In isolation, it may look like interest in the program is waning, but because we have year over year data, we know this is a trend to expect. We also know that if we want to hit the end of year enrollment goal, we need to have strong enrollments in the winter and spring.
- Break up into small groups credit and non-credit Online and in-class Shops of less than 10 and more than 10 Conference Ask groups to brainstorm rules Come back and share the answers
- This process is further supported by our last step, which is to measure, measure, measure You want to measure your progress towards your goals This can sometimes be the hardest part of the process…My advice is as you are completing your BSC figure out: How you are going to pull the measurements How they will be reported When they will be reported Measuring and reporting to the team should happen at least 1/month Mercedes, can you talk about how you manage this with your team? We use time during our team meetings to share high level measurements and to talk about how we are progressing. This is also a chance to address and discuss what’s going wrong in working towards our measurements. See if they have the impact you thought they would If they don’t, over a given period of time, change the scorecard
- Now once you have a strategy map and BSC complete the next step is to make each member of your team accountable for some portion of it. Look at your initiatives and who can achieve what. This is also useful b/c you want to make sure each person on the team is contributing to the overall strategy. You will probably even have opportunities for people to have stretch projects… You can see where these two tools now begin to impact your culture. You know the high level strategy down to where each person can impact the strategy. Individuals can see how what they are doing on a day to day or week to week basis on the front lines will impact the bottom line. To ensure this is not an after thought, your BSC intiatives should become part of your performance management approach… This means you will also need to be MEASURING!!!
- The final note that I’ll leave you with is if something is not working then don’t be afraid to change it. The beauty of the BSC is that you have a clear SENSE of what will move the needle. If after reaching your goal you’re not seeing the kind of change you need you can look at the BSC and decide if new intiatives are needed or if it’s the wrong objective The BSC is not set in stone. It’s designed to be a living document that helps to guide you and work with you.
- When it comes to strategy and execution, you can think about it kind of like a pyramid, but the top tier drives each of the levels below it. Therefore, your MISSION or “why do we exist” helps to dictate your VALUES or “What’s important to us” Sets parameters for your VISION or “Who do we want to be?” For example, if your mission is to help prepare and develop adult learners for careers Your values may include flexibility to highlight the unique scheduling needs of adult learners Your vision could be to become a national leader in paraprofessional training My assumption is that you have already identified that things in blue Our focus will be around the last four steps STRATEGY, which is How we are going to get there BALANCED SCORECARD, which is How will we measure our progress along the way STRATEGIC INITIATIVES, which are what are the steps that pave the way PERSONAL OBJECTIVES or what do I need to do/achieve/execute to contribute
- Does this look familiar? I’m sure more than a couple of you actually have two computers on your desk at work. Think about a project that you are spending a lot of time implementing How does that project support the department goals? Was spending the time on that project or process, the best use of your time? Was there something else you maybe should have been working on that would have had a more significant impact on meeting your goals? Maybe and maybe not…that’s the benefit of a BSC This picture is significant b/c we are being torn in a lot of different directions and there are a lot of things that we have to accomplish each day. And although there are a lot of things that you CAN do; there are only a handful that you SHOULD do. That’s where Balanced Score Card can help. Balanced Scorecard is a strategic performance management tool for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy. It’s a tool that focuses not only on financial growth, but the customer experience, the business operations, and the growth and development of team members.