The Accountability Report Supporting Business Excellence in Government Presented by:

1. The Accountability Report Supporting Business Excellence in Government Presented by: The State Government Improvement Network In Partnership with The Office of the State Budget

2. Presentation Overview • Accountability reporting requirement • Changes to the 2009 Guidelines • Standardizing the report • Feedback Report observations • Questions and answers • BREAK • Baldrige and the accountability report • Suggestions and approaches to preparing the report • The 2009 Guidelines • Using the report • The Organizational Performance and Accountability Team (our function) • Questions and answers

3. Accountability Reporting Requirements • Sections 1-1-810 and 1-1-820 of the 1976 Code of Laws state: • Section 1-1-810.  Each agency and department of state government shall submit an annual accountability report to the Governor and the General Assembly covering a period from July first to June thirtieth, unless otherwise directed by the specific statute governing the department or institution…(more) • Suspense Date: September 15, 2009

4. Accountability Reporting Requirements • Proviso 89-37 states: • Agencies’ annual accountability reports for the prior fiscal year, as required in Section 1-1-810, must be accessible to the Governor, Senate Finance Committee, House Ways & Means Committee, and to the public on or before September 15….(more)

5. 2009 Changes Category 1 – Leadership Added Note: The term “senior leadership” refers to an organization’s senior management group or team. It consists of the head of the organization and his or her direct reports. No other changes for this category.

6. 2009 Changes Category 2 - Strategic Planning (Page 2 of Guidelines) • The Key Action Plan/Initiatives column in the Strategic Planning Chart should include your initiatives, plans,and timelinesto accomplish the goals/objectives forFY 08-09 and beyond listed in the second column.

8. 2009 Changes Category 2 - Strategic Planning (Page 4 of Guidelines) 1. c – Deleted duplication ofregulatory, societal and other potential risks… No other changes for this category.

9. 2009 Changes Category 3 – Customer Focus 6. How do you build positive relationships with customers and stakeholdersto meet and exceed their expectations?Indicate any key distinctions between different customer and stakeholder groups. No other changes for this category.

10. 2009 Changes Category 4 – Measurement, Analysis, and Knowledge Management 2. How do you select, collect, align and integrate data/information for analysis to provide effective support for decisionmakingand innovation throughout your organization?

11. 2009 Changes Category 4 – Measurement, Analysis, and Knowledge Management 5. How do you ensure data integrity,reliability, timeliness, accuracy, security and availability for decision making? 7.How do you collect, transfer and maintain organizational andemployeeworkforceknowledge (knowledge assets)? How do you identify, share andimplementbest practices,as appropriate?

12. Standardizing the Report • Same format between agencies • Same use of reference numbers • Maximum recommended length of 50 pages The desire is for all reports to have “the same look and feel” as the reports that are reviewed and used by individuals external to the organization that prepared the report.

13. Use Report for Self-Assessment • Identify Strengths • Identify Opportunities for Improvement - Prioritize - Allocate Resources - Monitor, Measure, and Manage

14. WHAT WE SEEThe Organizational Performance and Accountability Team • Use of outdated Guidelines • Responses to questions do not answer the question or are too vague • Limited or no comparative information presented • Limited or no response/action plans to “key challenges” presented • Some action plans linked to strategic goals are too general in nature to determine specific targets and/or timelines • It’s OK to talk about future plans

15. WHAT WE SEEThe Organizational Performance and Accountability Team • References made to surveys, but no data presented • Survey results depicted appear to present responses to only select survey questions • Too many Category 7 measures consisting of “counts of things” or just “workload” related • Don’t ignore other operating locations throughout the state • Shading on charts/use of colors difficult to distinguish when printed in black and white

16. WHAT WE SEEThe Organizational Performance and Accountability Team A couple of specific examples Segmentation: The Department has segmented its customer population by place of origin (i.e. Low Country, Midlands, Upstate) and by major program area most used.

17. WHAT WE SEEThe Organizational Performance and Accountability Team Actions linked to the Strategic Plan: While employee well-being is one of the organization’s strategic goals, related action plans and measures are not evident. Without this information, it is not clear how the organization addresses and supports this strategic goal.

18. For Additional Information: Baldrige National Quality Program www.quality.nist.gov SC State Government Improvement Network www.scsgin.org SC Quality Forum www.scquality.com Office of the State Budget http://www.budget.sc.gov/OSB-index.phtm Suzie Rast – srast@budget.sc.gov – 734-0647 Garry Monjo – gmonjo@budget.sc.gov – 734-091

19. Questions & Answers

20. Accountability Report Guidelines are based on the Baldrige Criteria An aligned, systematic approach for conductingbusiness that integrates and focuses on: • Leadership • Strategic Planning • Customer and Market Focus • Measurement, Analysis, and Knowledge Management • Human Resource Focus • Process Management • Business Results

21. Application and Linkages in SC State Government • Agency Accountability Report • Addresses all 7 categories • Includes more than 40 Baldrige related questions • Budget Request Guidelines • Linked to Accountability Report • Agency Head Salary Review Commission • Linked to “Performance Excellence” (Baldrige Criteria) • Mini-Organizational Self Assessment • Establishes Organizational Baseline

22. Seven Categories (1) Leadership 120 (2) Strategic Planning 85 (3) Customer & Market Focus 85 • Measurement, Analysis, and Knowledge Management 90 (5) Human Resource Focus 85 (6) Process Management 85 (7) Business Results 450 Total Points 1,000

23. The Baldrige Systemand the Accountability Report

24. MBNQA Background Created in 1987 • Response to Global Competition • Public Law 100-107 Malcolm Baldrige National Quality Awards (MBNQA) • To improve organizational performance practices • To serve as a tool for understanding and managing performance, planning and training • To facilitate the sharing of best practices • Administered by the National Institute for Standards and Technology (NIST)

25. Elements of Categories 1 – 6 Categories 1 – 6: Approach • Effectiveness of methods and techniques to the criteria requirements • Focus on continuous improvement • Degree to which approach used is systematic, integrated and consistently applied Categories 1 – 6: Deployment • Degree and application of approach to all areas of the organization • Degree and application of approach with all relevant customers, suppliers and the general public

26. Elements of the Results Category Category 7: Results • Levels of past and current performance; future projections • Linkage to approach/deployment • Rate/Speed/Breadth of performance improvement • Performance comparisons and benchmarks

27. Key Recommendations • Have a plan to produce the Accountability Report • Have a strategic plan • Agree on mission related key processes and • related key measures • Look at category 7 first - Results • Make report a living document

28. Key Recommendations • Active participation by management • Begin with the Leadership category • Leadership must set: • Direction • Expectations • Example

29. Category 1 - Leadership 1.1 How do senior leaders set, deploy, and ensure two-way communication for: a) short and long term organizational directions and organizational priorities? b) performance expectations? c) organizational values? d) ethical behavior?

30. Category 1 - Leadership 1.2 How do senior leaders establish and promote a focus on customers and other stakeholders? 1.3 How does the organization address the current and potential impact on the public of it’s products, programs, services, facilities and operations, including associated risks?

31. Category 1 - Leadership 1.4 How do senior leaders maintain fiscal, legal and regulatory accountability? 1.5 What key performance measures do senior leaders regularly review to inform them on needed actions? (Actual results are to be reported in Category 7.)

32. Category 1 - Leadership 1.6 How do senior leaders use organizational performance review findings and employee feedback to improve their own leadership effectiveness, the effectiveness of management throughout the organization including the head of the organization, and the governance board/policy making body? How do their personal actions reflect a commitment to the organizational values? 1.7 How do senior leaders promote and personally participate in succession planning and the development of future organizational leaders?

33. Category 1 - Leadership 1.8 How do senior leaders create an environment for performance improvement and the accomplishment of strategic objectives? 1.9 How do senior leaders create and environment for organizational and workforce learning?

34. Category 1 - Leadership 1.10 How do senior leaders communicate with , engage, empower, and motivate the entire workforce throughout the organization? How do senior leaders take an active role in reward and recognition processes to reinforce high performance throughout the organization? 1.11 How do senior leaders actively support and strengthen the communities in which your organization operates? Include how senior leaders determine areas of emphasis for organizational involvement and support, and how senior leaders, the workforce, and the organization contribute to improving these communities.

35. Category 7 - Business Results 7.1 What are your performance levels and trends for your key measures of mission accomplishment/product and service performance that are important to your customers? How do your results compare to those of comparable organizations? Linked to 2.1 a –a f, 3.1, 3.3 and 6.1 for the “what” and 2.2 – 2.5, 3.2, 3.4, 3.5, 3.6 and 6.4 for the “how.”

36. Category 7 - Business Results 7.2 What are your performance levels and trends for your key measures on customer satisfaction and dissatisfaction (a customer is defined as an actual or potential user of your organization’s products or services)? How do your results compare to those of comparable organizations? Linked to 3.4

37. Category 7 - Business Results 7.3 What are your performance levels and trends for the key measures on financial performance, including measures of cost containment, as appropriate? Linked to 4.1 and 6.2 and 6.4

38. Category 7 - Business Results 7.4 What are your performance levels and trends for the key measures workforce engagement, workforce satisfaction, the development of your workforce, including leaders, workforce retention, workforce climate including workplace health, safety, and security? Linked to Category 5

39. Category 7 - Business Results 7.5 What are your performance levels and trends for your key measures of organizational effectiveness/operational efficiency, and work system performance (these could include measures related to the following: product, service, and work system innovation rates and improvement results; improvements to cycle time; supplier and partner performance; and results related to emergency drills of exercises)? Linked to 1.5 (which all measures are)

40. Category 7 - Business Results 7.6 What are your performance levels and trends for the key measures of regulatory/legal compliance and community support? Linked to 1.4 and 1.11

41. Category 2 - Strategic Planning 2.1 What is your strategic planning process, including key participants, and how does it address: a) your organization’s strengths, weaknesses, opportunities and threats; b) financial, regulatory, societal and other potential risks; c) shifts in technology and customer preferences; d) human resource capabilities and needs; e) organizational continuity in emergencies; f) your ability to execute the strategic plan.

42. Category 2 - Strategic Planning 2.2 How do your strategic objectives address the strategic challenges you identified in your Executive Summary? (Section I, Question 4) 2.3 How do you develop and track action plans that address your key strategic objectives, and how do you allocate resources to ensure the accomplishment of your action plans?

43. Category 2 - Strategic Planning 2.4 How do you communicate and deploy your strategic objectives, action plans and related performance measures? 2.5 How do you measure progress on your action plans?

44. Category 2 - Strategic Planning 2.6 How do you evaluate and improve your strategic planning process? 2.7 If the agency’s strategic plan is available to the public through the agency’s internet homepage, please provide an address for that plan.

45. Category 3 - Customer Focus 3.1 How do you determine who your customers are and what their key requirements are? 3.2 How do you keep your listening and learning methods current with changing customer/business needs and expectations? 3.3 What are your key customer access mechanisms, and how do these access mechanisms enable customers to seek information, conduct business, and make complaints?

46. Category 3 - Customer Focus 3.4 How do you measure customer/stakeholder satisfaction and dissatisfaction, and use this information to improve? 3.5 How do you use information and feedback from customers/stakeholders to keep services or programs relevant and provide for continuous improvement? 3.6 How do you build positive relationships with customers and stakeholders to meet and exceed theirexpectations? Indicate key distinctions between different customer and stakeholder groups.

47. Category 4 – Measurement, Analysis and Knowledge Management 4.1 How do you decide which operations, processes and systems to measure for tracking financial and operational performance, including progress relative to strategic objectives and action plans? 4.2 How do you select, collect, align and integrate data/information for analysis to provide effective support for decision making and innovation throughout the organization?

48. Category 4 – Measurement, Analysis and Knowledge Management 4.3 What are your key measures, how do you review them, and how do you keep them current with organizational service needs and directions? 4.4 How do you select and use key comparative data and information to support operational and strategic decision making and innovation?

49. Category 4 – Measurement, Analysis and Knowledge Management 4.5 How do you ensure data integrity, reliability timeliness, accuracy, security, and availability for decision making? 4.6 How do you translate organizational performance review findings into priorities for continuous improvement? 4.7 How do you collect, transfer and maintain organizational and workforce knowledge? How do you identify, share and implement best practices, as appropriate?

50. Category 5 Workforce Focus 5.1 How does management organize and measure work to enable your workforce to: 1) develop to their full potential, aligned with the organization’s objectives, strategies and action plans; and 2) promote cooperation, initiative, empowerment, teamwork , innovation and your organizational culture? 5.2 How do you achieve effective communication and knowledge/skill/best practice sharing across departments, jobs, and locations? Give examples.