How to Create Performance Measures for a Strategic Plan Darren Blagburn, Institutional Effectiveness

Developing Measures- The New Standard Two concepts that are separate but linked: Idaho’s State Board of Education is considering using performance-based budgeting to fund higher education year-to-year Performance measurement is a long-term strategic thinking methodology It comes down to asking the right questions

Developing Measures- Performance Measures Definition Performance measurement provides resource allocation comparisons over time and measures efficiency and effectiveness to encourage continuous improvement. Efficiency- lowest cost for a given output Effectiveness- service level meets the demand of the citizens You can be effective without being efficient “Measures must be consistent throughout and applicable to the strategic plan, the budget, and the current accounting and reporting system.” They are tied to the mission and vision. (Probst, 2009, p.6)

Developing Measures- Performance Measures Warning WARNING--Using performance measurement data in decision making for budget preparation can be catastrophic Don’t make simplified assumptions based on misapplied evaluations or unrefined results (in other words…measuring the wrong indicator) Performance measures support management decisions but should not necessarily used as a club to hold over someone Incorrect application may lead to long-term problematic impacts

Developing Measures By tracking the measurements that support Goals, Priority Objectives and Action Plans ISU will: Better accomplish the action plans that support customers and stakeholders Effectively manage resources Increase overall satisfaction

Example- Bringing It All Together Goal: Increase access and opportunity through program support and enrollment enhancements. *Maintain International # at 998 Indicator Priority Objective 2015 YR 1 Yr 2 Yr 3 Yr 4 Yr 5 Action Plans Action Plan Indicator Action Plan Benchmark 1.1 Increase total UG FTE enrollment for AY 2021-2022 by 1,271 (15%) to 9,748. 8,477 8,647 8,901 9,155 9,409 9,748 1.1.1, 1.1.2 1.1.1A1(M1), 1.1.1A2(M1) NA % Incr yr 2% 3% 4% # Incr yr 170 254 339 1.1.1 Increase FTE in-state UG enrollment for AY 2021-2022 by 1,695 (20%) to 7,993. 6,662 6,862 7,128 7,394 7,660 7,993 1.1.1A1 Hand deliver acceptance letters to potential students who applied to ISU in Treasure Valley, Magic Valley, Pocatello and Idaho Falls. 1.1.1A1(M1) Number of students contacted 1,750 yr 1 1.1.1A1(M2) Number of students attending 235 yr 1 5% 1.1.1A2 Partner with IDARNG to identify Soldiers’ MOS’ that would directly apply to a ISU UG programs. 1.1.1A2(M1) Number of contacts made 275 yr 1 200 266 333 1.1.1A2(M2) Number of students attending 19 yr 1 1.1.2 Increase FTE UG out-of-state enrollment for AY 2021-2022 by 125 (20%) to 757. 632 651 676 701 726 757 1.1.2A1 Identify northern Utah students graduating AY2016 1.1.2A1(M1) Number of students contacted 1,245 yr 1 1.1.2A1(M2) Number of students attending 12 yr 1 19 25 31

Developing Measures- Definitions Measures- a standard unit used to express the size, amount, or degree of accomplishment – DFM requires 10 or fewer Indicators- A device providing specific information on the state or condition of something, in particular Benchmarks- A standard or point of reference against which things may be compared or assessed They are actual achievements tracked over time There is no one, right way to establish a benchmark but it does require data to project a calculated guess and you have to define them Techniques like: Averaging past data or determining annual growth over time Make sure they are realistic but will challenge the organization

Developing Measures-Defining Performance Measures Only track a single attribute- Incorrect: The number of students from high school and new transfers Correct: 1. The number of students from high school 2. The number of transfer students Are usually quantitative, not qualitative Have specific timeframes and reporting periods Do not maintain but decrease or increase in value to achieve a goal Are meaningful/understandable to support measuring the goal Focus on quality of the outcome not quantity

Developing Measures- Basic Requirements Input: Resources allocated to and expanded by a program Output: The quantity of the units produced; how much work was done Efficiency: Using a ration of inputs used per unit of output Service Quality: How satisfied customers/stakeholders are Outcomes: Qualitative results associated with programs or services

Developing Measures- Basic Requirements Four questions need answering: What are your goals? What services that your unit performs are you measuring? What are the objectives of those services? What indicators will you use to measure progress of those objectives?

Developing Measures- Service Areas A service area is an organization’s major activities These are activities that: Critical to the success of the organization’s mission Consume a significant portion of the budget Locally sensitive or are frequently in the public or political spotlight Significant customer service focus

Developing Measures- Service Area Objectives A service area objective is an outcome-based statement (action plan measures) that are goals within a single fiscal year Each service area has: One objective statement per year At least one indicator of each type- input, output, efficiency, service quality Quantifiable objectives and targets Demonstrate progress toward a goal They should address: Support to department/cost center goal statement Reflect planned benefits to customers

Developing Measures- Service Area Objectives A service area objective should address: Support to department/cost center goal statement Reflect planned benefits to customers Show progress Quantifiable within the fiscal or academic year of time Describe a quantifiable future target level Template: To improve/reduce (accomplishment) by (a number or percentage), (from X to Y) toward a target of (a number).

Developing Measures- Four Types of Indicators Category Types Definition Example Input Resource used to produce an output Cost per credit hour Output Quantity or number of units produced Number of students receiving degrees Efficiency Inputs per unit of output or outputs per input Cost per credit hour per student Service Quality Timeliness, accuracy and/or customer satisfaction with service Number of students who completed a degree in 4-years

Developing Measures- Basic Requirements Examples Service Area Indicator Cost Academic costs to produce a degree by college Personnel Costs Academic instruction costs Capital Funds Required Costs associated with refreshing student housing Administrative Costs Costs of purchasing paper clips Input Indicators Costs (budgeted or actual) Operating expenses Staff-year equivalents (SYE) Personnel Costs Full-time Equivalents (FTE) Capital Equipment Direct labor hours (DLH)

Developing Measures- Basic Requirements Output Indicators Should answer questions Service Area Indicator What services were delivered? Education Number of degrees earned? What volume was provided? Training Number of certifications achieved? How many unit of service were provided? Experience How many hours of hands-on training did it take? Community benefit How many trained individuals are available to fill a position?

Developing Measures- Basic Requirements Efficiency Indicators Cost or Productivity Service Area Indicator Cost per degree/course Education Cost of a degree? Hours of study Training Hours of preparation to pass a certification? Years to complete Experience Years to complete training? Cost to taxpayers Community benefit Cost of education to State of Idaho?

Developing Measures- Basic Requirements Service Quality Indicators Where to look Service Area Indicator Customer surveys Education Number of years for completion? Response logs Training Number students who passed the test on the first try? Error rates Experience Number of mistakes students made while performing duties? Grading system Community benefit Level of quality of service provided by graduates?

Developing Measures- Basic Requirements Outcome Indicators Questions to Ask Service Area Indicator How has the customer benefited? Education Graduates per year serving the community? Why is the customer better off? Training Number students who passed the certification test on the first try? What is the impact of the service? Experience Does the graduate require extensive supervision to conduct tasks ISU trained them in? How has the community benefited? Community benefit Number of students who found positions within the local community?

Developing Measures- Creating a Matrix Service Area Objective Input Output Efficiency Service Quality Outcome Bachelor Degrees Increase Number of students who graduated with a 3.5 gpa or higher in AY 2018 Average cost to the college to graduate a student w/ a 3.5 gpa Number of graduates with a GPA of 3.5 Average cost to the State of Idaho Number of years it took for students to complete their degree # Students who found a position in a related field of study Service Area Objective Input Output Efficiency Service Quality Outcome Degree Completion 21 $46,430 3 $975,031 6 1 Anthropology Degrees Total Number of students who graduated with a in AY 2018 Average cost to the college to graduate a student Number of graduates with a GPA of 3.5 Average cost to the State of Idaho Number of years it took for students to complete their degree # Students who found a position in a related field of study

Example- Bringing It All Together Goal: Increase access and opportunity through program support and enrollment enhancements. *Maintain International # at 998 Indicator Priority Objective 2015 YR 1 Yr 2 Yr 3 Yr 4 Yr 5 Action Plans Action Plan Indicator Action Plan Benchmark 1.1 Increase total UG FTE enrollment for AY 2021-2022 by 1,271 (15%) to 9,748. 8,477 8,647 8,901 9,155 9,409 9,748 1.1.1, 1.1.2 1.1.1A1(M1), 1.1.1A2(M1) NA % Incr yr 2% 3% 4% # Incr yr 170 254 339 1.1.1 Increase FTE in-state UG enrollment for AY 2021-2022 by 1,695 (20%) to 7,993. 6,662 6,862 7,128 7,394 7,660 7,993 1.1.1A1 Hand deliver acceptance letters to potential students who applied to ISU in Treasure Valley, Magic Valley, Pocatello and Idaho Falls. 1.1.1A1(M1) Number of students contacted 1,750 yr 1 1.1.1A1(M2) Number of students attending 235 yr 1 5% 1.1.1A2 Partner with IDARNG to identify Soldiers’ MOS’ that would directly apply to a ISU UG programs. 1.1.1A2(M1) Number of contacts made 275 yr 1 200 266 333 1.1.1A2(M2) Number of students attending 19 yr 1 1.1.2 Increase FTE UG out-of-state enrollment for AY 2021-2022 by 125 (20%) to 757. 632 651 676 701 726 757 1.1.2A1 Identify northern Utah students graduating AY2016 1.1.2A1(M1) Number of students contacted 1,245 yr 1 1.1.2A1(M2) Number of students attending 12 yr 1 19 25 31

8. Developing Measures-Gap Analysis How do we move from where we are to where we need to go? Priority Objective Current Standing Deficiency Action Plan 1 Goal: Increase access and opportunity through program support and enrollment enhancements 1.1 Increase total UG FTE enrollment for AY 2021-2022 by 1,271 (15%) to 9,748. 8,477 1,271 1.1.1 Increase FTE in-state UG enrollment for AY 2021-2022 by 1,695 (20%) to 9,748. 6,662 1,331 1.1.1A1, 1.1.1A2 1.1.2 Increase FTE UG out-of-state enrollment for AY 2021-2022 by 125 (20%) to 757. 632 125 1.1.2A1

References Probst, A. (2009). PERFORMANCE MEASUREMENT, BENCHMARKING & OUTCOME-BASED ... Retrieved June 30, 2016, from http://localgovinstitute.org/sites/default/files/Performance Measurement manual Volume II.pdf

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