Danish Mortgage Credit Company Enhances Balanced Scorecard with SAS®
BRFkredit is an independent Danish mortgage credit institute that offers financial solutions and services to real property customers. BRFkredit chose the SAS Strategic Performance Management solution to update and link balanced scorecard and human resources, with the goal of delivering specific information to management and staff to improve organizational functions.
The company developed its first balanced scorecard in 1995 as a pilot project in collaboration with SAS. At that time the balanced scorecard focused directly on sales and sales channels, while later initiatives added the monitoring of customer satisfaction. Now, as part of its modernization drive and in order to update the balanced scorecard and link it to the human resource strategy, BRFkredit has chosen to use the SAS Strategic Performance Management solution to give employees access to all information stored in the company's scorecard via an Internet browser.
"Right now our challenge is to create a better balance in our scorecards with more objectives from the learning and growth perspectives, as well as to transform our strategy into benchmarking that can form part of the employees' personal scorecards," says Tim Thranegaard, Senior Vice President at BRFkredit, and the architect behind BRFkredit's balanced scorecard. The development of the scorecard reflects the fact that the third largest mortgage credit institute in Denmark also relies on soft values.
Measuring Human Factors
"The challenge is to create coherence between the overall objectives," continues Blomberg. "Originally we developed a rather simple balanced scorecard, which focused on key economic figures such as market share and products, and which made it possible to follow up on hard objectives and deviations. We have gradually integrated information into the scorecard about production, productivity and customer satisfaction. The next step is to get a description of overall employee satisfaction. Our objective is to create personal balanced scorecards for all employees in our company."
Blomberg does not conceal the fact that developing a balanced scorecard is a long process, and that it is particularly difficult to gather the right data about human factors and other non-financial measures that need to be included in the balanced scorecard. Currently, 150 upper and middle managers use the balanced scorecard, but the objective is that it will be expanded so that all employees will use it.
"Another challenge is to create a connection between the primary targets – our key performance indicators – and, for example, an employee in the mail room," says Blomberg. "Mail room workers need to be aware that fulfilling their personal goals and fulfilling the company's primary goals are related. Their own balanced scorecard is part of the company's overall scorecard."
Thranegaard feels that BRFkredit's experiences with the implementation of their balanced scorecard show that it is important to create a sense of openness about the results in the scorecard, and to use the results as a starting point for a discussion on the company's objectives and how to attain their goals.
"Fundamentally, a balanced scorecard is simply common sense in a system," explains Thranegaard. "Our SAS balanced scorecard illustrates causal relationships, and therefore it is easier for us to implement changes. Now, we don't have to search high and low for the answers to the most interesting questions. The balanced scorecard brings about behavioral changes within the organization. All employees now know that management actively follows their development in a number of key areas, and that creates a spotlight on the right areas for personal achievement. Everyone wants to do as well as possible."
A Perfect Balance
"Before using the SAS Strategic Performance Management solution, I wasted a lot of time discussing the interpretation of the data and results, and therefore I found it difficult to use the information for management purposes," Blomberg concludes. "I used to receive management information in hard copy, and the information was far less timely, focused and structured than it is today. Now I'm able to react faster, because the information is beyond dispute and is ideal for management tasks."
With SAS, BRFkredit uses its modernized balanced scorecard to include more soft values, concentrate management information and create a connection with their overall business and human resource strategies.
The Danish Mortgage Credit System
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Senior vice president at BRFkredit
To achieve corporate strategies through communication and measurement of defined goals
SAS Strategic Performance Management provides a company-wide balanced scorecard to align business and human resources strategies
“ Our SAS balanced scorecard illustrates causal relationships, and therefore it is easier for us to implement changes. Now, we don't have to search high and low for the answers to the most interesting questions. ”
senior vice president at BRFkredit