performance management overview mike salisbury bpra product manager sungard higher education...
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Performance Management Overview
Mike SalisburyBPRA Product ManagerSunGard Higher [email protected]
Pennsylvania Banner Users Group 2008 Fall Conference
Topics
Why Performance Management? What is Performance Management? What is a Key Performance Indicator (KPI)? What is a Scorecard? What is a Dashboard?
External Pressure to Perform
AFFORDABILITY Keep college affordable for all qualified students; optimize financial aid and pricing strategies
CONVENIENCE Offer more flexible options to access education, complete degrees, and engage learners
CAPACITYManage enrollment, diversity, and demand; reach more people, more effectively
Policymakers highlight six key performance challenges for higher education today:A
CC
OU
NT
AB
ILIT
YA
CC
ES
S
LEARNING OUTCOMES
Measure and report student progress and learning outcomes; perform research that benefits society
PROGRAM EFFECTIVENESS
Respond to learner, market and workforce needs with appropriate programs and services
COST MANAGEMENT
Stabilize operating costs; increase productivity; grow income or revenue
4
Information Needs are Crucial and Pervasive• Information and business intelligence required to
address key performance challenges:• Executives: monitor progress towards strategic plan and
institutional goals• Administrators: increase departmental effectiveness,
manage costs and monitor day-to-day operations • EM/Admissions Officers: improve yield and monitor
progress towards recruitment goals and objectives• Registrars/EM/Student Services Officers: improve
student engagement, retention and persistence• Advancement officers: measure the progress and
effectiveness of their fundraising programs• Institutional Research: guide institutional planning and to
support reporting and compliance• IT: meet stakeholder needs for enterprise intelligence and
reporting
Improving Performance Requires Organizational Alignment
Align the organization to strategic goals
Link managerial action to accomplish those goals
Align budget requests and funding to the desired outcomes
What is Performance Management?
A disciplined approach to understanding, monitoring and managing drivers of performance of organizations.
It leverages performance management methodologies and business intelligence capabilities.
“Performance Management is a focused and specific type of BI initiative when it integrates performance management users, processes and metrics with analytic applications and the underlying BI platform and infrastructure.” – Gartner Group
So what does this mean to a institution?
What is Performance Management?
Clarification of vision and strategy across silos Translation of strategy into operational terms using
scorecards
Comprehension and alignment of multiple perspectives, all of which are vital to the institution
Alignment of internal activities with the strategic plan Fostering employee abilities and commitment to objectives Defined measures of performance and target called key
performance indicators Driving Decisions Based on Data
Easy accessibility to “single version of truth” by all information consumers using BI technologies such as dashboards
Line-of-sight across business processes to the status and trends key performance indicators
Culture of using information in the planning and decision-making process
Business Intelligence Needs for Performance Management
EXECUTIVES:Need visibility into progress towards our goals, objectives“Am I achieving my goals?”
MANAGEMENT:Need timely trends, summaries, analytics of our operations “How am I doing?”“What should we be doing?”
KNOWLEDGE WORKERS:Need to analyze trends and root causes
“Why is this happening?”
STAFF:Need detailed reports in many formats and ad-hoc access“What is going on?”“What do I need to do?”
Admissions HRIT
IR
Bursar
Registrar
DirectorsAdministration
Exec Boards
President/Chancellor
VPs
Detailed data
Trend, summary data
Performance dataScorecards,Executive Dashboards
Operations DashboardsAnalysis Tools
Detail ReportsBasic Report Tools
Performance Management Process
Report and Analyze
Review and Plan
Monitor and Measure
PerformanceInformation
PM Process Example: Recruiting and Admissions
Report and Analyze
Review and Plan
Monitor and Measure
•Enrollment Levels•Campaigns•Financial Aid Levels
•Track Enrollment Funnel•Recruiting programs•Budget Execution
•Yield rates, Trends and Causes•Campaign Effectiveness•KPIs vs. External Benchmarks
PerformanceInformation
PM Process Example: Advancement Campaign Management
Report and Analyze
Review and Plan
Monitor and Measure
•Budget Expectations•Fund-Raising Campaigns•Capital Campaign Targets
•Spending Patterns•Campaign Effectiveness•Budget Execution
• Accounts to Donors • Financial Statements• Variances and Trends
PerformanceInformation
PM Process Example: Grant Management
Report and Analyze
Review and Plan
Monitor and Measure
•Grant Budget Expectations•Indirect Cost Recovery Rates•Grant Expense Timing
•Proposal pipeline•Grant Spending•Indirect Cost Recovery
•Effectiveness/Burn rate• KPIs, Trends and Variance•Granting Agency reports
PerformanceInformation
Performance Management ExampleProfile Land grant institution Carnegie
Doctoral/Research-Extensive
4 affiliated community colleges
Headcount 26,000 FTE 16,500 Banner UDC client Banner Data Warehouse
(ODS, EDW) client
Performance Management Challenges
Strategic plan lacked benchmarked performance metrics and link to budget allocation process
Instruction and General budget process driven by state appropriation incentives received
Multiple years of flat enrollment Absence of budget reallocation
mechanism
Performance Management Example
Strategic Budgeting Develop base budget at a percentage
of actual revenue produced Reserve unallocated revenue for
strategic growth investments Increase unrestricted revenue
independent of operating costs
Instructional Planning Link college budgets to instructional
credit revenue Examine faculty workload and use of
adjunct faculty Align quantity of faculty positions to
departmental workload Focus budget allocation on
enrollment growth and management goals
Compensation Budgeting Benchmark compensation to peers Evaluate financial impact of union
proposals Examine and forecast benefit costs Benchmark budgets to peers Examine faculty and staff
compensation for equity
Research Strategy Review research revenue,
subsidies and the support it provides for administration and growth of institution
Examine cost share, cost recovery, research workload and student support provided
Metrics
OK – I know I want performance management, but what should I measure?
What is a “KPI”?
“What gets measured, gets done.”
10 Characteristics of Effective KPIs
1. Aligned Always aligned with your institution’s strategy and objectives
2. Owned Someone must be accountable
3. Predictive “Leading” indicators of desired performance
4. Actionable Timely data, providing owners and managers with
opportunities to intervene and impact
5. Easy to understand Definition, trends and status should be obvious to user
Source: Performance Dashboards, Eckerson
10 Characteristics of Effective KPIs
1. Few in number! Too many = loss of focus As few as reasonably possible
6. Balanced and linked KPIs should balance and reinforce each other Don’t create KPIs that undermine others
7. Trigger changes Measuring should enable insight leading to positive changes
9. Standardized Calculations, numbers, assumptions should be the same
across the institution so that metrics can be compared
10. Context driven KPIs tailored to user roles and their processes Provide targets and trends to see where you are and in what
direction you’re headed Source: Performance Dashboards, Eckerson
Pitfalls of KPIs
Less is more Too many metrics will cause metric overload and nobody will
use them
Have one version of “the truth” Indicators need to be looked at as a group
Cannot focus on one area at expense of others People start making decisions that undermine other KPIs
Performance indicators don’t tell the whole story Show trends but not why trend is occurring
Be wary of simplistic comparisons Explore the drivers of performance for comparative insight Longitudinal analysis more robust than lateral comparisons
KPI Example
Scorecards and Dashboards
OK – I know my KPIs, but how do I monitor our status and progress on achieving our goals and targets….
Scorecards vs. Dashboards
Scorecard Monitor the execution of strategic
objectives and initiatives Network of metrics, planning
targets, thresholds, history, and accountabilities that connect strategy to individuals
Often deployed using a formal methodology such as the Balanced Scorecard
Emphasize collaboration
Dashboard Compound view of
performance information made up of scorecards, graphs, and summary views
Monitor overall performance daily at a glance
Provide data visualizations of performance status and trends
Personalized for user
Both provide data navigation and analysis capabilities so that users can quickly analyze root causes and effects as
well as identify the impact of performance problems
Scorecard Example
Begins with institutional plansPerformance measures identified to monitor progress
Scorecard View
Goals
Objectives
Assessment of progress towards goals and objectives
Goals, objectives, performance targets configured into Scorecard Assessment of progress provides visibility into performance Executives <click> on a goal or objective to learn more about related performance outcomes and key initiatives
Scorecard Example
Objectives enable executives to monitor progress towards related Key Performance Indicators (KPIs) and initiatives
Scorecard Example
KPIs have targets, actuals, assessments, management comments Actual values loaded from data warehouse foundation Drill-down to reports and analytics
Scorecard Example Initiatives and Milestones Are Also Monitored
Dashboards
Different dashboards for different purposes and user types Strategic
Executives, managers Tactical
Managers, analysts Operational
Supervisors, specialists
What Makes a Good Dashboard?
Fits Role of Target User What are the most important business questions they need to answer? What KPIs are they accountable for? How much time is spent on monitoring vs. analyzing vs. collaborating?
Meets performance monitoring needs What is the time horizon they monitor (hourly, daily, year-over-year)? Which KPIs are leading (process) vs. lagging (outcome)? What is the highest meaningful level of detail?
Provides easy data navigation/analysis What type of visualization or chart is appropriate for the user? Which KPIs should have their trends compared? What is the lowest level of detail needed to analyze cause-effects?
Dashboards are not one size/fits allDashboards need to be tailored and flexible
What Makes a Good Dashboard?
Monitor overall performance at a glance Multiple charts provide coverage of all KPIs Charts highlight good and bad performance exceptions Data is refreshed at required frequency
Navigate and filter data to analyze trends Population filters are simple to apply and shared Drill-down navigation paths are intuitive Level of detail required for cause-effect analysis available
Support for collaborative, data-driven decision-making Views and analysis can be shared Level of detail for taking corrective actions available
Dashboards are not 4 reports on a pageDashboards need to be dynamic
Dashboard Example
Multiple charts provide status at-a glance
Personalized view of KPIs
Leading and lagging indicators of performance
Common KPI and business rules definition
Dynamic charts along with data drilling navigation to analyze trends further
Good Performance Management Solutions
Aligns the organization Strategy has driven development of objectives and measures Common KPI definition with shared dimensions Monitors Key Performance Indicators (KPIs) of both strategic and operational
performance Sets targets for measures that are achievable Enables understanding of what’s important and what’s changed
Promotes proactive versus reactive decision making Crystallizes “single version of the truth” Reduces time and effort required to answer ad-hoc questions Exposes business trends sooner and supports shortened decision cycles Allows management by exception
Based on data warehouse foundation Reduce risks to development and deployment Acceleration of ROI Designed for analytics performance Use of architecture best practices for scalability and extensibility
Our Unique Solutions
SunGard Higher Education understands these emerging performance obligations and related information requirements
We offer multiple levels of solutions for accessing, managing and analyzing key performance data for institutions of Higher Education
Banner Data Warehouse Solutions Packaged Performance Management Solutions
Banner Performance Reporting and Analytics is our foundation that enables all levels of staff to create their own reports, analytics and ad-hoc queries
Creates a single version of the truth - pre-built data integration with Banner provide data integrity, security, quality, and accuracy. Create a single, trusted source of institutional data enterprise-wide, quickly and easily.
Designed for Higher Education - data warehouse configures data to answer key questions across wide range of institutional processes. View your performance from summary through to detail, from any perspective, or across departments.
Short time to results - rapid deployment gives you answers to key questions in the shortest time, provides quick wins and minimize impact on your infrastructure
An institution-wide solution that can be implemented in phases, all at once or just for a single organization or business function.
EXECUTIVESScorecards for
Performance Management
MANAGEMENTDashboards, Reports and
Analytics to Monitor Progress
KNOWLEDGE WORKERSAd-hoc analysis tools to identify
and understand trends
STAFFProduction reports and
ad-hoc access for daily operations
DetailedData
Trend, SummaryData
PerformanceData
Performance SolutionsBringing Value to All Levels of the Institution
April 10, 202334 Confidential and Proprietary Information – SunGard Higher Education, Inc
Open to the Floor
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