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

2. 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

3. 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)

4. 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

5. 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

6. 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 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 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 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

7. 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

8. 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

9. 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

10. 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?

11. 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

12. 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

13. 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).

14. 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

15. 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)

16. 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?

17. 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?

18. 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?

19. 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?

20. 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

21. 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 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 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 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

22. 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 by 1,271 (15%) to 9,748.
8,477
1,271
1.1.1
Increase FTE in-state UG enrollment for AY 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 by 125 (20%) to 757.
632
125
1.1.2A1

23. References
Probst, A. (2009). PERFORMANCE MEASUREMENT, BENCHMARKING & OUTCOME-BASED ... Retrieved June 30, 2016, from Measurement manual Volume II.pdf

24. Questions?