STATE OF ALASKAPerformance Management 101

2

Why Performance Management?

1. It works - Systematic way to get results

2. Communication Common language Standard format Tells your story

3. Helps get you the money

4. It is the law

3

Performance Management CyclePlan

Budget

Operate

Analyz

eTo achieve a result:1. Develop a plan2. Budget for that plan3. Implement/operate4. Analyze and assess5. Go to step 1

• Statewide Priorities• Performance Framework• Ten-Year Fiscal Plan• Annual Budget Narrative

• Statewide Priorities• Performance Framework• Ten-Year Fiscal Plan• Annual Budget Narrative

• Results-Based Budget• Strategic Investment • Plan-Based Budget

• Results-Based Budget• Strategic Investment • Plan-Based Budget

• Process Management• Performance

Monitoring• Process Reengineering

• Process Management• Performance

Monitoring• Process Reengineering

• End Results• Measurement• Assessments

• End Results• Measurement• Assessments

Reportsand

Measures

Alaska Performance Management System

4

Performance Framework

5

6

Alaska Performance Framework

State Priorities

Department Priorities– Associated funding & positions– Key Performance Indicators

Department Performance Detail– Includes all Department Results and

associated Targets, Strategies, Status, Data, and Analyses

FrameworkAlignment

7

State Priority:Public Safety

Successful Offender Re-entries

Target: Reduce the number of released offenders who

commit a crime to X

Prepare offenders for a job at release

Target: Increase the number of offenders with

GEDs to X

So

So

Corrections Priority: Reformed Offenders

Level

of C

ontrol

Ultim

ate

Policy

Inte

nt

Teach reading to offenders

Target: X number of offenders receive reading

instruction

So

So

End Results

Actions

8

FrameworkAlignment Priorities

Prepare well-trained law enforcement

officersTarget: Increase the Public Safety Training Academy

overall GPA 9

So

So

So

End Results

So

So

So

Strategies

Actions

State Priority:Public Safety

Successful Offender Re-entries

Target: Reduce the number of released offenders who

commit a crime to X

Prepare offenders for a job at release

Target: Increase the number of offenders with

GEDs to X

Dept. Corrections: Reformed Offenders

Teach reading to offenders

Target: X number of offenders receive reading

instruction

Dept. Public Safety: Protection

Protect LivesTarget: Reduce the number

of deaths due to criminal acts

Create deterrence by solving homicides

Target: 100% homicide solve rate

10

Department PrioritiesPerformance Summary

Cabinet and OMB Head’s Up Meetings

Orders main responsibilities

Reflects resource distribution

Displays key performance

11

Key Performance Indicators

Factors to take into account when choosing key performance indicators:

• Ultimate policy intent

• Most direct measure of result

• Critical success factor

• Big ticket item

• Hot button item

12

End Result: The Ultimate Goal!• Desired eventual condition• Public focused - What public paying for• Make it bold – End stuff or make

everything good or…

“My administration is taking a comprehensive approach to stop the epidemic [of sexual assault & domestic violence]”

- Gov. Sean Parnell

Performance Detail Elements

13

End Result: (continued)• Ultimate goal, not year-end goal• Doesn’t have to be reachable today• Targets are for reachable goals• Realistic Target(s) for each End Result

Performance Detail Elements

“…get a workstation running our software onto every desk and eventually in every home.”

- Bill Gates, 1985

14

Strategy: How do we get there?• Planned approach• Designed to achieve the End Result• Consider long-term• Return on investment• Realistic Target(s) for each Strategy

Performance Detail Elements

15

Target: How are we doing?• Expected level of success • Realistic - based on time & resources• Min. one per End Result & Strategy• Use the number that best tells story

Performance Detail Elements

Analysis

16

17

Analysis

Analysis includes examining:

1. Performance & operational data

2. Internal/External Assessment

3. Evaluation of strategic alternatives

18

• So you know producing right results

• Whether, not why

• To improve, not blame

• Informs all organizational levels

• Used in planning, budgeting, operations

Performance Measurement

19

Types of Measures

Input – resources used# of staff, caseload size, …

Output – activities completed# trained, # audits, …

Efficiency – how well resources usedCost per, cycle time,…

Quality – effectivenessAccuracy, rating, survey,…

Result – outcome achievedIncidence, prevalence,…

Low Value

High Value

20

Measure ValueExampleDestination: grocery store

1. Inputs – gas pumped into the tank

2. Outputs – miles traveled, gas consumed

3. Efficiency – gas mileage

4. Quality – reliable, comfortable

5. Result – proximity to grocery store

21

•Relevant To the End Result or Strategy

•Quantifiable Need to be able to count it up

•Unidirectional Good is either up or down, not both

•Actionable Someone can act to improve it

Elements of Good Measures

22

Performance MeasuresDevelopment

• Investment

• Iterative process

• Cost/Benefit

• Unintended consequences

23

• Internal strengths/weaknesses

• External opportunities and obstacles

• User group opinions

• Identify only the most impactful

Internal/External Assessment

24

• Identify a rich range of alternatives

• Weigh cost/benefit of each• Cost includes training, time, capital,…• Benefit is the difference between the result with

and without the intervention• Other considerations include required

legislation, mix of strategies, long-term costs

• Justification for current and future

Strategic Alternatives

25

Wrap-Up

Next steps: Align State Priorities, Dept. Priorities, and

Dept. Performance Detail

Performance Management Advisory Board

Performance Management Manual

Performance Framework Improvement– Available for more specific follow-upAvailable for more specific follow-up

26

For questions and individualized assistance with Alaska’s Performance Framework:

Craig Kahklen, Management Analyst

Office of Management & Budget907-465-3559Craig.Kahklen@alaska.gov