Performance Management: Are We There Yet?

David Ammons & Ellen Liston

NCLGBA Conference 2014

Performance Measurement ≠ Performance

Management

Strategic Planning ≠ Performance Management

Benchmarking ≠ Performance Management

“Performance management is the intentional application of strategies and techniques to achieve desired results. It is not passive; instead, it is action oriented. It includes a host of practices designed to influence performance. It is more than merely declaring goals and trusting that program officials and employees will somehow achieve them. It is more than simply measuring performance and hoping that the act of measurement will provide all the impetus needed.”

--Leading Performance Management in Local Government (ICMA Press, 2008)

Without active leadership, systems intended to influence

performance—such as performance measurement, performance budgeting, or

performance pay—are merely passive systems of rules, deadlines, and reports.

Fundamentally, performance

management entails the use of performance

feedback to influence operations.

Performance Management Doctrine• Goal clarity• Performance information that is relevant,

actionable, and readily available• Greater emphasis of results than inputs and

compliance with procedures• Engagement of elected officials in priority

setting, strategic goals, data-influenced decision making

• Engagement of top executives in performance management

• Devolved decision authority• Managerial flexibility in the use of resources• Incentives/sanctions tied to performance

Performance Management Mantra

“Make Managers Manage…”

and

“…Let Managers Manage”

Our Set of City and County Governments

• Original group of 91 local governments cited for performance management efforts

• 66 local governments with complete responses– 45 municipal, 21 county– 25 different states– Median population 311,000, smallest at 12,000

Our FindingsCities & Counties having a reputation for performance

management tended…• to have more extensive sets of measures, and to include

more measures of quality, efficiency & outcomes;• to do strategic planning, with some linking their strategic

goals to their performance management efforts;• to grant significant discretion to departmental officials but to

withhold significant discretion from operating supervisors; • to have senior managers engaged in regular reviews of

operating performance and, perhaps more often than prescribed by performance management doctrine, intervening in operating decisions;

• to be no more likely than cities and counties in general to have performance-based incentives or sanctions.

• Linking strategic goals and performance management significantly increases the likelihood of receiving anticipated performance management benefits. However, an “unlinked” strategic plan brings no apparent performance management benefits.

• Organizations whose senior managers routinely review the performance of operating units enjoy significantly greater performance management benefits.

• Some evidence that the combination of executive engagement in performance management and devolved authority does make a positive difference in reported achievement.

Key Elements of EffectivePerformance Management

• Establishing a performance culture• Sharpening performance perceptions• Establishing performance expectations• Identifying causes of performance deficiencies

and prescribing corrective actions• Motivating improvement• Incorporating meaningful performance data

into management and policy decision processes

A Few Questions to Ponder 1.Who is the primary audience for your

performance information? Secondary audience(s)?

2.Are you ever frustrated by lack of performance data use? Where is your frustration directed?

3.Which is more impressive in your organization—the “trappings,” the processes, or the products of performance management?

Performance Managementat the City of Coral Springs, Florida

strategic plan“planning”

data analysis“learning”

citizen input“listening”

output to citizens“informing”

Budget“funding”

business plan“implementing”

Feed

back

Loo

p

Feed

back

Loo

p

budget

business plan

strategic planpolicy

operations

Timing of strategic planning process (after elections)

Incorporating input from elected officials and boards and committees

Regular reporting in easy to use format (with the good, the bad and the ugly)

Never lose an opportunity to show how performance management enhances good decision-making (model the behavior you encourage)

Engagement of Governing Board

Workforce EngagementWorkforce

PerformanceManagement

and Individual Goal

Settingthrough theIncentive

Pay System (IPS)

City Mission

Key Intended Outcomes

DepartmentObjectives

Individual EmployeeObjectives

What Gets Measured Gets Done

. . . And What Gets Talked About Gets Measured

KIO Summary used by Management Team and City Commission

Accidents at major intersections despite population (and traffic) increases

0

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f acc

iden

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Popu

latio

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Accidents Population

Goals are understandable by the people who drive results

Practical and Actionable Feedback loops allow people to see their input make a difference

Flat organizational structure helps remove obstacles to action

Open and transparent Data trumps politics!

Elegant Simplicity“Nothing You Can’t Spell Will Ever Work” - Will Rogers

Satisfied Customers(95% quality rating)

Low tax rate(one of lowest in our competitive cities)

Low crime rate(one of nation’s lowest crime rates, lowest in FL)

Happy, motivated Employees(97% satisfaction rate)

What Does it Look Like When it’s Right?

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