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The Performance Measure Problem…. Dept. Head : “So we are cleaning sewers that are prone to be clogged?”

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The Performance Measure Problem…

Dept. Head: “So we are cleaning sewers that are prone

to be clogged?”

Prgm. Mgr.: “What do you mean? You want us to clean sewers that are dirty? I don’t think so. We are rated on how many miles of sewers we clean. We take great pride in the number of miles. We clean a lot of sewers.”

Dept. Head: “Are you telling me that we clean only

clean sewers?”

Prgm. Mgr.: “Well, yes, because if we clean a dirty

sewer it’s going to slow up productivity.”

Paul D. Epstein, Epstein & Fass Associates


Strategic Planning & Performance Measurement

Department of Administration

Research, Planning, and Grants

Course Developed by Julie Butler

Presented by Maud Naroll


Class Goals

  • Introduce concepts of Strategic Planning & Performance Measurement.

  • Students leave with practical tools to create their own strategic plans and outcome-based performance measurements.


People and their managers are so busy trying to do things right that they hardly have time to decide if they’re doing the right things.

- Stephen R. Covey -


Strategic Planning…What

  • An organized, documented method of determining what an agency hopes to accomplish and how it will accomplish it.

  • Future-oriented.

  • Value from the process.


Strategic Planning…Why

  • Management tool.

  • Provides direction for agency personnel.

  • Guides resource decisions.

  • Provides justification for budget requests.


Strategic Planning

Answers 3 basic questions:

  • Where are we now?

  • Where do we want to be?

  • How do we get there?


Strategic Planning - First things first…

  • Support from the top.

  • Team-approach.

    • Management & staff.

    • Program & fiscal.

    • Data administrator

  • Define the scope.

    • Department, division, bureau, section.

  • Time commitment.


Components of a Strategic Plan -- Overview

  • Will present one way of developing plan

    • Has worked with a couple dozen agencies

  • No single correct way to plan

    • Don’t feel is rigid cookbook

  • Suggestions welcome


Components of a Strategic Plan -- Overview

  • Vision

  • Mission

  • Philosophy

  • (External/Internal Assessment: Customers and SWOT)

  • Goal(s)

  • Strategies

  • Objectives

  • Performance Measures


Components of a Strategic Plan

  • Vision Statement

    • Describes the ideal future state

    • What we aspire to

    • Should inspire

  • Big, global, broad


Sample Vision Statement

Employment, Training and Rehabilitation

To be Nevada’s First Choice to connect businesses and job seekers


Sample Vision Statement

Levi Strauss & Company

People love our clothes and trust our company.

We will market and distribute the most appealing and widely worn apparel brands.

Our products define quality, style and function.

We will clothe the world.


Components continued…

Mission Statement

  • The foundation of the strategic plan.

  • Defines the purpose of the agency & how it will work to achieve the vision.

  • Describes what the agency does for whom.

  • Keep it simple and easy for all to remember.

  • Ask: Why was the agency created?


Sample Mission Statements

Nevada Department of Personnel:

To provide and retain a qualified state workforce that serves the citizens of Nevada.

Carson Tahoe Regional Healthcare:

To enhance the health and well being of the communities we serve.


Tool for Mission, Goals, Strategies, and Objectives

To help draft your agency’s mission, goals, strategies & objectives, consider the following:

The purpose of the ___________________(program) is

to provide/produce _______________ (service/good)

to ______________ (whom)

so that they can/in order to _______________ (planned benefit).


Class Exercise

For one of the agencies in class, fill out this form.

Optional: craft a short, simple mission statement.

The purpose of the ___________________(program) is

to provide/produce _______________ (service/good)

to ______________ (whom)

so that they can/in order to _______________ (planned benefit).


Individual Exercise

For your agency, fill out this form.

Optional: craft a short, simple mission statement.

The purpose of the ___________________(program) is

to provide/produce _______________ (service/good)

to ______________ (whom)

so that they can/in order to _______________ (planned benefit).


Class Exercise

For one of the agencies in class, write a vision statement


Individual Exercise (Optional)

For your agency, write a vision statement


Components continued…

Philosophy/Values

  • How we will act/behave as we work to achieve the vision.

  • Should guide the agency in its daily interactions with staff and customers/clients.


Sample Philosophy Statements

Budget and Planning Philosophy:

We will strive for excellence in an ethical, accountable and responsive manner. We will treat our fellow staff members, customers, and stakeholders consistently, fairly, and professionally. We are stronger as a team than individually. We will share our individual knowledge and experience to help each other.

  • Carson Tahoe Regional Healthcare:

  • Putting Patients First

  • Treating Everyone with Dignity and Respect


Sample Philosophy Statement

Nevada Department of Corrections, Prison Industries Division

All staff will act in a fashion that presents to the inmates an ethical and moral model that, were they to emulate, they would never return to prison.


Class Exercise

For one of the agencies in class, write a philosophy statement


Individual Exercise (Optional)

For your agency, write a philosophy statement


Table Exercise (Optional)

  • Fill out the mission for your agency (if not done already).

  • Examine (or create) your agency’s current vision, mission, and philosophy statements.

  • Compare to checklists.

  • Do the statements need to be revised?

  • Presentations to the class.


External/Internal Assessment: Defining the Customers

  • Internal

  • External

  • Stakeholders

  • Who are they?

  • What do they need?

  • Are we meeting their expectations?

  • How will we know?


Class Exercise

For some agencies in class, identify customers, their expectations, and whether they’re being met


External/Internal Assessment: SWOT

Think about workforce issues:

Retirements

Career Ladders

Cross-covering eliminated positions

Strengths

Weaknesses

INTERNAL

Opportunities

Threats

EXTERNAL


External/Internal Assessment: Examine the Data

  • Where have we been?

  • Where might we end up if it’s “business as usual?”

  • Ask lots of questions.

    • More customers now than before?

    • Same # of staff or turnover?

    • Do we have outdated procedures, processes or systems?

    • Do our customers perceive a problem?


What do the laws, regulations, and policies say about what we do?

Should the laws/regs/policies be changed?

Does anyone else do what we do?

If so, who are they?

Do we coordinate with them?

External/Internal Assessment: Who are we?


STEEPL

Social

Technological

Environmental

Economic

Political

Legal

External/Internal Assessment: What is affecting us?


Class Exercise

  • Write one each:

    • Strength

    • Weakness

    • Opportunity

    • Threat

  • Write one STEEPL item

Strengths

Weaknesses

INTERNAL

Opportunities

Threats

EXTERNAL


Components continued…

Goals

  • Broad description of WHAT the agency hopes to achieve over the long term (3+years).

  • Start with an action verb


Sample Goals

  • Streamline the state recruitment process. (NV Dept of Personnel)

  • Improve the quality of health care in Nevada. (State Health Div – Bureau of Licensure & Certification)

  • Secure site, build, and occupy new Las Vegas facility. (Motor Pool)


Components continued…

  • Strategies

    • The methods/actions the agency will take to achieve the goal.

    • The “HOW” part. Specifies an Activity not a Result.

    • May be several strategies per goal.


Sample Strategies

  • Open recruitments on a daily basis versus a weekly basis (NV Dept of Personnel).

  • Educate health care providers about the reasons health care facilities are found deficient through brochures, conference calls, and the internet. (Health Div – BLC)

  • Aggressively work with State Lands, Buildings and Grounds, and the developer. (Motor Pool)


Brainstorming Strategies

  • Cross-train staff to do multiple tasks?

  • Reclassify staff?

  • Review procedures & streamline?

  • Modify computer system?

  • Explore more internet-based solutions?

  • Stop doing some tasks?


Prioritize and Prune Strategies

After writing the plan, go back through strategies.

  • Is the list feasible to accomplish in the next several years?

  • Do strategies need prioritizing?

  • Pruning?


Components continued…

  • Objectives

    • Specify the target…how much of the desired result by when.

    • May be more than one objective for each goal.

    • If an objective is not measurable, then it’s a goal.


Objectives should be SMART

Specific

Measurable

Action-oriented

Realistic

Time-Specific

Objectives continued…


Start with an action verb

Example: Occupy new Vegas building before January 2007. (Motor Pool)

Objectives continued…


Objectives continued…

  • Determine a “reasonable” objective

  • Set a date by which to achieve your objective.

  • Example: 5% reduction in average wait time by October 2010 and 10% reduction by June 2011.


More Sample Objectives

  • Projects in BA 1325 completed within budget by June 30, 2007. (Dept Admin IT Division)

  • Average fleet miles per gallon five percent higher than January 2006 level by January 2009. (Motor Pool)


But Sometimes Objectives Are…

  • Yes or No

    • Occupy new Vegas building before January 2007. (Motor Pool)

    • Implement our revised office procedures by October 2014.

    • Update all employee work performance standards by December 2015.


Impact on the Budget

  • What is the cost associated with each strategy?

  • Can we pay for this?

    • What can we do for no cost or low cost?

    • Move money around?

  • How critical is this?

  • Contact your fiscal staff for help.


Class Exercise

Examine or create an agency’s goals and related strategies & objectives.


Table Exercise (Optional)

  • Examine (or create) one of your agency’s goals and related strategies & objectives.

  • Compare to checklists.

  • Revise if necessary.

  • Presentations to the class.


Performance Measurement

It all starts with the Strategic Plan


The Performance Measure Problem…

Dept. Head: “So we are cleaning sewers that are prone

to be clogged?”

Prgm. Mgr.: “What do you mean? You want us to clean sewers that are dirty? I don’t think so. We are rated on how many miles of sewers we clean. We take great pride in the number of miles. We clean a lot of sewers.”

Dept. Head: “Are you telling me that we clean only

clean sewers?”

Prgm. Mgr.: “Well, yes, because if we clean a dirty

sewer it’s going to slow up productivity.”

Paul D. Epstein, Epstein & Fass Associates


Performance Measurement Is:

  • A method of systematically and objectively tracking the agency’s progress toward achieving its mission & goals.


Performance Meas. Is Not

  • Substitute for Program Evaluation

  • The Magic Cure

    • Can tell you the “what” but not the “why”.

    • You have to dig deeper to learn the meaning behind the numbers.


Why Measure Performance?


Why Measure Performance?

  • Management Tool

    • To determine if you’re getting where you planned.

    • To improve management processes & practices.

    • To improve quality & efficiency.

    • To recognize & reward success.

    • To ensure accountability.

    • To communicate results & improve agency image.

    • To justify budget request & guide resource decisions.

  • Because it’s the law. [NRS 353.205(1)(b)]


NRS 353.205(1)(b)

…Part 2 must include a mission statement and measurement indicators for each program…..


Using PM’s to Manage

  • Are we doing the right thing?

  • Are we doing it well?

  • Are we investing our resources to get the best results?

  • Are we getting where we want to go?


Linking to the Budget

The Strategic Plan (SP) is the foundation of the budget request.

  • If it’s not in the SP, then it shouldn’t be in the budget.


Linking to the Budget

The Performance Measures tell the budget “story.”

  • This result at this cost.

  • Justify changes to your program(s).

  • Illustrate consequences of cuts.

  • Budget & Legislature review them.


Measures in the Budget

  • Measures now in the Priorities and Performance Based Budget (PPBB)

    • At the activity level


Measures in the Budget

Example

  • Division: Fleet Services

  • Activity: Short-term Assigned Vehicle Management

  • Performance Measure: Rental Rate as a Percent of Commercial Rate

  • FY 2012 actual: 70 %


Why Don’t We Like Performance Measures?


Why Don’t We Like Performance Measures?

  • Time & cost of collecting the data.

  • Fear of being held accountable.

  • Outdated information systems and procedures.

  • Difficulty in making fair comparisons and finding appropriate benchmarks.

  • Can’t say why results are occurring.

  • Staff turnover.

  • Don’t have complete control over an outcome.


Types of Measures

  • Input

  • Output

  • Outcome

  • Efficiency

    • Timeliness

  • Quality

  • Population

  • Caseload


Definitions

  • Input: measures the resources going into making a product or providing a service

    • Not necessarily useful in budget

    • Example:

      • Money – “We got a $100,000 grant for it.”

      • Staff - “ We have 5 employees devoted to it.”

      • Equipment – “We bought a new server for it.”

      • Raw materials – “We used 10 cubic yards of cement for it.”


Definitions continued

  • Output: measures what comes out of the agency’s efforts (“widget counting”)

  • Number of:

    • Miles of sewer cleaned

    • Miles of road resurfaced

    • Clients served

    • Applications processed

    • Meetings held


Definitions continued

  • Outcome: measures the result of your efforts.

    • Did you have an impact?

    • What changed in your environment in part because of your efforts?


Definitions continued

  • Outcome: measures the result of your efforts.

    • Percent reduction in vaccine-preventable diseases

    • Percent of clients employed 6 months after completing program


Definitions continued

  • Efficiency: ratio of outputs or outcomes produced to inputs used

  • Number of

    • Customers served/employee

    • Cases managed/employee

    • Miles of road paved/paving machine


Definitions continued

  • Efficiency - Timeliness:

    • average DMV wait time

    • average turnaround time to process form


Definitions continued

  • Quality: measures quality of the services provided or goods produced

    • Customer satisfaction surveys

    • Opinion polls

    • Letters or phone calls of praise/complaint


Definitions continued

  • Population:

    • Number of people or entities an activity might potentially serve

  • Number of:

    • Nevada children aged 5 - 18

    • Businesses in Nevada with employees

    • Nevadans eligible for Medicaid


Definitions continued

  • Caseload: Number of people or things the activity serves or funds

  • Number of:

    • K-12 students whose education is supported with state funds

    • Businesses paying unemployment insurance taxes

    • Medicaid enrollees


Developing a Measure

  • Start with the Strategic Plan.

  • The Vision defines where you want to go.

  • The Goal defines what you want to accomplish (broadly).

  • The Objective defines your target (what you’re aiming for).

  • The value of the Performance Measure tells you whether or not you met your objective, whether your strategy worked, whether you’re on the way toward achieving your goal.


Developing a Measurement

  • Focus on OUTCOMES, not OUTPUTS

    • Example: agency held 3 grant writing workshops last year (output).

    • Agency received better grant applications (outcome).


Behavior – did customer’s behavior change (in part) because of your agency’s efforts?

Example:fewer adults smoke after cessation campaign

Condition – did the “state of things” change (in part) because of your agency’s efforts?

Examples: cleaner water, better roads, more employment

Common Outcome Measures


Knowledge: does the customer know more about “X” after contact with your agency?

Example: % of Nevadans who know the illegal per se limit for Driving Under the Influence in Nevada

Attitude: does the customer believe your agency’s efforts will make a difference?

Example: % of prgm. participants who feel confident agency’s job training will help them get a job

Common Outcome Measures


Skills: did skill levels change (in part) because of agency’s efforts?

Example: Percent of 4th graders reading at 4th grade level

Values/Ethics: does customer know right from wrong after contact with your agency?

Example: Percent of Nevadans who believe leaving scene of traffic accident in which they were involved is wrong

Common Outcome Measures


Performance Measure Example: Buildings and Grounds

  • Goal = Fulfill agencies’ needs for leased space

  • Objective = Reduce average time from initial request on lease until lease sent to Budget by 10% by July 2009

  • Possible Performance Measure = ?


Perf. Measure Example: B&G

  • Goal = Fulfill agencies’ needs for leased space

  • Objective = Reduce average time from initial request on lease until lease sent to Budget by 10% by July 2009

  • Performance Measure = Average time from initial request on lease until lease sent to Budget


Types of Measures

What type of measure is

Average time from initial request on lease until lease sent to Budget

  • Input

  • Output

  • Outcome

  • Efficiency

    • Timeliness

  • Quality

  • Population

  • Caseload


Performance Measure Example: Employment, Training, and Rehabilitation

  • Goal = Provide convenient, accessible and equitable services and opportunities to all customers

  • Objective = Increase the use of Interactive Unemployment Insurance applications for DETR services by 5%

  • Possible Performance Measure = ?


Performance Measure Example: Employment, Training, and Rehabilitation

  • Goal = Provide convenient, accessible and equitable services and opportunities to all customers

  • Objective = Increase the use of Interactive Unemployment Insurance applications for DETR services by 5%

  • Possible Performance Measure = Percent of unemployment insurance clients using interactive applications


Performance Measure Example: Carson-Tahoe Regional Healthcare

  • Mission = To enhance the health and well being of the communities we serve.

  • Possible Performance Measure = ?


Performance Measure Example: Carson-Tahoe Regional Healthcare

  • Mission = To enhance the health and well being of the communities we serve.

  • Possible Performance Measure = Deaths per 100,000 people under 65 in our primary service area


Types of Measures

What type of measure is

Deaths per 100,000 people under 65 in our primary service area

  • Input

  • Output

  • Outcome

  • Efficiency

    • Timeliness

  • Quality


Performance Measure Example: Governor’s Committee on Employment of People with Disabilities

  • Vision = To have the highest competitive employment rate of people with disabilities in the U.S.

  • Possible Performance Measure = ?


Performance Measure Example: Governor’s Committee on Employment of People with Disabilities

  • Vision = To have the highest competitive employment rate of people with disabilities in the U.S.

  • Possible Performance Measure =

    Percent of people with disabilities in competitive employment


Performance Measure Example: Prison Industries

  • Philosophy = All staff will act in a fashion that presents to the inmates an ethical and moral model, that were they to emulate, they would never return to prison.

  • Possible Performance Measure = ?


Performance Measure Example: Prison Industries

  • Philosophy = All staff will act in a fashion that presents to the inmates an ethical and moral model, that were they to emulate, they would never return to prison.

  • Possible Performance Measure = Percent of inmates who worked for Prison Industries who return to prison


Class Exercise

  • Using the agency performance measures list on page 15 of your handout, decide what type of performance measure each item is (outcome, output, etc.)


Types of Measures

  • Input

  • Output

  • Outcome

  • Efficiency

    • Timeliness

  • Quality

  • Population

  • Caseload


Class Exercise

Using the “Performance Measure or Not?” list on p. 16 of your worksheet packet, find an item on the list that is not a performance measure and write a measure for it.


Table Exercise

  • Using the performance measures for an agency at your table, decide what types of measures they are (output, outcome, etc.) and complete the Performance Measures Checklist on pg. 17 of your handout


Types of Measures

  • Input

  • Output

  • Outcome

  • Efficiency

    • Timeliness

  • Quality

  • Population

  • Caseload


Tool for Measures

To help draft your agency’s measures, consider the following (see page 4 of handout):

The purpose of the ___________________(program) is

to provide/produce _______________ (service/good)

to ______________ (whom)

so that they can/in order to _______________ (planned benefit).


Tool for Measures

Where in the statement is an output?

Where is an outcome?

Where is a caseload?

The purpose of the ___________________(program) is

to provide/produce _______________ (service/good)

to ______________ (whom)

so that they can/in order to _______________ (planned benefit).


Class Exercise

Using the tool to create measures for:

  • Output

  • Efficiency

  • Outcome

  • Caseload


Talk About Percent

Percent of [universe] that is [something in particular]

  • Percent of class attendees who are female

  • Percent of McDonald’s balls that are green


Talk About Percent

Percent of [universe] that is [something in particular]

  • Numerator is [particular]

  • Denominator is [universe]

  • Number of green balls

    Total number of balls


Talk About Percent

Numerator and denominator must each be entered separately in NEBS (Budget system)

  • Number of green balls

  • Total number of balls

  • Use real #s, not 70 and 100


Class Exercise (Optional)

  • Using the performance measures on pp. 18-22, decide what types of measures they are (output, outcome, etc.)

  • Improve at least one of the measures, and/or create an outcome measure for the agency.


Table Exercise

  • Decide what types of measures your agency has (output, outcome, etc.)

  • Improve at least one of the measures

  • Create an outcome measure for your agency.


In Summary, Measures Should Be…

  • Understandable

  • Outcome oriented

  • Useful

  • Valid, Verifiable and Accurate

  • Available

  • Comparable/Consistent


Performance Measures: Collect the Data

  • Establish a baseline


Calculate the Measure

  • Are you getting there?

  • Compare to the objective, goal, etc that sparked the measure

  • What are your customers saying?

  • Record your results.


Don’t Forget the Auditors…

Keep a record of:

  • Where you get the data.

    • Be specific: titles of reports, which files, who maintains them.

  • How to calculate the measures.

    • Specific calculation procedures/formulas.


Don’t Forget the Auditors…

  • Have supervisory program & fiscal staff review the calculations.

  • Keep the underlying data for 3 years.

  • Send the values and definitions to Archives.

  • See handout for records retention.


Now that you wrote a plan…

  • Plan how to implement it.

  • Assign a minder.

  • Review: how are we doing?


Back to the Beginning

  • The cycle repeats!

  • Modify strategies if your data shows what you’re doing isn’t working.

  • Make needed changes to programs/processes.


Continuous Process

Strategic Planning

Revise Mgmt Processes & S/P

Develop Measures

Analyze Data

Collect Data

US Dept. of the Treasury, Financial Management Service


Contact Information

  • Maud Naroll, Chief Planner

    Department of Administration

    Research, Planning, Grants

    775-684-0223

    [email protected]


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