Learning to be Better Linking Purpose to Results Michael Mucha, P.E. Director of Public Works City of Olympia
Agenda • Tracking for Success: Why are we doing it and what does it look like? • Tools for Success: How we are doing it. • What we are Learning: Challenges and Opportunities.
Issues Compelling Us To Act Climate for change: • Increasing demand for value. • Do less with less. • Innovation to build capacity and maintain existing LOS. • Need to prepare and support employees to be their own masters of improvement.
Council Goals Efficient Government Informed Budget Decisions Tell our Story to the Public
1 Where are we now? Strategy Must Come First! Strengths Weaknesses Opportunities Threats 2 6 How will we know when we’ve arrived? Why are we in business? Measurements Customer Expectations and Mission Six Steps 3 5 How should we do business? How do we get there? 4 Action Plan Where do we want to be? Value Culture Vision and Strategic Goals
Structure of Business Plan • Line of Business: Groupings of programs by common purpose. • Program: Groupings of products and services by common purpose. • Product/Service: Deliverables. Something the customer actually receives.
Major Change In How Business Is Done • Focus is on the customer instead of the task. • Results span across organizational lines instead of contained in silos. • Data used for decision-making instead of gut feel. • Results begin a discussion instead of ending it. • Motivation is achievement and learning instead of fear and punishment.
Traditional StructureWhat We Do Strategic Communications Support Services Engineering Utilities Coordination Operations & Maintenance Policy Development
Value/Structure DisconnectWhat Value We Provide Strategic Communications Support Services Engineering Operations & Maintenance Utilities Coordination Policy Development Drinking Water Waste Water Roads Garbage Parking
Value to Citizens • Conserving • Protecting • Delivering Water Safe & Comfortable Life Waste Transportation • Access • Efficiency • Safety • Choices • Reducing • Reusing • Disposing Consultant
Our Operational Mantra • Job is not finished until the work is documented. • Using data is a part of everyone's job. • We will evolve not transform. • It’s not about the numbers…it’s what you do with them that matters.
So What? • Openness: Public can see for themselves what they are getting. • Pride: Citizens AND Employees are confident that the City is competent.
Success Factors • Keep it simple. • Every department moves at their own pace based on needs. • Follow a consistent framework. • Create space for learning. • Pressurize the System.
Purpose... Results... Outputs... Demands... Efficiency... “Family of Measures” Tells a complete story of what each program is all about.
Developing a Program Purpose The purpose of the ________ is to provide ________ services to __________ So that they can ____________.
“So That” The two Most Powerful Words • What benefit does the customer experience as a consequence of receiving the service? • Does it matter to somebody? • Is it tangible? • Is it measurable? • Is it doable with existing resources?
Key Results Describes the expected benefitfor customers that a given program can reasonably be expected to significantly influence: Stated as a percentage or rate. Vital few. They represent the use of big chunks of resources.
Outputs Number of units of product or service delivered to the customer: • Stated in terms of numbers or counts. • Meat and potatoes. • Example: Lane miles of road resurfaced.
Demands Number of total units of product or service anticipated orto be demanded: • Stated in terms of numbers or counts. • Sometimes hard to determine. Example: Number of lane miles rated poor condition.
Efficiency The cost per output or result: • A calculation stated in terms of cost per unit. • Best indicator of performance improvement. Example: Cost to resurface $120,000 per lane mile.
Summary Statistics Business Plans 8 Departments 24 Lines of Business 65 Programs 431 Services 54 Key Results 106 Efficiencies 2500 Outputs
One Page for Everyone • Council identifies Key Result Measures. • Directors monitor LOB’s key results. • Managers monitor program result and efficiencies. • Supervisors monitor service results and efficiencies. • Good and bad things reported up.
The Sieve Analysis Strategic Long-term Key ResultsAnnual Operational MeasuresWeekly Work Gets Done Here
PW Strategic Business Plan Operational Strategic How we get there How we know we’ve arrived (TFS) Where we want to be “Planning for a vacation” “Final preparations for a vacation”
Watermain is replaced Water is conserved Pipes no longer leak Drinking water consumption per capita is reduced Sustainable water resources What Are We Learning? Strategic Goal “So That” Chain “so that” Ultimate Policy Intent “so that” Key Result = % reduction in drinking water consumption “so that” Degree of Influence by Department “so that” Work! Where Change Happens
Triple Bottom Line Life Cycle Costs Business Case Risk Level of Service
Performance Measures & Reporting 10 Step Process 1 Program Structure Identified 2 Measures Defined 3 Baselines Determined 4 Targets Identified 5 Data Collected 6 Data Input / Draft Report 7 Report Analyzed & Finalized 8 Dept Dir & Mgmt Review 9 Results & Decisions Report Distributed 10 Targets & Measures Refined
Challenges and Opportunities • Getting started. • Balance. • Accountability. • Dealing with fear. • Long-term organizational commitment. • Connecting costs and activities. • Keeping momentum.
Performance Roundtables • Every LOB meets quarterly. • All key programs staff attend. • Meeting is open to anyone. • Focuses on action.
Four Key Questions • Value Commitment: What results am I striving to achieve for our customers? • Status: What specific data indicates my progress at achieving these results? • Understanding: What are the results telling me? • Action: What must I do now to make the results even better or correct a problem?
Being a Blue Dot Organization Human Element 1 2 3 4 5 • Teamwork • Caring • Learning • Committed • Risk Taking 1 2 3 4 5 Bottom Line • Productivity • Technical Competence • Quality • Financial Stability Reference: Leadership and Life Mastery by Eric Allenbaugh Ph.D.
Our Culture of Accountability • Taking risks. • Expecting mistakes. • Openness about failure. • Providing support when things go bad. • Taking ownership for your commitments • Analyzing mistakes. • Celebrating successes. • Listening before deciding. • Clarity of expectations.
Managing Fear During Change Managing Fear Clarity What do you expectfrom me? Resolution Where do I go with a problem? Rewards What is in it for me?
Organizational Commitment Start 2001 (Context) Program Purpose & Business Plans 2003 (Content)Key Results & Training 2004 Operationalize Measures & Training 2005 Use of Data & Efficiencies Budget Integration 2007+ Normal Business
Keeping Momentum • Guidance Team and User Group. • Four “S’s” start slow, simple, and small. • Build on little successes. • Stop doing what doesn’t work. • Experiment. • How can we make results even better? Not…how can we improve.
The Process Setting the Stage: Two years of planning; goals, framework, and getting political authorization. (Leadership) Design: One year of development. (Employee involvement) Implementation: Three years to institutionalize. (Create space in their workplan)
Design • Used outside experts. • Four-month process. • Involved employees.
So What? Clarity Fulfillment Improvement
Lessons Learned • You will eventually be challenged by everyone. • Stick to your core principles and goals. • Requires intense hand holding. • Don’t forget the details. • Your own ideas will evolve. • Chunk the work.
Guiding Coalition • True change/performance improvement happens at the operations/staff level. • Turns vague concepts into reality. • Measures will not help improve performance if those using them don’t believe in their power. • Influence over a result builds capacity and reduces fear.
Wedding Cake Policy Maker & CEO Department Director Key Results LOB or Division Manager Program Manager Staff
The Language We Use • How can we make results “even better.” • Results versus outcomes. • Straight talk about tangible things. • Job is not done until the data is collected! • Don’t let the data go naked.