STATE OF ALASKA
Performance Management 101
Why Performance
Management?
1. It works - Systematic way to get results
2. Communication
 Common language
 Standard format
 Tells your story
3. Helps get you the money
4. It is the law
2
Performance Management Cycle
To achieve a result:
1.
2.
3.
4.
5.
Develop a plan
Budget for that plan
Implement/operate
Analyze and assess
Go to step 1
3
Alaska Performance Management System
• End Results
• Measurement
• Assessments
•
•
•
•
ze
y
l
an
Pl
a
n
A
Statewide Priorities
Performance Framework
Ten-Year Fiscal Plan
Annual Budget Narrative
Reports
and
Measures
e
t
ra
pe
O
• Process Management
• Performance Monitoring
• Process Reengineering
et
g
d
Bu
• Results-Based Budget
• Strategic Investment
• Plan-Based Budget
4
Performance
Framework
5
Alaska Performance Framework
 State
Priorities
 Department
Priorities
 Department
Performance Detail
– Associated funding & positions
– Key Performance Indicators
– Includes all Department Results and
associated Targets, Strategies, Status,
Data, and Analyses
6
Framework
Alignment
7
State Priority:
Framework
Alignment
So
So
Corrections Priority:
Reformed Offenders
Successful Offender
Re-entries
So
Target: Reduce the number
of released offenders who
commit a crime to X
Prepare offenders
for a job at release
So
Target: Increase the
number of offenders with
GEDs to X
Public Safety
Priorities
End Results
Strategies
Teach reading to
offenders
Target: X number of
offenders receive reading
instruction
Actions
8
State Priority:
Public Safety
So
Dept. Corrections:
Reformed Offenders
Successful Offender
Re-entries
So
Target: Reduce the number
of released offenders who
commit a crime to X
Prepare offenders
for a job at release
So
Dept. Public Safety:
Protection
End
Results
Strategies
Target: Increase the
number of offenders with
GEDs to X
Teach reading to
offenders
Target: X number of
offenders receive reading
instruction
So
Protect Lives
Target: Reduce the number
of deaths due to criminal
acts
Create deterrence
by solving homicides
Target: 100% homicide
solve rate
Actions
So
So
Prepare well-trained
law enforcement
officers
Target: Increase the Public
Safety Training Academy
9
overall GPA
Department Priorities
Performance Summary
Cabinet and OMB Head’s Up Meetings

Orders main responsibilities

Reflects resource distribution

Displays key performance
10
Key Performance Indicators
Factors to take into account when
choosing key performance indicators:
• Ultimate policy intent
• Most direct measure of result
• Critical success factor
• Big ticket item
• Hot button item
11
Performance Detail Elements
End Result: The Ultimate Goal!
• Desired eventual condition
• Public focused - What public paying for
• Make it bold – End stuff or make
everything good or…
“My administration is taking a comprehensive
approach to stop the epidemic [of sexual
assault & domestic violence]”
- Gov. Sean Parnell
12
Performance Detail Elements
End Result: (continued)
•
•
•
•
Ultimate goal, not year-end goal
Doesn’t have to be reachable today
Targets are for reachable goals
Realistic Target(s) for each End Result
“…get a workstation running our software onto
every desk and eventually in every home.”
- Bill Gates, 1985
13
Performance Detail Elements
Strategy: How do we get there?
•
•
•
•
•
Planned approach
Designed to achieve the End Result
Consider long-term
Return on investment
Realistic Target(s) for each Strategy
14
Performance Detail Elements
Target: How are we doing?
•
•
•
•
Expected level of success
Realistic - based on time & resources
Min. one per End Result & Strategy
Use the number that best tells story
15
Analysis
16
Analysis
Analysis includes examining:
1. Performance & operational data
2. Internal/External Assessment
3. Evaluation of strategic alternatives
17
Performance Measurement
•
So you know producing right results
•
Whether, not why
•
To improve, not blame
•
Informs all organizational levels
•
Used in planning, budgeting, operations
18
Types of Measures
Low Value
 Input
– resources used
# of staff, caseload size, …
 Output
– activities completed
# trained, # audits, …
 Efficiency
– how well resources used
Cost per, cycle time,…
 Quality
– effectiveness
Accuracy, rating, survey,…
 Result
– outcome achieved
Incidence, prevalence,…
High Value
19
Measure Value
Example
Destination: grocery store
1. Inputs – gas pumped into the tank
2. Outputs – miles traveled, gas consumed
3. Efficiency – gas mileage
4. Quality – reliable, comfortable
5. Result – proximity to grocery store
20
Elements of Good Measures
• Relevant
To the End Result or Strategy
• Quantifiable
Need to be able to count it up
• Unidirectional
Good is either up or down, not both
• Actionable
Someone can act to improve it
21
Performance Measures
Development
•
Investment
•
Iterative process
•
Cost/Benefit
•
Unintended consequences
22
Internal/External
Assessment
•
Internal strengths/weaknesses
•
External opportunities and obstacles
•
User group opinions
•
Identify only the most impactful
23
Strategic Alternatives
•
Identify a rich range of alternatives
•
Weigh cost/benefit of each
•
•
•
•
Cost includes training, time, capital,…
Benefit is the difference between the result with
and without the intervention
Other considerations include required
legislation, mix of strategies, long-term costs
Justification for current and future
24
Wrap-Up
Next steps:

Align State Priorities, Dept. Priorities, and
Dept. Performance Detail

Performance Management Advisory Board

Performance Management Manual

Performance Framework Improvement
– Available for more specific follow-up
25
For questions and individualized assistance
with Alaska’s Performance Framework:
Craig Kahklen, Management Analyst
Office of Management & Budget
907-465-3559
Craig.Kahklen@alaska.gov
26