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““The key to gauging both the The key to gauging both the performance and health of an performance and health of an organization and its processes lies organization and its processes lies with its selection and use of metrics. with its selection and use of metrics. A well-designed set of metrics A well-designed set of metrics provides a meaningful framework for provides a meaningful framework for measuring performance both measuring performance both vertically and horizontally. Not only vertically and horizontally. Not only are the metrics linked vertically and are the metrics linked vertically and horizontally, but they are also horizontally, but they are also balanced to provide different balanced to provide different perspectives” perspectives”

Tom Kubiak, Quality ProgressTom Kubiak, Quality Progress

Tools for Identifying Measures

Tools for Identifying Measures

Balanced ScorecardBalanced Scorecard

– Views strategies from five perspectivesViews strategies from five perspectives

– Balances competing objectives and expectationsBalances competing objectives and expectations

– Yields outcome, output and efficiency measuresYields outcome, output and efficiency measures

– Links perspectives through the strategyLinks perspectives through the strategy

The Value ChainThe Value Chain

– Links inputs, activities, outputs and outcomes at Links inputs, activities, outputs and outcomes at different levels of influencedifferent levels of influence

Balanced ScorecardBalanced Scorecard

– Views strategies from five perspectivesViews strategies from five perspectives

– Balances competing objectives and expectationsBalances competing objectives and expectations

– Yields outcome, output and efficiency measuresYields outcome, output and efficiency measures

– Links perspectives through the strategyLinks perspectives through the strategy

The Value ChainThe Value Chain

– Links inputs, activities, outputs and outcomes at Links inputs, activities, outputs and outcomes at different levels of influencedifferent levels of influence

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Washington’s Balanced Scorecard

Washington’s Balanced Scorecard

Public Value and Benefit

(ultimate outcome measures)

Internal Process Management

(output and process measures)

Financial Management

(efficiency measures)

Customer Service

(outcome measures)

OrganizationalLearning and Growth

(outcomes and outputs related to organizational issues)

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Customer Focus

Public Value and Benefit

Fina

ncial

Man

agem

ent

Organizational Learning

Internal Process Mgt.

Perspectives on Performance

Perspectives on Performance

Scorecard PerspectiveScorecard PerspectiveIndividual or GroupIndividual or Group

Service recipient

Citizen/Stakeholder

OFM

and

Leg

islat

ors

Staff/managersSupervisors

Performance ExpectationSample Measure

Service needs met Mission results

ROI

Capacity built

Process vital signs $,

FTE

’s $

/uni

tWait time, quality

Units completed

Results achieved

Skills acquired

MajorStrategy

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Balanced Scorecard Principles

Balanced Scorecard Principles

• Examine major strategies from all Examine major strategies from all five perspectives to:five perspectives to:– Identify all key requirements Identify all key requirements

– Anticipate issues that could Anticipate issues that could compromise your successcompromise your success

– Understand and address competing Understand and address competing expectationsexpectations

– Link the perspectives to each otherLink the perspectives to each other

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Balanced Scorecard Helps…

Balanced Scorecard Helps…

• Separate and clarify interests and Separate and clarify interests and contributions of partners and suppliers, contributions of partners and suppliers, staff, managers, suppliers, customers, staff, managers, suppliers, customers, stakeholdersstakeholders

• Identify ‘output’ ‘outcome’ and Identify ‘output’ ‘outcome’ and ‘efficiency’ measures around each ‘efficiency’ measures around each activityactivity

• Distinguish between what we can Distinguish between what we can ‘control,’ what we can ‘influence’ and ‘control,’ what we can ‘influence’ and what we can only ‘be concerned about.’what we can only ‘be concerned about.’

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DriversUltimate

OutcomesIntermediateOutcomes

ImmediateOutcomesOutputsOutputsActivitiesInputs

External causes $$

EmployeesIT tools

EquipmentFacilitiesStatutes

Processes and Roles

Productsand

services delivered

Impact on recipient,

Changes in

technicalquality

Changes in attitudes or beliefs

Changes in behaviors of

people or systems

Societalimpact

Value ChainValue Chain

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DriversUltimate

OutcomesIntermediateOutcomes

ImmediateOutcomesOutputsOutputsActivitiesInputs

Relationship to Strategic Plan

Relationship to Strategic Plan

Strategies Goals/Objectives Mission

Environmental Scan

Financial Plan

9

DriversUltimate

OutcomesIntermediateOutcomes

ImmediateOutcomesOutputsOutputsActivitiesInputs

Levels of AccountabilityLevels of Accountability

Agency Control

Agency Influence

Stake-holders

CitizensMediaStakeholder

ManagersCustomer

Super-Super-visorvisor

Line StaffFiscal &Budget

Agency Concern

We offer work skills training to

inmates…

# of classes taught

We offer work skills training to

inmates…

# of classes taught

Inmates will have a marketable skill when they leave

prison…

# of inmates certified in the skill

Inmates will have a marketable skill when they leave

prison…

# of inmates certified in the skill

Inmates choose gainful employment

over crime…

% of inmates finding a job after

release

Inmates choose gainful employment

over crime…

% of inmates finding a job after

releaseRecidivism rate

declines.

% of inmates who commit crimes

after release

Recidivism rate declines.

% of inmates who commit crimes

after release

…so that…

Degree of Influence by

Department of

Corrections

Ultimate Policy Intent

Output

Immediate Outcome

Intermediate Outcome

Ultimate Outcome

Department of CorrectionsValue Chain

Department of CorrectionsValue Chain

…so that…

…so that…