The Fundamental Question!

1. The Fundamental Question! “If we weren’t already doing this today, would we start doing this tomorrow?” --Peter Drucker A question successful businesses ask on a daily basis! A question rarely asked, and almost never answered in government.

2. Implementing the Government Performance Logic Model™ Achieving Performance Management in Government Agencies Patti Powers The Performance Institute

3. The Challenge of Performance Management in Government Or..why is it so hard to manage change in government agencies?

4. Government is Different • No Existing “P&L System” for Government • No Darwinian Environments in Government • Without a bottom-line and without competitive forces…program structures and approaches stagnate…and problems grow. • Poor performers get rewarded. Before fundamental change can occur in government, we have to have get a bottom-line and a competitive system.

5. The Bureaucratic Mindset “Who worries about results? Nobody seems to care as long as we spend the money.” --A Federal Manager June 1997 meeting on Results Act

6. The Performance Mindset“Managing for Results” “What gets measured, gets done.” --Peter Drucker

7. Lessons Learned: Pitfalls • Too Many Measures • Wrong Kinds of Measures • Too process and activity oriented • No clearly defined “Logic Model” • No measures of strategy • Few measures of end outcome • Dumbing-down of Measures • Measuring only the things you can count rather than things that are strategically important • Cultural Resistance to Outcome-Focus • We are accountable for delivering our outputs and justifying our strategies/intermediate outcomes. • We are responsible for our end outcomes. • INEVITABLY…some may resist even assuming some responsibility for outcomes. If not us, then whom?

8. Performance It’s NOT just about MEASURES!

9. Performance STRATEGIZE COMMUNICATE MOTIVATE MANAGE

10. LEARNING POINT If you want true change to succeed in government, you have to measure it! BUT, HOW DO YOU KNOW YOU HAVE THE RIGHT MEASURES?

11. The Logic Model Approach An Integrated System for Strategic Management and Performance Measurement in Government

12. What is a Logic Model? A Logical Chain that Links Events and Provides a Blueprint for Mission Achievement • A graphic representation that illustrates the rationale behind a program • Depicts causal relationships among activities, strategies, and end results • Contains goals and performance measures for each phase of a program’s life cycle • Integrates various program activities into a cohesive whole • Is a vehicle for dialogue, planning, program management and evaluation

13. Government Performance Logic Model™ Input Activities and Outputs Intermediate Outcomes End Outcomes $ FTE $ FTE $ FTE Input Activities and Outputs Intermediate Outcomes End Outcomes Strategic Plan Annual Performance Plan Human Capital Plan Competitive Sourcing/Contracting Clinger-Cohen/E-government plan Activity-based Costing/Performance Budgeting Improved Financial Management SES/Line Manager Performance Plans Accountability and Performance Report

14. Government Performance Logic Model™ Input Activities and Outputs Intermediate Outcomes End Outcomes -# of fire management plans completed -# of fire management tools delivered to the field level -% of community firefighters trained to appropriate skill level -# of “Firewise” Workshops conducted -Etc. Strategy One: Improve Preparedness and Suppression of Fires -Improve to X% the number of unplanned and unwanted wildland fires controlled during initial attack. -Reduce to X or less the number of acres burned by unplanned and unwanted wildland fire -Etc. $ FTE $ FTE $ FTE Goal: Protect Lives and Property Indicator: Reduce the # of structures lost as a result of wildland fire Input Activities and Outputs Intermediate Outcomes End Outcomes Illustration Using Goals, Measures and Strategies from Wildland Fire Management Program

15. Origins of the Logic Model Early Adopters • Behavioral Psychology • Private Sector Advertising Executives • Evaluation Community Current Adopters • Non-Profit Community • Public Sector Agencies

16. Why the Logic Model Approach Works It’s Designed By Government Managers for Government Managers

17. Benefits of the Logic Model Approach • Outcome-oriented: Establishes responsibility for end-outcomes that we influence • Policy-relevant: Uses intermediate outcomes to identify steps…and measure progress…towards achieving end outcomes • Strategic Management: Communicating priorities and strategies to achieve priority outcomes • Strategic Measurement: Measuring what is strategically important, rather than what is easily measured

18. Benefits of the Logic Model Approach (Continued) • Program Integration: Tracks and coordinates the contributions of multiple programs, bureaus, agencies, levels of government, and sectors of society (non-profits, for-profits, etc.) • Systems Integration: Allows for the comprehensive integration of different elements of the management agenda, such as IT, acquisition, human resources, etc. • Accountability: Links program goals to individual achievement and vendor/contractor performance

19. Definitions of Key Terms, with example measures for a job training program INPUT OUTPUT OUTCOME “Amount of resources devoted to a program activity,” “Tabulation, calculation, or recording of activity or effort, expressed in a quantitative or qualitative manner.” “Assessment of the results of a program activity compared to its intended purpose.” Examples: 8000 people--trained by program--will land and keep their jobs more than 6 months 90% of those who land jobs will earn the same or more in their new job as in their old one 75% of those with jobs will report via survey that the skills they learned were important factors in getting the job Examples: 50 courses will be offered 10,000 people will complete the courses Exit tests of participants will demonstrate 85% are now competent in the skills taught in the training courses Examples: $1,000,000 broken down by object class 50 FTE, broken down by position grades Areas where agencies are comfortable Real Results

20. Government Performance Logic Model™ Input Activities and Outputs Intermediate Outcomes End Outcomes $ FTE $ FTE $ FTE END OUTCOMES Tangible Results for the American People Ultimate Ways to Define and Track “Success” of the Program

21. End Outcomes • What is the “bottomline” of your program? • How will you know you have been so successful that you can shut your program down? • If you had to defend your program’s value/benefit before a grand jury, what 2-3 pieces of evidence would prove you were a success rather than a failure? • What is the end benefit to the taxpayer or society from your program?

22. Government Performance Logic Model™ Input Activities and Outputs Intermediate Outcomes End Outcomes $ FTE $ FTE $ FTE INTERMEDIATE OUTCOMES Defines and Tracks Strategies Identifies Changes to Achieve End Outcomes

23. Intermediate Outcomes Given the end outcomes you seek… • What must change in the status quo to create the conditions necessary for goal attainment? Who are the targets of change and what must they do? • What causes the outcomes NOT to be achieved? • What are your strategies? • What must you influence? • Magic Wand: What are your wishes?

24. Understanding Strategy • Grounded in Today’s Reality (SWOT Analysis) • Reaching Towards Tomorrow’s Result (Outcome-Based) • States what CHANGE must Occur for Results to be Achieved (Targeting the Center of Gravity) If you can DO it, it is NOT a strategy, it is an output in search of a strategy!

25. Government Performance Logic Model™ Input Activities and Outputs Intermediate Outcomes End Outcomes $ FTE $ FTE $ FTE ACTIVITIES/OUTPUTS Specific Actions Taken and Services/Products Offered by our Programs to Implement Strategies Tracks our Workload and What we DO!

26. Program Outputs For each intermediate outcome… • What specific things can this agency do to cause that change to happen? …to influence that target to change? • What products could you produce? • What services could you provide? • What is the actual workload that is to be handled? (Note: Don’t include administrative items inside your program. Think of what things actually leave the four walls of your program.)

27. Government Performance Logic Model™ Input Activities and Outputs Intermediate Outcomes End Outcomes $ FTE $ FTE $ FTE INPUTS Financial Resources and Workforce Skills/Staff needed to Carryout Programs Tracks Budget Request and Recruitment

28. Welfare to Work Performance Logic Model Inputs Outputs Intermediate End Outcomes Outcomes $$/FTE # of training courses # of people training # of SA interventions # of day care providers in system # of group ride programs Etc. Etc. Etc. Etc. Reduction in Total Welfare Benefits Paid Decrease in Unemployment Increase in % of Individuals who achieve self-sufficiency • Attitudes • -Increase # of clients with adequate hard skills • -Increase # of clients with appropriate soft skills • 2) Behaviors • -Decrease # of clients with substance abuse problems • 3) Conditions • -Increase % of employers offering “integrative” workplace for people with disabilities • -Decrease # of clients with abusive spouse • -Decrease # of clients with physical disability preventing employment • -Decrease # of clients without access to day care • -Decrease # of clients without access to transportation

29. Constructing a Logic Model A Step-by-Step Process with Key Questions for Consideration

30. InputsOutputs Intermediate Outcomes End Outcomes PROGRAM TEMPLATE $ FTE $ FTE $ FTE $ FTE $ FTE $ FTE $ FTE Strategy 1: Strategy 2: Etc. Outputs for Strategy 1: - - Outputs for Strategy 2: - - Etc. Goal: - Measures: -

31. Ground Rules • Go beyond that which you “control” • Focus on what you can “influence” • Measure the real picture, no matter how politically sensitive that may be • Don’t think about budget…that comes later • Don’t start with activities or outputs; start with outcomes.

32. Clarifying the Logic of the Program Logic Model Template The mission of the (Program) Is to produce/provide (Products or Services) To (Target of Change) So that they can (Intermediate Outcome Change) Resulting ultimately in… (End Outcome Goal)

33. Separating Activities from Outputs Activity Definition Template The purpose of (Specific Program Work Activity) Is to produce/provide (Output) To (Target of Change) So that they can (Intermediate Outcome Change)

34. Selecting Performance Measures There are few perfect measures! Emphasize a few key strategic “indicators” of success!

35. Benchmarks and Comparisons • Baselines • Trend Analysis • Types of Measures: • Leading • Lagging • Current • Benchmarking your performance

36. Performance Measure Criteria“Think SMART” • SPECIFIC • MEASUREABLE • ACCOUNTABLE • RESULTS-ORIENTED (#1) • TIME-BOUND

37. Applying SMART End-Outcome: Happy Marriage, No Divorce Intermediate Outcome: “Give me two hours of quality time without the kids per week” • Results-oriented: Defined by one “stakeholder” as a result; experts verify that togetherness is important for the health/quality of the marriage • Specific: “quality time without the kids” • Accountable: you have the ability to make it happen • Measurable: “two hours” • Time-Bound: “per week”

38. Applying SMART End-Outcome: Reduce Smoking-related deaths, illness and costs Intermediate Outcome: “Reduce the number of new youth smokers (10-18) by 2% each year” • Results-oriented: Youth smoking is where you can stop the habit before it takes hold and has a lasting health impact • Specific: “number of new youth smokers (10-18)” • Accountable: You have the ability to make it happen • Measurable: “reduce by 2%” • Time-Bound: “per year”