Vice Chancellor - Chief Financial Officer: Performance Measurements

The Balanced Scorecard is a performance management system used to clarify an organization's vision and strategy and translate them into action. Traditional quantitative measurements track only financial performance. The Balanced Scorecard uses measurements to track activities in 4 main perspectives to give a more "balanced" evaluation of an organization's performance.

Background

UCSD was the first university in the nation to adopt the Balanced Scorecard in 1993 and to be inducted into the Balanced Scorecard Hall of Fame in 2003. Developed by Norton and Kaplan at Harvard Business School, the model ensures that management considers many facets of operations while focusing on its vision and goals. Today, thousands of corporations and agencies worldwide use the Balanced Scorecard.

How does UCSD use the Balanced Scorecard?

UCSD places the vision, mission, and values of the organization at the center of strategic planning and performance measurement activities. The UCSD Balanced Scorecard used 4 primary tools or perspectives:

1. Financial/ stakeholder perspective: This measures how we look to our resource providers through tools such as profit/ loss statements, balance sheets, and budget reports. Departments can use results to develop and implement revenue, cost saving, and budget strategies, create a risk management program, and establish internal controls.
2. Internal process perspective: This measures our productivity and effectiveness through benchmarks comparing us with our peers in order to build best practices and internal controls. We have used past results to develop process improvement projects and cross-functional teams, and invest in new technology tools.
3. Innovation & growth perspective: This measures how our employees feel through measures such as the Staff@Work survey conducted annually for staff in several Vice Chancellor areas. We have used past results to improve training and avenues of communication and enhance the quality of work/ life.
4. Customer perspective: This measures how our customers see us through customer surveys conducted annually for staff, faculty, and students. We have used past results to facilitate communication with customers through various vehicles, develop solid and collaborative relationships, and foster positive relationships by ensuring staff are knowledgeable and well-trained.

Why do we need 4 perspectives?

• Financial Perspective focuses primarily on looking backward
• Customer Perspective focuses primarily on customer satisfaction
• Internal Process Perspective focuses primarily on process performance
• Innovation & Growth Perspective focuses primarily on employee satisfaction and wellness

What are the benefits of using the Balanced Scorecard?

• Alignment of customer priorities and business priorities
• Ability to track progress over time
• Evaluation of process changes
• Identifying opportunities for initiatives and partnerships
• Accountability to constituents
• Developing action plans and setting strategic direction