Performance Measurement and Organizational Effectiveness

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Performance Measurement and Organizational
Effectiveness

• Presented by Larry W. Maholland
• ICMA Center for Performance Measurement
• 2005 Forum
• April 26. 2005

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(No Transcript)
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Formal Organizational Structure
Departments Police Fire Public Works Community
Development Economic Development Finance Human
Resources Information Systems
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Welcome to St. Charles!

• Population 32,000
• 35 miles west of Chicago
• Settled in 1834
• 365 full-time equivalent employees
• Budget 150 million

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Our Strategic Framework
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Strategic Framework

• STRUCTURED MEANDERING . STRUCTURED MEANDERING .

Citywide Goals
Mission
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Information Sources (Current Reality)

• Customer Surveys
• Comparisons and Trends
• Performance Measures
• Focus Groups
• Business Calls City Hall Housecalls
• Listen Learn
• Tuesdays Over Easy

Information Sources (Current Reality)
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Vision

• An ideal picture of the future
• Integrates the past with the future
• Created by the community

Vision
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Structured Meandering
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Formalizing the Philosophy
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Guiding Principles to Formalize the Philosophy

• Devote the necessary time
• Involve employees from all levels
• Significant changes and programs
• Use outcome and efficiency performance targets

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Steps to Formalize the Philosophy

• Step 1 Why Are We Doing This?
• Step 2 Environmental Scan
• Step 3 Information Review
• Step 4 Vision, Mission and Values
• Step 5 6 Intradepartmental Analysis
  Interdepartmental Communication

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Steps to Formalize the Philosophy (cont.)

• Step 7 -- Council Retreat
• Step 8 Review Key Initiatives (citywide goals)
• Step 9 Develop Objectives, Strategies,
  Performance Targets and Action Plan
• Step 10 Present Plan
• Step 11 Process Evaluation

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Converting Theory Into Practice
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Introducing the Concept

• Why is it called a Business Plan?
• Why citywide goals?
• Is an objective qualitative and a goal
  quantitative, or is it the other way around?

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Deployment

• Learning together
• How many to involve
• How far to go
• Persistence

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Institutionalization

• The look of the document
• Business Plan presentations
• Broad Distribution
• Discuss with new hires
• Included in budget

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Personalizing Posters

• Listen and Learn
• Staff meetings
• Council Update
• Business Plan process review

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St. Charles View of Performance Measurement
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A team without a scoreboard is not playing the
game it is only practicing. Tom Malone,
President, Miliken Co.
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City of St. Charles Vision Statement

• We will preserve our unique character as a
  dynamic, prosperous city, maintaining the small
  town charm, the natural beauty of the Fox Valley,
  and the quality schools, parks and services that
  make St. Charles distinct. Our historic downtown
  is the heart of the community, and keeping it
  healthy and vibrant is essential. Building on
  our heritage, we will balance nature and
  development

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How Do We Know?
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Reasons to Use Performance Measures

• What gets measured, gets done
• You cant tell success from failure
• If you cant see success, you cant learn from it
• If you cant see success, you cant reward it
• If you cant see failure, you cant correct it
• If you can demonstrate results, you can win
  public support

Source NWMC --Performance Measurement
Consortium Technical Committee Report Sept. 1998
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Reasons to Use Performance Measures (cont)

• Planning/budgeting
• Operational improvement
• Program evaluation
• Reallocation of resources
• Accountability
• Directing operations
• Contract monitoring

Source ICMA -- Accountability for Performance
Measurement and Monitoring Local Government
Edited by David N. Ammons, 1995
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Balancing the Critical Factors for Success
Developed by Robert S. Kaplan David P. Norton
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Factors That Influence Success
Perspective
Factors for Success
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Perspectives Important to Success
There is a saying in the United States that
customer is king. But in Japan the customer is
God. Tak Kimoto, Sumitronics Inc.
Customer
It is the workers who hold a companys
information and knowledge about its research, its
products, its customers, and its corporate
experience of what works and what doesnt.
Leon Martel
Employee
If there is a way to do it better find it.
Thomas A. Edison
Operations
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Drivers Provide Indication of Future Success

• Driven by short-term measures that lead to
  successful outcomes
• Drivers link cause to the effect
• Drivers are leading indicators
• Outcomes are lagging indicators

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Customers Drive the Other Perspectives
Quantitative Customer Data Priorities Survey Bus.
Retention Survey Employee Survey Follow-up
Surveys Available output, outcome and efficiency
measures
Qualitative Customer Information Focus
Groups Business Calls City Hall
Housecalls Tuesdays Over Easy Listen and
Learn
Budget Plan
Business Plan
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St. Charles Strategy In Action
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St. Charles Strategy in Action

• Customer Site visits and surveys
• Learning and Growth Service Essentials TM
• Internal Business Processes Service standards
• Financial -- 140,000 per year
• Intangible
• Successful business
• Human capital

Letter to Mayor When we first considered
moving to St. Charles , we expressed concern over
the citys reputation of being difficult to work
with on construction projects
An unhappy customer will share their experience
with 20 others. Bob Moran, President, Moran
Consulting
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St. Charles Strategy in Action

• I can say with all honesty that the interaction
  we experienced with every city department was
  professional, courteous and respectful of our
  needs and time constraintsthe many staff members
  we worked with left me with the impression that
  St. Charles was a community that would welcome
  our business and work with us to achieve our
  goals.

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Programs That Support Citys Philosophy

• Process Improvement Teams
• Wellness
• Accounts Payable
• Health Insurance
• Retiree Insurance
• Supervisory Leadership Training (SMILE)
• Performance Unbundling
• Emergency Preparedness
• Hiring Process
• Mobile Communications
• Permit Tracking

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Programs That Support Citys Philosophy (cont.)

• Service Essentials training
• Grapevine
• Pre-application Pre-submittal meetings
• Council Update
• Records management
• Emotional Intelligence coaching
• Council agenda summaries
• Staff meetings

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The Bottom LineIs Results
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How would you describe St. Charles as a place
to live?
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Overall, how would you rate St. Charles as a
place to do business?
Low response rate
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How would you rate the responsiveness of St.
Charles city employees?
Low response rate
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Employee Training
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I understand the Citys mission and goals.
1 Strongly disagree 7 Strongly agree
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I am proud to work for the City.
1 Strongly disagree 2 Strongly agree
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Providing budgetary/financial information in an
easy-to-read and understandable format
Satisfaction
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Conclusions

• Create a vision
• Assess current reality
• Commit to experimentation and learning
• Measure performance

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Questions?
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Group Activity

• Each table will create a vision, mission,
  objectives, core values and performance targets
  for my retirement party.

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Group Activity -- Example

• Plan your next vacation
• Vision
• Sunshine and 80 degrees near the water with great
  restaurants and a casual atmosphere.
• Mission
• Relax and get recharged
• Objectives
• Enjoy the recreational opportunities (e.g.
  sailing fishing)
• Return relaxed and reenergized
• Core values
• Have fun
• Appreciate the diversity in food and people
• Live healthy

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Group Activity -- Example

• Performance targets
• Blood pressure will drop by 10 upon return
• Read at least 3 pleasure books
• Gain no more than 5 pounds
• Survey of work group before and after you return,
  On a scale of 1-Lousy to 5-extremely happy, rate
  your mood. The score should be Improved from a
  2.5 to 3.5.

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• Larry W. Maholland
• City of St. Charles
• 2 East Main Street
• St. Charles, IL 60174
• lmaholland_at_stcharlesil.gov
• 630-377-4425