Learning to be Better

Linking Purpose to Results

Michael Mucha, P.E.Director of Public Works

City of Olympia

Agenda

Tracking for Success: Why are we doing it and what does it

look like?

Tools for Success: How we are doing it.

What we are Learning: Challenges and Opportunities.

Issues Compelling Us To Act

Climate for change:

Increasing demand for value.

Do less with less.

Innovation to build capacity and maintain existing LOS.

Need to prepare and support employees to be their own masters of improvement.

Council Goals

Efficient Government

Informed Budget Decisions

Tell our Story to the Public

4 3

2

5

61

Strategy Must Come First!Where are we now?

How will we know when

we’ve arrived?Why are we in

business?

How do we get there?

Where do we want to be?

How should we do

business?

Measurements

Strengths Weaknesses

Opportunities Threats

Customer Expectations and Mission

Value Culture

Action Plan

Vision and Strategic Goals

Six

Ste

ps

Structure of Business Plan

Line of Business: Groupings of programs by common

purpose.

Program: Groupings of products and services by

common purpose.

Product/Service: Deliverables. Something the customer

actually receives.

Major Change In How Business Is Done

Focus is on the customer instead of the task.

Results span across organizational lines instead of contained in silos.

Data used for decision-making instead of gut feel.

Results begin a discussion instead of ending it.

Motivation is achievement and learning instead of fear and punishment.

Traditional StructureWhat We Do

Operations &

Maintenance Strategic

CommunicationsUtilities

CoordinationSupport

ServicesEngineeringPolicy

Development

Value/Structure DisconnectWhat Value We Provide

Operations &

Maintenance Strategic

CommunicationsUtilities

CoordinationSupport Services

EngineeringPolicy

Development

Drinking Water

Waste Water

Roads

Garbage

Parking

Value to Citizens

Water

Safe & Comfortab

le Life

Waste Transportation

Consultant

• Conserving• Protecting• Delivering

• Reducing• Reusing• Disposing

• Access• Efficiency• Safety• Choices

Our Operational Mantra

Job is not finished until the work is documented.

Using data is a part of everyone's job.

We will evolve not transform.

It’s not about the numbers…it’s what you do with them that matters.

So What?

Openness: Public can see for themselves what they are getting.

Pride:Citizens AND Employees are confident that the City is competent.

Success Factors

Keep it simple.

Every department moves at their own pace based on needs.

Follow a consistent framework.

Create space for learning.

Pressurize the System.

“Family of Measures”

Tells a complete story of what each program is all about.

Purpose... Results... Outputs... Demands... Efficiency...

Developing a Program Purpose

The purpose of the ________

is to provide ________ services

to __________

So that they can ____________.

“So That” The two Most Powerful Words

What benefit does the customer experience as a consequence of receiving the service?

Does it matter to somebody?

Is it tangible?

Is it measurable?

Is it doable with existing resources?

Key Results

Describes the expected benefit for customers that a given program can reasonably be expected to significantly influence:

Stated as a percentage or rate.

Vital few.

They represent the use of big chunks of resources.

40

90

Year

% o

f Lan

e M

iles

in F

air

or B

ette

r C

ondi

tion

Target 56 57 62 67 71 75 80

Actual 56 57 70 71

1997 2000 2002 2004 2006 2008 2010

Key Results MeasurePavements

40

45

50

55

60

65

70

75

80

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

Year

Pa

ve

me

nt

Co

nd

itio

n R

ati

ng $3.5 million

$3.0 million

$2.5 million

$2.0 million

$1.5 million

Pavement Management System Annual Rating

Comparison

75

62 61

52 52 51 52 5246 47

59

65

0

10

20

30

40

50

60

70

80

Pav

emen

t C

on

dit

ion

Rat

ing

1988 1989 1990 1991 1992 1993 1994 1996 1997 2000 2002 2004

Year of Rating

Pavement System Condition Rating

Outputs

Number of units of product or service delivered to the customer:

Stated in terms of numbers or counts.

Meat and potatoes.

Example: Lane miles of road resurfaced.

Demands

Number of total units of product or service anticipated or to be demanded:

Stated in terms of numbers or counts.

Sometimes hard to determine.

Example: Number of lane miles rated poor condition.

Efficiency

The cost per output or result:

A calculation stated in terms of cost per unit.

Best indicator of performance improvement.

Example: Cost to resurface $120,000 per lane mile.

Summary Statistics

Business Plans

8 Departments

24 Lines of Business

65 Programs

431 Services

54 Key Results

106 Efficiencies

2500 Outputs

One Page for Everyone

Council identifies Key Result Measures.

Directors monitor LOB’s key results.

Managers monitor program result and efficiencies.

Supervisors monitor service results and efficiencies.

Good and bad things reported up.

Strategic Long-term

Key ResultsAnnual

Operational Measures

Weekly Work Gets Done Here

The Sieve Analysis

PW Strategic Business Plan

Strategic

Where we want to be

Operational

How we get there

How we know we’ve arrived (TFS)

“Planning for a vacation”

“Final preparations for a vacation”

What Are We Learning?

Watermain is replaced

Watermain is replaced

Water is conservedWater is

conserved

Drinking water consumption per capita is

reduced

Drinking water consumption per capita is

reduced

Sustainable water

resources

Sustainable water

resources

Strategic Goal

Work!Where Change Happens

Key Result =% reduction in drinking water consumption

“so that”

“so that”

“so that”

“so that”

“So That” Chain“So That” Chain

Pipes no longer leak

Pipes no longer leak

Ultimate

Policy In

tent

Degree of I

nfluence by

Department

Triple Bottom Line

Business Case

Level of ServiceRisk

Life Cycle Costs

1ProgramStructureIdentified

2MeasuresDefined

3Baselines

Determined

4Targets

Identified

5Data

Collected

6Data

Input /Draft Report

7Report

Analyzed& Finalized

8Dept Dir& MgmtReview

9Results &Decisions

ReportDistributed

10Targets &MeasuresRefined

Performance Measures & Reporting10 Step Process

Challenges and Opportunities

Getting started.

Balance.

Accountability.

Dealing with fear.

Long-term organizational commitment.

Connecting costs and activities.

Keeping momentum.

The hardest step is the first one

Performance Roundtables

Every LOB meets quarterly.

All key programs staff attend.

Meeting is open to anyone.

Focuses on action.

Four Key Questions

Value Commitment: What results am I striving to achieve for our

customers?

Status: What specific data indicates my progress at

achieving these results?

Understanding: What are the results telling me?

Action: What must I do now to make the results even better or correct a problem?

Being a Blue Dot Organization

1 2 3 4 5

Teamwork Caring Learning Committed Risk Taking

Human Element

Bottom Line

1

2

3

4

5

Productivity Technical Competence Quality Financial Stability

Reference: Leadership and Life Mastery by Eric Allenbaugh Ph.D.

Our Culture of Accountability

Taking risks.

Expecting mistakes.

Openness about failure.

Providing support when things go bad.

Taking ownership for your commitments

Analyzing mistakes.

Celebrating successes.

Listening before deciding.

Clarity of expectations.

Managing Fear During Change

Rewards

What is in it for me?

Clarity

What do you

expect

from me?

ResolutionWhere do I go with a problem?

Managing Fear

Organizational Commitment

Use of Data & Efficiencies

Budget Integration

Normal Business

2007+

2004

(Content)Key Results & Training

Operationalize Measures & Training

2005

(Context)

Program Purpose & Business Plans

2003

Start 2001

Activity Costing Form

Keeping Momentum

Guidance Team and User Group.

Four “S’s” start slow, simple, and small.

Build on little successes.

Stop doing what doesn’t work.

Experiment.

How can we make results even better? Not…how can we improve.

Thank You!Thank You!Thank You!Thank You!

The Process

Setting the Stage:Two years of planning; goals, framework, and getting political authorization.

(Leadership)

Design:One year of development.

(Employee involvement)

Implementation:Three years to institutionalize.

(Create space in their workplan)

Design

Used outside experts.

Four-month process.

Involved employees.

So What?

Clarity

Fulfillment

Improvement

Lessons Learned

You will eventually be challenged by everyone.

Stick to your core principles and goals.

Requires intense hand holding.

Don’t forget the details.

Your own ideas will evolve.

Chunk the work.

Guiding Coalition

Turns vague concepts into reality.

Measures will not help improve performance if those using them don’t believe in their power.

True change/performance improvement happens at the operations/staff level.

Influence over a result builds capacity and reduces fear.

Wedding Cake

Policy Maker & CEO

Department Director

LOB or Division Manager

Program Manager

Staff

Key

Results

The Language We Use

How can we make results “even better.”

Results versus outcomes.

Straight talk about tangible things.

Job is not done until the data is collected!

Don’t let the data go naked.