Performance Measurement & Benchmarking - Charting Success FGFOA Webinar 10-30-14

1. Performance Measurement & Benchmarking - Charting Success FGFOA Webinar 10-30-14

2. Objectives of Session • Help understand the context of performance measures and benchmarking • How performance measures and benchmarking should and can be used for improvement to a department/division’s performance • How performance measurement systems and benchmarking can benefit an organization & be used to communicate with the public being served.

3. Sound Familiar??? • Councilman: Tampa’s code enforcement system ‘broken’ Tampa Tribune: August 1, 2013 • Poor survey results turn focus to code enforcement Pasco Tribune: May 14, 2014 • Fed up, Tampa woman calls 8 On Your Side about neighbor’s trash dump News Channel 8: June 2, 2014 • Commissioners want action on Valrico property mess News Channel 8: March 19, 2014

4. Telling Your Story with Data Accountability & Transparency • Can you demonstrate to citizens and elected officials that your department, agency, program provides: efficient, effective and quality services? • Can you tell your story? • How do your departments and services compare overall to other local governments? • Do you have departments or services that are exemplary?

5. What is Performance Measurement? • Movies • Schools • Cars • Baseball • Others?

6. Definition of Performance Measurement “The regular collection of specific information about the effectiveness, the quality and the efficiency of government services and programs.” The Urban Institute in Cooperation with the National League of Cities and National Association of Counties Performance Measures: A Guide for Elected Officials, 1980.

7. Efficiency Effectiveness

8. What is Performance Measurement? • A system of measurement on a regular basis of the results and the efficiency of services or programs. • Helps to tells the public and elected officials how they benefit from our services. • Provides more insight into the extent to which our services help accomplish our mission.

9. Why Performance Measurementis Important • What gets measured, gets done. • In order to improve something, you have to change it . . . In order to change something, you have to understand it . . . In order to understand something, you have to measure it. • It is better to make decisions on the basis of data than on “gut feelings” • If you can demonstrate results, you can increase public support.

10. Categories of Information Used in Performance Measurement Systems • Inputs Resources used in producing an output or outcome • Outputs Completed activity, amount of work done within the organization • Outcomes Assess the effect of the output • Efficiency or Unit-Cost Ratio Relationship between the amount of input and the amount of output or outcome

11. The Three Dimensions of Performance • INPUTS OUTPUT QUALITY OUTCOME FEEDBACK ON QUALITY PROGRAM FEEDBACK ON EFFICIENCY FEEDBACK ON EFFECTIVENESS Source: L. L. Martin (2002). Making Performance Based Contracting Perform: What the Federal Government Can Learn From State & Local Governments. IBM Center for the Business of Government www.businessofgovernment.org

12. What benefit is there to Performance Measures? • Behaviors change when people know they are being watched. (Hawthorne Effect) • Helps develop a system of recognition based on facts • Reveals information about your operations that you may not have known or uncovered • Links our organization's mission to our daily work • Demonstrate accomplishments • Maximizes utilization of resources

13. Telling Your Story to StakeholdersSome Guidelines • Focus on the important few things you do. • Pick measure that tell stakeholders: • what you do, • how much of it you do, • how well you do it, • what results you get. • Measuring too much is just as bad as not measuring anything (Peter Drucker) • You get 80% of your results from 20% of your efforts” (Pareto Rule)

14. You Can’t Measure What We Do Response: No matter what the service or program, some local government is already measuring it. It’s Not Fair Because We Don’t Have Total Control Over The Outcome Response: Few, if any, programs and services have total control over their outcomes. It Will Invite Unfair Comparisons Response: Comparisons are going to be made anyway It Will Be Used Against Us Response: Demonstrating transparency and accountability inspires trust, even when the news is not good.

15. It’s Just a Passing Fad Response: No it isn’t! It has been around for 30 years. We Don’t Have the Data/We Can’t Get the Data Response: In the IT age, it is hard to believe that performance data are not available We Don’t Have the Staff Response: You probably won’t get additional staff. However, if all your staff devoted 5% of their time to developing, tracking, reporting and managing with performance data, your programs and services would probably have fewer problems. Source: Fairfax County, Virginia (2005). A Manual for Performance Measurement.

16. Performance Measurement Pitfalls • Weak formal program or coordinating team • Measures are presented in program plans but are not linked to any specific goals, funding levels or performance trends • Most measures are output indicators • Results are not helpful in decision making or program modifications • There is no process for confirming accuracy/validity of data • There is no benchmarking to compare services to peer communities

17. Performance Measurement Performance Measurement - focuses on measuring what is occurring, but does not ask why or how it is occurring

18. Benchmarking…NOT the same as marking benches

19. Objectives of Session • Help understand the context of benchmarking • Set the ground work for implementation or improvement to a department/divisions choices for benchmarking

20. What is Benchmarking? • Selection of a reference point to make comparisons or measurement against • A standard that we measure ourselves against • Benchmarking should motivate people to improve toward a goal

21. Beginning to Benchmark To really improve your performance, you have to ask yourself: • Why are others better? • How are others better? • What can we learn? • How can we catch up? • How can we become the best in our peer group?

22. Most Common Areas to Benchmark Five areas to benchmark • Historical trends • Our goals to our results • Internal components, i.e. between departments or between neighborhoods • Our community’s service level to similar communities’ level of service • Comparisons to other entities, i.e. larger communities, private business

24. Benchmarking – What to do… • Be proactive – select your benchmarks before they are selected for you • Be sure to compare apples to apples • Common definitions • Common data elements • Common time frame • Establish criteria for selecting benchmarking partners before selecting those partners • Remember it isn’t about “who’s first and who’s last”, it’s about your organizations priorities.

25. Telling Your Story with Data Accountability & Transparency • Can you demonstrate to citizens and elected officials that your department, agency, program provides: efficient, effective and quality services? • Can you tell your story? • How do your departments and services compare overall to other local governments? • Do you have departments or services that are exemplary?

26. Telling Your Story with Data • Identify what questions need to be answered in your jurisdiction • Peer Groups • Performance targets and status • Best practice tracking • Benchmark against peers on actual work performed and actual cost of performing that work • Identify a target performance (estimate # of work orders that can be completed based on budget)

27. The Benefits • Accurately measure organizational performance • Opportunity to learn from similar organizations • Quantifiable, verifiable, relevant data to present to management • First collection cycle may be challenging, successive cycles will be easier • More participation in a larger group (like FBC), better results!

28. Summary of Benchmarking • Benchmarking should motivate people to improve toward a goal. • If you don’t measure it, you don’t know if it works. • Used wisely, benchmarking can be a powerful change management tool. • Long term process that takes TIME! • "If we do not change our direction, we might arrive where we are moving towards." (Chinese Proverb)

29. Overview: The Difference Between Performance Measurement and Benchmarking Performance Measurement Focuses on measuring what is occurring, but does not ask why or how it is occurring Benchmarking Comparing your performance to yourself (over time) or to other similar governments, programs or services

30. Facts, Shmacts

31. Framework for Using Data Measure Compare Learn Improve

32. Measure • Adopt good balanced performance measures (inputs, outputs, quality, efficiency) • Collect relevant data • Report your data

33. Compare • Compare against yourself over time (are there trends?) • Compare against your peer communities • Compare against your adopted operating targets • Compare with your adopted strategic plan targets • Compare against industry standards

34. Learn • After doing comparisons, what did you learn? • Are you on target or not? • If not, you need to learn why not • Conduct analysis/assessment on why you missed target(s) • Find out why your peers are better (phone calls, survey, etc.) • Conduct analysis of the peer survey results to learn where you can get better.

35. Improve • Based upon what we learned, what do we need to do to improve - specifically? • What do we need to do to get back on target? (without spending more on operations and staffing) • Are there process improvements we can make? [(re-engineering) – quicker and smarter] • Re-organization for better alignment (re-assign existing staff) • Budget revision (redistribution of existing resources)

36. And now…without further ado…Looking at the Data!!!

37. Examples of Output Measures Looking at Fleet Management • Vehicle turnaround time • Unscheduled work orders completed • PM/scheduled work orders completed • Gallons of fuel dispensed • Annual new vehicles purchased • Annual vehicle disposition

38. Examples of Quality Measures Looking at Fleet Management • Customer satisfaction measures • Repetitive maintenance statistics • Mean time between failures • Warranty statistics • Average maintenance cost per vehicle

39. Examples of Outcome Measures Looking at Fleet Management • Daily vehicle availability • Fuel consumption reductions • Percentage of replacement eligible vehicles • Revenues (direct labor/material sales) • Customer mission completion statistics

40. Fleet Management – Example of Outcome Measure

41. Fleet Management – Example of Outcome Measure

42. Average Days from Complaintto First Inspection (Cities)

43. Average Days from Complaintto First Inspection (Counties)

44. Percent of Cases BroughtInto Compliance (Cities)

45. Percent of Cases BroughtInto Compliance (Counties)

46. Square Miles perOfficer FTE (Cities)

47. Square Miles perOfficer FTE (Counties)

48. Cases per Officer FTE (Cities)

49. Cases per Officer FTE (Counties)

50. Cost per Case (Cities)