Culture of Quality Governance

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Culture of Quality Governance
Utah is committed to providing value to our
citizens through consistently improving services
we offer. We are continuing our focus on
improving quality of life through many programs
in education, economic development, and improving
performance in government. . Governor Jon M.
Huntsman
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Culture of Quality Governance Areas of Emphasis
Strategic Leadership
Analytical Framework
Leadership Development
Strategic Investment
Innovative Results
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Analytical Framework Measuring for Performance
If you cant measure it, you cant manage
it. When performance is measured, performance
improves. What you measure is what you get.
Senior executives understand that their
organizations measurement system strongly affects
the behavior of managers and employees. -Kaplan
and Norton What gets measured gets done.
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Analytical Framework The Balanced Scorecard
The Balanced Scorecard gives government
organizations a tool to plan, communicate and
drive new strategies to meet the needs of
stakeholders, including constituents and
legislatorswhile demonstrating accountability
for program and organizational outcomes/results.
-Gartner-- Balanced Scorecard Holistic View of
Public-Sector Strategy, 2001
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Analytical Framework Why Use Balanced Scorecard?
Why Scorecard? Translate strategy into action,
making strategy everyones job. Manage the
intangible assets e.g., customer loyalty,
innovation, employee capabilities Meausre what
matters - the critical few vs. the important many
in real time, not just after the fact Create a
daily management system for the day-to-day
navigation of the business
To Scorecard Successfully Reach cross-functional
agreement on strategic direction Translate
strategy into everyday speak Understand the
cause and effect of linkages between
strategy/initiatives/processes Identify most
important measures of success, critical strategic
initiatives, and process drivers Set up
accountability contracts across
organization Cascade the Scorecard into the
organization
What Youll Get Alignment and focus of the
organization around a common purpose and
strategic direction Improved resource
prioritization and allocation Improved basis for
business development and growth planning An
ongoing feedback mechanism to make real-time,
mid-course adjustments to priorities A set of
balanced metrics Now I understand how I
contribute to the business strategy and the
bottom line.
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Analytical Framework The Balanced Scorecard
What is your mission? Management teams at
department and division level discussion and
agreement. What is your strategy for fulfilling
mission? Reassess current strategy and identify
areas of desired improvement or performance
acceleration. How do you measure your
performance? What must we do well? What can be
measured? How will we use the information to make
decisions?
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Creating a Balanced Scorecard
Filter metrics to vital few
Draft scorecards, targets iterate
Confirm or develop strategy
Identify metrics
xxx
Improve Customer Service
xxx
First Draft Metrics
xxx
Strategy
Increase Efficiency
Measurable
xxx
Controllable
Focused
xxx
Increase Productivity
xxx
Execute plan
Communications
Training
Roles and Responsibilities
Management Process
IT Platform
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Balanced Scorecard Step 1 Confirm Strategy and
Primary Objectives

• What processes are critical to our
• success (efficiency, innovation,
• learning, etc.)?
• What are the critical dependences
• and relationships among processes?
• How must these be structured or
• organized?
• What actions and initiatives do we
• take in light of the above?
• - Who takes them?
• How do we measure and manage
• progress?

• Who are our shareholders or stakeholders?
• What do they expect from us?
• What are our goals?
• What actions and initiatives do we
• take in light of the above?
• - Who takes them?
• - How do we measure and manage progress?

Financial
Balanced Scorecard from 30,000 Feet
Internal Business Processes
Balanced?
Balanced?
Customer
Mission and Vision
Balanced?
Balanced?

• Who are our customers?
• - What do they value?
• - What do we sell?
• - What value propositions do
• we offer?
• - What is our brand image?
• How do we establish, sustain,
• and leverage client relationships?
• What actions and initiatives do we
• take in light of the above?
• - Who takes them?
• How do we measure and manage
• progress?

• What are our human capital issues and
• requirements (skill mix, critical skills,
• morale, motivation, training,
• development, bench strength, etc.)?
• What infrastructure resources are
• critical to our success (tools, methods,
• knowledge bases, labs, etc.)?
• What organizational capital resources
• are critical (structure, leadership,
• culture, values, etc.)?
• What actions and initiatives do we
• take in light of the above?
• - Who takes them?
• How do we measure and manage
• progress?

Learning and Growth
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Balanced Scorecard Step 2 Principles for
choosing metrics
Linked

• KPIs must have strong and clear linkage with
  organization vision, strategy, and goals

Individual metrics
Controllable

• KPIs must be owned by those who will be
  accountable

Measurable

• Must be measurable with available data that is
  easily trackable

Balanced

• KPIs must be balanced to include financial and
  non-financial metrics as well as leading and
  lagging metrics

Set of metrics
Focused

• Performance should be assessed on the vital
  few, not the trivial many KPIs

Appropriate targets

• Targets must be set appropriately so that they
  are stretch, but achievable they should reviewed
  frequently

Cascaded

• Must cascade up/down so that achievement of lower
  level KPIs ensures company reaches its corporate
  goals

Organizational entrenchment
Buy In

• Organizational buy-in is critical and requires
  that metrics and targets are accepted by each
  organization

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Balanced Scorecard Step 3 Filter down to vital
few
Initial set of metrics (50 potential metrics)

• Metric owner influences/controls outcome measured

• Input data available, objective and comparable
  over time

• Duplication and non-priority metrics removed

• Leading and lagging financial and non-financial
  metrics

Vital Few (target lt15 metrics per scorecard)
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Balanced Scorecard Step 4 Scorecard should be
simple and high impact
Last
This
Current
Trend
Target
Comments
Status
Period
Period
Customer
Principal satisfaction with initiatives
6.0
5.0
8.0
Parent satisfaction with counselors
6.0
7.0
7.0
Process
Parent/teacher conference attendance
59
58
60
PA/PTA effectiveness
Elementary and middle schools
8.0
8.0
8.0
High schools
7.0
9.0
11.0
PA/PTA involvement
Elementary and middle schools
49
49
49
High schools
45
45
45
Parent Tracking response rate
49
49
49
Parent Tracking response time
30
30
30
of communication channels
50
50
50
Town hall attendance
50
50
50
Communications effectiveness
6.0
6.0
6.0
Parents touched by counselors
49
40
60
Financial
31.00


33.00


35.00


Cost per parent
14.0
16.0
18.0
Budget variance
Organization
Parent advisory board utilization
30
30
30
Parent training involvement
20
20
20
Employee satisfaction
4.0
5.0
10.0
Real data has been removed
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State of Utah Scorecard Template
Department/Division Name
Logo
Period
Mission Statement
Metric
Status
Trend
Target
Current
Previous
Measured
Definition
Metric Category
Metric Category
Metric Category
Footnotes
Executive Director Contact Info
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UDOT Performance Management
UDOTs Final Four
Strategic Objectives
Examples of Performance Measures
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Key learnings from past balanced scorecard
projects

• Work to ensure you have the right objectives that
  are linked to mission/statute
• Learn by doing continue to refine objectives and
  metrics and replace as needed
• Focus on the few metrics that will have the
  highest practical impact
• Engage people from multiple levels of the
  organization in developing metrics to ensure
  buy-in
• Organizational buy-in is critical
• Engage IT professionals early on for help in
  collecting data
• Dont be afraid of red the scorecard is your
  friend