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Air Force Security Assistance Center foreign military sales center institutionalizes how it "develops and executes international agreements" by linking strategic initiatives to the balanced scorecard process.

The Air Force Security Assistance Center's (AFSAC) foreign military sales development, growth and support to allies throughout the world spans more than twenty-five years. AFSAC was established in 1978 as the international Logistics Center (ILC) in an effort to centralize Air Force services to other countries. When the Air Force Logistics Command and the Air Force Systems Command were merged, the center became known as the Air Force Security Assistance Center. Over the life of the organization, twelve different commanders have directed the course-of-action that determined how resources were managed to satisfy our customers' needs. The center engaged in many diverse systems of tracking and measuring the success of the organization.

AFSAC's 12th Commander, Brigadier General Jeffrey Riemer, determined a need to re-focus the way his organization does business faced with a huge retirement wave. The center has 330 civilians, and 30 percent of those will be eligible to retire in five-six years, causing AFSAC to lose a lot of its expertise faster than it can recruit and train new employees. He set out to achieve a most desired future to ensure that AFSAC successfully achieves its vision of "World Class Professionals Fostering Global Partnership" by embarking on a dynamic process that will link long term strategic objectives with short term actions.

The Balanced Scorecard (BSC) methodology is being institutionalized to ensure continuous process change driven by organizational needs that endure as part of a strategy-focused organization regardless of changes of personnel at all levels of the center. "We will wake up some morning and find what we were able to do in the past, we are unable to do in the future because we did not take the steps necessary to posture ourselves for that new environment" stated Brigadier General Riemer. A strategy-focused organization is one that looks to the future, determines their vision and how to fulfill it. Then they structure a way of ensuring that end state, according to Brigadier General Riemer. (1)

The Balanced Scorecard is a management tool designed by Harvard Business School professors, Dr. Robert Kaplan and Dr. David Norton. Their research showed that CEOs need a broad view of things that were important in affecting company success. BSC requires strategizing the future of an organization from various perspective customer, financial, internal processes, and learning and growth.

In the book, A Strategy-Focused Organization, Dr. Kaplan and Dr. Norton said organizations that are strategy-focused and use BSC as a tool to get there are 70 percent successful. Organizations that do not use BSC and do not have a strategic focus fail 70 percent of the time. (2)

Brigadier General Riemer and his senior leaders identified that AFSAC's two roles are to serve as a center for expertise that develops and executes agreements and to provide command-level policy guidance regarding international business. AFSAC builds connections between the U.S. and friendly Air Forces around the world connections that the Air Force needs to fulfill its mission of defending U.S. interests abroad.

For over twenty-five years, AFSAC has sold over 9,000 aircraft worldwide, with 6,600 still operational. AFSAC makes sure that the equipment they provide to their customers is supplied with parts and sources of repair. It may cost more to do business with the U.S., but AFSAC customers are confident in the service they will be provided, according to Brigadier General Riemer.

"When we sell those specific weapon systems to our FMS customers, what we are really doing is establishing a long-term strategic relationship with the greatest Air Force on the planet, that sometimes is more important to a country than how fast the jet goes, how quick it turns, or what kind of weapons it carries," Brig. Gen Riemer stated.

The Commander's first critical step was appoint, in January 2003, a select core group of AFSAC employees to begin planning, developing, tailoring, and implementing the Balanced Scorecard initiative (BSI). The actions of AFSAC's executive corporate board and the core team enabled the center to successfully implement BSC in October 2003. The executive board of AFSAC and the core team worked to formulate a clear statement of who we are, what we do, how we do it, and for whom do we do it. Efforts to understand and define these questions led to the development of a strategic architecture.

Our vision is to become "world-class professionals fostering global partnerships." Brigadier General Riemer used the elements of AFMC/CC's Commander's Intent to communicate how AFSAC will use the balanced scorecard methodology. Using the four tenets of the Commander's Intent:

* Expeditionary mindset and culture,

* Innovative, adaptive and responsive,

* Easy to do business with, and;

* Effective and efficient.

* Effective and efficient.

[FIGURE 1 OMITTED]

Combining these with the BSC perspectives of customer, financial, internal processes, and learning and growth Brigadier General Riemer formed the basis of his strategic themes that link AFSAC to the mission of AFMC through this architecture. From this strategic architecture grew the description of AFSAC's intent for its strategic initiative as "World-class professionals fostering global partnerships through developing and executing international agreements by delighting customers, linking resources, reengineering processes and strengthening the organization."

Brigadier General Riemer and his executive leadership spent numerous hours to determine "What We Do" and what functions in AFSAC are the key process indicators that define the organization and its mission. These initiatives within our internal perspective were targeted to improve the three key processes, two enabling processes, and multiple key functions that compose AFSAC's mission. This was a crucial step to complete before the organization's strategy map could be fully developed and deployed. These processes and functions are shown in Figure 2.

[FIGURE 2 OMITTED]

Dr. Kaplan and Dr. Norton propose a performance measurement capability that supports a long-term, forward thinking strategic view across the entire organization. They suggest that strategic leaders need a measurement framework that provides a view across a range of operations that encompasses most key issues required for continued success. Each quadrant of the Scorecard reports performance measures directly related to the corporate vision in the form of key performance measures or indicators. In addition, this framework should assist organizations to improve performance by changing how people behave. Dr. Kaplan and Dr. Norton (1996:10) argue that the Balanced Scorecard achieves these goals:

* Communicates priorities and direction

* Focuses on improving processes, not functions

* Aligns operational activity with strategic goals

* Provides the necessary leverage for change

AFSAC's strategy map is an extension of the architecture. It represents a collection of cause-effect relationships to demonstrate the linkages between the strategic themes, perspectives, vision, mission, goals, and objectives. The strategy map transforms intangible assets into tangible customer and budget resource outcomes to produce value. Developing the strategy map "helps organizations see their strategies in a cohesive, integrated and a systematic way and provides the foundation for the management system for implementing strategy effectively and rapidly." (3)

By providing linkages to the vision, mission, objectives, perspectives, strategy, and strategic enabling themes, the strategy map is a blueprint to illustrate how strategy is aligned with operational functions and processes, and how the strategy can be accomplished systematically to reach the final destination, the vision, in the BSC journey.

The strategic themes are an internal representation of what the organization needs to do in order to achieve strategic outcomes. They address what employees should do to satisfy customer needs and yield a Return On Investment (ROI) on products and services. According to Brigadier General Riemer, the enabling principle and the strategic themes also serve as a sanity check for all employees to ask the following questions:

* Am I effective and efficient?

* Am I easy to do business with?

* Am I innovative, adaptive and responsive?

* Do I have an expeditionary mindset and culture?

Perspectives are designed to address all aspects of the organization. The customer perspective looks at who are the targeted customers and what is the organization's value proposition to them? The resources perspective examines what resources are needed to satisfy our customer, and should link strategy to resources. The internal process addresses at what processes the organization must excel to satisfy customers and shareholders. Along with the enabling theme, expeditionary mindset, and culture, the organizational perspective is considered as the foundation or enabler of all perspectives. Enablers support the other BSC perspectives. The organizational perspective looks at what capabilities and tools the employees require to help them do their jobs. (4)

Through a series of interwoven linkages, strategy becomes action to involve all employees in the balanced scorecard process. Linkages provide a cause and effect chain starting with the strategic and enabling themes and end with the vision in the strategy map. This synergistic function provides the ingredients for success to equip the organization with the necessary tools to become a world-class professional workforce. The AFSAC strategy map (Figure 3) reflects the linkages that bring these elements together into a dynamic network.

[FIGURE 3 OMITTED]

The Air Force Security Assistance Center incorporates objectives, measures, targets and initiatives under the four strategic themes, see Figures 4 through 7, as a means of fully deploying the different aspects of balanced scorecard and strategic planning. "We think the result will be that any employee in the organization can stand back six months or a year from now and say, Wow! I see exactly how this works. I see how what I do every day is making a difference," Brigadier General Reimer said.

Brigadier General Riemer states, "It is my intent as the commander to raise AFSAC's level of performance to a level never seen or even believed possible. We, as the Air Force Materiel Command's center of expertise for developing and implementing the elements of international business, will define the expected environment and posture ourselves for today and beyond. The better we do our job, the better our customers are able to do their job in coalition warfare." Complete institutionalization of the balanced scorecard process will be the key management system to enable AFSAC to successfully meet the goal.
Figure 4. Be Innovative, Adaptive, and Responsive

 2004
Objectives Measures Targets

Build Expert Percent of Customers Favorably
Partnerships Assessing Our Responsiveness 100%

Invest in the Percent of Non-Civilian Pay
Future Resources Applied to
 Investment 5%

Demonstrate Funds Percent of Reduction in Process
Stewardship Time for Over Committed Lines 10%

Deliver Product/ Number of Revolutionary Business
Service Innovation Capabilities * 1

 2005
Objectives Targets Initiatives

Build Expert Customer
Partnerships 100% Survey

Invest in the
Future 10%

Demonstrate Funds
Stewardship 25%

Deliver Product/ Six Sigma
Service Innovation 1 Projects

* Lag Measure

** Lead Measure

Figure 5. Easy To Do Business With

 2004
Objectives Measures Targets

Build Expert Percent of Increase in Deployed IT 100% by
Partnerships Capability Tier 1 & 2
 Countries

 Percent Compliance with Action Plan 100%

 Percent of FMS Customers Applying
 Business Processes Improvements * 10%

Demonstrate Funds Percent of Cases Closed in Allotted
Stewardship Time * 100%

Collaborate with Number of Collaboration Events Per
Suppliers Supplier/Year * 4

Franchise the Percent of Processes Franchised * 25%
Process

Simplify Policy/ Percent of Policy/Procedural
Procedure Guidance guidance Simplified/Divested ** 25%

 2005
Objectives Measures Targets

Build Expert Percent of Increase in Deployed IT 100% by
Partnerships Capability Tier 1 & 2
 Countries

 Percent Compliance with Action Plan 100%

 Percent of FMS Customers Applying
 Business Processes Improvements * 25%

Demonstrate Funds Percent of Cases Closed in Allotted
Stewardship Time * 100%

Collaborate with Number of Collaboration Events Per
Suppliers Supplier/Year * 12

Franchise the Percent of Processes Franchised * 50%
Process

Simplify Policy/ Percent of Policy/Procedural
Procedure Guidance guidance Simplified/Divested ** 50%

Objectives Measures Initiatives

Build Expert Percent of Increase in Deployed IT Promote AFSAC
Partnerships Capability Online & DSCA
 Portal Use

 Percent Compliance with Action Plan

 Percent of FMS Customers Applying Streamlined
 Business Processes Improvements * LOAs

Demonstrate Funds Percent of Cases Closed in Allotted
Stewardship Time *

Collaborate with Number of Collaboration Events Per Implement
Suppliers Supplier/Year * Collaborative
 Environment

 Published
 Continuity
Franchise the Percent of Processes Franchised * Files/Expert
Process Systems

 Policy
Simplify Policy/ Percent of Policy/Procedural Executability
Procedure Guidance guidance Simplified/Divested ** Reviews

* Lag Measure

** Lead Measure

Figure 6 Effective and Efficient

 2004
Objectives Measures Targets

Keep Commitments Percent of Compliance with Standard * 100%

Provide Quality Incoming 5%
Products, Percent of Reduction in Deficiency Open 35%
Services and Reports * Aged 100%
Sol'ns

 Percent of On-Time/Early Deliveries * 90%

 Percent of Customers with
 Bill of Rights ** 25%

Control Ops Average Percent of Improvement in
Cost Per Unit Operating Cost * 5%

Invest in the Percent of Non-Civilian Pay Resources
Future Applied to Investment ** 5%

 Percent of Operating Budget Obligated 100%

 Percent of Annual Case Reviews
 Completed 100%

Improve Key Percent of Key and Enabling Processes
Processes Achieving Goals * 60%

 2005
Objectives Measures Targets

Keep Commitments Percent of Compliance with Standard * 100%

Provide Quality Incoming 5%
Products, Percent of Reduction in Deficiency Open Maintain
Services and Reports * Aged Maintain
Sol'ns

 Percent of On-Time/Early Deliveries * 95%

 Percent of Customers with
 Bill of Rights ** 50%

Control Ops Average Percent of Improvement in
Cost Per Unit Operating Cost * 10%

Invest in the Percent of Non-Civilian Pay Resources
Future Applied to Investment ** 10%

 Percent of Operating Budget Obligated 100%

 Percent of Annual Case Reviews
 Completed 100%

Improve Key Percent of Key and Enabling Processes
Processes Achieving Goals * 60%

Objectives Measures Initiatives

Keep Commitments Percent of Compliance with Standard * Action Item
 Tracker
Provide Quality
Products, Percent of Reduction in Deficiency
Services and Reports *
Sol'ns
 Percent of On-Time/Early Deliveries *

 Percent of Customers with Customer Bill
 Bill of Rights ** of Rights

Control Ops Average Percent of Improvement in PBC Output
Cost Per Unit Operating Cost * Analysis

Invest in the Percent of Non-Civilian Pay Resources
Future Applied to Investment **

 Percent of Operating Budget Obligated

 Percent of Annual Case Reviews
 Completed

Improve Key Percent of Key and Enabling Processes Six Sigma
Processes Achieving Goals * Projects

* Lag Measure

** Lead Measure

Figure 7 Expeditionary Mindset and Culture

 2004 2005
Objectives Measures Targets Targets

Achieve World- Percent of qualified Workforce to
Class Workforce Support Organizational
 Strategic/Mission Requirements 25% 50%

 Percentage of Workforce
 Certified in International Affairs 50% 75%

Ensure Positive Percentage of Favorable Rating
Employee Climate on All UCA Questions * 80% 90%

Leverage Number of enterprise Capabilities
Technology Deployed * 4 4

 Percent of Infrastucture Achieving
 Replacement Standard * 100%

Objectives Measures Initiatives

Achieve World- Percent of qualified Workforce to
Class Workforce Support Organizational WFS and
 Strategic/Mission Requirements Training

 Percentage of Workforce
 Certified in International Affairs

Ensure Positive Percentage of Favorable Rating Quality
Employee Climate on All UCA Questions * Workplace
 Projects
Leverage Number of enterprise Capabilities
Technology Deployed *

 Percent of Infrastucture Achieving
 Replacement Standard *

* Lag Measure

** Lead Measure


(1.) Combs, Kyle, Air Force Materiel Command Leading Edge, Public Affairs "AFSAC Works to Make the Grade," January 2004, p. 16.

(2.) Kaplan and Norton (1996). The Balanced Scorecard. Harvard Business School Press, Boston, Massachusetts.

(3.) Kaplan, R.S. and Norton, D.P. (1996). "Using the Balanced Scorecard as a Strategic Management System," Harvard Business Review, January-February: 1975-1985.

(4.) Kaplan, R.S. and Norton, D.P. (1996). "Using the Balanced Scorecard as a Strategic Management System," Harvard Business Review, January-February: 1975-1985.

Len Walton

Tiyette McDaniel

Schneata Shyne-Turner

Air Force Security Assistance Center

About the Authors

Len Walton is the Team Leader of Strategic Planning for Air Force Security Assistance Center. He has directed and communicated strategic initiatives as a member of the Strategic Planning Office since November 2000. A logistics manager since 1989, he previously served more than twelve years in various capacities including Command Country Manager for Australia and New Zealand and Program Support Manager for Saudi Arabia and Israel.

Tiyette McDaniel is a member of Air Force Security Assistance Center's Strategic Planning team. She ensures AFSAC's Balanced Scorecard measures are progressing toward AFSAC's strategic goals. McDaniel is the Administrator and Trainer for the CorVu software that tracks AFSAC's Balanced Scorecard measures.

Schneata Shyne-Turner is the Training Manager in Air Force Security Assistance Center's Personnel Unit. She has worked very closely with the Strategic Planning Office since 2002 as a Balanced Scorecard Core Team representative for her organization and as a process owner in support of the Balanced Scorecard measures.
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Title Annotation:Education and Training
Author:Shyne-Turner, Schneata
Publication:DISAM Journal
Date:Mar 22, 2004
Words:2666
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