By tobyehatch on Jan 22, 2014
Oscar Pardo, a Solutions Consultant for Oracle, works with Federal, State and Local governments helping them to herd their wild KPIs and establish scorecards to meet US requirements from the President. I had the pleasure of interviewing Oscar during a podcast and he gave some sage advice on what to expect when building scorecards. He described how Oracle Scorecard and Strategy Management is just the Sheriff you need to help tame your runaway KPIs, and manage your performance.
Oscar began the interview by defining what public sector organizations are trying to accomplish with their business scorecards. Agencies like the Department of Homeland Security, the Veterans Administration, and Health and Human Services are enormous (the size of some of the largest companies in the world!) and need tools to help them understand where they are performing well, and where they are underperforming. Basically, they are trying to accomplish the same things that private sector companies are striving for. Things like:
• Transparency to their public
• Insight into how well they are running and where they can take actions to improve
• Accountability for their funding. With the close scrutiny of funds and cost cutting in budgets, agencies are more accountable than ever for their funding
• A better grip or control of what is occurring and what actions they can act on
• A way to monitor those actions and make sure they are working
Oscar also mentioned the most challenging aspects of creating scorecards were:
• Developing the right KPIs, and getting consensus. This is like walking around in the Wild West. Everyone wants KPIs for themselves – there is often little organization and few rules around choosing them or deciding how to use them.
• Defining the Key Performance Indicators. This takes a lot of time and effort
• Locating where the information resides. This takes the longest amount of time. Federal Agencies have a harder time of it, because they have a greater volume of data because they are larger organizations. Information resides in many different systems and is measured at different levels.
Interestingly enough, the most challenging aspects were not software related!
So what part does software play in scorecards? According to Oscar, scorecard software acts like a Sheriff would in the Wild West, upholding the laws. Without the Sheriff enforcing the laws, in this case guidelines, executives will ask for more and more KPIs – then the data collection activity, reporting, and subsequent activities will get out of hand. Here is some advice Oscar shared to help:
• Have a single champion, group, or department that is in charge of determining what makes sense to capture and what will have the greatest impact to the organization, because there is a big cost in collecting and maintaining this information. – The champion is like the town Mayor; setting the rules that the Sheriff enforces.
• Develop an Office of Strategic Management (or other performance management governing department) or appoint individuals to appropriately define KPIs and objectives. They can then help the Mayor so KPIs can be implemented quickly and uniformly across the organization.
• Don’t wait. Too many times I hear customers say, “Let’s wait until next year” or “After the next reorganization or administration”. With a strong governing agency that is responsible for scorecards, those excuses are no longer valid. The job of an incoming administration would actually be easier because they have visibility into the organization on Day One.
So what benefits are public sector agencies experiencing with scorecards? Is it worth their while? Oscar told us YES, it is worth their while and here’s why:
• Monitoring performance is so much simpler. The Oracle Scorecard and Strategy Management product gets you up and running quickly. You don’t have to build it, and it comes with the Oracle Business Intelligence Foundation Suite.
• Scorecards and Business Intelligence naturally go together. Scorecard initiatives work well with a formal Business Intelligence / Data Warehouse in place.
• Mobile scorecard capabilities. Having scorecard information available on your mobile device enables you to take this information with you and act upon it without being tied to your desk or office.
• Build it with market prevalent Scorecard methodologies like Balanced Scorecard or Six Sigma. It has an easy to use interface to help agencies define goals and objectives, then facilitate the building of KPIs to track and meet these goals and objectives – all within the same tool the organization uses to do its BI reporting.
• Informative visualizations like Contribution Wheels, Strategy Trees, Watch lists, Cause and Effect Maps, and Strategy Maps are available automatically.
Oscar told us that Oracle made a great decision in making Oracle Scorecard and Strategy Management part of the BI Foundation which marries technology with the scorecard methodology (the Sheriff). Add the Mayor and other constituents to work with Oracle Scorecard and Strategy Management, and you too can tame YOUR Wild West.
To listen to the entire podcast, click here.
To learn more about Oracle Scorecard and Strategy Management, click here.