we are attempting to duplicate irene kropp’s ... · • we are attempting to duplicate irene...

1

First, a quick review of terms and framework:• We are attempting to duplicate Irene Kropp’s

transformational success and follow the “Burning Platform – Bridge to Paradise” change model.

• We are relying to a large degree on Ken Miller’s The Change Agent’s Guide to Radical Improvement for how-to guidance in the execution of the necessary steps of that model.

2

First, a quick review of terms and framework:

• Our goal is to aid in transformation efforts by instituting a Strategic Management System (SMS) for NJDEP Compliance & Enforcement.

3

A Balancing Act, Howard Rohm, from “Perform”, volume 3, issue 2

• “We find that the process of using cross- functional teams to build the strategic plan and management system, with expert facilitation and guidance, is critical to long-term success of the new management system.”

4

Quick Review of Terms

• The following three slides provide a quick review of terms as used by Miller.

• These terms help provide the language framework the team will be using.

5

System: A process that produces a product that is delivered to a customer to achieve some desired

outcome(s).

Process Product Customer Outcome

From The Change Agent’s Guide to Radical Improvement by Ken Miller

6

Who is the Customer?

End User: Uses Product Broker: Transfers Product

Fixers: Transforms, Repairs, Or Corrects Products


7

Widgets Explained:

– A Deliverable– A Noun– Countable– Can Be Made Plural


8From Leading Change by John P. Kotter,

Harvard Business School

• In addressing #8, Kotter cautions: “Smart people miss the mark here when they are insensitive to cultural issues. Economically oriented finance people and analytically oriented engineers can find the topic of social norms and values too soft for their tastes. So they ignore culture – at their peril.” (emphasis added)

• A specifically difficult obstacle for us here at NJDEP, where the majority of staff are analytically oriented engineers (and scientists, IT staff, etc.)

9

Good ideas to keep in mind while pursuing a project management goal:

• Habit 1: Be Proactive •• Habit 2: Begin with the End in Mind Habit 2: Begin with the End in Mind •• Habit 3: Put First Things First Habit 3: Put First Things First • Habit 4: Think Win/Win• Habit 5: Seek First to Understand Then to be Understood • Habit 6: Synergize

• Habit 7: Sharpen the Saw

Based on the Seven Essential Habits of Highly Effective People

by Stephen Covey

10


Habit 2: Begin with the End in Mind Habit 2: Begin with the End in Mind

…and continue performing each step with the end goal in mind.

In other words, stay focused on the end goal of developing a Strategic Management System. It is easy to get distracted into the details of laptop distribution, time management minutiae, specific NJEMS problems, etc.

As explained by Ken Miller and reinforced by Wolf Skacel in transformation steering group meetings, the goal is true transformation of our current paradigm rather than fine tuning our existing one.


by Stephen Covey

11


Habit 3: Put First Things FirstHabit 3: Put First Things First

• A clearly defined conceptual goal shared by the team is essential in achieving the previous goal (#2) and preventing entering group meeting quagmires. This is repeated throughout the literature.

• “…and those who walk slowly can, if they follow the right path, go much farther than those who run rapidly in the wrong direction.” …Descartes


by Stephen Covey

12

Strategic Management System defined

• So, what exactly is it that we are working on?

13


• “… utilization of resources, to enhance the performance of firms in their external environments. ”

From wikipedia.com

14


• “It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs.”

From wikipedia.com

15


• “Strategic management is a level of managerial activity under setting goals and over Tactics.” (emphasis added)

From wikipedia.com

16

Strategic Management System defined: An example

From INECE International Network for Environmental Compliance and Enforcement , April 2008 Draft,Performance Measurement Guidance for Compliance and Enforcement Practitioners.

17

Strategic Management System defined: An example

From INECE International Network for Environmental Compliance and Enforcement , April 2008 Draft,Performance Measurement Guidance for Compliance and Enforcement Practitioners.

18

Performance Metric– Establishing critical processes/customer

requirements,– Developing measures,– Establishing targets which the results can be

scored against.

From wikipedia.com

19

Performance Metric• A performance metric is a measure of an organization's

activities and performance. Performance metrics should support a range of stakeholder needs

from customers, shareholders to employees. While traditionally many metrics are financed based, inwardly

focusing on the performance of the organization, metrics may also focus on the performance against customer requirements and value. (emphasis added) In project

management, performance metrics are used to assess the health of the project and consist of the measuring of six

criteria: time, cost, resources, scope, quality, and actions.

From wikipedia.com

20

Performance Measurement

• Performance measurement is the process whereby an organization establishes the parameters within which programs, investments, and acquisitions are reaching the desired results.

• This process of measuring performance often requires the use of statistical evidence to determine progress toward specific defined organizational objectives.

From wikipedia.com

21

Performance MeasurementUsed…

• 1. To Evaluate • 2. To Control • 3. To Budget • 4. To Motivate • 5. To Celebrate • 6. To Promote • 7. To Learn • 8. To Improve

From wikipedia.com

22

from Creating Performance Measures That Work U.S. Department of Justice - Office of Community Oriented Policing Services

Types of Performance Measures• 1. Input Measures• 2. Process Measures• 3. Output Measures• 4. Outcome Measures• 5. Impact Measures

23

from Practical Guide to Intelligence-Led Policing, Colonel Joseph R. Fuentes,Superintendent

New Jersey State Police

24

PRIORITIES

STRATEGIESWORKPLANS

ASSIGNMENTS

PERFORMANCE MEASUREMENTS

1. C&E STRATEGIC MANAGEMENT PLAN

DATA ANALYSIS

This prototype was developed by Larry Baier, Knute and Maria as a result of the Transformation Steering Group

Meetings.

25


Why Performance Measures Fail1. Lack of a viable and active strategic planning process within the organization.2. Failure to change the police culture to “embrace” performance management andin particular, “accountability.”3. Lack of sufficient funding and technical competency to support performancemanagement, especially data collection and analysis on an ongoing basis.4. Lack of knowledge, skills, and abilities and the organizational capacity tosuccessfully operate effective performance management processes.5. Inability to sustain the performance management process in the face of budgetcuts and scarce or reduced resources.6. Lack of user input.7. Incomplete requirements and specifications.8. Lack of executive support.9. Unclear objectives.10. Unrealistic time frames.11. Initial establishment of too many measures, rather than selecting coremeasures.

26


Why People Are Afraid of Performance Measurement• 1. Fear of measurement and new systems.• 2. Lack of common definitions and terms.• 3. Inconsistent or weak buy-in, and lack of understanding.• 4. Poorly defined and understood decisions and strategies that are not actionable,• and not linked to individual actions.• 5. Treating budget development separately from strategy development.• 6. Measures set independently of a performance framework, or measures with no• ownership.• 7. Losing momentum.• 8. No performance targets, targets set too high or too low, or lack of relevant data• to establish targets.• 9. Little or no strategic feedback.• 10. Lack of meaningful employee involvement.

27

Strategic Management System defined: Balanced Scorecard

• A well known and widely used example of a strategic management plan is the Balanced Scorecard, as developed by Kaplan and Norton for the Harvard Business Review.

• The concept and execution have evolved over time.

• This type of “balanced” or “integrated” Strategic Management System (SMS) can also be called “Multi Dimensional Performance Measurement” (MDPM).

28

Kaplan/Norton Balanced Scorecard example from:http://www.valuebasedmanagement.net/methods_balancedscorecard.html

http://www.valuebasedmanagement.net/methods_balancedscorecard.html

29

1. Translating the vision into operational goals;2. Communicating the vision and link it to

individual performance;3. Business planning; index setting4. Feedback and learning, and adjusting the

strategy accordingly.

Kaplan/Norton Balanced Scorecard operational design:

30

Balanced Scorecard example from:http://clarification.wordpress.com/2008/01/21/marching-orders/

Feedback Loop for BSC

http://clarification.wordpress.com/2008/01/21/marching-orders/

31


• Successive generations have seen the Balanced Scorecard evolve.

• A significant evolution is the addition of the Strategy Map.

• Kaplan and Norton suggest the Strategy map arose spontaneously from many companies using the BSC.

32

Strategic Management System defined: Balanced Scorecard problems and criticisms

• Many sources including Kaplan and Norton themselves agree that the balanced scorecard in its original form is limited.

• It is specifically limited by its originally intended target audiences of mid-sized American businesses. This is largely responsible for the later addition of strategic mapping as a component.

33

Strategic Management System defined: Strategy Map

“A vital prerequisite to building a coherent and realistic strategy map is a proper understanding of the hierarchical inter-dependencies between the perspectives used. Each perspective contains one or more objectives that each in turn is associated with one or more performance measures and target values. It follows that the arrangement of objectives on the strategy map needs to be devised keeping in mind the dependencies implied by the choice of perspective headings.” …..from Wikipedia.com (emphasis added)

34

An example of a Strategy Map from:

http://www.balancedscorecard.org/Portals/0/PDF/GovernmentStrategyMapExample.pdf

35

PRIORITIES

STRATEGIESWORKPLANS

ASSIGNMENTS

PERFORMANCE MEASUREMENTS

1. C&E STRATEGIC MANAGEMENT PLAN

DATA COLLECTION& ANALYSIS

PrioritizationMethodology

Communication & Coordination

w/Others

Recommendations to other programs

Emergent Issues

Targeting

Resource Allocation

Identify Needs

Progress report card or dashboard relaying information internally

and externally

PURPOSE:We are dedicated to ensure that New Jersey’s

environment is clean, safe, enjoyable,preserved and enhanced for future generations.

VISION:We are building a nationally recognized organization that empowers our trained and dedicated professionals to ensure New Jersey’s businesses, communities

and individuals are models of environmental stewardship and compliance.

For illustrative purposes only,note flexibility of system, some steps may be performed atdifferent stages within the system

C&E Strategic Management System

36


• Rohm uses a six step process to build a BSC/Strategy Map, and a three step process to implement

37


• Step 1: Build Scorecard• Step 2: Develop Strategy• Step 3: Break large strategy into smaller objectives• Step 4: Create Strategic Map• Step 5: Develop Performance Measures• Step 6: Develop New Initiatives to reinforce strategy

38


• “Following the completion of the building steps outlined above (Steps One through Six), the critical few performance measures have been developed. For a Tier 1 (enterprise- wide) scorecard, 20 to 30 strategic Tier 1 performance measures and targets (expected results) are typical. It is probably worth repeating a lesson shared in our previous article: avoid the temptation to treat performance measures as an end, rather than a means. We see many attempts at developing scorecards (and other performance frameworks, as well) where the effort is best characterized as a “rush to judgment” to get to measures. Precious strategic critical thinking is lost if this path is pursued. “

39


• Step 7: Automation (involves choice of software, not as relevant to our efforts)

• Step 8: “Cascading” the SMS. In other words, making it permeate throughout the organization. (see Leading Change by John P. Kotter).

• Step 9: Evaluate Success.

40


41


42

from Improving Government Performance Using the Balanced Scorecard to Plan and Manage Strategically Howard Rohm,President and CEO, the Balanced Scorecard Institute

43


Examples of data dashboards

44

Strategic Management System defined: Balanced Scorecard problems and criticismsStan Brignall in The Unbalanced Scorecard argues that the Balanced Scorecard/Strategy Map model is faulted due to:

1. Purposeful “unbalancing” due to special interest and bargaining power

2. The mapped objects do not have the simple relationship represented

3. Social and Environmental Aspects (SEA) are not included and may not be able to

45

Strategic Management System defined: Balanced Scorecard problems and criticisms (Brignall)

Critique 1. Purposeful “unbalancing” due to special interest and bargaining power

Explanation: In other words, management intentionally upsets the flow or balance to please a specific stakeholder. I interpret this to include “juking” the numbers for comstat type systems, or ignoring metric data that is unpleasant for stockholders of a company, or issuing directives not aligned with performance measures (for example a directive from the Governor).

Solution: greater transparency and accountability, which is also consistent with overall NJDEP transformation goals. (See the NJDOJ model where accountability occurs throughout each step). An occasional political directive does not negate the overall effectiveness of the SMS.

46

Strategic Management System defined: Balanced Scorecard problems and criticisms (Brignall)

Critique 2. The mapped objects do not have the simple relationship represented

Observation: A valid argument. At different layers the system map may look different, and different programs or businesses may find wide variations in map relationships. This does not necessarily invalidate the use though.

Firstly, a system map that is accurate enough of a majority of the time would still be quite useful overall. For example, FBI criminal profiling is not accurate and cannot by itself catch criminals or stand as court evidence, but it can provide a starting point and aid investigations that have caught and convicted dangerous criminals. (This also reinforces the need for a flexible system and/or map that could encompass differently structured programs within C&E.)

Also, although there is some controversy on the subject, strategic plans have been demonstrated to increase organizational effectiveness. Seemingly it is better to have one than not.

Lastly, metrics are a key component in management systems. Metrics use has already been identified by uppermost management as a priority, and must exist within some framework in order to be useful. Whether simple or complex, that system must exist in some form of SMS.

47

Strategic Management System defined: Balanced Scorecard problems and criticisms

(Brignall)

Critique 3. Social and Environmental Aspects (SEA) are not included and may not be able to.

Explanation: This section in the Brignal piece was brief. It seems to indicate OSHA and Environmental type regulations as SEA. This is not as relevant to our SMS attempts, and Brignal seems to acknowledge himself that the concerns may be captured in existing scorecards and plans.

48

From: Measures Vs. Actions: The Balanced Scorecard in Swedish Law Enforcement, Carmona and Gronlund, Stockholm University

• One model with similar goals to ours is the Swedish police.– They are a governmental entity– They protect human health and

the environment (from crime, as opposed to pollutants like us)

– They have similar “customers” as per Miller

– They recognized the need for a SMS and developed a balanced scorecard

49


50


• Seemed to indicate the BSC was not as effective as it could have been.

• Noted lack of support from rank-and-file, pos due to lack of metrics for rank-and-file activity (middle management were more positive)

• Noted difficulty in use for gov projects• Noted lack of strategic map• Noted inability to capture part of policework such as building

community relationships• Paper cited example of traffic accident interfering with drug bust and

throwing off metrics• note: paper seemed to rely heavily on testimony, similar to retiring

police chiefs in compstat lit.• The system relied heavily on feedback surveys to gage success.

51

Compstat• The Next Step in Accountability Driven Leadership: "CompStating" the CompStat Data by

Serpas and Morley notes the “fixing” of numbers. It also states some special interests have an anti-police or anti-compstat agenda and exaggerate small amount of instances. Proposes accountability as the solution, including a post investigation interview with a selection of victims (complainants).

• Compstat A New Paradigm for Policing or a Repudiation of Community Policing? by Magers (abstract only available) states belief that compstat is very good at certain focused goals but requires good strategic plan to be effective (consistent with my research into BSC and the Swedish model).

52

from Observations Regarding Key Operational Realities in a Compstat Model of Policing Dean Dabney

THIS ARTICLE IS A MUST READ PRIOR TO IMPLEMENTATION OF COMPSTAT TYPE OF PMS

“Compstat injects a heavy dose of data analysis and data diffusion into the daily routines of policing. It seems reasonable that officers at all ranks of an organization would struggle to digest and respond to these data. Compstat also relies heavily on stated goals and objectives. Without thorough and repetitive communication of these goals and objectives, one should not be surprised that low-level officers fail to internalize them. Finally, the Compstat model alters the roles of low- and mid-level supervisors. One should not be surprised to learn that commanders at all ranks struggle to internalize these new roles and that said struggles lead to further deviations in expectations at adjacent rungs of the chain of command. The accounts of those who oversaw the initial implementation of the Compstat model within the NYPD (Bratton & Knobler, 1998; Maple & Mitchell, 1999) suggest that much care was focused on the planning and follow-up attached to the various changes that were made to police structures and processes in New York. We would be wise to revisit these accounts and add to them new ideas and innovations gleaned from subsequent Compstat implementation and evaluation efforts” (emphasis added).

53


54


55


“In William Bratton’s earliest days at the New York City Police Department,for example, he involved more than 300 people from all ranks throughout theDepartment, organized into 12 reengineering teams addressing “productivity,discipline, in-service training, supervisory training, precinct organization, buildingcommunity partnerships, geographical and functional organizational structure,paperwork, rewards and career paths, equipment and uniforms, technology andintegrity.” He indicates that the teams made more than 600 recommendations, 80percent of which were accepted. In a very real way he reengineered the entire agencyusing internal staff that had intimate knowledge of the operations, an investment inthe success of the agency, and commitment to execute the changes proposed, whichthey themselves were instrumental in formulating.”

56

Braam and Nijssen, Exploring the Antecedents of Balanced Scorecard Adoption as a Performance Measurement and Strategic Management System

• Braam and Nijssen cite that managers do not understand how to implement BSC (lack of lit, examples, etc.).

• They characterize two types of BSC, Performance Measurement System (PMS) and Strategic management System (SMS).

• Point out fear of multiple interpretations.• Level and intensity of adoption of System is discussed as affecting

outcome.

57


• They mention leadership or program dominance (they use finance as an example), internal structure (rigid vs loose) and external atmosphere as affecting success of BSC implementation

• Interdepartmental communication affects BSC as a SMS greater than use as a performance measurement tool

• Need cross-program communication• Formalization creates a barriers in implementing BSC as an SMS

(but NOT for performance measurement)

58


• Studies show BSC as an SMS improves performance, BUTBSC as a PMS does NOT.

we are attempting to duplicate irene kropp’s ... · • we are attempting to duplicate irene...

Documents