case study austin, texas - john glenn college of public...
TRANSCRIPT
Case Study
Austin, Texas
2004 Budget: 1.9 billion
Employees: 10,944
Population: 678,000
PUBAFRS 7554
Managing for Results
Started a “Managing for Results” initiative in 1999
MFR Goal “Have effective Management system that is
accountable to citizens for achieving results.”
MFR – System integrates strategic planning, budgeting,
performance measurement and decision making.
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Managing for Results
• City departments assess the past, present and
future for the upcoming fiscal year.
• Performance based budgets are based on goals
and results they expect to achieve in upcoming
year.
• Aligned department by their services, activities
and programs in business planning and
budgeting.
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Austin’s Vision
“To make Austin the most livable community in the country.”
Department Vision
Service
Service
Department Goal Department Goal Department Goal
Program Program
Activity ActivityActivity Activity
Service
ServiceServiceService
ServiceService
SSPRsSSPRs SSPRs SSPRs
Each service within the department aligns to the city vision.4
Challenge 2003-2004
1. Give departments a sense of ownership to the process.
2. Focus on what the customer receives instead of what the provider
does.
How does the city of Austin make the MFR system work
better for the Departmental and citizen users?
MFR – Originally Performance Measures were given to the
department by City Budget office, causing lack of buy-in by
departments.
Problem - Too many measures and lack of ownership.
The second problem was an inward focus on “what do we do” vs.
outward focus on “what does the customer receive”.5
2003 - Departments decide performance measures.
MORE OWNERSHIP, LESS MEASURES
• Determine what was important to measure and what was not.
• One year process.
• Originally listed every activity and measured it. Changed the
process to measure what is important.
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Steps taken to implement change in the MFR process:
Review Current Goals:
1. Compare current goals to identified internal and external
factors affecting performance.
2. Confirm that the goals reflect where the department wants to
be in 2 – 5 years. Do these goals adequately position the
department for the future?
3. Confirm that the issues addressed by the goals are still
relevant and still a priority.
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Reviewing Current Goals:
4. Check each goal for time frames and targets - or performance
measures that can measure progress toward the goal.
5. Review the key indicators to confirm that the key indicators
effectively measure the department’s business.
6. Develop new goals as necessary.
7. Include in the business plan a brief statement of why and how
the goals will lead to the fulfillment of the department’s mission.
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Does the goal reflect the department’s priorities and direction?
Will the achievement of the goal help the department respond to the
change?
Is the goal focused on the future (2-5 years)?
Is the goal results-oriented?
Is the goal measurable, either directly or through programs or activities?
Is it reasonably achievable?
Suggested questions to ask when reviewing current goals
or developing new goals:
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Is the goal easy to understand and articulate?
Is the goal internally or externally focused?
Does the department have a balance of both?
Will the goal provide the opportunity for the department to
demonstrate accountability for results and help decision-makers
evaluate the performance of the department as a whole?
Can at least one goal be measured nationally with peer cities?
Suggested questions to ask when reviewing
current goals or developing new goals:
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Example of a Non-Measurable Goal
from the FY 2001 Budget
Prevention Animal Services/No Kill
Millennium – Promoting responsible pet
ownership and minimizing the
euthanasia of adoptable animals.
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Example of a Measurable Goal from
the FY 2004 Budget
Prevention/Provision/Protection Animal
Services/No Kill Millennium – Promote
responsible pet ownership and minimize the
euthanasia of adoptable animals.
Increase the percentage of sheltered adoptable
animals rescued, adopted or returned-to-owner
per year at the Town Lake Animal Center from
66% to 100% by year 2007
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Example of Non-Measurable Goal from the
FY 2001 Library Budget:
Increase the percentage of customers who find the materials they need.
Increase the percentage of customers who find the reference information
they need.
Increase the use of the library by Austin’s youth as measured by program
attendance, number of youth library cards and circulation of youth
materials.
Improve overall favorable rating of library services.
Increase the percentage of customers that have used the Library in the
last year.
Improve the quality, delivery and awareness of library services to better
meet customer need:
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Example of Measurable Goal from the FY
2004 Library Budget:
Deliver quality library services to meet customer needs.
78% of customers will find the materials they need through 2004.
85% of customers will find the reference information they need through 2004.
Austin’s youth will use the library as measured by program attendance of 95,625, issuance of 8,000 new youth library cards, and circulation of 1,152,000 youth materials through 2004.
78% of citizens will give the library an overall favorable rating of library services through 2004.
2,729,135 customers will use the Library through 2004.
821,000 Internet uses will access Library resources electronically and the number of web hits will reach 11,150,000 through 2004.
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Reporting the Information: Improved Reporting Processes
• The following charts outlines how performance
information is now collected, stored and used for
performance reporting.
Step 2
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City departments collect
performance and
operation information
Department sends Excel
spreadsheet to the
Budget Office to upload
into its citywide database
Department enters
performance information
into its citywide database
through a ColdFusion
intranet application.
OR
CARMA
(an Oracle database)
houses all of the city
departments’ performance
data
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CARMA
(an Oracle database)
houses all of the city
departments’ performance
data
Budget
Document
CARMA
generates some
reports that are
part of the
published
Budget
Document
INTRANET
Performance
measures data
are extracted and
accessible to all
city employees
through another
ColdFusion
intranet
application called
ePerf.
INTERNET
The same data
available on
ePerf is copied
to a web server
where the
public can
access through
the Internet.
Performance
E Reports
Performance
data from
CARMA is
compiled into
quarterly
performance
reports
through a
manual
process.
Community
Scorecard
Data from
CARMA is also
used to prepare
the Community
Scorecard,
which provides
information o
how the city
delivers
services in
major areas.
http://www.ci.austin.tx.us/budget/default.htm , http://www.ci.austin.tx.us/budget/eperf/index.cfm, http://www.ci.austin.tx.us/budget/02-03/downloads/scorecard_2002.pdf
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Step 3
Classifying the Services: The Core Services Initiative
• The core services initiative is intended to provide management with a
way to classify the services the city provides into three categories.
• Core services are primarily services that are fundamental to carrying out
the responsibilities delegated to local governments from the State or the
Federal government. These include, for example, public safety and public
health.
• Semi-core services are primarily services that local governments may
provide to augment the level of services provided by other entities for
whom these services are cores services. For example, a local
government may provide education services or workforce development
services, although these are the core services of the school district and
the Texas Workforce Commission, respectively. 18
• Non-core services and service enhancements are services that
are considered neither core nor semi-core. In developing the core
services criteria staff understood and expected that there would be
disagreement about the criteria and ultimately about the
classification of city services.
Step 3: Classifying the Services: The Core Services Initiative
The core services initiative is intended to be an
administrative tool that management can use to provide
policy recommendations to council on how to allocate
scarce resources.
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Step 4
Planning for the Future
• Information Technology Needs
• Develop Business Process Improvements
• Develop Action Plans to Achieve Goals
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RESULTS
The core services initiative allow city management to educate and inform
elected officials that 98% of the dollars went to core and semi-core activities.
The defining of activities and services as non-core allowed city management to make
budget reduction decisions.
Prioritizing activities allowed the city to review administrative costs and make cuts in
the HR and IT areas = $10.9 million.
Business Process Improvements – The Employee Innovation initiative
created 2,975 new ideas.
- 286 innovations approved citywide.
- $8.8 million cost savings.
- $1.6 million revenue gains
Closed budget gap of $31 million FY 2003 and $38 million in FY 2004.
Managed through fiscal duress.
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Results
Better informed - Management Teams- City Council- Citizens
Focused on measuring what is important.- 4,400 measures – 2001- 2,500 measures – 2004
Examples:
Library 110 measures to 75Solid Waste Services 187 measures to 108.Police 182 measure to 132.
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Must have the support of the highest level executive
Limit the number of measures to the most important measures
relevant to the particular audience (e.g., citizens, city council, city
manager, department directors, division directors, work teams)
Change the corporate culture to get the departments’ acceptance
and ownership of measures
Provide good instructions through the process, instructions,
templates and examples
LESSONS LEARNED
Guidelines for the Performance Measure Process
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Keep a basic framework with the ability to make Improvements each year
Have a process to verify the data
Report successes
Get employees to accept responsibility even though they do not have
complete control of the outcome
Make sure that the goals are measurable. Have a timeframe and intended
result for each goal.
LESSONS LEARNED:
Guidelines for the Performance Measure Process
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