Measurement:
Linking Budgeting
to Planning
MSU Planning/Budgeting/
Measurement Retreat
August 15, 2005
Larry Goldstein
President, Campus Strategies
August 15, 2005
© Campus Strategies
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Agenda
Performance management overview
Importance of metrics
Types of metrics
How to use metrics
Questions, comments, and reactions
August 15, 2005
© Campus Strategies
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Performance Management
Applying strategy, methodologies, and
processes
Managing performance of organization and
business network
Leveraging resources to achieve
– Common set of goals and objectives…
Adapted from Paul Niven’s “Balanced Scorecard for Government and Nonprofit Agencies”
August 15, 2005
© Campus Strategies
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Performance Management (contd.)
Unique to an institution
Focuses on results
Action orientation
Based on measurable facts (i.e., data)
August 15, 2005
© Campus Strategies
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Metrics Matter
Demonstrate efficient / effective operations
Operating within available resources
Increased calls for accountability to various
stakeholders
– State government
– Federal government
– Students / Parents
Align resources with priorities
August 15, 2005
© Campus Strategies
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What Metrics Can Do
Bring clarity to vision
Focus attention on strategy as opposed to
short-term operational considerations
Avoid resource allocation decisions focused
solely on short-term budget needs / issues
Highlight strategies to ensure incentives are
appropriate
August 15, 2005
© Campus Strategies
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Why Metrics Are Not Used
Tendency to focus on projects rather than
big picture
Concern about scrutiny of “pet” initiatives
Historical lack of accountability or penalty
for poor performance
Vulnerability to attack and misinterpretation
if not done effectively or misused…
August 15, 2005
© Campus Strategies
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Why Metrics Are Not Used (contd.)
No executive champion
Measurement is difficult
Most common measures from for-profit
sector don’t fit higher education
Some activities not susceptible to routine
quantification
August 15, 2005
© Campus Strategies
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When Measurement is Done Well
Enhances communication about strategy
Better focus / alignment of activities with
strategies
Improves ability to assess organizational
performance / progress toward mission
Puts focus on priorities; improves resource
allocation decisions
Enables employees to self-assess performance
August 15, 2005
© Campus Strategies
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Operational Measures
External
Internal
Learning and Growth
Financial…
Adapted from Paul Niven’s “Balanced Scorecard for Government and Nonprofit Agencies”
August 15, 2005
© Campus Strategies
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Illustration
Financial measures
– Assessing overall financial health?
Adequacy of resources to support
mission?
Living within available resources?
Are assets / debt managed effectively?
Are resource decisions driven by
mission?
August 15, 2005
© Campus Strategies
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Mission / Strategic Measures
Longer term and outcome focused
Support organizational vision
Define organizational direction
Can be used to evaluate programs
Support resource allocation
Adapted from Paul Niven’s “Balanced Scorecard for Government and Nonprofit Agencies”
August 15, 2005
© Campus Strategies
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Mission Measures
Assess effectiveness of mission-based
outcomes
Unique to each institution based on its
specific mission / vision
When mission is not measurable
– Establish goals representative of mission
accomplishment and measure those
August 15, 2005
© Campus Strategies
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How to Use Metrics
Link budgets to plans
Use for comparison to peers / aspirants
Use for longitudinal analysis
Effect mid-course corrections – take action
Report / discuss with management, internal
stakeholders, and interested external
constituents
August 15, 2005
© Campus Strategies
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Measurement: Linking
Budgeting to Planning
Questions, Comments,
and Reactions
Larry.Goldstein@Campus-Strategies.com
540.942.9146
August 15, 2005
© Campus Strategies
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