PLEASE NOTE: This page contains links to a great deal of information on the subject of the Balanced Scorecard (BSC). It is intended to assist DOE employees, contractors and anyone who is interested in BSC methodology. Please review each area carefully so that you can get the most benefit from this page. Should you have any questions, please contact Lorri Wilkins (procurement BSC) at (202) 287-1668, or Sarah Ball (personal property BSC) at (202) 287-1563.
The BSC is a conceptual framework for translating an organization's vision into a set of performance indicators distributed among four perspectives: Financial, Customer, Internal Business Processes, and Learning and Growth. Indicators are maintained to measure an organization's progress toward achieving its vision; other indicators are maintained to measure the long term drivers of success. Through the BSC, an organization monitors both its current performance (finances, customer satisfaction, and business process results) and its efforts to improve processes, motivate and educate employees, and enhance information systems--its ability to learn and improve.
This perspective captures the ability of the organization to provide quality goods and services, effective delivery, and overall customer satisfaction. For purposes of this model, both the recipient of goods and services (the internal customer) and the sponsor/overseer (DOE) are regarded as customers of the business processes. In a governmental model, and for the major DOE site and facilities management contractors (i.e. major contractors), the principal driver of performance is different than in the strictly commercial environment; namely, customers and stakeholders take preeminence over financial results. Recognizing that budgets are limiting factors, public organizations and the major DOE contractors have a greater stewardship responsibility and focus than do private sector entities.
In government, and with DOE's major contractors, the "financial" perspective differs from that of the traditional private sector. Private sector financial objectives generally represent clear long-range targets for profit-seeking organizations, operating in a purely commercial environment. Financial considerations for public organizations, including DOE's major contractors, have an enabling or a constraining role, but will rarely be the primary objective for business systems. Success for such organizations should be measured by how effectively and efficiently these organizations meet the needs of their constituencies. In government, and for DOE's major contractors, this perspective captures cost efficiency, delivering maximum value to the customer for each dollar spent.
This perspective provides data regarding the internal business results against measures that lead to financial success and satisfied customers. To meet the organizational objectives and customers expectations, organizations must identify the key business processes at which they must excel. Key processes are monitored to ensure that outcomes are satisfactory. Internal business processes are the mechanisms through which performance expectations are achieved.
Learning and Growth
This perspective captures the ability of employees, information systems, and organizational alignment to manage the business and adapt to change. Processes will only succeed if adequately skilled and motivated employees, supplied with accurate and timely information, are driving them. This perspective takes on increased importance in organizations, like DOE and its contractors, that are undergoing radical change. In order to meet changing requirements and customer expectations, employees are being asked to take on dramatically new responsibilities that may require skills, capabilities, technologies, and organizational designs that were not available before.
II. DOE-wide Corporate Program. "Balanced Scorecards for the Business Systems Performance Measurement and Management Program" is a six-part summary of the program. In it, you will find a statement of purpose and explanations of the parts of the program. However, for specific guidance concerning the Federal procurement and contractor purchasing programs, see the Balanced Scorecard Performance Measurement and Performance Management (pdf) program description document.
III. Federal Procurement Balanced Scorecard. The 2011 and 2012 performance measures and associated targets for the Federal procurement offices are contained in the two PowerPoint presentations in PDF format below.
- Memorandum from Edward Simpson Concerning Changes to the Balanced Scorecard Program
- Memorandum from Patrick Ferraro to Heads of Contracting Activities
Federal Balanced Scorecard
For more detailed information on each of the current Federal core performance measures, please refer to the Balanced Scorecard Performance Measures Information Document (pdf).
The Compliance Criteria Review Checklist should be used when Federal offices conduct their Compliance review. Note: the previous tool, titled “Balanced Scorecard Federal Compliance Review Criteria” has been replaced by the “Compliance Criteria Review Checklist.” The “Compliance Criteria Review Checklist” is consistent with the checklist (or tool) used to facilitate data gathering during Procurement Management Review visits initiated by headquarters.
IV. Contractor Purchasing Balanced Scorecard. The FY 2014 performance measures and associated targets for the contractor purchasing systems are contained in the two PowerPoint documents below.
Compliance reviews of contractor purchasing systems must be conducted in accordance with the Contractor Independent Peer Review Program.
V. Federal Personal Property Balanced Scorecard. The Federal Personal Property Management Balanced Scorecard describes the mission, vision, strategy, perspectives, objectives, and measures of this effort.
- Federal Personal Property Balanced Scorecard for FY 2009
- Federal Personal Property Balanced Scorecard for FY 2010
VI. Contractor Personal Property Balanced Scorecard. Contractor Personal Property Management Balanced Scorecard addresses the same program perspectives from the contractor property management viewpoint.
- Contractor Personal Property Balanced Scorecard for FY 2009
- Contractor Personal Property Balanced Scorecard for FY 2010
VII. DOE Procurement Executive Corporate Initiatives. These are the projects which have been assigned to DOE Headquarters Procurement corporate staff to assist and support the Contracting Activities in accomplishing the objectives set forth in the Balanced Scorecard Program. Go to the Corporate Initiatives document for FY 2008 (pdf).
Balanced Scorecard Online. This Web Site is operated by the BSC Collaborative.
Included below is the "Guide to a Balanced Scorecard Performance Measurement Methodology" (pdf). This 69-page document provides information on creating and applying a balanced slate of measurements for procurement systems.
Contractor Peer Review