the performance measure problem…
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The Performance Measure Problem…. Dept. Head : “So we are cleaning sewers that are prone to be clogged?” - PowerPoint PPT PresentationTRANSCRIPT
Paul D. Epstein, Epstein & Fass Associates 1
The Performance Measure Problem…Dept. Head: “So we are cleaning sewers that are prone to be clogged?”Prgm. Mgr.: “What do you mean? You want us to clean sewers that are dirty? I don’t think so. We are rated on how many miles of sewers we clean. We take great pride in the number of miles. We clean a lot of sewers.”Dept. Head: “Are you telling me that we clean onlyclean sewers?”Prgm. Mgr.: “Well, yes, because if we clean a dirty sewer it’s going to slow up productivity.”
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Strategic Planning & Performance Measurement
Department of Administration
Research, Planning, and Grants
Course Developed by Julie Butler
Presented by Maud Naroll
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Class Goals
Introduce concepts of Strategic Planning & Performance Measurement.
Students leave with practical tools to create their own strategic plans and outcome-based performance measurements.
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People and their managers are so busy trying to do things right that they hardly have time to decide if they’re doing the right things.
- Stephen R. Covey -
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Strategic Planning…What
An organized, documented method of determining what an agency hopes to accomplish and how it will accomplish it.Future-oriented.Value from the process.
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Strategic Planning…Why
Management tool.Provides direction for agency personnel.Guides resource decisions.Provides justification for budget requests.
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Strategic Planning
Answers 3 basic questions: Where are we
now? Where do we want
to be? How do we get
there?
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Strategic Planning - First things first…Support from the top.Team-approach. Management &
staff. Program & fiscal. Data administrator
Define the scope. Department,
division, bureau, section.
Time commitment.
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Components of a Strategic Plan -- Overview
Will present one way of developing plan Has worked with a couple dozen
agencies
No single correct way to plan Don’t feel is rigid cookbook
Suggestions welcome
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Components of a Strategic Plan -- Overview
VisionMissionPhilosophy(External/Internal Assessment: Customers and SWOT)Goal(s)StrategiesObjectivesPerformance Measures
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Components of a Strategic Plan
Vision Statement Describes the
ideal future state What we aspire to Should inspire
Big, global, broad
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Sample Vision Statement
Employment, Training and Rehabilitation
To be Nevada’s First Choice to connect businesses and job seekers
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Sample Vision Statement
Levi Strauss & Company
People love our clothes and trust our company.
We will market and distribute the most appealing and widely worn apparel brands.
Our products define quality, style and function.
We will clothe the world.
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Components continued…
Mission Statement
The foundation of the strategic plan. Defines the purpose of the agency & how it
will work to achieve the vision. Describes what the agency does for whom. Keep it simple and easy for all to remember. Ask: Why was the agency created?
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Sample Mission Statements
Nevada Department of Personnel:
To provide and retain a qualified state workforce that serves the citizens of Nevada.
Carson Tahoe Regional Healthcare:
To enhance the health and well being of the communities we serve.
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Tool for Mission, Goals, Strategies, and Objectives
To help draft your agency’s mission, goals, strategies & objectives, consider the following:
The purpose of the ___________________(program) is
to provide/produce _______________ (service/good)
to ______________ (whom)
so that they can/in order to _______________ (planned benefit).
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Class Exercise
For one of the agencies in class, fill out this form.
Optional: craft a short, simple mission statement.
The purpose of the ___________________(program) is
to provide/produce _______________ (service/good)
to ______________ (whom)
so that they can/in order to _______________ (planned benefit).
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Individual Exercise
For your agency, fill out this form.
Optional: craft a short, simple mission statement.
The purpose of the ___________________(program) is
to provide/produce _______________ (service/good)
to ______________ (whom)
so that they can/in order to _______________ (planned benefit).
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Class Exercise
For one of the agencies in class, write a vision statement
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Individual Exercise (Optional)
For your agency, write a vision statement
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Components continued…
Philosophy/Values How we will
act/behave as we work to achieve the vision.
Should guide the agency in its daily interactions with staff and customers/clients.
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Sample Philosophy Statements
Budget and Planning Philosophy:
We will strive for excellence in an ethical, accountable and responsive manner. We will treat our fellow staff members, customers, and stakeholders consistently, fairly, and professionally. We are stronger as a team than individually. We will share our individual knowledge and experience to help each other. Carson Tahoe Regional Healthcare:
•Putting Patients First
•Treating Everyone with Dignity and Respect
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Sample Philosophy Statement
Nevada Department of Corrections, Prison Industries Division
All staff will act in a fashion that presents to the inmates an ethical and moral model that, were they to emulate, they would never return to prison.
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Class Exercise
For one of the agencies in class, write a philosophy statement
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Individual Exercise (Optional)
For your agency, write a philosophy statement
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Table Exercise (Optional)
Fill out the mission for your agency (if not done already).Examine (or create) your agency’s current vision, mission, and philosophy statements.Compare to checklists.Do the statements need to be revised?Presentations to the class.
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External/Internal Assessment: Defining the Customers
InternalExternalStakeholders
Who are they?What do they need?Are we meeting their expectations?How will we know?
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Class Exercise
For some agencies in class, identify customers, their expectations, and whether they’re being met
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External/Internal Assessment: SWOT
Think about workforce issues: Retirements Career Ladders Cross-covering
eliminated positions
Strengths Weaknesses
Opportunities
Threats
INTERNAL
EXTERNAL
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External/Internal Assessment: Examine the Data
Where have we been? Where might we end up if it’s “business as usual?”Ask lots of questions. More customers now than before? Same # of staff or turnover? Do we have outdated procedures,
processes or systems? Do our customers perceive a
problem?
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External/Internal Assessment: Who are we?
What do the laws, regulations, and policies say about what we do? Should the laws/regs/policies be changed?
Does anyone else do what we do?If so, who are they?Do we coordinate with them?
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External/Internal Assessment: What is affecting us?
STEEPL
SocialTechnologicalEnvironmentalEconomicPoliticalLegal
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Class Exercise
Write one each: Strength Weakness Opportunity Threat
Write one STEEPL item
Strengths Weaknesses
Opportunities
Threats
INTERNAL
EXTERNAL
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Components continued…
Goals Broad description
of WHAT the agency hopes to achieve over the long term (3+years).
Start with an action verb
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Sample Goals
Streamline the state recruitment process. (NV Dept of Personnel)
Improve the quality of health care in Nevada. (State Health Div – Bureau of Licensure & Certification)
Secure site, build, and occupy new Las Vegas facility. (Motor Pool)
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Components continued…
Strategies The methods/actions the agency will
take to achieve the goal.
The “HOW” part. Specifies an Activity not a Result.
May be several strategies per goal.
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Sample Strategies
Open recruitments on a daily basis versus a weekly basis (NV Dept of Personnel).Educate health care providers about the reasons health care facilities are found deficient through brochures, conference calls, and the internet. (Health Div – BLC)Aggressively work with State Lands, Buildings and Grounds, and the developer. (Motor Pool)
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Brainstorming Strategies
Cross-train staff to do multiple tasks? Reclassify staff? Review procedures & streamline? Modify computer system? Explore more internet-based
solutions? Stop doing some tasks?
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Prioritize and Prune Strategies
After writing the plan, go back through strategies.
Is the list feasible to accomplish in the next several years?
Do strategies need prioritizing? Pruning?
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Components continued…
Objectives Specify the target…how much of the
desired result by when. May be more than one objective for each
goal. If an objective is not measurable, then
it’s a goal.
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Objectives continued…
Objectives should be SMART
Specific Measurable Action-oriented Realistic Time-Specific
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Objectives continued…
Start with an action verb
Example: Occupy new Vegas building before January 2007. (Motor Pool)
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Objectives continued…
Determine a “reasonable” objective Set a date by which to achieve your objective.Example: 5% reduction in average wait time by October 2010 and 10% reduction by June 2011.
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More Sample Objectives
Projects in BA 1325 completed within budget by June 30, 2007. (Dept Admin IT Division)Average fleet miles per gallon five percent higher than January 2006 level by January 2009. (Motor Pool)
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But Sometimes Objectives Are…
Yes or No
Occupy new Vegas building before January 2007. (Motor Pool)
Implement our revised office procedures by October 2014.
Update all employee work performance standards by December 2015.
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Impact on the Budget
What is the cost associated with each strategy?Can we pay for this?
What can we do for no cost or low cost?
Move money around?
How critical is this?Contact your fiscal staff for help.
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Class Exercise
Examine or create an agency’s goals and related strategies & objectives.
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Table Exercise (Optional)
Examine (or create) one of your agency’s goals and related strategies & objectives.Compare to checklists.Revise if necessary.Presentations to the class.
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Performance Measurement
It all starts with the Strategic Plan
Paul D. Epstein, Epstein & Fass Associates 50
The Performance Measure Problem…Dept. Head: “So we are cleaning sewers that are prone to be clogged?”Prgm. Mgr.: “What do you mean? You want us to clean sewers that are dirty? I don’t think so. We are rated on how many miles of sewers we clean. We take great pride in the number of miles. We clean a lot of sewers.”Dept. Head: “Are you telling me that we clean onlyclean sewers?”Prgm. Mgr.: “Well, yes, because if we clean a dirty sewer it’s going to slow up productivity.”
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Performance Measurement Is:
A method of systematically and objectively tracking the agency’s progress toward achieving its mission & goals.
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Performance Meas. Is Not
Substitute for Program Evaluation
The Magic Cure Can tell you the “what” but not the
“why”. You have to dig deeper to learn the
meaning behind the numbers.
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Why Measure Performance?
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Why Measure Performance?
Management Tool To determine if you’re getting where you planned. To improve management processes & practices. To improve quality & efficiency. To recognize & reward success. To ensure accountability. To communicate results & improve agency image. To justify budget request & guide resource
decisions.
Because it’s the law. [NRS 353.205(1)(b)]
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NRS 353.205(1)(b)
…Part 2 must include a mission statement and measurement indicators for each program…..
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Using PM’s to Manage
Are we doing the right thing?
Are we doing it well?
Are we investing our resources to get the best results?
Are we getting where we want to go?
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Linking to the BudgetThe Strategic Plan (SP)
is the foundation of the budget request. If it’s not in the
SP, then it shouldn’t be in the budget.
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Linking to the BudgetThe Performance
Measures tell the budget “story.” This result at this
cost. Justify changes to
your program(s). Illustrate
consequences of cuts.
Budget & Legislature review them.
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Measures in the BudgetMeasures now in the Priorities and Performance Based Budget (PPBB)
At the activity level
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Measures in the BudgetExample
Division: Fleet Services
Activity: Short-term Assigned Vehicle Management
Performance Measure: Rental Rate as a Percent of Commercial Rate
FY 2012 actual: 70 %
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Why Don’t We Like Performance Measures?
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Why Don’t We Like Performance Measures?
Time & cost of collecting the data.Fear of being held accountable.Outdated information systems and procedures.Difficulty in making fair comparisons and finding appropriate benchmarks.Can’t say why results are occurring.Staff turnover.Don’t have complete control over an outcome.
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Types of Measures
InputOutputOutcomeEfficiency Timeliness
QualityPopulationCaseload
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DefinitionsInput: measures the resources going into making a product or providing a service Not necessarily useful in budget Example:
Money – “We got a $100,000 grant for it.” Staff - “ We have 5 employees devoted to it.” Equipment – “We bought a new server for it.” Raw materials – “We used 10 cubic yards of
cement for it.”
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Definitions continued
Output: measures what comes out of the agency’s efforts (“widget counting”)Number of:
Miles of sewer cleanedMiles of road resurfacedClients servedApplications processedMeetings held
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Definitions continued
Outcome: measures the result of your efforts. Did you have an impact? What changed in your environment in
part because of your efforts?
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Definitions continued
Outcome: measures the result of your efforts. Percent reduction in vaccine-
preventable diseases Percent of clients employed 6 months
after completing program
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Definitions continued
Efficiency: ratio of outputs or outcomes produced to inputs usedNumber of
Customers served/employeeCases managed/employeeMiles of road paved/paving
machine
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Definitions continued
Efficiency - Timeliness:
average DMV wait time average turnaround time to
process form
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Definitions continued
Quality: measures quality of the services provided or goods produced
Customer satisfaction surveysOpinion pollsLetters or phone calls of
praise/complaint
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Definitions continued
Population: Number of people or entities an
activity might potentially serve
Number of:Nevada children aged 5 - 18Businesses in Nevada with
employeesNevadans eligible for Medicaid
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Definitions continued
Caseload: Number of people or things the activity serves or funds
Number of: K-12 students whose education is
supported with state funds Businesses paying unemployment
insurance taxes Medicaid enrollees
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Developing a MeasureStart with the Strategic Plan.The Vision defines where you want to go.The Goal defines what you want to accomplish (broadly).The Objective defines your target (what you’re aiming for).The value of the Performance Measure tells you whether or not you met your objective, whether your strategy worked, whether you’re on the way toward achieving your goal.
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Developing a Measurement
Focus on OUTCOMES, not OUTPUTS Example: agency
held 3 grant writing workshops last year (output).
Agency received better grant applications (outcome).
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Common Outcome Measures
Behavior – did customer’s behavior change (in part) because of your agency’s efforts? Example: fewer
adults smoke after cessation campaign
Condition – did the “state of things” change (in part) because of your agency’s efforts? Examples: cleaner
water, better roads, more employment
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Common Outcome Measures
Knowledge: does the customer know more about “X” after contact with your agency? Example: % of
Nevadans who know the illegal per se limit for Driving Under the Influence in Nevada
Attitude: does the customer believe your agency’s efforts will make a difference? Example: % of
prgm. participants who feel confident agency’s job training will help them get a job
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Common Outcome Measures
Skills: did skill levels change (in part) because of agency’s efforts? Example: Percent
of 4th graders reading at 4th grade level
Values/Ethics: does customer know right from wrong after contact with your agency? Example: Percent
of Nevadans who believe leaving scene of traffic accident in which they were involved is wrong
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Performance Measure Example: Buildings and Grounds
Goal = Fulfill agencies’ needs for leased space
Objective = Reduce average time from initial request on lease until lease sent to Budget by 10% by July 2009
Possible Performance Measure = ?
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Perf. Measure Example: B&G
Goal = Fulfill agencies’ needs for leased space
Objective = Reduce average time from initial request on lease until lease sent to Budget by 10% by July 2009
Performance Measure = Average time from initial request on lease until lease sent to Budget
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Types of Measures
InputOutputOutcomeEfficiency Timeliness
QualityPopulationCaseload
What type of measure is
Average time from initial request on lease until lease sent to Budget
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Performance Measure Example: Employment, Training, and Rehabilitation
Goal = Provide convenient, accessible and equitable services and opportunities to all customers
Objective = Increase the use of Interactive Unemployment Insurance applications for DETR services by 5%
Possible Performance Measure = ?
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Performance Measure Example: Employment, Training, and Rehabilitation
Goal = Provide convenient, accessible and equitable services and opportunities to all customers
Objective = Increase the use of Interactive Unemployment Insurance applications for DETR services by 5%
Possible Performance Measure = Percent of unemployment insurance clients using interactive applications
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Performance Measure Example: Carson-Tahoe Regional Healthcare
Mission = To enhance the health and well being of the communities we serve. Possible Performance Measure = ?
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Performance Measure Example: Carson-Tahoe Regional Healthcare
Mission = To enhance the health and well being of the communities we serve. Possible Performance Measure = Deaths per 100,000 people under 65 in our primary service area
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Types of Measures
InputOutputOutcomeEfficiency Timeliness
Quality
What type of measure is
Deaths per 100,000 people under 65 in our primary service area
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Performance Measure Example: Governor’s Committee on Employment of People with Disabilities
Vision = To have the highest competitive employment rate of people with disabilities in the U.S.Possible Performance Measure = ?
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Performance Measure Example: Governor’s Committee on Employment of People with Disabilities
Vision = To have the highest competitive employment rate of people with disabilities in the U.S.
Possible Performance Measure =
Percent of people with disabilities in competitive employment
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Performance Measure Example: Prison Industries
Philosophy = All staff will act in a fashion that presents to the inmates an ethical and moral model, that were they to emulate, they would never return to prison.
Possible Performance Measure = ?
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Performance Measure Example: Prison Industries
Philosophy = All staff will act in a fashion that presents to the inmates an ethical and moral model, that were they to emulate, they would never return to prison.
Possible Performance Measure = Percent of inmates who worked for Prison Industries who return to prison
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Class Exercise
Using the agency performance measures list on page 15 of your handout, decide what type of performance measure each item is (outcome, output, etc.)
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Types of Measures
InputOutputOutcomeEfficiency Timeliness
QualityPopulationCaseload
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Class Exercise
Using the “Performance Measure or Not?” list on p. 16 of your worksheet packet, find an item on the list that is not a performance measure and write a measure for it.
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Table Exercise
Using the performance measures for an agency at your table, decide what types of measures they are (output, outcome, etc.) and complete the Performance Measures Checklist on pg. 17 of your handout
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Types of Measures
InputOutputOutcomeEfficiency Timeliness
QualityPopulationCaseload
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Tool for Measures
To help draft your agency’s measures, consider the following (see page 4 of handout):
The purpose of the ___________________(program) is
to provide/produce _______________ (service/good)
to ______________ (whom)
so that they can/in order to _______________ (planned benefit).
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Tool for Measures
Where in the statement is an output?
Where is an outcome?
Where is a caseload?
The purpose of the ___________________(program) is
to provide/produce _______________ (service/good)
to ______________ (whom)
so that they can/in order to _______________ (planned benefit).
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Class Exercise
Using the tool to create measures for:
Output Efficiency Outcome Caseload
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Talk About Percent
Percent of [universe] that is [something in particular]
Percent of class attendees who are female
Percent of McDonald’s balls that are green
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Talk About PercentPercent of [universe] that is [something in particular]
Numerator is [particular]
Denominator is [universe]Number of green balls
Total number of balls
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Talk About PercentNumerator and denominator must each be entered separately in NEBS (Budget system)
Number of green balls Total number of ballsUse real #s, not 70 and 100
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Class Exercise (Optional)
Using the performance measures on pp. 18-22, decide what types of measures they are (output, outcome, etc.)Improve at least one of the measures, and/or create an outcome measure for the agency.
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Table Exercise
Decide what types of measures your agency has (output, outcome, etc.)Improve at least one of the measuresCreate an outcome measure for your agency.
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In Summary, Measures Should Be…
UnderstandableOutcome orientedUsefulValid, Verifiable and Accurate AvailableComparable/Consistent
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Performance Measures: Collect the Data
Establish a baseline
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10152025303540
time
Average Wait Time Per Customer
FY 12
FY 13
Linear (FY 13)
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Calculate the Measure
Are you getting there?
Compare to the objective, goal, etc that sparked the measure
What are your customers saying?
Record your results.
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Don’t Forget the Auditors…
Keep a record of:
Where you get the data. Be specific: titles of reports, which
files, who maintains them.
How to calculate the measures. Specific calculation
procedures/formulas.
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Don’t Forget the Auditors…
Have supervisory program & fiscal staff review the calculations.
Keep the underlying data for 3 years.
Send the values and definitions to Archives.
See handout for records retention.
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Now that you wrote a plan…
Plan how to implement it.Assign a minder.Review: how are we doing?
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Back to the Beginning
The cycle repeats!Modify strategies if your data shows what you’re doing isn’t working.Make needed changes to programs/processes.
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Continuous ProcessStrategic Planning
Develop Measures
Collect DataAnalyze Data
Revise Mgmt Processes & S/P
US Dept. of the Treasury, Financial Management Service
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Contact Information
Maud Naroll, Chief PlannerDepartment of AdministrationResearch, Planning, Grants 775-684-0223 [email protected]