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Performance Measurement and Management in Government

David GourlayJohn SpencerChris Robertson

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AGENDA

•What is Performance Management?•Why is it important?•What are the challenges?•Why data is so important•How can you start to go down this path?•Potential “enabling technology”

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What is Performance Management?

A means to enable elected officials and staff to improve the quality of life for constituents

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Why Performance Management?Outward Facing Service Improvement

Communicates accurate, fair, and comparable data about the quality and efficiency of a government department’s services delivered to its citizensEnables responsive management for service improvement outcomesA vehicle that provides the foundation for accountability and transparency

Inward Facing Knowledge-based decisions

Performance data is essential for:Developing strategic plansMeasuring progress towards goalsAssessing policy alternativesMaking informed management decisions by

elected officials and staffGaining insight into the effectiveness and

efficiency of their operations

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Need for performance measurement is everywhere

Decrease costs

Improve service to citizens

Optimize processes

Increase voter satisfaction

Risk Management

• Optimize capacity and resource usage• Benchmark service costs & quality• Assess supplier performance

• Measure levels of service and optimize• Predict and prevent capacity bottlenecks• Improve processes to service citizens

• Complex demand planning• Create budgets, and monitor performance• Monitor compliance

• Assess what factors drive voter satisfaction• Monitor voter satisfaction

• Manage risks of impact of policy • Assess cause and effect of implementing

policy

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Inter-department cooperation is needed, but ...

... Government departments often function as separate organisations and have difficulty aligning with policy….

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…Which puts pressure on the government’s performance management framework…

• Many stakeholders

– Politicians, civil servants, suppliers…

• All require more and better quality information

• Governments need more transparency of– Cost data– Workflows– Quality of service delivery– Interdisciplinary cooperation– ROI

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Because you can’t manage what you can’t measure….

…comprehensive financial & administrative data are absolutely essential for effective performance management….

data evaluation &

management… improved

service deliveryreduce costs and

improve efficiency…

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Performance Management - Measure to Manage

Basic principles: What gets measured gets done! Need to develop a balanced and

integrated set of targets that support the overall strategy

Enable detailed analysis of data to make decisions

Integrate with operational systems to enable decisions to be ‘actionable’

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Credibility of Data

“The government ministries are very keen on amassing statistics. They collect them, raise them to the nth power, take the cube root, and prepare wonderful diagrams. But you must never forget that every one of these figures comes in the first place from the village watchman who just puts down what he damn well pleases.”

Sir Josiah Stamp, English economist, 1911

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“I don’t care if the numbers are wrong…just make them consistently wrong across all systems!”

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It’s all about the data!!!

The basis for:– Performance measurement

– Decision making

– Cost containment or reduction

– Quality management and improvement

Better quality decisions can only be achieved with – Comprehensive

– Relevant

– Reliable

– Timely and

– Integrated DATA…

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Create a focused performance DB

Standardised data compilation for analytics

PerformanceManagementFramework

PerformanceManagementFramework

Data Warehouse

Data Warehouse

OperationOperationalal

DataData

OperationOperationalal

DataDatae-Business Suite

ExternalData

CitizenCitizenHubHub

CitizenCitizenHubHub

Standardised, message-based, operational integration for near

real-time service provision

ERERPPDatDataa

Admin systems

BenchmBenchmarkarkDataData

ReportiReportingng

ReportiReportingng

AnalysAnalysisis

AnalysAnalysisis

QueryinQueryingg

QueryinQueryingg

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Transform data for performance measurement

analyze

Dimensions Hierarchy

InitiativesWhat is the contribution to different govt. initiatives?

Strategies?

Citizen GroupsWhat is the contribution of different citizen groups

Impact?

Agencies What is the contribution to agencies?

Govt. servicesWhat is the contribution to improved services?

Organi-zationChart?

ServiceStructure?

measure

Trans-actions

Pay-ments

DirectCosts

Agencies Central Govt.

Perfor-mance

Cost

benefit

etc.

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Nothing Improves Without Change ERGOProcess Changes Are Key Once You Have The Data

Costs Costs

Govt.ProcessModel

Govt.ProcessModel

ResourcesResources

Process View

CostAssignment

View

ActivitiesActivitiesImprovement

Strategy

ImprovementStrategy

Processes and associated activities are thekey vehicle for improvement!!

PerformanceManagement

PerformanceManagement

Resource Drivers

Activity Drivers

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Improvement Strategy

Formulate Strategy

– Where should we focus to increase service levels and performance?

– What’s happening now?

– Where can we cut costs?

– What will the impact be on our Dept.?

– What will be the impact on voter confidence?

– What if we...?

“Don’t try to boil the ocean when all they want is a cup of coffee!”

John Spencer

What Happened?

Why didit happen?

What willHappen?

What MightHappen if?

Monitor and Change

Take action – link to operations

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Link analysis to operational systems

Data

Information

Knowledge

Decision

Record of a transaction

Data packaged todeliver a message

Logical connection among pieces of information in a context

Choice of action based on knowledge

Results

Action

Bus

ines

s In

telli

genc

e

Make decisions actionable….

What Happened?

Why didit happen?

What willHappen?

What MightHappen if?

Monitor and Change

Take action – link to operations

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Communicate and monitor the strategy….

What Happened?

Why didit happen?

What willHappen?

What MightHappen if?

Monitor and Change

Take action – link to operations

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BenefitsAn integrated performance management framework based on detailed data can:

– Ensure all activities support key policy goals

– Provide an in-depth understanding of the impact of decisions on stakeholders’ satisfaction

– Deliver greater insight into efficiencies and costs of service provisioning

– Enable fast reaction to issues, e.g shortage of staff or supplies

• Earlier resolution reduces impact

– Enable all staff to understand their contribution to policy and feel part of it’s achievement

– Enable a more collaborative and effective relationship with all stakeholders

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Customers

Cambridge County Council, UK (best value)

State University Hospital, Denmark

Ministry of Labour, Denmark

National Police, Denmark

Royal Air Force, UK

City of Reykjavik, Iceland

Ministry of Treasury, Italy

Central Bank of Belgium

International Labour Organization, Switzerland

The Canada Custom and Revenue Agency

Ministry of Home Affairs, Singapore

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NYC.GOV Citywide Performance Reporting (CPR)!

Dept. of Transportation

Preliminary Performance Highlights 2008

• The average time to fix a traffic signal was 28.3 hours…38% faster than during the same period last year; more than 97% of traffic signal defects were corrected within 48 hrs.

– optimized scheduling and routing

•Inspections: Inspections of street work climbed by 39% as a result of additional staff responding to the continuing rise in construction permits

– focused budget for staff increase where it would have a positive impact…more construction permits = more tenants = more tax revenue

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Halton Region CRM Before and After

Where They Were

Approached customer service as separate departments Departments had different ways and standards of delivering service, so customers didn’t get consistent service Employees were committed to providing excellent customer service, but they didn’t have the proper tools and processes to support them

Where They Are Today

“We have an integrated, well-coordinated approach to serving our customers”

“Everyone approaches customer service with the same standards so the customer has a consistent experience”

“We have the technology, structure and processes in place so that our staff are equipped to deliver our excellent standards of Customer Service”

Enabling Technology?