learning to be better linking purpose to results michael mucha, p.e. director of public works city...
TRANSCRIPT
Learning to be Better
Linking Purpose to Results
Michael Mucha, P.E.Director of Public Works
City of Olympia
Agenda
Tracking for Success: Why are we doing it and what does it
look like?
Tools for Success: How we are doing it.
What we are Learning: Challenges and Opportunities.
Issues Compelling Us To Act
Climate for change:
Increasing demand for value.
Do less with less.
Innovation to build capacity and maintain existing LOS.
Need to prepare and support employees to be their own masters of improvement.
Council Goals
Efficient Government
Informed Budget Decisions
Tell our Story to the Public
4 3
2
5
61
Strategy Must Come First!Where are we now?
How will we know when
we’ve arrived?Why are we in
business?
How do we get there?
Where do we want to be?
How should we do
business?
Measurements
Strengths Weaknesses
Opportunities Threats
Customer Expectations and Mission
Value Culture
Action Plan
Vision and Strategic Goals
Six
Ste
ps
Structure of Business Plan
Line of Business: Groupings of programs by common
purpose.
Program: Groupings of products and services by
common purpose.
Product/Service: Deliverables. Something the customer
actually receives.
Major Change In How Business Is Done
Focus is on the customer instead of the task.
Results span across organizational lines instead of contained in silos.
Data used for decision-making instead of gut feel.
Results begin a discussion instead of ending it.
Motivation is achievement and learning instead of fear and punishment.
Traditional StructureWhat We Do
Operations &
Maintenance Strategic
CommunicationsUtilities
CoordinationSupport
ServicesEngineeringPolicy
Development
Value/Structure DisconnectWhat Value We Provide
Operations &
Maintenance Strategic
CommunicationsUtilities
CoordinationSupport Services
EngineeringPolicy
Development
Drinking Water
Waste Water
Roads
Garbage
Parking
Value to Citizens
Water
Safe & Comfortab
le Life
Waste Transportation
Consultant
• Conserving• Protecting• Delivering
• Reducing• Reusing• Disposing
• Access• Efficiency• Safety• Choices
Our Operational Mantra
Job is not finished until the work is documented.
Using data is a part of everyone's job.
We will evolve not transform.
It’s not about the numbers…it’s what you do with them that matters.
So What?
Openness: Public can see for themselves what they are getting.
Pride:Citizens AND Employees are confident that the City is competent.
Success Factors
Keep it simple.
Every department moves at their own pace based on needs.
Follow a consistent framework.
Create space for learning.
Pressurize the System.
“Family of Measures”
Tells a complete story of what each program is all about.
Purpose... Results... Outputs... Demands... Efficiency...
Developing a Program Purpose
The purpose of the ________
is to provide ________ services
to __________
So that they can ____________.
“So That” The two Most Powerful Words
What benefit does the customer experience as a consequence of receiving the service?
Does it matter to somebody?
Is it tangible?
Is it measurable?
Is it doable with existing resources?
Key Results
Describes the expected benefit for customers that a given program can reasonably be expected to significantly influence:
Stated as a percentage or rate.
Vital few.
They represent the use of big chunks of resources.
40
90
Year
% o
f Lan
e M
iles
in F
air
or B
ette
r C
ondi
tion
Target 56 57 62 67 71 75 80
Actual 56 57 70 71
1997 2000 2002 2004 2006 2008 2010
Key Results MeasurePavements
40
45
50
55
60
65
70
75
80
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
Year
Pa
ve
me
nt
Co
nd
itio
n R
ati
ng $3.5 million
$3.0 million
$2.5 million
$2.0 million
$1.5 million
Pavement Management System Annual Rating
Comparison
75
62 61
52 52 51 52 5246 47
59
65
0
10
20
30
40
50
60
70
80
Pav
emen
t C
on
dit
ion
Rat
ing
1988 1989 1990 1991 1992 1993 1994 1996 1997 2000 2002 2004
Year of Rating
Pavement System Condition Rating
Outputs
Number of units of product or service delivered to the customer:
Stated in terms of numbers or counts.
Meat and potatoes.
Example: Lane miles of road resurfaced.
Demands
Number of total units of product or service anticipated or to be demanded:
Stated in terms of numbers or counts.
Sometimes hard to determine.
Example: Number of lane miles rated poor condition.
Efficiency
The cost per output or result:
A calculation stated in terms of cost per unit.
Best indicator of performance improvement.
Example: Cost to resurface $120,000 per lane mile.
Summary Statistics
Business Plans
8 Departments
24 Lines of Business
65 Programs
431 Services
54 Key Results
106 Efficiencies
2500 Outputs
One Page for Everyone
Council identifies Key Result Measures.
Directors monitor LOB’s key results.
Managers monitor program result and efficiencies.
Supervisors monitor service results and efficiencies.
Good and bad things reported up.
Strategic Long-term
Key ResultsAnnual
Operational Measures
Weekly Work Gets Done Here
The Sieve Analysis
PW Strategic Business Plan
Strategic
Where we want to be
Operational
How we get there
How we know we’ve arrived (TFS)
“Planning for a vacation”
“Final preparations for a vacation”
What Are We Learning?
Watermain is replaced
Watermain is replaced
Water is conservedWater is
conserved
Drinking water consumption per capita is
reduced
Drinking water consumption per capita is
reduced
Sustainable water
resources
Sustainable water
resources
Strategic Goal
Work!Where Change Happens
Key Result =% reduction in drinking water consumption
“so that”
“so that”
“so that”
“so that”
“So That” Chain“So That” Chain
Pipes no longer leak
Pipes no longer leak
Ultimate
Policy In
tent
Degree of I
nfluence by
Department
Triple Bottom Line
Business Case
Level of ServiceRisk
Life Cycle Costs
1ProgramStructureIdentified
2MeasuresDefined
3Baselines
Determined
4Targets
Identified
5Data
Collected
6Data
Input /Draft Report
7Report
Analyzed& Finalized
8Dept Dir& MgmtReview
9Results &Decisions
ReportDistributed
10Targets &MeasuresRefined
Performance Measures & Reporting10 Step Process
Challenges and Opportunities
Getting started.
Balance.
Accountability.
Dealing with fear.
Long-term organizational commitment.
Connecting costs and activities.
Keeping momentum.
The hardest step is the first one
Performance Roundtables
Every LOB meets quarterly.
All key programs staff attend.
Meeting is open to anyone.
Focuses on action.
Four Key Questions
Value Commitment: What results am I striving to achieve for our
customers?
Status: What specific data indicates my progress at
achieving these results?
Understanding: What are the results telling me?
Action: What must I do now to make the results even better or correct a problem?
Being a Blue Dot Organization
1 2 3 4 5
Teamwork Caring Learning Committed Risk Taking
Human Element
Bottom Line
1
2
3
4
5
Productivity Technical Competence Quality Financial Stability
Reference: Leadership and Life Mastery by Eric Allenbaugh Ph.D.
Our Culture of Accountability
Taking risks.
Expecting mistakes.
Openness about failure.
Providing support when things go bad.
Taking ownership for your commitments
Analyzing mistakes.
Celebrating successes.
Listening before deciding.
Clarity of expectations.
Managing Fear During Change
Rewards
What is in it for me?
Clarity
What do you
expect
from me?
ResolutionWhere do I go with a problem?
Managing Fear
Organizational Commitment
Use of Data & Efficiencies
Budget Integration
Normal Business
2007+
2004
(Content)Key Results & Training
Operationalize Measures & Training
2005
(Context)
Program Purpose & Business Plans
2003
Start 2001
Activity Costing Form
Keeping Momentum
Guidance Team and User Group.
Four “S’s” start slow, simple, and small.
Build on little successes.
Stop doing what doesn’t work.
Experiment.
How can we make results even better? Not…how can we improve.
Thank You!Thank You!Thank You!Thank You!
The Process
Setting the Stage:Two years of planning; goals, framework, and getting political authorization.
(Leadership)
Design:One year of development.
(Employee involvement)
Implementation:Three years to institutionalize.
(Create space in their workplan)
Design
Used outside experts.
Four-month process.
Involved employees.
So What?
Clarity
Fulfillment
Improvement
Lessons Learned
You will eventually be challenged by everyone.
Stick to your core principles and goals.
Requires intense hand holding.
Don’t forget the details.
Your own ideas will evolve.
Chunk the work.
Guiding Coalition
Turns vague concepts into reality.
Measures will not help improve performance if those using them don’t believe in their power.
True change/performance improvement happens at the operations/staff level.
Influence over a result builds capacity and reduces fear.
Wedding Cake
Policy Maker & CEO
Department Director
LOB or Division Manager
Program Manager
Staff
Key
Results
The Language We Use
How can we make results “even better.”
Results versus outcomes.
Straight talk about tangible things.
Job is not done until the data is collected!
Don’t let the data go naked.