Culture of Quality Governance

Utah is committed to providing value to our citizens through consistently improving services we offer. We are continuing our focus on improving quality of life through many programs in education, economic development, and improving performance in government. .

Governor Jon M. Huntsman

Culture of Quality Governance: Areas of Emphasis

Strategic Leadership

Analytical Framework

LeadershipDevelopme

nt

Strategic Investment

Innovative Results

Analytical Framework: Measuring for Performance

If you can’t measure it, you can’t manage it.

When performance is measured, performance improves.

“What you measure is what you get. Senior executives understand that their organizations measurement system strongly affects the behavior of managers and employees.”

-Kaplan and Norton

What gets measured gets done.

Analytical Framework: The Balanced Scorecard

“The Balanced Scorecard gives government organizations a tool to plan, communicate and drive new strategies to meet the needs of stakeholders, including constituents and legislators…[while] demonstrating accountability for program and organizational outcomes/results.”

-Gartner-- Balanced Scorecard: Holistic View of Public-Sector

Strategy, 2001

Why Scorecard?

Translate strategy into action, making strategy everyone’s job.

Manage the intangible assets e.g., customer loyalty, innovation, employee capabilities

Meausre what matters - the critical few vs. the important many – in real time, not just after the fact

Create a daily management system for the day-to-day navigation of the business

To Scorecard Successfully

Reach cross-functional agreement on strategic direction

Translate strategy into “everyday speak”

Understand the cause and effect of linkages between strategy/initiatives/processes

Identify most important measures of success, critical strategic initiatives, and process drivers

Set up “accountability contracts” across organization

Cascade the Scorecard into the organization

What You’ll Get

Alignment and focus of the organization around a common purpose and strategic direction

Improved resource prioritization and allocation

Improved basis for business development and growth planning

An ongoing feedback mechanism to make real-time, mid-course adjustments to priorities

A set of balanced metrics

“Now I understand how I contribute to the business strategy – and the bottom line.”

Analytical Framework: Why Use Balanced Scorecard?

What is your mission?

Management teams at department and division level discussion and agreement.

What is your strategy for fulfilling mission?

Reassess current strategy and identify areas of desired improvement or performance acceleration.

How do you measure your performance?

What must we do well? What can be measured? How will we use the information to make decisions?

Analytical Framework: The Balanced Scorecard

Increase Productivity

Increase Efficiency

Improve Customer Service

xxx

xxx

Strategy

Identify metrics

Controllable

Focused

Measurable

Filter metrics to ‘vital few’

Draft scorecards, targets & iterate

IT Platform

TrainingCommunications

Roles and Responsibilities Management Process

Creating a Balanced Scorecard

Confirm or develop strategy

xxx

xxx

xxx

xxx

First Draft Metrics

Execute plan

Mission and

Vision

- What are our human capital issues and requirements (skill mix, critical skills, morale, motivation, training, development, bench strength, etc.)?- What infrastructure resources are critical to our success (tools, methods, knowledge bases, labs, etc.)?- What organizational capital resources are critical (structure, leadership, culture, values, etc.)?- What actions and initiatives do we take in light of the above?- Who takes them?- How do we measure and manage progress?

- Who are our shareholders or stakeholders?- What do they expect from us?- What are our goals?- What actions and initiatives do we take in light of the above?- Who takes them?- How do we measure and manage progress?

- What processes are critical to our success (efficiency, innovation, learning, etc.)?- What are the critical dependences and relationships among processes?- How must these be structured or organized?- What actions and initiatives do we take in light of the above?- Who takes them?- How do we measure and manage progress?

- Who are our customers?- What do they value?- What do we sell?- What value propositions do we offer?- What is our brand image?- How do we establish, sustain, and leverage client relationships?- What actions and initiatives do we take in light of the above?- Who takes them?- How do we measure and manage progress?

Balanced Scorecard from 30,000 Feet

Balanced?Balanced?

Balanced? Balanced?

Financial

Internal Business Processes

Learning and

Growth

Customer

Balanced Scorecard Step 1: Confirm Strategy and Primary Objectives

Balanced Scorecard Step 2: Principles for choosing metrics

• KPIs must have strong and clear linkage with organization vision, strategy, and goalsLinked

Controllable

Cascaded

Measurable

Focused

Balanced

Appropriate targets

Buy In

• KPIs must be balanced to include financial and non-financial metrics as well as leading and lagging metrics

• Performance should be assessed on the ‘vital few’, not the ‘trivial many’ KPIs

• KPIs must be owned by those who will be accountable

• Must be measurable with available data that is easily trackable

• Targets must be set appropriately so that they are stretch, but achievable; they should reviewed frequently

• Must cascade up/down so that achievement of lower level KPIs ensures company reaches its corporate goals

• Organizational buy-in is critical and requires that metrics and targets are accepted by each organization

Individual metrics

Set of metrics

Organizational entrenchment

Controllable

Measurable

Mix

Focused

Balanced Scorecard Step 3: Filter down to ‘vital few’

Initial set of metrics(50+ potential metrics)

‘Vital Few’(target <15 metrics

per scorecard)

Metric owner influences/controls outcome measured

Input data available, objective and comparable over time

Duplication and “non-priority” metrics removed

Leading and lagging financial and non-financial metrics

Balanced Scorecard Step 4: Scorecard should be simple and high impact

TrendEXAMPLE

CustomerPrincipal satisfaction with initiatives 6.0 5.0 8.0Parent satisfaction with counselors 6.0 7.0 7.0

ProcessParent/teacher conference attendance 59% 58% 60%

PA/PTA effectivenessElementary and middle schools 8.0 8.0 8.0High schools 7.0 9.0 11.0

PA/PTA involvementElementary and middle schools 49% 49% 49%High schools 45% 45% 45%

Parent Tracking response rate 49% 49% 49%Parent Tracking response time 30% 30% 30%# of communication channels 50% 50% 50%Town hall attendance 50% 50% 50%

Communications effectiveness 6.0 6.0 6.0Parents touched by counselors 49% 40% 60%

FinancialCost per parent 31.00$ 33.00$ 35.00$ Budget variance 14.0 16.0 18.0

OrganizationParent advisory board utilization 30% 30% 30%Parent training involvement 20% 20% 20%Employee satisfaction 4.0 5.0 10.0

TargetLast Period

This Period CommentsCurrent

Status

Real data has been removed

Metric Status Trend Target Current Previous Measured Definition

Department/Division NamePeriod

Mission Statement

Logo

Metric Category

Metric Category

Metric Category

Footnotes Executive Director Contact Info

State of Utah Scorecard Template

UDOT Performance Management

UDOT’s Final Four

Strategic Objectives

Examples of Performance Measures

‘Key learnings’ from past balanced scorecard projects

• Work to ensure you have the right objectives that are linked to mission/statute

• Learn by doing: continue to refine objectives and metrics and replace as needed

• Focus on the few metrics that will have the highest practical impact

• Engage people from multiple levels of the organization in developing metrics to ensure buy-in

• Organizational buy-in is critical

• Engage IT professionals early on for help in collecting data

• Don’t be afraid of red: the scorecard is your friend