Transcript Slide 1

Learning to be Better

Linking Purpose to Results Michael Mucha, P.E.

Director of Public Works City of Olympia

Agenda

Tracking for Success: Why are we doing it and what does it look like?

Tools for Success: How we are doing it.

What we are Learning: Challenges and Opportunities.

Issues Compelling Us To Act

Climate for change: Increasing demand for value.

Do less with less. Innovation to build capacity and maintain existing LOS.

Need to prepare and support employees to be their own masters of improvement.

Council Goals

Efficient Government Informed Budget Decisions Tell our Story to the Public

Strategy Must Come First!

1 Weaknesses Opportunities Threats Measurements Customer Expectations and Mission Action Plan How should we do 4 3 Vision and Strategic Goals

Structure of Business Plan

Line of Business: Groupings of programs by common purpose.

Program: Groupings of products and services by common purpose.

Product/Service: Deliverables. Something the customer actually receives.

Major Change In How Business Is Done Focus is on the customer instead of the task.

Results span across organizational lines instead of contained in silos.

Data used for decision-making instead of gut feel.

Results begin a discussion instead of ending it.

Motivation is achievement and learning instead of fear and punishment.

Traditional Structure

What We Do

Drinking Water Waste Water Roads Garbage Parking

Value/Structure Disconnect

What Value We Provide

Value to Citizens

ConservingProtectingDelivering

Water Waste

ReducingReusingDisposing

Safe & Comfortable Life Transportation Consultant

AccessEfficiencySafetyChoices

Our Operational Mantra

Job is not finished until the work is documented.

Using data is a part of everyone's job.

We will evolve not transform.

It’s not about the numbers…it’s what you do with them that matters.

So What?

Openness: Public can see for themselves what they are getting.

Pride: Citizens AND Employees are confident that the City is competent.

Success Factors

Keep it simple.

Every department moves at their own pace based on needs.

Follow a consistent framework.

Create space for learning.

Pressurize the System.

“Family of Measures”

Tells a complete story of what each program is all about.

Developing a Program Purpose

The purpose of the ________ is to provide ________ services to __________ So that they can ____________.

The

two

“So That”

Most Powerful Words What benefit does the customer experience as a consequence of receiving the service?

Does it matter to somebody?

Is it tangible?

Is it measurable?

Is it doable with existing resources?

Key Results

Describes the expected

benefit for customers

reasonably be expected to

influence:

that a given program can

significantly

Stated as a percentage or rate.

Vital few.

They represent the use of big chunks of resources.

Key Results Measure Pavements

90 40 Target Actual 1997 56 56 2000 57 57 2002 62 70 2004 67 71

Year

2006 71 2008 75 2010 80

Pavement Management System Annual Rating Comparison

80 75 70 65 60 55 50 45 40 20 05 20 07 20 09 20 11 20 13 20 15

Year

20 17 20 19 20 21 20 23 $3.5 million $3.0 million $2.5 million $2.0 million $1.5 million

Pavement System Condition Rating 75 80 70 60 50 40 62 61 52 52 51 52 52 46 47 59 30 20 10 0 1988 1989 1990 1991 1992 1993 1994 1996 Year of Rating 1997 2000 2002 2004 65

Outputs

Number of

units of product delivered

to the customer: or service

Stated in terms of numbers or counts.

Meat and potatoes.

Example: Lane miles of road resurfaced.

Demands

Number of

total units

service

anticipated

or of product or to be demanded:

Stated in terms of numbers or counts.

Sometimes hard to determine.

Example: condition.

Number of lane miles rated poor

Efficiency

The cost per

output

or

result :

A calculation stated in terms of cost per unit.

Best indicator of performance improvement.

Example: lane mile.

Cost to resurface $120,000 per

Summary Statistics Business Plans 8 24 65 431 Departments Lines of Business Programs Services 54 106 Key Results Efficiencies 2500 Outputs

One Page for Everyone

Council identifies Key Result Measures.

Directors monitor LOB’s key results.

Managers monitor program result and efficiencies.

Supervisors monitor service results and efficiencies.

Good and bad things reported up.

The Sieve Analysis

Strategic

Long-term

Key Results

Annual

Operational Measures

Weekly Work Gets Done Here

PW Strategic Business Plan

Strategic Where we want to be Operational How we get there How we know we’ve arrived (TFS) “Planning for a vacation” “Final preparations for a vacation”

What Are We Learning?

“So That” Chain

“so that” “so that”

Water is conserved Strategic Goal

“so that”

Sustainable water resources Drinking water consumption per capita is reduced Key Result = % reduction in drinking water consumption

“so that”

Pipes no longer leak Watermain is replaced Work!

Where Change Happens

Triple Bottom Line

Life Cycle Costs Risk Business Case Level of Service

Performance Measures & Reporting

10 Step Process 1 Program Structure Identified 2 Measures Defined 3 Baselines Determined 4 Targets Identified 5 Data Collected 6 Data Input / Draft Report 7 Report Analyzed & Finalized 8 Dept Dir & Mgmt Review 9 Results & Decisions Report Distributed 10 Targets & Measures Refined

Challenges and Opportunities

Getting started.

Balance.

Accountability.

Dealing with fear.

Long-term organizational commitment.

Connecting costs and activities.

Keeping momentum.

The hardest step is the first one

Performance Roundtables

Every LOB meets quarterly.

All key programs staff attend. Meeting is open to anyone.

Focuses on action.

Four Key Questions

Value Commitment: What results am I striving to achieve for our customers?

Status: What specific data indicates my progress at achieving these results?

Understanding: What are the results telling me?

Action: What must I do now to make the results even better or correct a problem?

Being a Blue Dot Organization

Human Element Teamwork Caring Learning Committed Risk Taking 1 2 3 4 5 Bottom Line Productivity Technical Competence Quality Financial Stability

Reference: Leadership and Life Mastery by Eric Allenbaugh Ph.D.

Our Culture of Accountability

Taking risks.

Expecting mistakes.

Openness about failure.

Providing support when things go bad.

Taking ownership for your commitments Analyzing mistakes.

Celebrating successes.

Listening before deciding.

Clarity of expectations.

Managing Fear During Change

Managing Fear Rewards What is in it for me?

Organizational Commitment

Start 2001 (Context) Program Purpose & Business Plans 2003 (Content) Key Results & Training 2004 Operationalize Measures & Training 2005 Use of Data & Efficiencies Budget Integration 2007+ Normal Business

Activity Costing Form

Keeping Momentum

Guidance Team and User Group.

Four “S’s” start slow, simple, and small.

Build on little successes.

Stop doing what doesn’t work.

Experiment.

How can we make results even better? Not…how can we improve.

The Process

Setting the Stage:

Two years of planning; goals, framework, and getting political authorization.

( Leadership ) Design:

One year of development.

( Employee involvement ) Implementation:

Three years to institutionalize.

( Create space in their workplan )

Design

Used outside experts.

Four-month process.

Involved employees.

So What?

Clarity Fulfillment Improvement

Lessons Learned

You will eventually be challenged by everyone.

Stick to your core principles and goals.

Requires intense hand holding.

Don’t forget the details.

Your own ideas will evolve.

Chunk the work.

Guiding Coalition

True change/performance improvement happens at the operations/staff level.

Influence over a result builds capacity and reduces fear.

Turns vague concepts into reality.

Measures will not help improve performance if those using them don’t believe in their power.

Wedding Cake

Policy Maker & CEO Department Director LOB or Division Manager Program Manager Staff

The Language We Use

How can we make results “even better.” Results versus outcomes.

Straight talk about tangible things.

Job is not done until the data is collected!

Don’t let the data go naked.