EITS Directors Session 3, Compact Planning Performance Metrics/Measurements

1. EITS Directors Session 3, Compact PlanningPerformance Metrics/Measurements January 12, 2005

2. …no organization can survive without increasing its own pace of decision-making…hence a increased emphasis on realistic planning is critical. ...the key metric for performance is not financial in nature, but is rather mission effectiveness recognizing that an organization may have many specific sub-missions or departmental missions within the whole….with success of performance unique to the unit and the organization as a whole.

3. Topics/Comments • Drivers of change • Relationship of core systems, services, applicationsto drivers of change (e.g., UGA Strategic Directions) • Compact Planning……….Initiatives, Strategies • Performance metrics/measurements

4. UGA Drivers of Change (e.g) • UGA Mission • UGA Goals • UGA Strategic Plan 2000-2010 • UGA Accreditation 2008 • Five-year Program Planning Process/Provost • American Higher Education’s ‘three’ Revolutions • UGA Strategic Directions • UGA Information Technology audits • Board of Regents requirements • UGA student body

5. … reflecting a need for a comprehensive IT strategic plan in concert with the alignment of UGA central information technology core infrastructure, production systems, services, applications, staffing with UGA strategic goals/priorities …linking EITS goals and priorities with University budgets…based on and fostered by a collaborative campus environment.

6. Simplifying the planning… 1) Breaking complexity into smaller pieces and assigning chunks to specialized individuals or units (initiatives) 2) Creating a strategy for public interest including • Defining goals and intermediate long/short-term objectives • Carrying out a SWOT analysis • Imagining and playing scenarios • Implementing asset management strategies • Identifying measurable performance indicators • Drawing up an action timetable, etc.

7. and, by asking the RIGHT question… • Whom do you serve and what do they want to do? (customers/clients/organization…big picture) • What are the core systems, services, and support provided?(CORE systems, services, support) • What is the best way to provide the services (processes) • How do we know we are doing a good job? (metrics) • What is the best way to organize? (structure) NOTE: sequence of questions extremely important: need to reverse traditional approach by putting focus on customers…worrying about organizational structure and reporting lines is mistake!

8. Requires rethinking approach to planning for the core…. based on move toward a Reframing approach, i.e., structural, political, human resource or symbolic frame(s)…and the • Business Direction….values, mission, vision, goals • Alignment….capabilities (personally tailored, quality, commodity, novelty) • Market Positioning…value proposition to customers • Capabilities Positioning…issue of product and process stable or dynamic

9. Strategic Planning, Governance and Advisement Business Operations and Admin Applications Essential Infrastructure and Related Support Instructional Technology Research Computing Customer support Information Technology and Data Security Outreach and Partnerships

10. Strategic Planning, Governance and Advisement Business Operations and Admin Applications Essential Infrastructure and Related Support Instructional Technology Research Computing Customer support Information Technology and Data Security Outreach and Partnerships

11. Tools for planning strategically …the difference between where we are (current status) and where we want to be (vision) is what we do (actions), why we do it (values) and how we do it (strategies).

12. “Our Balanced Scorecard” Purpose Values Strategy

13. Compact Planning Descriptors • Inclusive, bilateral, negotiated written agreement focused on long-term planning • Venue for establishing priorities; initiative- based • Cyclical, iterative, annual • Alignment of unit and organizational goals and strategies • Provides accountability through specific performance and outcome measures tied to initiatives • Positions actions, outcomes, performance expectations; respect responsibilities; funding sources in context of university long-range goals and performance expectations; partnerships/ codicils providing ‘shared responsibility’.

14. Types of Initiatives (e.g.) • Those contributing to achievement of university goals (e.g., diversity, partnerships, global economy) • Those contributing to the university’s planning for ‘student learning in a technology-rich environment’ • Those contributing to achievement of unit-specific goals • Those improving the unit’s performance on selected performance measures • Those supporting established targets for growth, recruitment, retention, increased research funding, etc

15. Levels of Negotiated Involvement • Level 1: EITS in concert with User community, IT ‘governance’ participants (e.g., CAIT, ITAF Security Committee); UGANet, faculty, students, etc • Level 2: EITS Directors/senior management • Level 3: CIO; IT Advisory Council • Level 4: CIO • Level 6: EMT

16. Determining our approach • Creating readiness for the next level of management Senior Leadership Mid-level Leadership Departments Strategic Business Units Individuals

17. Initiatives Some initiatives may take a year,…others may take two or more years to complete. The initiatives may also: a) be carried forward from a previous compact and/or new ones introduced in the current cycle; b) describe ‘new’ activities and/or improve the quality and effectiveness of existing activities such as infrastructure improvements. c) Require new funding and/or redirect existing resources.

18. Compact Plan Format • Short title • List of university goals supported by the proposed initiatives • Clear description of each initiative and the university and unit objectives to be achieved by implementing the initiative • Strategies for implementing the initiative(s) including: • Action to be taken • Responsible individual(s) • Deliverables • Implementation schedule • Estimated cost(s) • Clear description of the desired outcomes of the initiative and how outcomes will be assessed/measured; include baseline comparisons • Prioritization of the initiatives on financial spreadsheet reflecting request, match, codicil/partnership contribution

19. “Performance” in this context means answering the question… “How well is the organization/unit doing its mission?” “Metrics of performance” answer the question… “How do you know how well the organization/unit is doing?”

20. Performance metrics should provide quantitative gains in: • Customer satisfaction • Organizational performance • Workforce excellence… with key elements addressing: • Alignment with organizational mission • Quality of product • Timely delivery • Cost reduction and/or avoidance • Cycle time reduction • Customer satisfaction • Meeting organization requirements (e.g., fiscal reporting) • Meeting commitments

21. …and the quality of the metric can be assessed by the SMART test… S = Specific: clear and focused to avoid misinterpretation; should include the measure assumptions and definitions M = Measurable: can be quantified and compared to other data; allow for possible statistical analysis A = Attainable:achievable, reasonable, and credible under conditions expected and articulated (assumptions) R = Realistic: fits into the organization’s constraints and is cost-effective T = Timely:doable within the time frame given.

22. Types of Metrics • Trending against known standards: the standards may come from either internal or external sources and may include benchmarks • Trending with standards to be established: usually this type of metric is used in conjunction with establishing a baseline • Milestones achieved.

23. Yes/No Metrics Yes/No metrics are used in certain situations usually involving establishing trends, baselines, or targets, or in start-up cases. Because there is no valid calibration of the level of performance for this type of measure, they should be used sparingly. Examples: • Establish/implement a system • System is in place (without regard to effectiveness) • Analysis is performed (without criteria) • Reporting achieved (without analyses) • Threshold achieved (arbitrary standards)

24. Quality of Metrics • Is the metric objectively measurable? • Does the metric include a clear statement of the end results expected? • Does the metric support customer requirements, including compliance issues where appropriate? • Does the metric focus on effectiveness and/or efficiency of the system being measured? • Does the metric allow for meaningful trend or statistical analysis? • Have appropriate industry or other external stands been applied?

25. Year 3 result = 68% Year 1 result = 52% Percent of Agreeable Responses

26. Cont. Quality of Metrics • Does the metric include milestones and/or indicators to express qualitative criteria? • Are the metrics challenging but at the same time attainable? • Are assumptions and definitions specified for what constitutes satisfactory performance? • Have those who are responsible for the performance being measured been fully involved in the development of the metric? • Has the metric been mutually agreed upon by you and your customer?

27. Our Goal: 100% Dispatch of Same-Day Sorted Mail Percentage of Same-Day Dispatching of Presorted Mail

28. …the first step in developing performance metrics is to involve the people who are responsible for the work to be measured, then… • Identify critical work processes and customer requirements • Identify critical results desired and align them to customer requirements • Develop measurements for the critical work processes or critical results • Establish performance goals, standards, or benchmarks.

29. and…before one begins developing metrics, ask some key questions regarding planning for the core including: • Which processes are most important now and why? • Who will be the change champion(s)? • Who are the stakeholders? • What is the business culture of the company and what are its strengths? • What subcultures exist and what are their strengths? • What cultural attributes are weak or will interfere with the change? • What will be the toughest changes and how will they be addressed? How ‘ready’ is the organization to change?

30. The First Year • Focus owners • Initiatives/Measures Stakeholder Resource Customer Process People Leadership Readiness Initiative

31. Scorecard in Action Strategic Business Units (SBU) Metrics Initiatives

32. Transforming BAS to achieve vision: • Aligning priorities to create a more cohesive, focused organization…not a “holding company” • Redefining workplace culture to become more proactive, mission-driven, and customer-service oriented • Building and supporting leadership to enable the transformation

33. Compact Planning Process requires: • Courage to initiate change against resistance • Start where you are – leadership at any level • Engage the spirit – not just the intellect