City of Helsinki Social Services
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City of Helsinki Social Services Matrix Method for Measuring Productivity in Elderly Social Services ENSA, Madrid 2.6.2010 Kari Laakoli, Management accountin City of Helsinki Social Services Department ENSA, Madrid, June 2010 Elderly thematic group meeting Kari Laakoli – City of Helsinki Management accounting advisor E-Mail: [email protected]
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City of Helsinki Social Services Department. City of Helsinki Social Services. Matrix Method for Measuring Productivity in Elderly Social Services. ENSA, Madrid, June 2010 Elderly thematic group meeting Kari Laakoli – City of Helsinki Management accounting advisor - PowerPoint PPT Presentation
Transcript of City of Helsinki Social Services
City
of H
elsin
ki Socia
l Serv
ices
Matrix Method for
Measuring Productivity
in Elderly Social Services
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
ENSA, Madrid, June 2010
Elderly thematic group meeting
Kari Laakoli – City of HelsinkiManagement accounting advisorE-Mail: [email protected]
City
of H
elsin
ki Socia
l Serv
ices
Outline of the presentation
information of the elderly projectsfrom aggregate to disaggregate approachmatrix method
map of productivity affecting factorsprioritized measuresmatrix of service housing
productivity results in service housing in years 2007 - 2009conclusion
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
City
of H
elsin
ki Socia
l Serv
ices
Information of the elderly projectspilot projects in the elderly services in years 2007 - 2009
13 units of service housingfour nursing homes
aim was to develop a solution to a productivity measurement problem from a practical field
utilization of workshops as a methodtwo different working teams included
two researcher from Tampere University of Technology3-5 persons of elderly services (unit manager, workers representatives, accounting experts)
followed generic process of designing performance measures
ENSA, Madrid June 2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
City
of H
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ki Socia
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ices
Reference: Jääskeläinen, A. 2009
The matrix methodFrom aggregate to disaggregate approach
Aggregate measures are intended to examine productivity of a large organizational entity or the whole organization
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Top down Bottom upComponent measures (disaggregate) capture the productivity of a single activity or unit
Social Services Department is rather large organizational entityproductivity measurement was based on output/input indexlimited view when information to the unit level is needed
City
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The matrix methodFrom aggregate to disaggregate approach
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Complexity of the system
Social Service System as a whole
Part of the service system (eg. elderly services)
Unit level (eg. Service housing)
Weak view of systemproductivity
Awareness of
productivityphenomenon
Productivity is
understood and known
Productivity-consciousness
•Social Service System is a large organizational entity, state of productivity is difficult to realize and manage, offer little information to unit level• Productivity is realized, but the underlying factors needs to be better understood, measured and managed by objectives• At the unit level productivity and factors involved in the phenomenon should be understood, measured and managed by objectives
City
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Reference: Jääskeläinen, A. 2009
The matrix methodFrom aggregate to disaggregate approach
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Bottom-up
Productivity of Child Day care center 1 …
Productivity of Child Care regions
Productivity of Child care Services
Productivity of Social Service Department
Productivity of City of Helsinki
… …
…
Productivity ofNursing home 1
Productivity ofElderly services
…
…
Productivity ofService house 1
the results from different unit are aggregated to the next level focus is to examine a change in total score not the score as such every unit is taken into account by its weighted costs
…
City
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The matrix methodMap of different factors affecting productivity
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Costefficiency
Servicequality
Productivity
References: Jääskeläinen, A. 2009Jääskeläinen, A. & Lönnqvist, A. 2009
Output quantity
Output magnitude
Resources used
Utilizationof employee resources
Workingatmosphere
Employeecompetence
Bedfastresidents %
Functional loss of client %
Atmosphere In Service provision Workers
turnover
City
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Reference: Jääskeläinen, A. 2009
The matrix methodThe illustration of the measures
ENSA, Madrid 2.6. 2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Measurement objective MeasureService Housing
Nursing Home
Productivity Cost of calculated care day € 45% 45%Employee resources Work contribution in a year per number of customer bed % 15% 10%Utilization of premises Degree of utilization of premises % 15% 10%Absences of emplyees Percentage of days lost through sickness % (under 60 days) 10% 10%Function of client Functional loss % 15% 15%Function of client Bedfast residents % 10%
100% 100%
Weight value
City
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Reference: Jääskeläinen, A. 2009
The matrix methodThe illustration of the service housing matrix
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Unit cost of calculated care €
work input in year per number
customer bed
degree of utilization of premises
rate of short sickness
absences %
percentage of customer with deteriorating
conditionMeasurement result 23,21 0,36 94 3,79 11,8
10 12 0,28 100 3 109 12,5 0,29 99,9 3,2 148 13 0,3 99,7 3,4 187 14 0,31 99,5 3,7 226 15 0,34 99 4 265 16 0,37 97 4,5 304 17 0,4 95 5 343 19 0,5 92,5 6 402 21 0,6 90 7 471 23 0,7 85 8 550 25 0,8 80 10 65
Score 0 5 3 6 9Weight 45 15 15 10 15
Weighted score 0 75 45 60 135
Total score 315
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The matrix methodProductivity measurements in service housing
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
top level 900 - 1000 pontisextraordinary level 700 - 800 pointsgood level 500 – 600 pointsaverage level 400 points
0100200300400500600700800900
1000 2008
2009
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The matrix methodProductivity index in service housing
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
index 09/08
0255075
100125150175200
index 09/08level describing productivity development =100
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Reference: Jääskeläinen, A. 2009
ConclusionThe matrix method provides:
tool for managerial purposesone index calculated from several productivity-related indicatorseasy to understand what factors have influenced the indexthe matrix is not very complex:
the measurement method is transparent to every employeeshows what a good result isbenchmarking to other units using similar matrixpotential tool for supporting payment by results
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
City
of H
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ki Socia
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Thank you for your attention and interest.
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
City
of H
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ki Socia
l Serv
ices
References: Jääskeläinen A. 2009. ”Identifying a Suitable Approach for Measuring and Managing Public Service Productivity”, Electronic Journal of Knowledge Management, Vol 7, No. 4 pp. 447-458. Jääskeläinen, A. & Lönnqvist, A. 2009. ”Designing Operative Productivity Measures in Public Services”, VINE – Journal of Information and Knowledge Management Systems, Vol. 39, No. 1, pp. 55-67.
www.interrai.org
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
City
of H
elsin
ki Socia
l Serv
ices
Reference: Jääskeläinen, A. 2009
Productivity in the elderly servicesConverting values
Current costs (nominal) were converted to real costs (constant) by the PIPE index (Price index of public expenditure)
PIPE Producer: Statistics Finland, Homepage: http://tilastokeskus.fi/til/jmhi/index_en.html
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Weighting of the outputService housing
Client payment grouping (grouping is based on given service hours per month) Groups 1-6 where one elderly client in group six equate six elderly client in group one
Nursing homesRUG-III/34 grouping (hierarchical structure) Cost weigh of client structure (based on clinical status)
average client has weight 1; weight 1,3 means that client need 30% more resources
City
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Reference: Jääskeläinen, A. 2009
The matrix methodConstructing a productivity matrix
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
prioritize the measuresthe experience and context specific knowledge importantstatistical study to support the decision of the weightsto finalize matrix
collect a measurement data from each measure (previous 3 years)scaling the matrix 0 – 10
average result got a score of 4Scores 0 and 10 defined in a way that only single units had such scores
current values of measurements was necessary information
