City of Helsinki Social Services

1. City of Helsinki Social Services Department City of Helsinki Social Services MatrixMethod for MeasuringProductivity in Elderly Social Services ENSA, Madrid, June 2010 Elderly thematic group meeting Kari Laakoli – City of Helsinki Management accounting advisor E-Mail: kari.laakoli@hel.fi ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting

2. City of Helsinki Social Services Department City of Helsinki Social Services Outline of the presentation • information of the elderly projects • from aggregate to disaggregate approach • matrix method • map of productivity affecting factors • prioritized measures • matrix of service housing • productivity results in service housing in years 2007 - 2009 • conclusion ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting

3. City of Helsinki Social Services Department City of Helsinki Social Services Information of the elderlyprojects • pilot projects in the elderly services in years 2007 - 2009 • 13 units of service housing • four nursing homes • aim was to develop a solution to a productivity measurement • problem from a practical field • utilization of workshops as a method • two different working teams included • two researcher from Tampere University of Technology • 3-5 persons of elderly services (unit manager, workers • representatives, accounting experts) • followed generic process of designing performance measures ENSA, Madrid June 2010 Kari Laakoli, Management accounting

4. City of Helsinki Social Services Department City of Helsinki Social Services The matrixmethod Fromaggregate to disaggregateapproach Top down Bottomup Aggregate measures are intended to examine productivity of a large organizational entity or the whole organization Component measures (disaggregate) capture the productivity of a single activity or unit • Social Services Department is rather large organizational entity • productivity measurement was based on output/input index • limited view when information to the unit level is needed ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting Reference: Jääskeläinen, A. 2009

5. City of Helsinki Social Services Department City of Helsinki Social Services The matrixmethod Fromaggregate to disaggregateapproach • Social Service System is a large organizational entity, state of productivity is difficult to realize and manage, offer little information to unit level • Productivity is realized, but the underlying factors needs to be better understood, measured and managed by objectives • At the unit level productivity and factors involved in the phenomenon should be understood, measured and managed by objectives Complexity of the system Social Service System as a whole Part of the servicesystem (eg. elderlyservices) Unitlevel (eg. Service housing) Weakview of system productivity Awareness of productivity phenomenon Productivity-consciousness Productivity is understood and known ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting

6. City of Helsinki Social Services Department Productivity of City of Helsinki Productivity of Social Service Department … Productivity of Childcare Services Productivity of Elderlyservices … Productivity of ChildCareregions Productivity of Nursing home 1 … … … Productivity of Child Day care center 1 … City of Helsinki Social Services The matrixmethod Fromaggregate to disaggregateapproach Bottom-up • the results from different unit • are aggregated to the next level • focus is to examine a change • in total score not the score as • such • every unit is taken into • account by its weighted costs … Productivity of Service house 1 ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting Reference: Jääskeläinen, A. 2009

7. City of Helsinki Social Services Department City of Helsinki Social Services The matrixmethod Map of differentfactorsaffectingproductivity Productivity Bedfast residents % Functionalloss of client % Output quantity Cost efficiency Service quality Employee competence Output magnitude Atmosphere In Service provision Resources used Utilization of employee resources ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting Working atmosphere Workers turnover References: Jääskeläinen, A. 2009 Jääskeläinen, A. & Lönnqvist, A. 2009

8. City of Helsinki Social Services Department City of Helsinki Social Services The matrixmethod The illustration of the measures ENSA, Madrid 2.6. 2010 Kari Laakoli, Management accounting Reference: Jääskeläinen, A. 2009

9. City of Helsinki Social Services Department City of Helsinki Social Services The matrixmethod The illustration of the servicehousingmatrix ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting Reference: Jääskeläinen, A. 2009

10. City of Helsinki Social Services Department City of Helsinki Social Services The matrixmethod Productivitymeasurements in servicehousing • top level 900 - 1000 pontis • extraordinary level 700 - 800 points • good level 500 – 600 points • average level 400 points ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting

11. City of Helsinki Social Services Department City of Helsinki Social Services The matrixmethod Productivityindex in servicehousing ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting

12. City of Helsinki Social Services Department City of Helsinki Social Services Conclusion The matrixmethodprovides: • tool for managerial purposes • one index calculated from several productivity-related indicators • easy to understand what factors have influenced the index • the matrix is not very complex: • the measurement method is transparent to every employee • showswhat a goodresult is • benchmarking to otherunitsusingsimilarmatrix • potentialtool for supportingpaymentbyresults ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting Reference: Jääskeläinen, A. 2009

13. City of Helsinki Social Services City of Helsinki Social Services Department Thank you for your attention and interest. ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting

14. City of Helsinki Social Services Department City of Helsinki Social Services References: • Jääskeläinen A. 2009. ”Identifying a Suitable Approach for Measuring and • Managing Public Service Productivity”, Electronic Journal of Knowledge • Management, Vol 7, No. 4 pp. 447-458. • Jääskeläinen, A. & Lönnqvist, A. 2009. ”Designing Operative Productivity • Measures in Public Services”, VINE – Journal of Information and Knowledge • Management Systems, Vol. 39, No. 1, pp. 55-67. • www.interrai.org ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting

15. City of Helsinki Social Services Department City of Helsinki Social Services Productivity in the elderlyservices Convertingvalues • Currentcosts (nominal) wereconverted to realcosts (constant) by • the PIPE index (Price index of public expenditure) • PIPE Producer: Statistics Finland, Homepage: http://tilastokeskus.fi/til/jmhi/index_en.html Weighting of the output • Service housing • Client payment grouping (grouping is based on given service hours per month) • Groups 1-6 where one elderly client in group six equate six elderly client in group one • Nursing homes • RUG-III/34 grouping (hierarchical structure) • Cost weigh of client structure (based on clinical status) • average client has weight 1; weight 1,3 means that client need 30% more resources ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting Reference: Jääskeläinen, A. 2009

16. City of Helsinki Social Services Department City of Helsinki Social Services The matrixmethod Constructing a productivitymatrix • prioritize the measures • the experience and context specific knowledge important • statistical study to support the decision of the weights • to finalize matrix • collect a measurement data from each measure • (previous 3 years) • scaling the matrix 0 – 10 • average result got a score of 4 • Scores 0 and 10 defined in a way that only single units had such scores • current values of measurements was necessary information ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting Reference: Jääskeläinen, A. 2009