Trends and Future Direction Performance Measurement 2014

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Performance measurement future directions

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P R E S E N T E D B Y : D R . B E T T Y A N N M . T U R P I N J U N E 2 0 1 5 Trends and Issues in Performance Measurement: A Way Forward

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Outline  Understanding performance measurement business intelligence business analytics  Clarifying RMB  Context  Trends and Challenges  Nurturing an RBM culture  Building an Enterprise RBM Strategy  Success Factors 2

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Clarifying RBM 3

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What is Performance Measurement Performance measurement is how organizations public and private measure the quality of their activities and services and the success of attaining their business objectives. 4

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Business Intelligence vs. Business Analytics Business Intelligence is defined as a category of applications used for capturing storing and analyzing data Business analytics BA is the practice of iterative methodical exploration of an organization’s data with emphasis on statistical analysis. Business analytics is used by companies committed to data-driven decision making. 5

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Results-Based Management Defined RBM is model an approach to management business in such a way as to integrate strategy people resources processes and measurements. 6

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Context 7

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Context  Long term vs. short term  Budget cycle  Political environment - priorities  Degree of professionalism and state of culture 8

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Trends and Challenges 9

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Trends: Management 1. Collaboration Goes Beyond Social 2. Value-based Management VBM 3. Activity-based costing ABC and activity-based management ABM 4. Performance Frameworks e.g. BSC 5. Benchmarking 6. Strategic Enterprise Management 7. Six Sigma 10

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Trends: Technology 1. Dashboards evolve and expand 2. Self-Service BI Gets Real 3. Mobile BI Boosts BI Adoption 4. Big Data Generates Big Interest 5. Data Access and Availability 11

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Challenges  Complexity and organizational structure  Capacity and capability  Availability of data  Attribution vs contribution  Fixation on outputs rather than results 12

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Building an Enterprise RBM Strategy • Strategic plans require a sound foundation of “program” theory reflected in Strategy Maps while reporting requires credible data methodology. • Organization can assess performance at three levels – strategic programmatic and operations. • Performance indicators should reflect multiple levels of organizational performance • Performance measurement processes need to be aligned and consistent • Performance tools need to be mutually supportive yet independent e.g.: evaluation research audit… 13

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Performance Measurement Maturity Model- PM 3 Strategic Performance Framework Program/Initiative Performance Frameworks Operational Performance Frameworks 14

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Strategic Performance Framework  Addresses 4 quadrants of the strategy map: • Indicator Requirements: – Identify a few KPI • Focus is to identify that every aspect of the strategic map what Model you wish to use has alignment across all three levels and has performance accountability through indicators 15

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Program Performance Frameworks  Addresses the following:  Organizational structure of Branches/Directorates not lower  Cross-cutting horizontal programs  Special Initiatives • Requirements : – Organizational • Gather and inventory LM/PMFs • Program level performance indicators – Cross-cutting horizontal • Gather and inventory LM/PMFs – Special initiatives • Gather and inventory LM/PMFs • Focus is to identify that every program has performance accountability 16

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Operations Performance Framework  Focus is to identify a very limited number of KPIs that best reflect the operational level performance of the Agency • Addresses the following: – Thematic categories • Example – finance HR management oversight stakeholder relations • Requirements : – Operational Indicators – Limited number essentially volumetric for example: • Workload • Efficiency • Service standards • Timeliness • Client traffic volumes • Complaints • Resource utilization costs by volume/use 17

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The Budget Drives Decisions Three levels of performance considers matching cost and results in the budget:  Puts information on both at the point of decision about new policies  Embeds both in requests for appropriations relevant for the trade-offs when resources are allocated  Provides both to program managers as they decide about budget execution  Provides not just information but incentives to take decisions that enhance effectiveness and efficiency  Appropriates and charges for resources where they are used at about the right time thus simplifying and integrating budget and accounting data. 18

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Allocate Resources for Results  With the stacked approach – strategy program operations - common alignment frees the unit to take initiative and reap the satisfaction and rewards of achieving results  Allocate resources to programs that can document their effectiveness or at least that show more effectiveness than similar programs.  Program staff who produce outputs to influence an outcome which is financed by a budget account budget can use a cost center model for financial analysis.  Propose incentives or targets to encourage programs to increase their effectiveness.  When programs are ineffective explain and justify proposed reform in relation to the importance of the goal and evidence why the reform is likely to work.  Alternatively shift resources to more effective programs or higher priority outcomes. 19

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Success Factors  Management commitment through action  Visibility of outcomes- strategic direction  Consistency and follow-through – implementation plan and project monitoring  Capacity and capability building 20

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Contact Us 21 Turpin Consultants Inc. baturpsympatico.ca

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