Maria E. Cristalli, Chief Strategy and Quality Officer

Hillside Family of Agencies

Using the Balanced Scorecard toDrive Organizational Performance

Presentation Highlights• Provide an overview of Hillside Family of

Agencies• Discuss organizational alignment to the

strategy using the Balanced Scorecard• Highlight Key Results and Lessons Learned

Hillside Family of Agencies

• Founded as an orphanage in 1837• Rochester, NY-based organization is

an umbrella organization that provides administrative and business support to seven service affiliates• Four affiliates offer services to

youth and families• Two affiliates provide investment

and fundraising support • One affiliate provides shared

services

Hillside Family of Agencies• Offer more than 150 services • Services provided across 25 counties

in Central and Western NY and Prince George’s County in MD

• FY 2009 budget of $127 million • Approximately 2,500 staff

4.1 Strategic awareness created4.2 Personal goals aligned4.3 Personal incentives aligned4.4 Competency development aligned

IV. MOTIVATE TO MAKE STRATEGY EVERYONE’S JOB

1.1 Leaders drive strategy execution1.2 Executives make case for change

1.3 Well articulated strategy exists1.4 Leaders reinforce strategic priorities

1.5 Office of Strategy Management established

I. MOBILIZE CHANGE THROUGH EXECUTIVE LEADERSHIP

III. ALIGN THE ORGANIZATIONTO THE STRATEGY

3.1 Corporate contribution to strategy defined3.2 Enterprise scorecard guides business units

3.3 Enterprise scorecard guides support units3.4 Scorecards align suppliers and/or customers

3.5 Scorecard reports to board and/or shareholders

V. GOVERN TO MAKE STRATEGY A CONTINUAL PROCESS

II. TRANSLATE STRATEGY TO OPERATIONAL TERMS

RESOURCE MANAGEMENT5.1 Budget is driven by strategy

5.2 Planning for HR/IT linked to strategy5.3 Portfolio of strategic initiatives aligned to themes

KEY PROCESS MANAGEMENT5.4 Process improvement aligned to strategy

5.5 Best practice sharing in placeLEARNING & GOVERNANCE

5.6 Strategy reviewed on regular basis

5.7 Analysis guides decision making

2.1 Strategy translated in strategy map2.2 Strategy described in Balanced Scorecard

2.3 Targets identified for all measures 2.4 Strategic initiatives rationalized

2.5 Executives accountable for initiatives

There is a consistent set of “best practices” applied by successful Balanced Scorecard users.

2007

Source: Balanced Scorecard Collaborative

SFO Principle I: MOBILIZE CHANGE THROUGH EXECUTIVE LEADERSHIPBest Practices:

.

1.1 Leaders drive strategy execution

1.2 Executives make case for change

1.3 Well articulated strategy exists

1.4 Leaders reinforce strategic priorities

1.5 Office of Strategy Management established

.2.1 Strategy translated in strategy map

2.2 Strategy described in Balanced Scorecard

2.3 Targets identified for all measures

2.4 Strategic initiatives rationalized

2.5 Executives accountable for initiatives

SFO Principle II. TRANSLATE STRATEGY TO OPERATIONAL TERMSBest Practices:

Customer

Learning and Growth

Financial

Strategic Intent: The leader in translating research into effective practice solutions.

F1. Diversifyrevenue streams

F2. Develop a stronger system of care through growth.

C3. Preferred provider of services

L4. Hillside is a destination for diverse talent.

L5. Behaviors consistentwith COI values.

L1. IT systems add valueand ease complexity

W10. We understandStrategic Partners’ needs.

L3. Research infrastructure supports HFA system of care.

W9. Strong parent and youth advocacy

S1. HFA’s system of care produces positive

outcomes.Stakeholder

W3.EB s practicesare delivered according

to design

Operational Excellence PartnershipsInnovation

S2. Local communities experience a sense ofownership of Hillside.

C1. EB practices achieve effective outcomes.

W2. User-friendlysystems provide accurate data

HFA BSC FY0809, rev 6.27.08

L2. Organized system sharesknowledge and learning.

W7. Service growth includesresearch grants.

W4. Hillside has research partnerships.

W5. Service models arebased on research.

C2. Create customersolutions.

W8. Communication exceedscustomer expectations.

Internal Work Processes

W1. Efficient standard work processes drive

productivity.

W6. We infuse innovationacross our value chain.

SFO Principle III. ALIGN THE ORGANIZATION TO THE STRATEGYBest Practices:

.

3.1 Corporate contribution to strategy defined

3.2 Enterprise scorecard guides business units

3.3 Enterprise scorecard guides support units

3.4 Scorecards align suppliers and/or customers

3.5 Scorecard reports to board and/or shareholders

SFO Principle IV. MOTIVATE TO MAKE STRATEGY EVERYONE’S JOBBest Practices:

.

4.1 Strategic awareness created4.2 Personal goals aligned4.3 Personal incentives aligned4.4 Competency development aligned

SFO Principle V. GOVERN TO MAKE STRATEGY A CONTINUAL PROCESSBest Practices:

.RESOURCE MANAGEMENT

5.1 Budget is driven by strategy5.2 Planning for HR/IT linked to strategy

5.3 Portfolio of strategic initiatives aligned to themes

KEY PROCESS MANAGEMENT5.4 Process improvement aligned to strategy

5.5 Best practice sharing in place

LEARNING & GOVERNANCE5.6 Strategy reviewed on a regular basis

5.7 Analysis guides decision making

Key Results

Key Results

• Hillside has exceeded its three-year revenue growth target for 14 consecutive quarters (2004 to 2008).

• From 2002 to 2007, the number of families served increased 37%, from 5,804 to 7,950.

• Hillside Work-Scholarship Connection continues to graduate high school students at significantly higher rates than among comparison sample students not exposed to the program.

• Hillside Work-Scholarship Connection provides an economic return on investment of $2,263,646 per 100 program participants (to age 30).

Key Results continued• Centralized administrative costs have yielded

big cost savings – 25% decrease in overhead costs for Crestwood Children’s Center in one year

• Cycle time from referral to service initiation has decreased 56%, falling from an average of 6.2 weeks to 2.7 weeks

• The percentage of children and families linked to services across Hillside’s system of care met or exceeded the target of 90% for 7 quarters.

• 400 middle and upper managers completed the Hillside Leadership Development program within 2 years.

Balanced Scorecards provide an efficient reporting process – traffic lighting, charting, and qualitative information

57%57%57%33%75%43%43%43%25%Measure 7

200%0%0%0%12000Measure 6

97%97%97%33%75%73%73%73%25%Measure 5

0%0%0%0%50%0%0%0%0%Measure 4

150%150%150%50%2%3%3%3%1%Measure 3

120%170%182%88%26%

31.2%

44.2%

47.4%23%Measure 2

0%0%0%0%100%0%0%0%0%Measure 1

Q4Q3Q2Q1

Q4% of

Target

Q3% of

TargetQ2% of Target

Q1% of

TargetTarg

et

FY07-08

FY07-08

FY07-08

FY07-08

Hillside Family of Agencies Traffic lighting

highlights performance

to targets

Graphs and qualitativecommentary on initiative

progress

Lessons Learned

• President and CEO leads the process• Clarify the roles of Leadership Team,

Core Team, and Board in development and execution processes

• Communicate, communicate, and communicate!

• Provide ongoing training and education• Link strategy to operations