Performance Management & Strategy Execution Blog: The Glue

Governments Endorse Performance Measurement to Manage Hard Times

A recent article on Governing Magazine's website makes the point that government municipalities seem to be relying more heavily on good performance measurement now during the tough economic times. In previous downturns this was not observed, but "this economic malaise is so profound that a growing number of states, cities and counties are newly appreciative of the value results-based performance measures can offer," say authors Katherine Barrett & Richard Greene.

Could this be a bright spot in otherwise gloomy times?

If these (and indeed all) organizations truly change by building performance measurement into their daily practices, we will surely get out of this current mess much faster -- and be better for it in the long run.

What’s Cool About Scorecards?

Today I was reminded what the coolest thing is about Balanced Scorecards: THE CONVERSATION

 

The point of a scorecard is to force "the conversation" about the most important “red” measures (those not hitting targets). Sure there are other benefits of scorecards, like communication of strategy and transparency, but for me I’m most excited to see my client have an honest conversation about what they can do to turn “reds” to “greens.” The real reason to develop a scorecard, after all, is that it's not just a report. Reports don’t relieve stress in the organization. The conversation that occurs during a Scorecard Business Review does.

As many of you can appreciate, there are no guarantees that you’ll get to the conversation.

But after the strategic planning, the scorecard cascading, the cultural resistance to “more work,” the gathering of the data, the setting of targets…today we made it!

 

I felt truly happy to listen to a cross-functional conversation about a “red” measure in the purchasing area. At the beginning you could feel the tension in the room.  This measure symbolized the stress behind the process.  But the conversation forced the participants to truly understand the current process and to brainstorm how they could improve it.  Once that happened, the scorecard participants could see the light at the end of the tunnel.  This will be a "green" measure soon.  Their lives will be so much less hectic next year. They finally saw the value that the CEO promised would be there.

 

That's cool.

Webinar this Thursday -- "Government 2.0: Increase Transparency and Accountability with StimulusScorecard"

Join us this Thursday, June 25th at 2pm EDT for a free webinar on Government 2.0 and StimulusScorecard.

‘Government 2.0' involves using web tools to increase transparency and thus improve the effectiveness and openness of government. In this webinar, we’ll discuss a tool called ActiveStrategy StimulusScorecard, which enables governments to leverage the web to aid in strategic planning, performance management, and Stimulus reporting.

The first round of ARRA (Stimulus) reports are due October 10th, and require that a “full picture” of the projects be presented so that taxpayers have the ability to track and monitor how the funds are being spent. During the webinar, we’ll review the latest reporting requirements released by OMB and discuss why waiting to set up your reporting system until the full extent of requirements are published in August might create problems. StimulusScorecard is a Balanced Scorecard-based, centralized collection system for your Stimulus project data that you can use now to ensure that your programs stay on schedule and on budget and to track accountability for every stage of the work. And you can use the data you’ve collected to populate OMB’s reports when the time comes.

During a live demo of the application, we’ll show you example Stimulus project scorecards, as well as how to share your data with the public.

Presentation topics:
• Review of the latest Stimulus reporting requirements
• How a scorecard application makes data available for preemptive action on emerging problems
• How technology can keep critical data part of on-going operational decision making
• How StimulusScorecard can facilitate clear communication with the public on who is benefiting from projects and who is responsible for keeping project commitments
• Review of example Stimulus Project Scorecards

To register: https://www1.gotomeeting.com/register/978908841

Upcoming Webinar: Best Practices in Managing Stimulus Projects

Are you a government or agency expecting to receive stimulus funds? Wondering how you can meet the new administration's calls for Transparency, Accountability, and Return on Investment?

Join ActiveStrategy for a free informational webinar to discuss these challenges on Wednesday, March 11th at 2pm Eastern. Best Practices in Managing Stimulus Projects will examine how using a Balanced Scorecard framework to monitor your portfolio of projects will enable you to manage proactively and meet the standards set for transparency and accountability in the recently-passed ARRA (American Recovery and Reinvestment Act of 2009 Act).

We'll also briefly introduce our newest product, ActiveStrategy StimulusScorecard™, which is designed to centrally collect, maintain, and manage the information and actions needed to keep your stimulus-funded programs on track.

Topics we'll discuss include:

• Defining the challenge set forth by the Obama administration for agencies receiving stimulus money
• Review of the stimulus legislation's demands
• Balanced Scorecards as a best practice for proactively managing stimulus projects
• Benefits of using a Balanced Scorecard framework over other methods of project management
• Review of example Stimulus Project Scorecards
• Discussion of the processes in use at the most progressive governments in the country to drive Change
• How you can easily make your data publicly available to your constituents

The webinar will be presented by Christine Heflin-Ewing, who leads ActiveStrategy’s Public Sector Practice Group, which helps governments, the military, and federal agencies drive better transparency, accountability, and results through strategy execution. She is an experienced performance excellence practitioner with over thirty years of leadership in government innovation and improvement. Immediately prior to joining ActiveStrategy, she was an Internal Consultant on performance improvement at The City of Coral Springs, the 2007 Baldrige Recipient. She currently serves as a Baldrige examiner.

If you can't make the live event, go ahead and register anyway, and we'll send you a recording link after the live event.

Register now at https://www1.gotomeeting.com/register/289908238.

The Stimulus Package - Tough times bring opportunity

A confession here! When I was the Budget and Research Director for Pima County, Arizona, I learned public sector folks are at their best in hard times. Teamwork, creativity and initiative became pronounced when we had to wrack our brains to make ends meet. 

On that note, here is a hard times idea for your consideration. In the spirit of “Change,” use Balanced Scorecards of measures to monitor your portfolio of Stimulus projects at every stage of implementation. It is critical that these projects adhere to their schedules. The preeminent program objective is creating jobs fast. If we accept delay in the construction of public infrastructure as inevitable, the program will fail.

Your contribution to undermining cynicism about government would be using scorecard data to identify emerging problems/delays and taking preemptive action to keep your portfolio on track. Yes, both the House and Senate versions of the Stimulus legislation provide millions of dollars for audits, but audits catch problems when it is too late to take corrective action. At best, a lesson is learned for “next time,” and at worst, a government receives a financial sanction. Contrast that with the positive effects of weekly reviews of a few key measures of compliance with project schedule, scope, outlay, and impact. 

It never has been more important for public administrators to show the American public that our dedication and know-how are a national asset -- an asset they can rely on in good times and bad.

Obama's New Chief Performance Officer

The appointment of Nancy Killefer as the new administration’s Chief Performance Officer heralds exciting times for performance management professionals. We have leadership that understands what we can do and wants it done.

You many have noticed that Ms. Killefer has managed the D.C. office of McKinsey & Co. consulting, home of the “McKinsey Method.”  The firm has built a wildly successful practice segmenting data to find the 20% of the causes that produce 80% of the problems. 

ActiveStrategy clients are familiar with this approach; our methodologies and software support a process of drilling down from high-level measures to aligned lower-level contributors, then using performance improvement techniques to identify and solve the critical few root causes (as identified on a Pareto chart) of performance issues. .

I am thrilled that the good government practices we advocate -- a concise focused strategy, key performance indicators, business reviews, and "Lean" practices -- may become the norm for our sector. Spread the word among your network of colleagues in different governments that this is all good news. These approaches will help us all serve people better (the reason we got into public service in the first place).  Be free with your advice and encouragement. 

Performance Management Professionals will have an important and satisfying role in “Change.”

Governments Using Scorecards Role Model Transparency for the Stimulus Package

A poll released this week and publicized in U.S. News & World Reports shows that 94% of respondents support national spending on infrastructure improvements. They even indicated that they would support a 1% tax increase to pay the bill. All good news, as the Obama stimulus package is being formulated. $750 billion plus may be pumped into our communities bridges, roads, and school buildings. The most surprising poll result is that more than half of the respondents said that either accountability or transparency of the projects were the most important consideration in how the money will be spent.

A “balanced scorecard” would be a great means of delivering results from the stimulus package, as well as accountability and transparency. Objectives and key performance indicators could be created for schedule compliance (getting jobs created fast will be an important element of the program); the number of jobs created; full compliance with ethics and disclosure processes; and projects’ ability to promote the CO2 reduction agenda. If local governments already using scorecards role model how results, accountability and transparency can all be accomplished using the tool, the administration may come to require the approach of all players. Why not meet the “customers'" requirements of being effective, efficient, and honest?

Cutting Government Budgets With Scalpels (Instead of Axes)

State and local governments are really starting to feel the pinch of the current economic slowdown. Property tax revenues are down, layoffs are occurring, budgets are being cut almost everywhere. Big city mayors are even trying to get a piece of the $700 billion bailout package.

So how does a government cut its budget in a responsible, selective way, so that it can continue to deliver its most important and valued services to its citizens?

Information helps reduce the negative impact of revenue set-backs.

Now, more than ever, there is a big payoff for governments that are able to track their true outputs and outcomes. For these types of organizations, there need not be any draconian, across-the-board, "who knows what the effect will be" budget cuts.

An example: if you know the number of kids you are serving in after-school programs and have conducted satisfaction surveys of the kids and parents (with information on what they value and why), you have the data needed to start brainstorming how the same quality program can be delivered to the same number of children at a lower cost. Your folks are clever; they are likely to come up with programming options that cost less and are still fun for the kids. They might even ask the kids for ideas. Dodge ball might be a bigger hit (or at least as much fun for the kids) as the Karate instructor who comes in twice a week (and costs a lot more).

Of course, the reverse is also true. If you don't know the current service level, satisfaction levels, and drivers of those satisfaction levels, you can't assess the impact of a potential cut.

If you're not measuring now, you're behind the curve. But better late than never. 

Start with a few critical measures for each program. Use samples of data to get a baseline.

For instance, survey a sample of residents to get data on their satisfaction with government communication on events and programming. Make sure it is a representative sample (i.e. be sure that your survey is not limited to people who use computers -- you might have to make some calls). Also ask how they prefer to receive information on events and programming. It could be that including information in school newsletters or in the "Community" section of your newspaper works just as well as that expensive brochure you put out (and don't forget the labor and postage costs of your glossy magazine).

Make cost effective changes and monitor the satisfaction rating; if there is no slippage, you found a way to save with little or no negative impact on your outcome.

Remember: you'll need to keep measuring.

Even after we've passed through the current slow-down, you have to keep watching the numbers on your "Communication Scorecard." Community demographics and preferences change, so a very cost-effective (and citizen satisfying) solution for today may not be very cost-effective tomorrow. As more and more people turn to the web for information, for example, the newsletter/newspaper listings may not be enough to achieve the same levels of satisfaction.

Not to worry, though. If you track key performance measures, you will be the first to know when such change and savings opportunities occur.

Performance Management Forum for State/Local Governments

For anyone in State/Local Government interested in Performance Management, there is a free breakfast forum taking place this Friday, August 8th in Philadelphia. This is also open to any non-profit organization wishing to learn about these topics.

The focus of the forum is "Sustaining Performance During the Good Times and the Bad" and will include an impressive line-up of panelists whom you'll be able to query about best practices and ideas for overcoming challenges, even as budgets are getting squeezed.

The panelists are:

• Jeff Friedman, Deputy Director of Performance Management, City of Philadelphia, PA
• Steve Marchand, Mayor, Portsmouth, NH
• Mark Freeman, Performance Management Coordinator, City of Columbus, OH
• Chris Heflin, formerly with the City of Coral Springs (2007 Baldrige Winner) and now heading up ActiveStrategy's Public Sector Consulting Practice

The event is taking place at the Sofitel Hotel in downtown Philly. It's just a few blocks from the 30th Street Train station. Breakfast is at 8:00 am and the forum will wrap up by 11:30.

See more about the event and the topics on the agenda at the Performance Institute website.

If you're within a short drive (or train ride) from Philadelphia and would like to attend, email ward@performanceweb.org to rsvp. Though the event is no charge for Government employees, you do need to rsvp.

A Performance Management Conference Yields Gems & Duds - Part 2

In my previous post, I shared an overview of what I thought was the biggest gem to come out of a recent Performance Management conference for local government. Now on to a presentation that left me scratching my head...

"The Dud" was a puzzling presentation that came from a major city mayor’s office official.  It asked a very intriguing question: Is there a real relationship between citizen satisfaction scores and the outputs and activities governments pursue?  In other words, do people become happier with their government when the right things are done?

His initial example looked at the relationship between citizen satisfaction of the police department with the reduction in the crime rate.  The chart and data showed that the crime rate seemed to have little impact on satisfaction.  So, his question of, “do satisfaction scores matter?” really popped with this slide. 

However, it made me wonder why there is a presumed connection in this example?  Most people never interact with the police.  Personally, I don’t connect my satisfaction with police to the crime rate (if I was a robbery victim, for example, and was visited by a courteous, responsive officer who followed up on my report, I would be very "satisfied" with the police, despite the rate of criminal activity).