STATE OF ALASKA Performance Management 101

1. STATE OF ALASKAPerformance Management 101

2. Why Performance Management? • It works - Systematic way to get results • Communication • Common language • Standard format • Tells your story • Helps get you the money • It is the law

3. Analyze Plan Operate Budget Performance Management Cycle To achieve a result: • Develop a plan • Budget for that plan • Implement/operate • Analyze and assess • Go to step 1

4. Alaska Performance Management System • Statewide Priorities • Performance Framework • Ten-Year Fiscal Plan • Annual Budget Narrative • End Results • Measurement • Assessments Reports and Measures • Results-Based Budget • Strategic Investment • Plan-Based Budget • Process Management • Performance Monitoring • Process Reengineering

5. Performance Framework

6. Alaska Performance Framework • State Priorities • Department Priorities • Associated funding & positions • Key Performance Indicators • Department Performance Detail • Includes all Department Results and associated Targets, Strategies, Status, Data, and Analyses

7. FrameworkAlignment

8. State Priority: Public Safety FrameworkAlignment So Corrections Priority: Reformed Offenders Priorities So Successful Offender Re-entries Target: Reduce the number of released offenders who commit a crime to X Ultimate Policy Intent End Results So Prepare offenders for a job at release Target: Increase the number of offenders with GEDs to X Strategies Level of Control So Teach reading to offenders Target: X number of offenders receive reading instruction Actions

9. State Priority: Public Safety Dept. Corrections: Reformed Offenders Dept. Public Safety: Protection So So Successful Offender Re-entries Target: Reduce the number of released offenders who commit a crime to X Protect Lives Target: Reduce the number of deaths due to criminal acts End Results So So Prepare offenders for a job at release Target: Increase the number of offenders with GEDs to X Create deterrence by solving homicides Target: 100% homicide solve rate Strategies So So Prepare well-trained law enforcement officers Target: Increase the Public Safety Training Academy overall GPA Teach reading to offenders Target: X number of offenders receive reading instruction Actions

10. Department PrioritiesPerformance Summary Cabinet and OMB Head’s Up Meetings • Orders main responsibilities • Reflects resource distribution • Displays key performance

11. Key Performance Indicators Factors to take into account when choosing key performance indicators: • Ultimate policy intent • Most direct measure of result • Critical success factor • Big ticket item • Hot button item

12. Performance Detail Elements End Result: The Ultimate Goal! • Desired eventual condition • Public focused - What public paying for • Make it bold – End stuff or make everything good or… “My administration is taking a comprehensive approach to stop the epidemic [of sexual assault & domestic violence]” - Gov. Sean Parnell

13. Performance Detail Elements End Result: (continued) • Ultimate goal, not year-end goal • Doesn’t have to be reachable today • Targets are for reachable goals • Realistic Target(s) for each End Result “…get a workstation running our software onto every desk and eventually in every home.” - Bill Gates, 1985

14. Performance Detail Elements Strategy: How do we get there? • Planned approach • Designed to achieve the End Result • Consider long-term • Return on investment • Realistic Target(s) for each Strategy

15. Performance Detail Elements Target:How are we doing? • Expected level of success • Realistic - based on time & resources • Min. one per End Result & Strategy • Use the number that best tells story

16. Analysis

17. Analysis Analysis includes examining: • Performance & operational data • Internal/External Assessment • Evaluation of strategic alternatives

18. Performance Measurement • So you know producing right results • Whether, not why • To improve, not blame • Informs all organizational levels • Used in planning, budgeting, operations

19. Types of Measures Low Value • Input – resources used # of staff, caseload size, … • Output – activities completed # trained, # audits, … • Efficiency – how well resources used Cost per, cycle time,… • Quality – effectiveness Accuracy, rating, survey,… • Result – outcome achieved Incidence, prevalence,… High Value

20. Measure Value • Example • Destination: grocery store • Inputs – gas pumped into the tank • Outputs – miles traveled, gas consumed • Efficiency – gas mileage • Quality – reliable, comfortable • Result – proximity to grocery store

21. Elements of Good Measures • Relevant To the End Result or Strategy • Quantifiable Need to be able to count it up • Unidirectional Good is either up or down, not both • Actionable Someone can act to improve it

22. Performance MeasuresDevelopment • Investment • Iterative process • Cost/Benefit • Unintended consequences

23. Internal/External Assessment • Internal strengths/weaknesses • External opportunities and obstacles • User group opinions • Identify only the most impactful

24. Strategic Alternatives • Identify a rich range of alternatives • Weigh cost/benefit of each • Cost includes training, time, capital,… • Benefit is the difference between the result with and without the intervention • Other considerations include required legislation, mix of strategies, long-term costs • Justification for current and future

25. Wrap-Up Next steps: • Align State Priorities, Dept. Priorities, and Dept. Performance Detail • Performance Management Advisory Board • Performance Management Manual • Performance Framework Improvement • Available for more specific follow-up

26. For questions and individualized assistance with Alaska’s Performance Framework: Craig Kahklen, Management Analyst Office of Management & Budget 907-465-3559 Craig.Kahklen@alaska.gov