gfoa chicago identifying, costing, and selecting alternate service levels - notes

Identifying, Costing and Selecting Alternate Service Levels

June 11, 2012Chicago, IL

Eric R. JohnsonDirector of Strategic Planning and ERP ImplementationHillsborough County, (Tampa) FL

Getting a “Fix” On Our Service Level:

Defining a service level based on multiple measures. Are services defined (“denominated”) in terms of

inputs – dollars and staffing – or results? Does reducing the cost of a service level also reduce

the service level? It may depend on who you ask. Can we compare against others? The case for

common definitions.Case study: Prioritizing library services service levels using

multiple performance measures.

GOVERNMENT FINANCE OFFICERS ASSOCIATION 3

Defining Existing Service Levels How do we define individual services or

programs?

Inputs OutputsEfficiency – outputs per unit of inputEffectiveness – outcome/results

Can we really define the level at which a service is provided with a single measure?


Getting a “Fix” on our Service LevelGPS satellites transmit data that indicatetheir location and the current time based on an atomic clock. The signals arrive at a GPS receiver at slightly different times. The distance to the GPS satellites can be determined by the amount of time it takes for their signals to reach the receiver. When the receiver estimates the distance to at least four GPS satellites, it can calculate its position in three dimensions.

Source: Smithsonian Institution http://www.nasm.si.edu/gps/work.html

http://www.nasm.si.edu/gps/work.html


Getting a “Fix” on our Service LevelHow does a GPS device relate to governments’ definition of service levels?

The value of multiple measures to determine where we are, and

The importance of precise measurement.


Getting a “Fix” on our Service Level

Staffing level per 25,000 pop. Max. ho

urs pe

r wee

k

New items

purchased

Circ

ulat

ion

Number of facilities

There may be numerous performance measures to define a single program – e.g., library services.

Annual servic

e hours

Sq. feet of space per capita Circulation per borrower

Holdings


Getting a “Fix” on our Service Level

If we had to retreat from our current position, would we follow the same path we took to get here or take a different direction?

The path we took may not be an option due to subsequent changes in regulations, technology, infrastructure, etc.


Are services defined (“denominated”) in terms of inputs – dollars and staffing – or

results?

To estimate performance measures for an alternate service level we haven’t previously provided, we may have to extrapolate (when increasing the existing service level) or interpolate (when reducing the existing service level).

We may have difficulty estimating the change in outputs and/or the outcome of our action – while we have precise knowledge of the change in inputs.


Are services defined (“denominated”) in terms of inputs – dollars and staffing – or

results?

Conversely, we may precisely identify what we want to accomplish in terms of outputs and/or an outcome but have difficulty determining what resources are necessary to get there.


Does reducing the cost of a service level also reduce the service level?

In this age of cutbacks, we look for opportunities to spend less while retaining service levels.

Our customers (and our employees), however, may see changes in how we deliver services as changes in the service level.

Is self-checkout, which we have implemented in our libraries, a service reduction or a cost savings?


Can we compare against others? The case for common definitions.

Benchmarking against other jurisdictions provides context. In the case of library services, the Public Libraries Survey is a voluntary survey conducted annually in accordance with the Museum and Library Services Act of 2003, and the U.S. Census Bureau is the data collection agent. There were 9,277 participants in the latest survey.

Comparisons cannotbe made unless either common definitions are used or data can be converted to a comparable form.


Case Study: Prioritizing library services service levels

using multiple performance measures.


Background Hillsborough County serves 1.2 million people within 1,072 square miles.

At a “minimum service level” of $17.7 million, reflecting 141 positions, the County would operate 9 libraries (a main library plus 8 regional libraries) at reduced hours with a reduced collection.

At that service level, 16 other libraries would be closed, 254 employees laid off, and savings would amount to $23.6 million annually.


Background

The following graphs show the impacts -- on spending, employees, and 5 performance measures -- of building the zero base budget up from that minimum service level to a continuation service level, and then to proposed expanded service level.

Most of the performance measures reflect inputs. The key performance measure is the circulation of materials – the result of making up-to-date materials available at multiple facilities with convenient hours.


Service Level at Decision Unit 1

0%

20%

40%

60%

80%

100%

OperatingBudget

Positions AnnualServiceHours

Circulation Hours/Week(max.)

# ofFacilities

New ItemsPurchased

Perc

ent o

f Cur

rent

Lev

el

43%35% 32%

48%

81%

35%28%

Minimum Service Level



0%

20%

40%

60%

80%

100%

OperatingBudget



# ofFacilities

New ItemsPurchased

Perc

ent o

f Cur

rent

Lev

el



0%

20%

40%

60%

80%

100%

OperatingBudget



# ofFacilities

New ItemsPurchased

Perc

ent o

f Cur

rent

Lev

elContinuation Service

Level



0

20

40

60

80

100

OperatingBudget



# ofFacilities

New ItemsPurchased

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ent o

f Cur

rent

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el

Expanded Service Level


Wrap-upThe previous graphs illustrate how multiple performance measures may be used to define alternate service levels for a single service.* In all, more than two dozen measures are used to define this service.

While the presentation uses a zero base budget approach of building up the budget and improving service levels, looking at the same charts in reverse order provides a more typical budget reduction view of impacts on performance of cutting from a continuation service level.* Excluded from this illustration are small programs within the same department that are defined by additional measures.

gfoa chicago identifying, costing, and selecting alternate service levels - notes

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