Joe Dear 6399

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The Need for a Balanced Measurement System
Using Different Perspectives to Create Meaningful
Measures
Bill Rabung and Brad Sickles U.S. Department of
Labor ETA Performance Accountability Team
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The Mission of WIA
increase the employment,
retention, and earnings of
participants, and, as a result, improve the
quality of the workforce, reduce welfare
dependency, and enhance the productivity and
competitiveness of the Nation" - Sec. 106
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National Core and Customer Satisfaction Measures

• 17 core and customer satisfaction measures
• Selection of measures driven by law
• The measures focus on program impacts, not on
  
  
  operations or strategies
• Apply separately to States and local WIBs
• Performance is assessed annually
• Performance levels are negotiated
• Incentives and sanctions based on performance

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The Need for a Balanced Measurement Approach to
Manage Performance

• The national measures focus on bottom line
  results, not the drivers of performance
• The need for timely results
• There is a need for measures that focus on
  program business operations and outputs
• Customer impact measures provide a limited
  picture of organizational health
• Customer impact measures alone are insufficient
  to assess continuous improvement

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The Ideal Approach to Measuring Performance

• Deploys the agencys strategic
  plan
• Focuses and aligns agency
  activities and efforts
• Tests cause-and-effect relationships among the
  programs activities
• Family of measurement types reduces risk of not
  meeting bottom line measures
• Links performance measures to decision making

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A Different Framework for Measuring and Managing
Performance
MISSION
CUSTOMER PERSPECTIVE To achieve our mission, how
must we satisfy our customers?
FINANCIAL PERSPECTIVE If we succeed, how will we
look to Congress and the public?
Value, Benefit
Value, Benefit
INTERNAL PROCESSES PERSPECTIVE To satisfy our
customers, Congress, the public, and mission,
what businesses processes must we excel at?
LEARNING AND GROWTH To achieve our mission, how
must our people learn, communicate, and work
together?
Source Public sector Balanced Scorecard from
the Balanced Scorecard Collaborative
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Why Use Different Perspectives When Creating and
Using Measures?
Perspectives
Objectives
Measures

• Aid to system and operations management
• Help in diagnosing and troubleshooting
• Prioritizing
• An aid to planning
• Understand improvement
• Tracking performance
• External accountability

To be successful, the drivers of performance must
be identified
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Use a Strategy Map to Develop Objectives
Perspectives
Objectives
Measures

• Identify strategic themes and group them under
  the appropriate perspective
• Create a strategy map to visualize the
  interaction of individual activities in the
  larger system
• For each identified strategic theme, identify
  what you are trying to achieve and the obstacles
  you face
• Develop measurable objectives that specify
  numeric target levels, where appropriate
• Limit objectives to major program elements

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Develop Measures for the Objectives
Perspectives
Objectives
Measures

• Each measure should answer one of the
  following questions

• How well did we succeed at providing
  customer value?
• How well do we do the things which
  support creating customer value?

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Linking Strategy to Measurement
Customer Perspective Example Initiative Create
a strategy to increase the percent of successful
program completers from the current rate of
75. Rationale Successful completions highly
correlated with increased employment and earnings.
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Relationship of Baldrige to the Balanced
Scorecard
Malcolm Baldrige Systems Model
Balanced Scorecard
Strategic Planning
HR Focus
Business Results
Leadership
Customer Focus
Process Management
Information and Analysis
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Use of Performance Measures
Perspectives
Objectives
Measures

• Compare
• Learn
• Motivate
• Reward and celebrate
• Promote and explain

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Chases Law on Measurement
Wherever the product of a public organization has
not been monitored in a way that ties performance
to reward, the introduction of an effective
monitoring system will yield a fifty percent
improvement in the product in the short run.
In other words What gets measured gets done
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Small Group Exercise
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Small Group Exercise

• Initiative Your organization created a strategy
  to increase the employment retention rate of
  older youth through enhanced training and job
  development efforts.
• Task Using the approach discussed today,
  develop short-term customer impact measures that
  will help your program manage activities to
  achieve an increased retention rate.
• Discuss and identify factors influenced by the
  program that lead to long-term employment (such
  as placement into jobs with paid benefits)
• Identify at least one objective (such as to
  increase the percentage of participants placed
  into jobs offering paid benefits)
• Create appropriate measures (such as the percent
  of participants placed into jobs with paid
  benefits)
• Identify potential data sources

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For More Information

• Balanced Scorecard Collaborative
• Phone [phone]
• www.bscol.com
• Workforce Excellence Network
• Phone [phone]
• www.workforce-excellence.net