MAC Summer Conference MAC Summer Conference

MSU Benchmarking ConsortiumMSU Benchmarking Consortium

August 17, 2009August 17, 2009

Al VanderbergAl VanderbergOttawa County AdministratorOttawa County Administrator

Why To Do Benchmarking/Performance Why To Do Benchmarking/Performance

Measurement?Measurement?

Improve ServiceImprove ServiceEffectivenessEffectivenessEfficiencyEfficiency

Continually Improve OrganizationContinually Improve OrganizationCommunicationCommunication

Why Not To Do Why Not To Do

Benchmarking/PerformanceBenchmarking/Performance

Measurement?Measurement?

Cut CostCut CostReduce EmploymentReduce Employment

The Quality MovementThe Quality Movement

W. Edwards DemingW. Edwards DemingQuality CirclesQuality CirclesTotal Quality Management (TQM)Total Quality Management (TQM)Total Quality Engineering (TQE)Total Quality Engineering (TQE)ReRe--engineering the Corporationengineering the CorporationMalcomMalcom BaldridgeBaldridgeSix SigmaSix SigmaLEANLEAN

All of these initiatives shared the All of these initiatives shared the

same basic purposes.same basic purposes.

Improve process evaluation for efficiency and Improve process evaluation for efficiency and effectivenesseffectivenessCounty government is ripe for process County government is ripe for process evaluationevaluationTo better allocate scarce resourcesTo better allocate scarce resourcesTo move toward performance budgetingTo move toward performance budgetingTo improve service, quality and efficiencyTo improve service, quality and efficiency

Performance Measurement is a piece of a Performance Measurement is a piece of a

larger system of thought. Each performance larger system of thought. Each performance

measurement should relate back to objectives, measurement should relate back to objectives,

goals, mission and vision of the organization.goals, mission and vision of the organization.

VisionVisionMissionMissionOverarching Goals Overarching Goals –– ““BHAGBHAG’’SS””Strategic/ObjectivesStrategic/ObjectivesPerformance Measurement/BenchmarkingPerformance Measurement/BenchmarkingProgram EvaluationProgram Evaluation

ANNUALBUSINESS PLAN

Goals & Objectives

PerformanceMeasures

Strategic Planning

Board

Citizens Employees

Administration

SWOT AnalysisBoard Ranking of Objectives

Board Ranking of Discretionary Services

Citizen SurveyCitizen Budget Meetings

Employee SurveysOther Input

Financial ReviewNeeds Assessment

Mandated Services StudyDepartment Evaluations

Wage and Classification Study

Vision Values

GoalsMission

Strategic PlanStrategic Plan

AA VisionVision statement indicates how an organization views its ideal, or ultistatement indicates how an organization views its ideal, or ultimate, goal. The Board of mate, goal. The Board of Commissioners has established the following vision statement: Commissioners has established the following vision statement: Ottawa County strives to be the location of choice for living, wOttawa County strives to be the location of choice for living, working, and orking, and recreation.recreation.

AA MissionMission statement assists an organization in easily communicating to a vstatement assists an organization in easily communicating to a variety of constituencies ariety of constituencies what it does, who it serves, and why it does so. The Board of Cwhat it does, who it serves, and why it does so. The Board of Commissioners has established the ommissioners has established the following mission statement: following mission statement: Ottawa County is committed to excellence and the delivery of cosOttawa County is committed to excellence and the delivery of costt--effectiveeffectivepublic services.public services.

GoalsGoals focus the direction of an organizationfocus the direction of an organization’’s work, under the guidance from the vision and mission s work, under the guidance from the vision and mission statement. Goals are relatively static in nature and will not ofstatement. Goals are relatively static in nature and will not often change. The four goals of the Board ten change. The four goals of the Board of Commissioners are:of Commissioners are:

To maintain and improve the strong financial position of the CouTo maintain and improve the strong financial position of the County.nty.

To maintain and enhance communication with citizens, employees aTo maintain and enhance communication with citizens, employees and other nd other stakeholders.stakeholders.

To contribute to a healthy physical, economic and community enviTo contribute to a healthy physical, economic and community environment.ronment.

To continually improve the CountyTo continually improve the County’’s organization and services.s organization and services.

Business Plan Business Plan -- 20092009

Objectives, Deliverables and OutcomesObjectives, Deliverables and Outcomes

While goals are relatively static in nature, the objectives While goals are relatively static in nature, the objectives that assist in accomplishing the goals are likely to change that assist in accomplishing the goals are likely to change annually. Deliverables are specific items of action that annually. Deliverables are specific items of action that give further meaning and substance to an objective.give further meaning and substance to an objective.Outcome measurements are the ultimate indicators of Outcome measurements are the ultimate indicators of success, measuring the impact of actions conducted to success, measuring the impact of actions conducted to achieve goals and objectives.achieve goals and objectives.

Assigned Resources Assigned Resources

and Deadlinesand Deadlines

Once goals, outcomes, and objectives have been established, Once goals, outcomes, and objectives have been established, it is important to assign deadlines and resources to ensure it is important to assign deadlines and resources to ensure

that the plan activities are completed.that the plan activities are completed.

AccountabilityAccountability

Quarterly Report Quarterly Report –– Green, Yellow, RedGreen, Yellow, RedCounty AdministratorCounty Administrator’’s Performance Evaluations Performance EvaluationExecutive Staff/Department Head Performance Executive Staff/Department Head Performance EvaluationsEvaluationsStaff EvaluationsStaff Evaluations

Program EvaluationProgram Evaluation

Strategic PlanningStrategic PlanningStrategic OutlineStrategic OutlineOrganizational & Workflow AnalysisOrganizational & Workflow AnalysisProgram & Dataflow AnalysisProgram & Dataflow AnalysisDatabase Design, and Data Collection & AnalysisDatabase Design, and Data Collection & Analysis

Statistical EvaluationsStatistical EvaluationsOutputs (Administrative and Operational Effectiveness)Outputs (Administrative and Operational Effectiveness)SelfSelf--Reported FeedbackReported FeedbackOutcome IndicatorsOutcome IndicatorsOutcomes (Recidivism and Cost)Outcomes (Recidivism and Cost)Baselines & BenchmarksBaselines & BenchmarksConclusions & RecommendationsConclusions & Recommendations

Once the baseline data and framework are Once the baseline data and framework are

established, how do we get started with developing established, how do we get started with developing

performance measurements?performance measurements?

Decide where the initiative will resideDecide where the initiative will resideDevelop a common language for goals, Develop a common language for goals, objectives and performance measurement objectives and performance measurement definitionsdefinitionsOver CommunicateOver CommunicateTrain Department Heads and other stakeholdersTrain Department Heads and other stakeholders

““Tapestry of GovernmentTapestry of Government””

Ottawa County Organizational ChartOttawa County Organizational Chart

““Herding CatsHerding Cats””

A few A few ““less stellar less stellar

performance measuresperformance measures””

Identify outdated equipment for replacement.Identify outdated equipment for replacement.Identify maintenance projects., (e.g. painting of Identify maintenance projects., (e.g. painting of walls, replacement of carpeting in worn areas, walls, replacement of carpeting in worn areas, replacement of soiled tiles, etc.)replacement of soiled tiles, etc.)Create a monthly maintenance schedule that Create a monthly maintenance schedule that includes checking walls, floors, ceiling tiles, entry includes checking walls, floors, ceiling tiles, entry and office doors, lights, windows, plumbing and office doors, lights, windows, plumbing (sinks, faucets, toilets) to determine maintenance (sinks, faucets, toilets) to determine maintenance needs.needs.

Outcomes versus OutputsOutcomes versus Outputs

Output: A measure of the number of units Output: A measure of the number of units produced, goods and services or people served produced, goods and services or people served by an agency or itby an agency or it’’s programs.s programs.

Outcome: A measure of the extent to which a Outcome: A measure of the extent to which a service or program has achieved its goals and service or program has achieved its goals and objectives or desired impact on itobjectives or desired impact on it’’s clients or s clients or society.society.

How Do We Know How WeHow Do We Know How We’’re Doingre Doing

Management ToolManagement ToolCommunication Staff to BoardCommunication Staff to BoardCommunication Board to CitizensCommunication Board to CitizensCompare to OthersCompare to Others

ICMAICMAMSU Benchmarking ConsortiumMSU Benchmarking Consortium

ResistanceResistance

You will face resistanceYou will face resistanceUse Budget Authority of Board to gain Use Budget Authority of Board to gain cooperationcooperation

There is nothing more difficult to take in hand, more perilous tThere is nothing more difficult to take in hand, more perilous to conduct, or o conduct, or more uncertain in its success, than to take the lead in the intrmore uncertain in its success, than to take the lead in the introduction of a new oduction of a new order of things. For the reformer has enemies in all those who porder of things. For the reformer has enemies in all those who profit by the old rofit by the old order, and only lukewarm defenders in all those who would profitorder, and only lukewarm defenders in all those who would profit by the new by the new order, this lukewarmness arising partly from fear of their adverorder, this lukewarmness arising partly from fear of their adversariessaries …… andand

partly from the incredulity of mankind, who do not truly believepartly from the incredulity of mankind, who do not truly believe in anything new in anything new until they have had actual experience of it.until they have had actual experience of it.

–– Niccolo MachiavelliNiccolo Machiavelli