Commonwealth of Virginia Executive Branch Strategic Planning, Service Area Planning, and Performance-Based Budgeting

1. Commonwealth of Virginia Executive Branch Strategic Planning, Service Area Planning, and Performance-Based Budgeting Agency Strategic & Service Area Measures: Continuous Improvement Workshop for Cabinet Secretaries & Staff September 3, 2009 Office of the Secretary of Finance Department of Planning and Budget

2. Facilitators John Wheatley & Jacqueline Anderson • International Consulting Services, LLC (ICS) • Workshop Objective • Focus on tools and ideas for improvement of agency measures • Critically evaluate the way agency measures are formatted and written. Training Workbook Page 1

3. Agenda • Planning/Budgeting Changes for 2010-2012; Planning Calendar • Roles • Overview of Strategic Measures • Evolution of Measures • Administrative, Key, and Productivity Measures • Measures as Management Tools • Changing Measures • Measure Components Refresher • Improving Agency Measures • APA Audit Results • Examples and Exercises • Workshop Recap Training Workbook Page 1

4. Planning & Budgeting Changes for 2010-2012 Biennium • Plan submission instructions • Timeframe guidelines – executive progress report, HR, products/services sections • HR summary instructions • IT summary section and appendix • New instructions for setting targets • New measure class and preferred trend fields • Commonwealth preparedness goal • Agency administration objective changes • Updated planning calendar Training Workbook Page 2

5. Planning Calendar for 2010-2012 Biennium Training Workbook Page 2

6. Roles • Governor’s Office • Approve changes to key measures and productivity measures. • Ensure alignment with funding priorities. • Cabinet • Conduct overall review of key plan components for appropriateness and alignment. • Approve changes to measures. • Ensure use of plans and measures. • DPB Analysts • Identify changes. • Offer suggestions on how to improve quality of plans. • Review plans for technical correctness. Training Workbook Page 3

7. The Evolution of Agency Measures Variation in approaches to measurement Management Scorecard Standard approach for strategic plan measures Governor’s key measures Productivity measures Administrative measures (replacing the old Management Scorecard) Integration of measures into a new agency management scorecard Training Workbook Page 4

8. New Administrative Measures • Publish results annually after end of fiscal year. • Review results in January; publish updates if desired. • Refer to data source document in VA Performs for help. • Explain red and yellow results. Training Workbook Page 5

9. New Administrative Measures – Data Entry Training Workbook Page 6

10. New Administrative Measures – Reporting Training Workbook Page 6

11. Changes in the 2010-2012 Planning & Budgeting Process Agency Administration Objective What stayed the same? Wording of the objective To ensure that resources are used efficiently and programs are managed effectively, and in a manner consistent with applicable state and federal requirements. Measure type - Outcome Measure class – Agency Other Target – To be developed by each agency Strategy – To be developed by each agency Training Workbook Page 7

12. Changes for the 2010-2012 Planning & Budgeting Process Agency Administration Objective • Changes • Measure • Old: Percent of scorecard categories marked as “meets expectations” for the agency • New: Percent of administrative measures marked as “meets expectations” (green indicator) for the agency • Measure Frequency • Old: Quarterly • New: Annually with a review in January • Baseline • Old: FY 2007 agency results • New: FY 2009 agency results • Data source and calculation Training Workbook Page 7

13. Refresher: Key Objectives and Key Measures • Keyobjectives- desired outcomes for an agency’s major programs or activities, that reflect the agency’s primary mission – “We will….” • Keymeasures- indicators of how well an agency program is performing with respect to the key objectives – Report as a key measure summary. Measure  - Completion time for investigation of complaints Measure Target - Value 2 months; Date 6/30/2010 Key Measure Summary We will reduce completion time for investigation of complaints to two (2) months by 6/30/2010. Training Workbook Page 8

14. Refresher: Productivity Measures Measures efficiency and effectiveness. Ratio of a volume of output to a volume of input. Should be tied to a key process, key objective, or key measure. Should not be for internal agency processes. Should be cost-related; can be based on something other than cost. Should be reported quarterly, if possible. Training Workbook Page 9

15. Measures as Management Tools Indicators that an agency is using the measures Indicators that an agency is focused on compliance; is not using the measures Training Workbook Page 10

16. Measure Components Refresher Measure Class Type Frequency Data Source & Calculation (Methodology) Baseline Target Preferred Trend Training Workbook Page 13

17. Summary of APA Audit Findings • Data were generally accurate and reliable.      • “…Virginia Performs has undergone significant improvement in the overall completeness and accuracy of reported information since our first review.” • Measures were not as descriptive or clear as they should have been. • Targets were not specific enough, not within the biennium covered by the plan, or not revised. • Baselines were not specific enough. • Calculation methods were not clear or did not align to the measure. • Data sources were not clear. • Measure types were incorrect. Training Workbook Page 14

18. Measure – Format Does not start with a verb. Does not include a target. Typical Format Data form – Object – Modifier Percentage of two-year-olds in FAMIS who are fully immunized Training Workbook Page 14

19. Measure – Content / How It Is Written Effective, High-Value Measure Clear alignment to the objective, goal, mission, vision Focuses on something important Addresses outcomes Relates to something you control Understandable Provides useful input for decisions Training Workbook Page 15

20. Measure Types – Input, Output, and Outcome • Input Measure Definition: Workload Measure • Resources used • Volume of incoming work • Usually a single numeric value (e.g., $2,000 spent on conference fees) Examples: • Number of license applications received • Number of incoming phone calls to the customer service department • Number of job applications received for open position • Output Measure Definition: Workload Measure • Amount of work completed or output produced • Usually a single numeric value (e.g., 47 people trained) Examples: • Number of licenses issued • Number of customer calls completed • Number of interviews conducted for open position • Outcome Measure Definition: • Results achieved by an activity compared to the activity’s intended purpose • Extent to which a service or activity has impacted its intended audience Examples: • % of hairdressers with valid licenses • Customer satisfaction rate • % of open positions filled with internal job candidates Process Outcomes Outputs Inputs Customer Training Workbook Page 18

21. Targets – Annual, Biennial and Long-range Training Workbook Page 19

22. Thank You Let’s Adjourn!