Performance Management Overview

1. Pennsylvania Banner Users Group 2008 Fall Conference Performance Management Overview Mike Salisbury BPRA Product Manager SunGard Higher Education Mike.salisbury@sungardhe.com

2. Topics • Why Performance Management? • What is Performance Management? • What is a Key Performance Indicator (KPI)? • What is a Scorecard? • What is a Dashboard?

3. External Pressure to Perform Policymakers highlight six key performance challenges for higher education today: ACCOUNTABILITY ACCESS

4. Information Needs are Crucial and Pervasive • Information and business intelligence required to address key performance challenges: • Executives: monitor progress towards strategic plan and institutional goals • Administrators: increase departmental effectiveness, manage costs and monitor day-to-day operations • EM/Admissions Officers: improve yield and monitor progress towards recruitment goals and objectives • Registrars/EM/Student Services Officers: improve student engagement, retention and persistence • Advancement officers: measure the progress and effectiveness of their fundraising programs • Institutional Research: guide institutional planning and to support reporting and compliance • IT: meet stakeholder needs for enterprise intelligence and reporting 4

5. Improving Performance Requires Organizational Alignment • Align the organization to strategic goals • Link managerial action to accomplish those goals • Align budget requests and funding to the desired outcomes

6. What is Performance Management? A disciplined approach to understanding, monitoring and managing drivers of performance of organizations. It leverages performance management methodologies and business intelligence capabilities. “Performance Management is a focused and specific type of BI initiative when it integrates performance management users, processes and metrics with analytic applications and the underlying BI platform and infrastructure.” – Gartner Group So what does this mean to a institution?

7. What is Performance Management? • Clarification of vision and strategy across silos • Translation of strategy into operational terms using scorecards • Comprehension and alignment of multiple perspectives, all of which are vital to the institution • Alignment of internal activities with the strategic plan • Fostering employee abilities and commitment to objectives • Defined measures of performance and target called key performance indicators • Driving Decisions Based on Data • Easy accessibility to “single version of truth” by all information consumers using BI technologies such as dashboards • Line-of-sight across business processes to the status and trends key performance indicators • Culture of using information in the planning and decision-making process

8. Business Intelligence Needs for Performance Management EXECUTIVES: Need visibility into progress towards our goals, objectives “Am I achieving my goals?” Performance data Scorecards, Executive Dashboards MANAGEMENT: Need timely trends, summaries, analytics of our operations “How am I doing?” “What should we be doing?” Trend, summary data KNOWLEDGE WORKERS: Need to analyze trends and root causes “Why is this happening?” Operations Dashboards AnalysisTools STAFF: Need detailed reports in many formats and ad-hoc access “What is going on?” “What do I need to do?” Detailed data Detail Reports Basic Report Tools

9. Performance Management Process Review and Plan Performance Information Report and Analyze Monitor and Measure

10. PM Process Example: Recruiting and Admissions Review and Plan • Enrollment Levels • Campaigns • Financial Aid Levels Performance Information Report and Analyze Monitor and Measure • Yield rates, Trends and Causes • Campaign Effectiveness • KPIs vs. External Benchmarks • Track Enrollment Funnel • Recruiting programs • Budget Execution

11. PM Process Example: Advancement Campaign Management Review and Plan • Budget Expectations • Fund-Raising Campaigns • Capital Campaign Targets Performance Information Report and Analyze Monitor and Measure • Accounts to Donors • Financial Statements • Variances and Trends • Spending Patterns • Campaign Effectiveness • Budget Execution

12. PM Process Example: Grant Management Review and Plan • Grant Budget Expectations • Indirect Cost Recovery Rates • Grant Expense Timing Performance Information Report and Analyze Monitor and Measure • Effectiveness/Burn rate • KPIs, Trends and Variance • Granting Agency reports • Proposal pipeline • Grant Spending • Indirect Cost Recovery

13. Profile Land grant institution Carnegie Doctoral/Research-Extensive 4 affiliated community colleges Headcount 26,000 FTE 16,500 Banner UDC client Banner Data Warehouse (ODS, EDW) client Performance Management Challenges Strategic plan lacked benchmarked performance metrics and link to budget allocation process Instruction and General budget process driven by state appropriation incentives received Multiple years of flat enrollment Absence of budget reallocation mechanism Performance Management Example

14. Strategic Budgeting Develop base budget at a percentage of actual revenue produced Reserve unallocated revenue for strategic growth investments Increase unrestricted revenue independent of operating costs Instructional Planning Link college budgets to instructional credit revenue Examine faculty workload and use of adjunct faculty Align quantity of faculty positions to departmental workload Focus budget allocation on enrollment growth and management goals Compensation Budgeting Benchmark compensation to peers Evaluate financial impact of union proposals Examine and forecast benefit costs Benchmark budgets to peers Examine faculty and staff compensation for equity Research Strategy Review research revenue, subsidies and the support it provides for administration and growth of institution Examine cost share, cost recovery, research workload and student support provided Performance Management Example

15. Metrics • OK – I know I want performance management, but what should I measure?

16. What is a “KPI”? “What gets measured, gets done.”

17. 10 Characteristics of Effective KPIs • Aligned • Always aligned with your institution’s strategy and objectives • Owned • Someone must be accountable • Predictive • “Leading” indicators of desired performance • Actionable • Timely data, providing owners and managers with opportunities to intervene and impact • Easy to understand • Definition, trends and status should be obvious to user Source: Performance Dashboards, Eckerson

18. 10 Characteristics of Effective KPIs • Few in number! • Too many = loss of focus • As few as reasonably possible • Balanced and linked • KPIs should balance and reinforce each other • Don’t create KPIs that undermine others • Trigger changes • Measuring should enable insight leading to positive changes • Standardized • Calculations, numbers, assumptions should be the same across the institution so that metrics can be compared • Context driven • KPIs tailored to user roles and their processes • Provide targets and trends to see where you are and in what direction you’re headed Source: Performance Dashboards, Eckerson

19. Pitfalls of KPIs • Less is more • Too many metrics will cause metric overload and nobody will use them • Have one version of “the truth” • Indicators need to be looked at as a group • Cannot focus on one area at expense of others • People start making decisions that undermine other KPIs • Performance indicators don’t tell the whole story • Show trends but not why trend is occurring • Be wary of simplistic comparisons • Explore the drivers of performance for comparative insight • Longitudinal analysis more robust than lateral comparisons

20. KPI Example

21. Scorecards and Dashboards • OK – I know my KPIs, but how do I monitor our status and progress on achieving our goals and targets….

22. Scorecard Monitor the execution of strategic objectives and initiatives Network of metrics, planning targets, thresholds, history, and accountabilities that connect strategy to individuals Often deployed using a formal methodology such as the Balanced Scorecard Emphasize collaboration Dashboard Compound view of performance information made up of scorecards, graphs, and summary views Monitor overall performance daily at a glance Provide data visualizations of performance status and trends Personalized for user Scorecards vs. Dashboards Both provide data navigation and analysis capabilities so that users can quickly analyze root causes and effects as well as identify the impact of performance problems

23. Scorecard Example • Begins with institutional plans • Performance measures identified to monitor progress

24. Scorecard View • Goals, objectives, performance targets configured into Scorecard • Assessment of progress provides visibility into performance • Executives <click> on a goal or objective to learn more about related performance outcomes and key initiatives Goals Objectives Assessment of progress towards goals and objectives

25. Scorecard Example • Objectives enable executives to monitor progress towards related Key Performance Indicators (KPIs) and initiatives

26. Scorecard Example • KPIs have targets, actuals, assessments, management comments • Actual values loaded from data warehouse foundation • Drill-down to reports and analytics

27. Scorecard Example • Initiatives and Milestones Are Also Monitored

28. Dashboards • Different dashboards for different purposes and user types • Strategic • Executives, managers • Tactical • Managers, analysts • Operational • Supervisors, specialists

29. What Makes a Good Dashboard? • Fits Role of Target User • What are the most important business questions they need to answer? • What KPIs are they accountable for? • How much time is spent on monitoring vs. analyzing vs. collaborating? • Meets performance monitoring needs • What is the time horizon they monitor (hourly, daily, year-over-year)? • Which KPIs are leading (process) vs. lagging (outcome)? • What is the highest meaningful level of detail? • Provides easy data navigation/analysis • What type of visualization or chart is appropriate for the user? • Which KPIs should have their trends compared? • What is the lowest level of detail needed to analyze cause-effects? Dashboards are not one size/fits all Dashboards need to be tailored and flexible

30. What Makes a Good Dashboard? • Monitor overall performance at a glance • Multiple charts provide coverage of all KPIs • Charts highlight good and bad performance exceptions • Data is refreshed at required frequency • Navigate and filter data to analyze trends • Population filters are simple to apply and shared • Drill-down navigation paths are intuitive • Level of detail required for cause-effect analysis available • Support for collaborative, data-driven decision-making • Views and analysis can be shared • Level of detail for taking corrective actions available Dashboards are not 4 reports on a page Dashboards need to be dynamic

31. DashboardExample Personalized view of KPIs Multiple charts provide status at-a glance Leading and lagging indicators of performance Common KPI and business rules definition Dynamic charts along with data drilling navigation to analyze trends further

32. Good Performance Management Solutions Aligns the organization • Strategy has driven development of objectives and measures • Common KPI definition with shared dimensions • Monitors Key Performance Indicators (KPIs) of both strategic and operational performance • Sets targets for measures that are achievable • Enables understanding of what’s important and what’s changed Promotes proactive versus reactive decision making • Crystallizes “single version of the truth” • Reduces time and effort required to answer ad-hoc questions • Exposes business trends sooner and supports shortened decision cycles • Allows management by exception Based on data warehouse foundation • Reduce risks to development and deployment • Acceleration of ROI • Designed for analytics performance • Use of architecture best practices for scalability and extensibility

33. Our Unique Solutions • SunGard Higher Education understands these emerging performance obligations and related information requirements • We offer multiple levels of solutions for accessing, managing and analyzing key performance data for institutions of Higher Education • Banner Data Warehouse Solutions • Packaged Performance Management Solutions • Banner Performance Reporting and Analytics is our foundation that enables all levels of staff to create their own reports, analytics and ad-hoc queries • Creates a single version of the truth - pre-built data integration with Banner provide data integrity, security, quality, and accuracy. Create a single, trusted source of institutional data enterprise-wide, quickly and easily. • Designed for Higher Education - data warehouse configures data to answer key questions across wide range of institutional processes. View your performance from summary through to detail, from any perspective, or across departments. • Short time to results - rapid deployment gives you answers to key questions in the shortest time, provides quick wins and minimize impact on your infrastructure • An institution-wide solution that can be implemented in phases, all at once or just for a single organization or business function.

34. Performance SolutionsBringing Value to All Levels of the Institution Performance Data EXECUTIVES Scorecards for Performance Management MANAGEMENT Dashboards, Reports and Analytics to Monitor Progress Trend, Summary Data KNOWLEDGE WORKERS Ad-hoc analysis tools to identify and understand trends Detailed Data STAFF Production reports and ad-hoc access for daily operations 34 September 1, 2014 Confidential and Proprietary Information – SunGard Higher Education, Inc

35. Open to the Floor • Questions • Comments

36. Thank You! Mike Salisbury Product Manager SunGard Higher Education Mike.salisbury@sungardhe.com