City of Helsinki
Social Services Department
City of Helsinki Social Services
Matrix Method for
Measuring Productivity
in Elderly Social Services
ENSA, Madrid, June 2010
Elderly thematic group meeting
Kari Laakoli – City of Helsinki
Management accounting advisor
E-Mail: kari.laakoli@hel.fi
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Outline of the presentation
information of the elderly projects
from aggregate to disaggregate approach
City of Helsinki Social Services
matrix method
map of productivity affecting factors
prioritized measures
matrix of service housing
productivity results in service housing in years 2007 - 2009
conclusion
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Information of the elderly projects
pilot projects in the elderly services in years 2007 - 2009
13 units of service housing
four nursing homes
City of Helsinki Social Services
aim was to develop a solution to a productivity measurement
problem from a practical field
utilization of workshops as a method
two different working teams included
two researcher from Tampere University of Technology
3-5 persons of elderly services (unit manager, workers
representatives, accounting experts)
followed generic process of designing performance measures
ENSA, Madrid June 2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
The matrix method
From aggregate to disaggregate approach
Top down
City of Helsinki Social Services
Aggregate measures are
intended to examine
productivity of a large
organizational entity or the
whole organization
Bottom up
Component measures
(disaggregate) capture the
productivity of a single
activity or unit
Social Services Department is rather large organizational entity
productivity measurement was based on output/input index
limited view when information to the unit level is needed
Reference: Jääskeläinen, A. 2009
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
The matrix method
From aggregate to disaggregate approach
Complexity of
the system
City of Helsinki Social Services
Social Service
System as a
whole
Part of the service
system (eg.
elderly services)
Unit level (eg.
Service
housing)
Weak view
of system
productivity
Awareness Productivity
of
is
productivity understood
phenomenon and known
Productivityconsciousness
•Social Service System is a large
organizational entity, state of
productivity is difficult to realize and
manage, offer little information to unit
level
• Productivity is realized, but the
underlying factors needs to be better
understood, measured and managed
by objectives
• At the unit level productivity and
factors involved in the phenomenon
should be understood, measured and
managed by objectives
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
The matrix method
From aggregate to disaggregate approach
Productivity of
City of Helsinki
Bottom-up
City of Helsinki Social Services
 the results from different unit
Productivity of
Social Service Department
…
are aggregated to the next level
 focus is to examine a change
Productivity of
Productivity of
Child care Services
Elderly services
…
…
in total score not the score as
such
Productivity of
Productivity of
Productivity of
Child Care regions
Nursing
home 1 …
…
Service house 1 …
 every unit is taken into
account by its weighted costs Productivity of Child
Day care center 1
…
Reference: Jääskeläinen, A. 2009
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
The matrix method
Map of different factors affecting productivity
Productivity
City of Helsinki Social Services
Bedfast
residents %
Functional loss
of client %
Service
quality
Atmosphere
In Service
provision
Workers
turnover
Employee
competence
Working
atmosphere
Cost
efficiency
Utilization
of employee
resources
Output
quantity
Output
magnitude
Resources
used
References: Jääskeläinen, A. 2009
Jääskeläinen, A. & Lönnqvist, A. 2009
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
The matrix method
The illustration of the measures
Weight value
City of Helsinki Social Services
Service
Housing
Measurement objective Measure
Cost of calculated care day €
45%
Productivity
Employee resources Work contribution in a year per number of customer bed %
15%
Utilization of premises Degree of utilization of premises %
15%
Absences of emplyees Percentage of days lost through sickness % (under 60 days) 10%
Function of client
Functional loss %
15%
Function of client
Bedfast residents %
100%
Nursing
Home
45%
10%
10%
10%
15%
10%
100%
Reference: Jääskeläinen, A. 2009
ENSA, Madrid 2.6. 2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
The matrix method
The illustration of the service housing matrix
City of Helsinki Social Services
Unit cost of
calculated care €
Measurement result
23,21
10
12
9
12,5
8
13
7
14
6
15
5
16
4
17
3
19
2
21
1
23
0
25
Score
0
Weight
45
Weighted score
0
Total score
work input in
year per
number
customer bed
0,36
0,28
0,29
0,3
0,31
0,34
0,37
0,4
0,5
0,6
0,7
0,8
5
15
75
degree of
utilization of
premises
94
100
99,9
99,7
99,5
99
97
95
92,5
90
85
80
3
15
45
rate of short
sickness
absences %
3,79
3
3,2
3,4
3,7
4
4,5
5
6
7
8
10
6
10
60
percentage of
customer with
deteriorating
condition
11,8
10
14
18
22
26
30
34
40
47
55
65
9
15
135
315
Reference: Jääskeläinen, A. 2009
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
The matrix method
Productivity measurements in service housing
2008
13
12
11
10
9
8
7
6
5
4
3
2
2009
1
City of Helsinki Social Services
1000
900
800
700
600
500
400
300
200
100
0
top level 900 - 1000 pontis
extraordinary level 700 - 800 points
good level 500 – 600 points
average level 400 points
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
The matrix method
Productivity index in service housing
index 09/08
13
12
11
10
9
8
7
6
5
4
3
2
index 09/08
1
City of Helsinki Social Services
level
describing
productivity
development
=100
200
175
150
125
100
75
50
25
0
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Conclusion
The matrix method provides:
tool for managerial purposes
City of Helsinki Social Services
one index calculated from several productivity-related indicators
easy to understand what factors have influenced the index
the matrix is not very complex:
the measurement method is transparent to every employee
shows what a good result is
benchmarking to other units using similar matrix
potential tool for supporting payment by results
Reference: Jääskeläinen, A. 2009
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
City of Helsinki Social Services
Thank you for your
attention and interest.
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
References:
Jääskeläinen A. 2009. ”Identifying a Suitable Approach for Measuring and
Managing Public Service Productivity”, Electronic Journal of Knowledge
Management, Vol 7, No. 4 pp. 447-458.

Jääskeläinen, A. & Lönnqvist, A. 2009. ”Designing Operative Productivity
Measures in Public Services”, VINE – Journal of Information and Knowledge
Management Systems, Vol. 39, No. 1, pp. 55-67.
www.interrai.org

City of Helsinki Social Services
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
Productivity in the elderly services
Converting values
Current costs (nominal) were converted to real costs (constant) by
City of Helsinki Social Services
the PIPE index (Price index of public expenditure)
 PIPE Producer: Statistics Finland, Homepage: http://tilastokeskus.fi/til/jmhi/index_en.html
Weighting of the output
Service housing
Client payment grouping (grouping is based on given service hours per month)
Groups 1-6 where one elderly client in group six equate six elderly client in group one
Nursing homes
RUG-III/34 grouping (hierarchical structure)
Cost weigh of client structure (based on clinical status)
average client has weight 1; weight 1,3 means that client need 30% more resources
Reference: Jääskeläinen, A. 2009
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting
City of Helsinki
Social Services Department
The matrix method
Constructing a productivity matrix
prioritize the measures
the experience and context specific knowledge important
City of Helsinki Social Services
statistical study to support the decision of the weights
to finalize matrix
collect a measurement data from each measure
(previous 3 years)
scaling the matrix 0 – 10
average result got a score of 4
Scores 0 and 10 defined in a way that only single units had such
scores
current values of measurements was necessary information
Reference: Jääskeläinen, A. 2009
ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting