performance management – approaches and … · •examples of key activities that a community...

PERFORMANCE MANAGEMENT –APPROACHES AND OBSERVATIONSPresented byMichael Brink, Director

Enterprise Risk SolutionsP [email protected]

• Michael (or Mike), an expert in public sector innovation and public-private partnerships, focuses on operational excellence and data analytics in the public sector. He has 20 years of experience working on public sector issues from positions within government, management consulting and the business process outsourcing industry.

• As an analyst working for the City of Indianapolis, Mike implemented and managed a number of the City’s competitive government initiatives. In addition, he led management reviews of the City’s biggest services contracts, developed performance improvement plans and trained teams to conduct management audits.

• Mike completed Six Sigma black belt training with General Electric and led sourcing business process reengineering and custom software development projects as a component of the company’s Oracle enterprise resources planning (ERP) software implementation initiative.

• As a consultant for the last five years, he has worked with numerous state and local clients, leading projects that have enabled clients to improve service quality while reducing service cost.

• He is a graduate of Truman State University, Kirksville, Missouri, with a bachelor’s degree and a graduate of Indiana University’s School of Public and Environmental Affairs, Bloomington, with an M.P.A. Mike also spent eight years in the US Naval Reserve.

MICHAEL BRINK, BKD DIRECTOR

1. Why?2. What?3. How?4. Examples5. Consideration6. Beyond Performance Measurement

PERFORMANCE MANAGEMENT ADVISORY SERVICES—AGENDA

EVALUATIVE DATA AND METRICS ARE EVERYWHERE!

• The demand for public services substantially exceeds the available resources

• Many governments still face substantial budget challenges

• Retiree commitments, health care costs and unfunded infrastructure demands will keep the financial pressure on governments for many years to come

• Incremental or ad hoc operational changes and improvements are unlikely to adequately address the financial needs

• Residents expect transparency and accountability regarding service cost and quality

CHALLENGES FACING GOVERNMENTS

MAINTAINING QUALITY OF LIFE

MAINTAINING/IMPROVING TRUST IN GOVERNMENT

- From Gallup poll data

1. Why?2. What?3. How?4. Examples5. Considerations6. Beyond Performance Measurement


“Books assisted in the visualizationand quantification of informationand this prompted new ways of thinking about problems. New ways of thinking leading to scientific breakthroughs helped to advance technological innovations.”

- Professor Don HarreldPhD, University of Minnesota

THE POWER OF MEASUREMENT AND VISUALIZATION

• The processes used to measure both the amount and effectiveness of the services performed by an organization

• Two general types of performance measures - workload indicators (how much work was performed/outputs) and performance indicators (how well the work was performed/outcomes)

PERFORMANCE MEASUREMENT DEFINED

• An excuse to “measure everything” without regard to a measurement’s usefulness

• An initiative that can be managed from the top down with no buy in from field staff

• A means to “prove” to residents that they’re actually getting a very good level of service regardless of what they think

• A finance-driven exercise that is divorced from actual discussions of service quality and timeliness

• An excuse to overlook issues and ignore service trade-offs• A reason to point fingers and/or publicly criticize individuals

WHAT PERFORMANCE MANAGEMENT IS NOT

• Performance data should be directly related to an organization’s key activities and be measured against past performance How do we measure whether we’re doing a good job? When compared with the past, how are we doing?

• Where possible, performance data should also be compared with that of similar external organizations All things being equal – are we keeping up with our

competition?• We recommend that this be performed in conjunction

with a data analytics initiative What tools are available to drive deeper into and analysis of our

performance?

ELEMENTS OF SUCCESSFUL PERFORMANCE MANAGEMENT

• Examples of key activities that a community provides may include: Public safety Jobs and economic growth Financial management Government ethics, transparency and responsiveness Neighborhood development

• Performance metrics that convey success about key activities are much more likely to be useful and sustainable – we want to measure things that matter – generally NOT just “inputs”

WHAT SHOULD BE MEASURED?

• Factors to consider when comparing performance against other organizations Availability of data Size of the organization Region Mix of commercial/residential Cultural similarities (such as if it’s a college town) Mix of services offered by your organization

WHAT MAKES FOR A GOOD COMPARISON?

MEASURING THE AMOUNT OF WORK

MEASURING THE RESPONSIVENESS OF THE WORK

MEASURING THE OUTCOMES OF THE WORK

- Publicly posted information from the City of Des Moines, IA

BRINGING IT ALL TOGETHER

1. Defining the key services and activities performed by the organization

2. Determining what data is available to measure workload and performance

3. Identifying the best indicators to measure the amount of work and overall performance associated with each service or activity

4. Determining the measurement calculation

BUILDING A PERFORMANCE MEASUREMENT PROGRAM - I

5. Establishing performance baseline and future goals 6. Development and implementation of processes that ensure timely review

and response 7. Gathering the data associated with each indicator into a dashboard that

allows for reference to multiple, related measures

BUILDING A PERFORMANCE MEASUREMENT PROGRAM - II

COMPELLING DASHBOARDS

Choose Metrics that

MatterKeep it Visual

Make it Interactive Keep it Current

Make it Simple to Access

- From Tableau’s “5 Best Practices for Creating Effective Dashboards”

1. Explain the benefits and get executive stakeholder buy in for the initiative

2. Establish ownership of the effort

3. Identify and engage key stakeholders/SMEs familiar with the activities performed by each division/cost center

4. Validate the metrics with key stakeholders/SMEs – allow for pushback and refinement

CREATING THE ORGANIZATIONAL INFRASTRUCTURE - I

5. Develop the processes for collection of the data necessary to calculate the performance measures

6. Establish the process for periodic reviews of the performance metrics involving senior management

7. Determine management accountability for acting on the periodic reviews

8. Communicate successes/reward progress!

CREATING THE ORGANIZATIONAL INFRASTRUCTURE - II

• To drive regular discussions across the organization:• How are we doing on the most important aspects of our

service?• What can we do to improve?

• To inform budget development sessions:• Where do we need to apply more resources to impact

achievement of desired service levels?• To identify low-impact services

• Are there things we’re doing and measuring that are of extremely little value?

• Can resources be redirected elsewhere?

SO WHAT’S THE USE??? (INTERNALLY)

• With the legislative body:• To provide insight as to operational successes and

challenges• To stimulate debate on appropriate service levels• To support budget deliberations

• With residents and other stakeholder groups:• To inform and engage – “How can you help us improve

our performance?”• To promote transparency and improve the level of

discourse

SO WHAT’S THE USE??? (EXTERNALLY)

CREATING THE ORGANIZATIONAL INFRASTRUCTURE - III

Financial analysis and forecasting

Fraud detection and prevention

Purchasing analysis Citizen assessment of

services Public safety

outcomes Employee overtime

METRIC IDEAS

SAMPLE INDICATORS

OTHER RESOURCES I

• Open Baltimore citistat.baltimorecity.gov

79 datasets categorized by City government, services, crime, cultural & arts, financial, geographic, health, housing & development, neighborhoods, public safety, public works and transportation

OTHER RESOURCES II

• LouieStat louiestat.louisvilleky.gov

195 datasets focused on Community Services, codes/regulations and air pollution

OTHER RESOURCES III

• Data Boston data.cityofboston.gov

148 data sets related to City services, facilities, finance, health, permitting, public safety and transportation

OTHER RESOURCES IV

• KCStat kcstat.kcmo.org

21 key performance metrics/5,152 datasets with over 50 categories

EXAMPLES OF SUCCESS – PERFORMANCE MANAGEMENT

• City of Boston – Experienced a reduction of 66% in calls regarding problem properties1

• City of Denver - Average wait time in the Excise and Licenses Department drops from 3 hours to 15 minutes2

• City of Louisville – Reduced unscheduled overtime and workers’ compensation expenditures by more than $2 million3

• City of Baltimore – Achieved a level of 97% for filling of potholes within 48 hours of complaint4

1 - http://go.sap.com/about/customer-testimonials/public-sector/city-boston.html2 – “Peak Performance” by Brian Elms3 – http://beyondtransparency.org/chapters/part-4/beyond-transparency-louisvilles-strategic-use-of-data-to-drive-continuous-improvement/4 - https://cdn.americanprogress.org/wp-content/uploads/issues/2007/04/pdf/citistat_report.pdf

HELPFUL REFERENCES• Bloomberg Philanthropies “What Works

Cities” http://whatworkscities.bloomberg.org/

• ICMA Center for Performance Analytics http://icma.org/en/results/center_for_performance_measurement/home

• Robert D. Behn – “What All Mayors…” http://web.pdx.edu/~stipakb/download/PerfMeasures/CitiStatPerformanceStrategy.pdf

LESSONS LEARNED: USING PERFORMANCE MANAGEMENT DATA

1. Specificity in service-delivery targets2. Leadership and attention3. Starting small4. Commitment, on a routine basis5. Persistence, year over year6. A source of data (such as 311 & work order

management system)7. An audit process8. Openness to change

- Taken from “What All Mayors Would Like to Know About Baltimore’s Citistat Performance Strategy” – Robert D. Behn

• Depends on several factors The size and complexity of the services performed by the

organization Whether the organization’s key services and activities have ever

been defined The data and tools available to track workload and performance The political process required to establish both performance

goals and the process for reviewing/responding to indicators that aren’t performing as expected

A commitment by the governing body and executive management to use workload and performance indicators to improve service delivery and quality

HOW LONG DOES THE PROCESS TAKE AND WHAT RESOURCES ARE NEEDED?

• You don’t have to spend a ton of money to develop an effective program! Individual(s) with an understanding of how

government works Individual(s) with an intermediate level of

statistical knowledge Individual(s) with passion and tenacity You can accomplish a lot with Excel Appropriate guidance and lessons learned

GEARING UP – REMEMBER!

• Examples: USVA falsification of patient-appointment wait

times Test score falsification in Atlanta (and Baltimore,

Cincinnati, Detroit, Houston, etc.)• Response: Measure the right things Remember that reputations are hard to rehab Trust, but verify

WHEN PERFORMANCE MEASUREMENT GOES WRONG IN GOVERNMENT*

*Professor Philip Joyce: http://www.governing.com/columns/smart-mgmt/col-performance-measurement-scandals-lessons.html

KEEPING IT IN PERSPECTIVE

Not everything that can be counted counts, and not everything that counts can be counted.

- Albert Einstein, (attributed)

A BALANCED APPROACH TO MANAGEMENT

QUESTIONS TO ASK

Do you know whether your programs or policies are ultimately effective in achieving their goals?

Do you fully understand what variables are making your services more or less effective?

Do you have an understanding of trends and outliers in your service provision?

Do you seek to make better decisions about the allocation of resources across programs and services?

Do you have large data sets related to the programs and services that you deliver?

PROJECT IDEAS

Determine opportunities for additional sales tax revenues

Identify opportunities to improve overall court process timeliness by reducing outliers and improving average timeliness

Determine which individuals would be best suited for a particular program based on demographic data and historic program outcomes

Identify the types of training that employees have that correlate with the best service outcomes

DEPLOYING DATA ANALYTICS

• Digital systems replacing paper based ones

• Breakthroughs in data analyticsallow the examination of data in disparate systems and unstructured text

• Handheld devices allow field workers to solve problems and exercise discretion and be held accountable

• Social networking allows citizens to participate in solving problems in new and dramatic ways

CASE STUDY: JAIL OPTIMIZATION

• Approach used: Data Analytics within a city government• Analyze the opportunity to reduce pre-trial detention by

reviewing datasets for those taken into custody• Looked at risk of failure to appear for trial as well as risk of

committing additional violations while out on bail• Statistically validated that a tool could be developed to

accurately identify those with a low risk of failure to appear/committing additional crimes

• Implementing such a tool can reduce jail population by about 8%, which translates into approximately 100 fewer occupied beds and $1.4M - $2.8M in annual savings

WHY BKD?

Our experience has taught us that there is no “ready-made” checklist for determining how governments should assess opportunities, as project identification requires consideration of cultures, strategies and goals

BKD can provide clients with• Focus, commitment and experience in state and local government• Operational excellence and data analytics skills necessary to assist in your

launching of a performance management program• A results-focused approach

CONTINUING PROFESSIONAL EDUCATION (CPE) CREDITS

BKD, LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.

The information in BKD seminars is presented by BKD professionals for informational purposes only. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor before acting on any matters covered herein or in these seminars.

QUESTIONS?

FOR MORE INFORMATION

THANK YOU!Mike Brink // [email protected] // 816.221.6300

performance management – approaches and … · •examples of key activities that a community...

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