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 program description document attached below.
III. Federal Procurement Balanced Scorecard
The Federal BSC was replaced in 2013 by a revised set of performance measures tailored to the current operations and performance of the DOE Federal Procurement Offices. The “Critical Few” Program is intended to focus attention on key areas of interest to acquisition managers and executives and is a complement to the Procurement Management Reviews that are conducted for the federal procurement offices under the cognizance of the DOE Senior Procurement Executive.
IV. Contractor Purchasing Balanced Scorecard
The current performance measures and associated targets for the contractor purchasing systems are contained in the attachment below.
Compliance reviews of contractor purchasing systems must be conducted in accordance with the Contractor Independent Peer Review Program.
Policy guidance on the Balanced Scorecard Program may be found at:
Also, visit Independent Peer Review Program for Contractors' Purchasing Systems.