Virginias Performance and Benchmarking Initiatives Presentation to: Promoting Integrity and Accountability Conference Office of State Budget and Management

Virginia’s Performance Virginia’s Performance and Benchmarking and Benchmarking

InitiativesInitiativesPresentation to:

Promoting Integrity and Accountability ConferenceOffice of State Budget and Management

North CarolinaOctober 17th, 2007

Bill Leighty, Former Chief of Staff to Governors Warner and Kaine

Presentation OutlinePresentation Outline

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Previous Issues With Virginia’s Performance System

Current Performance Management In Virginia

Steps For Ensuring Continued Success

Strategic Planning and Performance-Based Budgeting

The ProblemThe Problem

My Dear Sir:I can either capture the whole of the Iberian Peninsula or comply with your requests for dispatches and reports. However, I can not do both.

Sincerely, The Duke of Wellington

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Prior to 2006 Virginia’s Performance Prior to 2006 Virginia’s Performance Management System Was SegmentedManagement System Was Segmented

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State AgencyStrategic Plans

Council On Virginia’s Future(Long-term/Statewide)

Management Agreements

Management Scorecard

Virginia Results

Agency Goals &

Performance Metrics

AdministrativeMetrics

Agency PerformanceMetrics

Agency Performance Metrics

Long Range Plans &

Agency Performance Metrics

Agency Performance Management

The System Had Issues The System Had Issues On Several Fronts On Several Fronts

Issues with system included:

◦ Confusion around role of the Council on Virginia’s Future What is the relationship to executive branch agencies?

◦ No coordination of the multiple elements – “Silo Effect” Redundancy Confusion Agency frustration Minimal encouragement to collaborate

◦ Systematic problems with agency and management metrics Too many -- Governor Kaine “If you have hundreds of measures

you have none.” Focused on process – not the impact (i.e. outcomes) of the

processes Potentially unrelated to agency’s main mission, metrics were simply

too “mechanical”

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Governor Kaine’s Direction To StaffGovernor Kaine’s Direction To Staff

”…Simplify The System, Focus It On Performance Outcomes

And Create Linkages.”

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Presentation OutlinePresentation Outline7



(Happening Now!) Steps For Ensuring Continued Success


The Key Elements Of Virginia’s The Key Elements Of Virginia’s Performance Management SystemPerformance Management SystemSystem Component Purpose

Agency Strategic Plan Provides description of where agency is going and how it plans to get there – major mission, goals, strategies, performance metrics, baselines, and targets

Key Outcome-Based Performance Measures

Performance indicators that provide a basis for measuring the impact of services provided

Service Area Metrics Performance indicators tied to each service area in the budget

Performance Baseline Provides starting point for measuring performance against key metrics

Performance Target Sets expectations for performance against key measures

Management Scorecard Administrative outcomes defining effective management of agencies – i.e. “Management 901”

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Governor Kaine Focused On Three Governor Kaine Focused On Three Issues To Modify Virginia’s Issues To Modify Virginia’s Performance Management SystemPerformance Management System

1. Clarify role of the Council On Virginia’s Future and its relationship to state agencies

2. Establish linkages in Virginia’s performance management system between the Council and executive branch agencies

3. Require a set of key outcome measures for agency and management performance to drive the system

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What Is The Council on Virginia’s What Is The Council on Virginia’s Future, What Do They Do?Future, What Do They Do?

ROLE◦ Legal entity in the Commonwealth.◦ Advise the Governor and the General Assembly on

implementation of the Roadmap for Virginia’s Future.

PURPOSE◦ Provide long-term focus on high priority issues.◦ Create an environment for improved policy and budget

decision-making.◦ Increase government accountability.◦ Improve government operations and performance.◦ Inform citizens about performance and engage them in

dialogue about Virginia’s future.

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Who Is On the Council?Who Is On the Council?11

Chairman

The Honorable Timothy M. Kaine, Governor

Cabinet Members The Honorable Jody M. Wagner, Secretary

of Finance The Honorable Aneesh P. Chopra,

Secretary of Technology

Citizen Appointees Mr. John O. (Dubby) Wynne, Vice-

Chairman Ms. Marjorie M. Connelly The Honorable William D. Euille Mr. Michael J. Schewel Mr. James F. McGuirk, II

Senate The Honorable John H. Chichester –

President Pro Tempore The Honorable William C. Wampler, Jr. –

Finance Committee The Honorable Walter A. Stosch – Majority

Leader The Honorable Richard L. Saslaw –

Minority Leader Dr. Edward G. Murphy – Citizen Appointee

House The Honorable William J. Howell – Speaker The Honorable Vincent F. Callahan, Jr. –

Appropriations Chair The Honorable H. Morgan Griffith – Majority

Leader The Honorable Franklin P. Hall – Minority

Leader Mr. W. Heywood Fralin – Citizen Appointee

Step 1: Clarify And Strengthen Role Step 1: Clarify And Strengthen Role Of Council On Virginia’s Future Of Council On Virginia’s Future

Governor addressed problems by:

◦Embracing leadership role on Council and working closely with Council Staff

◦Distinguishing Council’s long-term planning role from agency strategic planning and work on key measures

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Step 2: Establish Linkages In Virginia’s Step 2: Establish Linkages In Virginia’s Performance Leadership System Between Performance Leadership System Between Council And Agencies Council And Agencies

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AGENCY PERFORMANCE MEASURES(Including Key Metrics)

Are agency programs that serve our customersproducing desired results?

DESIRED SOCIETAL RESULTS

Council’s vision and long-term goals

Healthcare Examples

Inspire Healthy Living

Infant Mortality RatesChildhood Obesity Rates

Smoking Rates

•Pregnant women who successfully complete State neonatal care programs•Children experiencing weight loss through Medicaid obesity program•State workers who enroll in anti-smoking program and quit smoking

SOCIETAL-BASED INDICATORS

How is Virginia doing?

Step 3: Require A Set Of Key Agency Step 3: Require A Set Of Key Agency and Management Outcome Measuresand Management Outcome Measures

Governor directed agencies to develop a set of key outcome measures that:

◦ Reflect primary mission – no more than two or three per agency◦ Are based on outputs and focused on results rather than process◦ Are measurable and clearly have budget implications

Accordingly, all agencies were asked to develop:

◦ Baselines for these measures (where they stand now)◦ Targets to help evaluate and improve agency performance

Governor has completed a review of all agencies’ key agency and management outcome measures

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70% of All Key Agency Measures are Now 70% of All Key Agency Measures are Now Outcome-BasedOutcome-Based

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Administration

Agriculture

73%

Educ

47%

Finance

HHR

Natural Resource

s83% 83

%

53%

Magnitude of Outcome Based Measures By Secretariat

Commerce

100%

58%

ProcessMeasures

50%

PublicSafety

Trans

76%

33%67%

Outcome Measures

Total Key Measures Statewide = 214

Tech

100%

Note: 100% of measures in Management Scorecard are Outcome-based.


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Current Vision For Performance Management In Virginia Steps For Ensuring Success


Governor Has Taken Several Steps To Governor Has Taken Several Steps To Ensure The Past Does Not Accurately Ensure The Past Does Not Accurately Predict The FuturePredict The Future

The Governor has taken the following steps to ensure that performance management is successfully implemented in Virginia:

1. Created a senior level internal performance management team in the Governor’s Office

2. “Public sector” external review (April 2006) and “private sector” external review (March 2007) by known experts in performance and customer service. In March of 2008, Virginia will undertake an “international sector” review, with representatives from across the world.

3. Emphasized to agency heads that performance management is his number one priority

Met with every agency head to discuss importance Personally reviewed and commented on every key outcome

measure

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Virginia’s Performance Management System Virginia’s Performance Management System Under Governor KaineUnder Governor Kaine

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Coordinated Performance Management System

Governor’s Key Agency Metrics

Individual System Components

Council On Virginia’s Future Long-Range Plans

Management Plans WithAdministrative Metrics

Statutorily Mandated Agency Strategic PlansWith Performance Metrics


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Steps For Ensuring Continued Success


AccomplishmentsAccomplishmentsStrategic Planning and Performance-Strategic Planning and Performance-Based Budgeting System Based Budgeting System

A common service area structure has been developed and implemented for agency strategic plans and budget requests. (2004 – 2006)

State agencies have developed strategic plans in a uniform format, to include new service area structures. (2004 – 2005)

◦ Separate agency plans (Information Technology, Capital Outlay, Workforce) are consolidated within the strategic plan and are on the same reporting schedule

◦ Strategic plans are linked to state budget through service areas

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Accomplishments Accomplishments (cont’d)(cont’d) Strategic Planning and Performance-Strategic Planning and Performance-Based Budgeting System Based Budgeting System

The 2006-2008 biennial budget (budget bill and budget document) was presented in a new format:

◦Budget bill identified resources by state agency and service area

◦Budget document explained budget recommendations by state agency and service area and identified performance measures for service areas

State agencies have now established key objectives and outcome measures to focus and improve performance (2006)

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Accomplishments Accomplishments (cont’d)(cont’d) Strategic Planning and Performance-Strategic Planning and Performance-Based Budgeting SystemBased Budgeting System

New Virginia Performs system (announced publicly December 2006).

◦Societal-Based Indicators

◦Key Outcome Measures Agency Performance Management Performance

◦A Coordinated Performance Management System!

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Obtain a detailed demographic profile.

Get community-

by-community reports on

each indicator.

Instantly see how Virginia is

measuring up in crucial areas.

View state agencies’ objectives and measures for programs and services.

Create local and regional maps showing data on dozens of measures.

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Questions?Questions?

Contact Information

Bill LeightyPrincipalPerformance Leadership [email protected]

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Documents

Virginias Performance and Benchmarking Initiatives Presentation to: Promoting Integrity and Accountability Conference Office of State Budget and Management