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Measuring System

The Framework For Successful Performance Management

City councils, boards of administrators and other governing bodies demand a performance management framework that concentrates on precisely what results staff members will achieve, and how success will be calculated. This tool reveals how to construct an integrated performance management framework that considers the numerous distinct tasks which a city or a county has to administer.

This tool is best made use of along with Leading at Light Speed, our performance management book that helps leaders create trust, spark innovation and put into action the 10 best practices of high performing organizations.

Why is performance management important?

Because public agencies – like all institutions – perform considerably more successfully when their leaders define what is important and measure it on a regular basis.
Because public agencies require a process that infuses individuals with a sense of responsibility.
Because leaders need to know what is working effectively – and what needs their particular attention.
Because public officials need to concentrate on “big picture” policy issues, rather then on micro-managing staff members.

The vocabulary:

Experts on performance management often use the following vocabulary:

Outcomes (goals): Long-term results you’re trying to achieve, such as winning market share or improving profitability.
Outputs (objectives): The things you do in order to achieve those outcomes, such as improve sales processes or develop intellectual property.
Core values: The outcomes (results) that are essential to success.
Key Performance Indicators: The most essential articles to regulate – normally the core values additionally other pressing initiatives and responses.
Performance management system: The operation you use to acquire and arrange the significant information and gauge the results.
Metrics: The articles that are measured, like levels of customer satisfaction or a percentage of products meeting standards.
Standards: The desired level of fulfillment for any metric.
Targets: The desired level of performance at a targeted point in time (on the way to achieving the standard).
Monitoring frequency: How often you observe the act.
Scorecard: A short-hand way to view the trends over time and identify trouble spots.

Scorecards should be developed first for the organization as a whole, and then for the departments or functional units within it.

Example:

A city council established a “Public Report Card” for performance. It listed the following outcomes under police:

Reduce violent crimes per thousand 5% per year.
Reduce non-violent crimes per thousand 7% per year.

Working with the city manager, the police chief established division-wide objectives linked to these outcomes. The police chief and city manager then recommended to the city council the following metrics to track. For each metric, a standard and a target were defined:

Average response time to Code1, Code 2, and Code 3 calls (per shift per month)
Percent of felony investigations completed successfully per month
Crimes per thousand (in several different categories)

The city council monitored the performance annually. Concurrently, the police chief surveyed it monthly. The result? Over a two-year period, response times improved; officer availability improved, and the percent of investigations completed successfully improved. Over the same period, levels of violent and non-violent crime declined.

Success Factors:

What makes a performance management system successful? Research and experience shows these to be the important success factors:

Start at the beginning. A solid measurement process is built on the foundation of core values and key performance indicators. If these are not agreed upon with a great deal of anticipation and certainty, implementation will simply fail. Once these are defined by senior management, staff should be responsible for defining performance expectations related to the programs and processes needed to achieve these results. Performing a reversal in the progress ends with agitation.
Build focus and alignment. Concentrating on the most influential results is paramount. These should be identified in a strategic plan. Don’t try to measure everything. Enusre that all, not some, aspects of the organization agree with their set of easily-conceived performance metrics and goals.
Invest in a variable scorecard. A good scorecard provides a balanced look at all aspects of the organization. Different types of data are also mixed. Financial performance is a “lagging” indicator of performance, since by the time it’s measured, there’s little you can do to change the results. Customer surveys frequently tip people off to performance issues that are just emerging, and thus are considered “leading” indicators.
Champion the scorecard. Ensure you have effective support from the top. The performance scorecard must be extremely visible and commonly discussed. Just as the CEO makes sure the overall scorecard is visible throughout the entire organization, senior managers need to make sure their departments’ performance scorecards are visible.
Build “Learning loops.” A measuring system is nothing without the communication to generate shared understanding and ideas for improvement. The leadership team should model this by creating regular forums where they share performance data and discuss steps to improve performance. Mid-level managers should do the same.
Invest in the system. Starting resources are essential in establishing the required data assembly and information management systems. Collecting your data and training people to represent the performance data in an articulate scorecard may prove time consuming.
Impart clear roles and responsibilities. Measuring accomplishments establishes dynamic incentives for department managers to cooperate in order to actualize significant outcomes. Make sure it’s evident who’s in charge of what.
Await a transition of culture. When you start to measure performance consistently, it will trigger a change in the organization’s culture. Sharing information about performance and adjusting behaviors accordingly requires a more open culture – one that is comfortable admitting what is going well, what is not going well, and deciding what to improve.
Don’t let the perfect be the enemy of the good. No performance management system will be perfect. Information may be hard to get a hold of. There may not be enough people with the aptitude to aggregate and synthesize all of your information. This is not a reason not to do it. Performance measurement systems should be in place at every organization.

Outcomes vs. Outputs:

A performance management framework is relatively easy to build when well-understood outcomes and outputs are in place. Outcomes are the broad impacts you want to achieve. Outputs are the things you do to achieve the outcomes.

Developing outcomes is the responsibility of the governing body and senior management, working with community stakeholders. Developing outputs is the responsibility of management, working with divisional managers and other staff.

A local governing body, such as a city or county, has many quasi-independent organizations serving it. Each should be guided by an integrated set of overall community outcomes. These outcomes should reflect the community’s values – the things it considers most important and expects to get from its local governing bodies.

Performance Management Consulting

To speak with a performance management consultant about how LRI can help you develop performance management scorecards to implement the best practices of high-performing organizations, call (916) 325-1190 or email info@leadingresources.com.