Prioritization of Government Services

1. Prioritization of Government Services Results from GFOA’s ongoing research Wisconsin Government Finance Officers Association May 2010

2. How do I prioritize services?Who is actually doing this work? • Governments are prioritizing programs and services. This process is called Performance Management • Governments that realize that Performance Management (PM) promotes accountability and supports confidence in the government to the community to communicate results and improve the governments capacity to provide better services • Governments that want to know –What services to provide to which customer and at what price? • Approximately 40% of all jurisdictions (population above 25,000) use PM

3. Cascading System Benchmarking System Stats Program Balanced Scorecard Use PM in Budget Process Performance Reporting Utilize Citizen Surveys Involve Citizens in Process 46% 31% 27% 17% 46% 81% 60% 6% Most performance management systems fall into categories

4. Cascading System • Elements • Formal strategic plan that is regularly reviewed • Departmental performance measures linked to strategic goals and objectives • Example • City of Dayton Beach, FL departments align their goals and performance measures with higher-level city priorities

5. Performance Measurement is about achieving goals and improving Organization-Wide Mission Organization Objectives Organization Objectives Strategies Strategies Strategies Department Programs Department Programs Department Programs Department Programs Individual Accountabilities Individual Accountabilities Individual Accountabilities Individual Accountabilities Individual Accountabilities

6. Cooperative Benchmarking • Elements • Standard measures developed and used by multiple jurisdictions • Formal process for collecting, validating and sharing data • Examples • City of Salisbury, NC participates in the NC Benchmarking project so that it can compare its performance against other NC municipalities • Florida Benchmarking Consortium includes 51 separate FL government organizations measuring 14 service areas

7. Balanced Scorecard • Elements • Performance measures are group into organization-wide defined categories [perspectives]. (Concept is based on book by Robert Kaplan and David Norton) • Example • Mecklenburg County, NC uses four goals to group their long-term focused performance measures: • Community Health and Safety • Growth Management & Environment • Social Education & Economic opportunity • Effective and Efficient Government

8. “Stat” System • Elements • Formal regular review of operational level performance measures • Short-term accountability of operational units to executive • Example • Minneapolis 311-Minneapolis, MN departments report regularly to a review panel of city leaders to track key performance indicators and discuss strategies. Key Stats are reported on-line http://www.ci.minneapolis.mn.us/311/reports.asp

9. Performance Budgeting • Elements • Formal process for utilizing performance measures in the budget process • Example • City of Long Beach, CA developed a process of creating a system in which objectives are linked to city-wide goals and the budget. Has already migrated to a program budget to associate cost and performance of municipal programs

10. Budgeting for Outcomes (form of performance budgeting) • Elements • Funding allocations are made to “outcomes” or results the government wants to achieve. Departments then propose services to meet those outcomes. • Example • Snohomish County, WA creates “results teams” that put together a list of desired outcomes. The Council then prioritizes the outcomes to decide what gets funded • ”I want to get the service I need at an affordable price and know that my dollars are spent wisely”-Results Team-Leadership

11. Performance Reporting • Elements • Performance measures included in the published budget document • A performance report is published and distributed to citizens • Example • City of Portland, OR for 19 years has produced a Service Efforts and Accomplishments report to improve public accountability, managerial decision-making and service quality

12. Citizen Surveys • Elements • Governments systematically survey their citizens to determine priorities, expectations and satisfaction with services • Example • The ICMA helps coordinate the National Citizen Survey that asks standard questions to numerous jurisdictions to create comparisons.

13. Citizen Involvement with PM • Elements • Citizens are actively engaged with helping to define measures, make decisions, and participate in the process of setting goals and collecting data. • Example • The City of Bellevue, WA collects data and communicates results of its “vital signs,” or citizen selected measures that best communicate the well-being of the city and the governments ability to provide quality services. • In 2009, the City of Bellevue received the ICMA Award of Excellence from the ICMA Center for Performance Management

14. Many Organizations are involved with advocating use of PM • Non Profit Organizations • Center for Civic Innovation • United Way • Research Organizations • University of North Carolina • Membership Organizations • GFOA, ICMA, etc.

15. GFOA’s Performance Management Framework for Governments • Public Review Draft completed-July 2009 • A glossary of commonly used performance measurement terms • A prescribed framework to assist government to apply a systematic application of performance information • Standardized Performance Measurement Principals • Creating a format to Initiate, implement and sustain Performance Management

16. National Performance Management Advisory Commission • Identify general approaches and practices that are characteristic of successful performance measurement and management • Emphasize the value of evidence-based and data-driven decision making in effectively delivering government services • Support state and local government implementation of performance measurement systems • Reflect the issues and challenges associated with development and implementation of performance management systems from a broad range of perspectives, including elected and appointed officials, and program and operational managers • http://www.PMCommisson.org Final report expected Spring 2010

17. Sheboygan County, WI Performance Management Program

18. Langlade County, WI Performance Management Program

19. Langlade County Case Study • Small County – Large Task • Desired End Result • Process and Procedures • Phase II

20. Marathon County, WI Performance Management Program

22. Performance Measurement Reporting • 2002 Initiate Program Evaluation Team (PET) to catalog and rank all County Programs based on a matrix/points system • Create the Outcome Management (OM) Team to explore Performance Management (PM) • Training in 2003 and 2004 for OM Team and all departments • GFOA: Distinguished Budget Presentation Award since 2005 • Created Logic Models for programs to be included in the 2005 budget • Created Measurement Plan Summary that was included in the 2006 budget • Created the Outcome Measurement Report included in the 2007 budget • 2007 developed County Strategic Plan and County Board outcomes for Marathon County • 2008 Created Internal Grant Program • 2009 Develop Overarching goals and start program prioritization process based on focus group information

23. Leadership Philosophy Organizational Alignment • Mission • Vision • Core Values • Strategy • Structure • Leadership • Culture

24. Program Evaluation Team (PET) • Based on the State of Wisconsin’s announcement of cuts to Shared Revenue Marathon County developed a process to evaluation all County Programs • Each Department was required to complete a program questionnaire for each program • The PET developed a points based matrix to evaluate each program based on the program’s overall score

25. Program Evaluation Team (PET) • Key elements to the Weighted Points Matrix were as follows: Is the program Exclusive, Core or Desirable? To what extend is the program consistent with the County’s Mission and Vision statement? (We had not developed a Strategic Plan or Core Values yet) What geographic area or annual population is served by the program? High Impact/Low Cost to Low Impact/High Cost? What is the likelihood of positively impacting many people in relationship to cost? What is the ease of measurability of program effectiveness in relationship to its cost?

26. Program Evaluation Team (PET) • The summer of 2002, PET ranked over 300 County programs and assigned a PET Score • Based on the point scores the County listed all programs from highest to lowest PET scores • County Administration recommended program eliminations in the 2003 budget based in part on the PET score

27. Program Evaluation Team (PET) • Results of PET Many departments did not like the PET process-too subjective Did not address how effective or efficient a program was Not all programs identified were actually cut Decided to create a new process in 2003

28. Outcome Measurement Oversight Team • Originated: Spring 2003 • Mission: to provide leadership for creating an outcome measurement process. This will enhance decision-making, accountability and the continuous improvement of our public services.

29. Oversight Team Members • Qualifications: A genuine commitment to the mission of the team, the willingness to serve up to four hours per month for a two-year period. Permanent membership will come from the three largest departments and the Finance Department. New members will be expected to complete an educational program on outcome measurement, approximately four hours in length.

30. Oversight Team Principal Activities • Continue education on the principles and benefits of outcome measurement. • Coordinate training and formulate goals. • Provide guidance and serve as a resource for other departments. • Create a problem-solving environment. • Facilitate the creation of an infrastructure to collect, track and use data. • Standardize a format for departments to use. • Provide feedback and support for improvements. • Arrange for and oversee any use of consulting services. • Explain to key stakeholders the benefits of outcome measurement.

31. Oversight Team Principal Activities In summary, the team’s purpose is to: • Support organizational learning • Encourage program improvement • Develop the infrastructure to implement and maintain performance management system The team created Logic Model format with a Program Measurement Report

32. Start with Baby Steps • Develop standardized reporting forms and develop training program for all departments • Use outside consultant for initial training • Use UW-Extension on-line and staff resources for additional training • Train all departments in the use of Logic Model forms, reporting and survey methods

33. Standardized Forms • Logic Model-Linear Model to describe program • Measurement Plan Summary-”Intermediate Form” to have staff plan on method of measurement • Reporting Template-Report on Indicators, Outcomes Achieved and Feedback for program improvement • Glossary of Terms-Create common language for Marathon County (Watch out for the terms program and outcome)

34. Logic Model Template Department/Program Name: Contact Name: Brief program description: Mission: Program customer:

35. Measurement Plan Template MEASUREMENT PLAN SUMMARY The following is a format for submission of your measurement system. For the first year of measuring outcomes please choose one outcome to measure. We are requesting a plan for measurement, not the resulting data. • (Chosen outcome restated from logic model) • indicator #1: By (date), (target) • Data source: (state which audience will receive the measurement tool and what kind of tool will be used) • [Data source: (you may choose to use more than one source, record any others)] • indicator #2: you may state another indicator which provides evidence that the outcome is happening. Format any additional indicators the same as above for indicator #1. • Measuring this will help strengthen this program by ___________________________ • _____________________________________________________________________

36. Reporting Template Outcome Measurement Report Department/Year Program Information: Program Outcome: Expected indicators: Outcomes achieved: What did you learn about your program based on this outcome? What will you do with the outcome information and will you make any changes to the program?

37. Examples of Logic Models

38. Performance Measurement for 2008 and beyond 2008 Initiated an Internal Grant Program In 2008, $250,000 in grants were award to 5 agencies at Marathon County Grant monitoring will be performed by the OM Team 2009 Develop Program Area Goals and starting “Phase II” Program Prioritization Process (PET II) Standing Committees are developing goals for 6 program areas

39. Leadership Philosophy Organizational Alignment • Mission • Vision • Core Values • Strategy • Structure • Leadership • Culture

40. Link Organizational Goals to OutcomesPhase 1 Logic Model Madness • Marathon County Mission Statement • Marathon County Government serves people by leading, coordinating, and providing county, regional, and statewide initiatives. It directly or in cooperation with other public and private partners provides services and creates opportunities that make Marathon County and the surrounding area a preferred place to live, work, visit, and do business. • Marathon County Vision Statement • Marathon County Government leads by providing high quality infrastructure and integrated services and by developing trusting, collaborative relationships among diverse partners. It is proactive in enhancing health and safety, protecting the environment, and providing cultural, recreational, and economic opportunities which make Marathon County and the surrounding area a preferred place to live, work, visit, and do business. • Core ValuesService, Integrity, Quality, Diversity, Shared Purpose, Stewardship Of Our Resources

41. Marathon County Core Strategies • Core Strategies • Develop and implement organizational restructuring and processes for continuous improvement that enhance operational efficiency, improve customer service and service effectiveness, as measured by program outcomes, for key customers. • Establish and continually reevaluate service priorities. Proactively align current and future county services and programs with established priorities that anticipate needs, enhance health and safety, protect the environment and offer cultural, recreational, and economic opportunities. • Through leadership, infrastructure and resources, aggressively develop economic opportunities which provide for a strong economic base, equally balanced with protection of the environment and quality of life issues. • Pursue local, regional, and state collaborative working relationships, public involvement and communication strategies which position Marathon County Government as a recognized leader in coordinating resources for the purpose of meeting community needs in Marathon County and the surrounding area. • Attract, develop, and retain staff capable of the leadership and vision necessary to provide excellent services. Educate and encourage public involvement in County Government, while developing the governance skills of elected officials

42. Phase II-Service Delivery Model Priority Program Areas • Based on facilitated citizen listening session, Standing Committees developed Overarching Goals in 6 Priority Program Areas • Elected Officials understand governments programs and desired goals and indicators of success • Program Areas-Ranked by County Board • Public Safety • Health • Protection of Vulnerable Populations • Transportation • Community Development • Education

43. Phase II-Service Delivery Model Priority Program AreasPie Chart Madness • From our Logic Model experience-”What is the costs associated by priority program area?” • Developed cost allocations based on our priority program areas as a function of what the County’s standing committees include in programs • Determined the revenues that fund the Priority Program areas from largest taxpayer derived revenue source to least taxpayer derived revenue source. What do taxpayer funds support?

44. MARATHON COUNTY - 2009 Adopted Budget by Program Area Intrgvmtl Srv/Financing Effective, Efficient & 12.48% Transparent Government 7.90% Community Development for Planned Growth & Recreation 7.01% Education 5.73% Debt 1.92% Vulnerable Populations Public Safety & 22.85% Emergency Preparedness 12.66% Capital Improvements 1.82% Health 5.27% Transportation 22.36% $152,742,447

45. MARATHON COUNTY - 2009 Adopted Budget by Program Area Public Safety & Emergency Preparedness Revenue Sources Transportation Misc Rev 0.31% Other Gov Grants/Charg 3.53% 22.36% Health 5.27% Public Fees/Charges 6.97% Capital Improvements 1.82% Vulnerable Populations Pub Safety & 22.85% Emer Prep $19,338,240 12.66% Taxes 89.20% Debt 1.92% Comm Dev Planned Education Growt 5.73% 7.01% Effective Efficient & Intergov Serv/Finance 12.48% 7.90% $152,742,447

46. MARATHON COUNTY - 2009 Adopted Budget by Program Area Local Taxes Effective, Efficient & Intrgvmtl Srv/Financing Transparent Government 1.98% Education 3.01% 6.61% Community Development for Planned Growth & Recreation 5.45% Vulnerable Populations Debt 32.40% 3.93% Public Safety & Emergency Preparedness 29.01% Health 2.94% Transportation 14.43% Capital Improvements .24% $59,455,077

47. Phase III-Citizen Input to develop Overarching Goals Create Meaningful Indicators of SuccessDashboard Capabilities Optional • Based on facilitated citizen listening session, Standing Committees developed Overarching Goals in 6 Priority Program Areas • Finalizing Indicators of Success for the Overarching Goals • Outcome Measurement Team is assisting in the creation of communication methods and standardized reporting models • Draft model is being prepared for Committee review. • Editing of Indicators of Success: simplicity, availability of reliable data and relevance

48. Community Development Community interests are placed ahead of individual interests when there is a perceived benefit that the community is willing to fund. Public and privately owned resources (natural and community) support the health, safety and welfare of people. Marathon County plans growth for the best use of land/resources to protect the environment, support recreational opportunities and promote economic development. broad program area Participation rates in plans, programs, facilities. soil erosion trends /rates Land conversion rates Land for public use Park Lands Managed Forest Lands County Forest Lands outcomes indicators data

49. Performance Management Principals • 1. A results focus permeates strategies, processes and decisions • 2. Information, Measures, goals, priorities and activities are relevant to the government and community • 3. Information, decisions, and processes are transparent (easy to access and understand) to stakeholders • 4. Goals, programs, activities, and resources are aligned with mission, priorities, and desired outcomes • 5. Decisions and processes are driven by timely, accurate, and pertinent data • 6. Processes are sustainable over time and across organizational changes • 7. Performance management transforms the organization, its management, and the policy-making process

50. Small Government Tips • Keep it simple • Develop a plan • Use common language • Start on the ladder and go up and down • Take your time • Keep a core team focused • Invest in training (time more than money) • Practice, Practice, Practice then practice more