1. STATE OF ALASKA Performance Management 101

2. 2 Why Performance Management? 1. 1.It works - Systematic way to get results 2. 2.Communication   Common language   Standard format   Tells your story 3. 3.Helps get you the money 4. 4.It is the law

3. 3 Performance Management Cycle Plan Budget Operate Analyze To achieve a result: 1. 1. Develop a plan 2. 2. Budget for that plan 3. 3. Implement/operate 4. 4. Analyze and assess 5. 5. Go to step 1

4. Statewide Priorities Performance Framework Ten-Year Fiscal Plan Annual Budget Narrative Statewide Priorities Performance Framework Ten-Year Fiscal Plan Annual Budget Narrative Results-Based Budget Strategic Investment Plan-Based Budget Results-Based Budget Strategic Investment Plan-Based Budget Process Management Performance Monitoring Process Reengineering Process Management Performance Monitoring Process Reengineering End Results Measurement Assessments End Results Measurement Assessments Reports and Measures Alaska Performance Management System 4

5. Performance Framework 5

6. 6 Alaska Performance Framework   State Priorities   Department Priorities – –Associated funding & positions – –Key Performance Indicators   Department Performance Detail – –Includes all Department Results and associated Targets, Strategies, Status, Data, and Analyses

7. Framework Alignment 7

8. State Priority: Public Safety Successful Offender Re-entries Target: Reduce the number of released offenders who commit a crime to X Prepare offenders for a job at release Target: Increase the number of offenders with GEDs to X So Corrections Priority: Reformed Offenders Level of Control Ultimate Policy Intent Teach reading to offenders Target: X number of offenders receive reading instruction So End Results Strategies Actions 8 Framework Alignment Priorities

9. Prepare well-trained law enforcement officers Target: Increase the Public Safety Training Academy overall GPA 9 So End Results So Strategies Actions State Priority: Public Safety Successful Offender Re-entries Target: Reduce the number of released offenders who commit a crime to X Prepare offenders for a job at release Target: Increase the number of offenders with GEDs to X Dept. Corrections: Reformed Offenders Teach reading to offenders Target: X number of offenders receive reading instruction Dept. Public Safety: Protection Protect Lives Target: Reduce the number of deaths due to criminal acts Create deterrence by solving homicides Target: 100% homicide solve rate

10. 10 Department Priorities Performance Summary Cabinet and OMB Head’s Up Meetings   Orders main responsibilities   Reflects resource distribution   Displays key performance

11. 11 Key Performance Indicators Factors to take into account when choosing key performance indicators: Ultimate policy intent Most direct measure of result Critical success factor Big ticket item Hot button item

12. 12 End Result: The Ultimate Goal! Desired eventual condition Public focused - What public paying for Make it bold – End stuff or make everything good or… “My administration is taking a comprehensive approach to stop the epidemic [of sexual assault & domestic violence]” - Gov. Sean Parnell Performance Detail Elements

13. 13 End Result: (continued) Ultimate goal, not year-end goal Doesn’t have to be reachable today Targets are for reachable goals Realistic Target(s) for each End Result Performance Detail Elements “…get a workstation running our software onto every desk and eventually in every home.” - Bill Gates, 1985

14. 14 Strategy: How do we get there? Planned approach Designed to achieve the End Result Consider long-term Return on investment Realistic Target(s) for each Strategy Performance Detail Elements

15. 15 Target : How are we doing? Expected level of success Realistic - based on time & resources Min. one per End Result & Strategy Use the number that best tells story Performance Detail Elements

16. Analysis 16

17. 17 Analysis Analysis includes examining: 1. 1. Performance & operational data 2. 2. Internal/External Assessment 3. 3. Evaluation of strategic alternatives

18. 18 So you know producing right results Whether, not why To improve, not blame Informs all organizational levels Used in planning, budgeting, operations Performance Measurement

19. 19 Types of Measures   Input – resources used # of staff, caseload size, …   Output – activities completed # trained, # audits, …   Efficiency – how well resources used Cost per, cycle time,…   Quality – effectiveness Accuracy, rating, survey,…   Result – outcome achieved Incidence, prevalence,… Low Value High Value

20. 20 Measure Value Example Destination: grocery store 1.Inputs – gas pumped into the tank 2.Outputs – miles traveled, gas consumed 3.Efficiency – gas mileage 4.Quality – reliable, comfortable 5.Result – proximity to grocery store

21. 21 Relevant To the End Result or Strategy Quantifiable Need to be able to count it up Unidirectional Good is either up or down, not both Actionable Someone can act to improve it Elements of Good Measures

22. 22 Performance Measures Development Investment Iterative process Cost/Benefit Unintended consequences

23. 23 Internal strengths/weaknesses External opportunities and obstacles User group opinions Identify only the most impactful Internal/External Assessment

24. 24 Identify a rich range of alternatives Weigh cost/benefit of each Cost includes training, time, capital,… Benefit is the difference between the result with and without the intervention Other considerations include required legislation, mix of strategies, long-term costs Justification for current and future Strategic Alternatives

25. 25 Wrap-Up Next steps:   Align State Priorities, Dept. Priorities, and Dept. Performance Detail   Performance Management Advisory Board   Performance Management Manual   Performance Framework Improvement – Available for more specific follow-up

26. 26 For questions and individualized assistance with Alaska’s Performance Framework: Craig Kahklen, Management Analyst Office of Management & Budget 907-465-3559 Craig.Kahklen@alaska.gov