Presented to the

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Los Angeles Unified School District
Managing for Results
A Systems Approach to Goal Performance
Measurement Standards
Presented to the Council of Great City
Schools November 2005
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Managing for Results Cycle
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Service Efforts Accomplishments

• Measures of the
• resources used,
• effect of their use, and
• efficiency with which they are used
• These measures include
• financial and non-financial resources used
  (efforts)
• outputs and outcomes (accomplishments)
• efficiency that relates efforts to accomplishments

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Service Efforts Accomplishments

• The purpose of the SEA Report is to
• Focus on priority outcomes,
• Measure progress in accomplishing them,
• Illustrate gains and challenges,
• Communicate progress,
• Bring understanding to the work workload,
• Be accountable to the Superintendent, Board, and
  taxpayers

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Getting to Outcomes

• Managing for Results provides methodologies for
  planning, implementation, monitoring and
  measuring outcomes through meaningful sets of
  activities to work within to ensure a
  comprehensive approach is taken to stay on
  course.
• Service Efforts and Accomplishments provides a
  reporting tool illustrating measured outcomes,
  resources, progress and continuous improvements.
• Bringing these two concepts together then, one
  can think of the Managing for Results framework
  as the road map, and the Service Efforts and
  Accomplishments as the gauge that tells where you
  are in reaching your destination.

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Continuous Improvement

• This report is designed as an objective tool to
  focus on communicating priorities and use data
  for continuous improvement.
• Some areas have accomplished their goal.
• Some areas show continuous improvement needed.
• Tracking outcomes provides the basis to examine
  effectiveness and continue to improve.
• Microsoft has made continuous improvement
  marketable Version 1.0

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Service Efforts Accomplishments

• Select Goals, Measures Outcomes from the
  first two years

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Benefits Administration

• GOAL Fully transition the benefits
  administration system to the Districts Human
  Resource System
• Measure Number of days it takes to identify
  eligible/ineligible participants
• Trend Decrease
• Actual Report to carrier 3 days to 1 cancel
  participants 14 weeks to 1

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Benefits Administration

• GOAL Implement an online enrollment program in
  which District employees can utilize the web to
  enroll or change their benefit plans
• Measure Percent of enrollees using the web
  compared to those requesting hard copies over
  the telephone
• Actual 85 enrolled via web 15 via telephone

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Contract Administration

• GOAL Increase the usage of the RFP process
• Measure Waiver approvals for contracts as a
  percent of total contracts over 100,000
• Target 25 reduction (69 or fewer)
• Actual 32 reduction in waiver approvals

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Contract Administration

• GOAL Reduce lead time for RFPs
• Measure Processing time for contracts valued
  at 250,000 or greater
• Target Reduce time between Waivered and
  competed (47 days)
• Actual 71.6 Days

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Food Services

• GOAL Establish a Fiscally Solvent program
• Measure Cafeteria Fund Ending Balance
• Target Positive Operational Balance
• Actual 13.5 million

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Food Services

• GOAL Increased Access to Breakfast Lunch
• Measure Participation as a Percent of ADA
• Target Breakfast 33 Lunch 45
• Actual Breakfast 33 Lunch 40

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Food Services

• GOAL Establish a Fiscally Solvent program
• Measure Labor Costs as a Percent of Revenue
• Target Not to Exceed 45
• Actual 45.4

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Materiel Management

• GOAL Expand and prioritize Strategic Sourcing
  Program to achieve higher quality and lower
  costs
• Measure Cost savings for strategically sourced
  goods
• Target 13.5 M savings for FY 03-04
• Actual 12.2 M

Commodity Type Savings (in millions)
Office Supplies 6.2
Computer Equipment 4.5
Instructional Material 0.6
Lease of Facilities 0.7
Travel 0.2
Copiers These commodities were strategically sourced in FY 03-04 but will not begin implementation until FY 04-05
Calculators These commodities were strategically sourced in FY 03-04 but will not begin implementation until FY 04-05
Printed Forms Publications These commodities were strategically sourced in FY 03-04 but will not begin implementation until FY 04-05
Two-way Radios These commodities were strategically sourced in FY 03-04 but will not begin implementation until FY 04-05
Art Supplies These commodities were strategically sourced in FY 03-04 but will not begin implementation until FY 04-05
Digital Copiers Not completed
TOTAL SAVINGS 12.2 million
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Materiel Management

• GOAL Reduce Postage Costs to Meet Budget Cut
  Expectations
• Measure Decrease in postage costs / Increase
  in non-profit mail
• Target 3.75 million or less
• Actual 2.83 million

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Materiel Management

• GOAL Reduce Cost of Salvage Operations
  Increase Revenue
• Measures Reduction of operating costs/
  Increases in auction revenue
• Target Decrease cost from FY04
• Actual 47 decrease in costs

EXPENDITURES EXPENDITURES EXPENDITURES
Truck Operations Costs (drayage related expenses) 692,506 406,229
Salvage Warehouse Costs (staff related expenses) 294,533 263,674
Total Expenditures 987,039 669,903
REVENUES REVENUES REVENUES
Public Auctions 133,350 117,238
Online Auctions n/a 100,923
Total Revenues 133,350 218,161
NET OPERATING COST 853,689 451,742
NET REVENUE COMPARISON BY AUCTION TYPE NET REVENUE COMPARISON BY AUCTION TYPE NET REVENUE COMPARISON BY AUCTION TYPE
Nine Similar Items Online Auction Public Auction
Revenue 3,851.50 2,072.22
Costs/Fees 632.65 718.06
Total Net Revenue 3,218.85 1,354.16
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Purchasing

• GOAL Ensure Textbooks are Ordered in Time for
  School Opening
• Measure Percentage of Schools Ordering
  According to Milestones
• Target 100 within 60 days of the Start of
  School
• Actual 97 Ordered on time

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Purchasing

• GOAL Transition Document Services to an
  Enterprise Organization
• Measure Business Volume in Sales
• Target Increase 10 from FY04
• Actual Increased 3 from FY04 (102 new
  customers)

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Purchasing

• GOAL Establish A Centralized Beverage Contract
  to Increase Revenue
• Measure ASB Earnings
• Target Re-Stabilize Earning to 3.4 Million
  Dollars
• Estimated FY06 Earnings Projected at 5.4

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Transportation

• GOAL Enhance Competition Among Providers to
  Improve Service
• Measure Reduction in Liquidated Damages
• Target 10 Reduction
• Actual 10.75 reduction

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Vendor Services

• GOAL Implement controls in District travel and
  conference activities
• Measure Total travel and conference costs
• Target 25 reduction
• Actual Reduced rental costs for conference
  facilities by 700,000 (11)

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Vendor Services

• GOAL Introduce Cost Effective Options for Travel
  Leasing
• Measure Total travel and conference costs
• Target Decrease costs by 250,000
• Actual Actual costs increased by 3.07 million

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Managing for Results Cycle
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Managing for Results
Strategic Planning Division Mission Division
Goals

• Interface with Superintendent Board for
  strategic direction.
• Establish understanding deep within each
  department below director level
• Retreats with department teams
• Establish Longterm vision
• Develop performance goals on two things
• What is broken
• What opportunities exist
• Strategic Planning should be completed by March.

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Managing for Results
Program/Activity Planning Branch Programs
Branch Goals Branch Targets Branch Activities

• Development of templates to capture data Info.
• Goal, activities, stakeholders, outputs,
  outcomes, measures
• Identify specific program managers accountable to
  accomplish tasks.
• Stakeholders will make or break you
• Include other departments you will rely on to
  accomplish your goals early in the process and
  identify the Mutual self-interest
• Communicate with other stakeholders about what is
  being done.
• Program Planning should be completed by April.

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Program Goal Activities Internal Stakeholder(s) External Stakeholders Output Outcome Measures
Area/Section where we plan to make or measure a change What we are trying to accomplish or achieve Will guide the remaining categories Those things we will do to achieve our goal Steps we will take Person(s) responsible for accomplishing the activity Owner Persons within the branch that will assist/be involved with accomplishing activity Person/ Organizations outside the branch with a stake in accomplishing the activity Tangible results of activities Things we have control over - Products - Services - Meetings - Reports Intangible results of activities Things we may not have control over - Results - Impacts How we will know if we have achieved our outcomes Also called performance indicators - Countable - Consistent over time - Mission goal oriented - Definable - Supportable by accurate, reliable valid data Must include - Target or trend - Baseline We avoid output measures
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Measure for Results Inputs Outputs Efficiency
Service Quality Outcomes
Managing for Results

• Settle measurement early
• Establish measures in advance of implementation
  to maintain objectivity
• Identify supplemental data points
• Can you really only have the meaningful few?
• Link goal based measures to operational measures
• Develop your own systems to capture data
• Dont let legacy systems keep you from starting
  the work.
• Measurement development should be completed by
  June
• Include mechanisms for data collection, frequency
  of reporting

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Managing for Results
Budget for Results Target Strategies Allocate
Resources Performance Budget

• The company perspective
• What would it cost if you were hired to come in
  and do this?
• Compile line items into program efforts if major
  systems are a barrier
• Utilize activity-based costing methods to cost
  out deliverables
• Formal organizational linkage of performance
  goals to budget will drive strategic planning
  earlier.

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Managing for Results
Manage for Results Manage work process Collect
data Use data to manage

• Direct management
• Performance management must be directly managed
  by the senior official no delegation
• Dedicate time to the work
• Keep this squarely in daily activities, or daily
  activities will keep you from doing it.
• Require monthly reports even if data cant be
  collected monthly.
• 20 Rule for RD
• Detailed project management is critically
  important
• Map specific activities and who is responsible
  for them
• Identify milestone dates and hold them sacred
• Remove barriers to accomplishing the goal.

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Produce Analyze Results Compile Data
Determine Costs Record Service Levels Recognize
Standards Redesign or Improve Set Targets
Managing for Results

• Focus on continuous improvement
• Link data results to policy issues for planning
• Make adjustments to approach based on
  accomplishments in the year.
• Fold goal accomplishment into the maintenance
  stage to establish long-term culture.
• Supportive accountability
• Link performance plans to staff performance
  reviews

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Managing for Results
Report Evaluate Results SEA Report Audits of
Performance Information Performance Audits

• Its not just what you do,
• its how you market what you do.
• Demonstrate savings efficiencies
• Show value-added in the work being done
• Report on progress honestly
• Establish briefings with Superintendent, Board
  members, and stakeholders to review the results

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For More Information

• Michael Eugene, Business Manager
• [phone]
• michael.eugene_at_lausd.net
• www.lausd.net
• Follow the links to the Business Services
  Division
• Governmental Accounting Standards Board
• www.gasb.org
• www.seagov.org