1. City of Helsinki Social Services Matrix Method for Measuring Productivity in Elderly Social Services ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department ENSA, Madrid, June 2010 Elderly thematic group meeting Kari Laakoli – City of Helsinki Management accounting advisor E-Mail: kari.laakoli@hel.fi

2. City of Helsinki Social Services Outline of the presentation  information of the elderly projects  from aggregate to disaggregate approach  matrix method  map of productivity affecting factors  prioritized measures  matrix of service housing  productivity results in service housing in years 2007 - 2009  conclusion ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department

3. City of Helsinki Social Services Information of the elderly projects  pilot projects in the elderly services in years 2007 - 2009  13 units of service housing  four nursing homes  aim was to develop a solution to a productivity measurement problem from a practical field  utilization of workshops as a method  two different working teams included  two researcher from Tampere University of Technology  3-5 persons of elderly services (unit manager, workers representatives, accounting experts)  followed generic process of designing performance measures ENSA, Madrid June 2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department

4. City of Helsinki Social Services Reference: Jääskeläinen, A. 2009 The matrix method From aggregate to disaggregate approach Aggregate measures are intended to examine productivity of a large organizational entity or the whole organization ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department Top down Bottom up Component measures (disaggregate) capture the productivity of a single activity or unit  Social Services Department is rather large organizational entity  productivity measurement was based on output/input index  limited view when information to the unit level is needed

5. City of Helsinki Social Services The matrix method From aggregate to disaggregate approach ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department Complexity of the system Social Service System as a whole Part of the service system (eg. elderly services) Unit level (eg. Service housing) Weak view of system productivity Awareness of productivity phenomenon Productivity is understood and known Productivity- consciousness Social Service System is a large organizational entity, state of productivity is difficult to realize and manage, offer little information to unit level Productivity is realized, but the underlying factors needs to be better understood, measured and managed by objectives At the unit level productivity and factors involved in the phenomenon should be understood, measured and managed by objectives

6. City of Helsinki Social Services Reference: Jääskeläinen, A. 2009 The matrix method From aggregate to disaggregate approach ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department Bottom-up Productivity of Child Day care center 1 … Productivity of Child Care regions Productivity of Child care Services Productivity of Social Service Department Productivity of City of Helsinki … … … Productivity of Nursing home 1 Productivity of Elderly services … … Productivity of Service house 1  the results from different unit are aggregated to the next level  focus is to examine a change in total score not the score as such  every unit is taken into account by its weighted costs …

7. City of Helsinki Social Services The matrix method Map of different factors affecting productivity ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department Cost efficiency Service quality Productivity References: Jääskeläinen, A. 2009 Jääskeläinen, A. & Lönnqvist, A. 2009 Output quantity Output magnitude Resources used Utilization of employee resources Working atmosphere Employee competence Bedfast residents % Functional loss of client % Atmosphere In Service provision Workers turnover

8. City of Helsinki Social Services Reference: Jääskeläinen, A. 2009 The matrix method The illustration of the measures ENSA, Madrid 2.6. 2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department

9. City of Helsinki Social Services Reference: Jääskeläinen, A. 2009 The matrix method The illustration of the service housing matrix ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department

10. City of Helsinki Social Services The matrix method Productivity measurements in service housing ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department  top level 900 - 1000 pontis  extraordinary level 700 - 800 points  good level 500 – 600 points  average level 400 points

11. City of Helsinki Social Services The matrix method Productivity index in service housing ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department

12. City of Helsinki Social Services Reference: Jääskeläinen, A. 2009 Conclusion The matrix method provides:  tool for managerial purposes  one index calculated from several productivity-related indicators  easy to understand what factors have influenced the index  the matrix is not very complex:  the measurement method is transparent to every employee  shows what a good result is  benchmarking to other units using similar matrix  potential tool for supporting payment by results ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department

13. City of Helsinki Social Services Thank you for your attention and interest. ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department

14. City of Helsinki Social Services References:  Jääskeläinen A. 2009. ”Identifying a Suitable Approach for Measuring and Managing Public Service Productivity”, Electronic Journal of Knowledge Management, Vol 7, No. 4 pp. 447-458.  Jääskeläinen, A. & Lönnqvist, A. 2009. ”Designing Operative Productivity Measures in Public Services”, VINE – Journal of Information and Knowledge Management Systems, Vol. 39, No. 1, pp. 55-67. www.interrai.org ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department

15. City of Helsinki Social Services Reference: Jääskeläinen, A. 2009 Productivity in the elderly services Converting values  Current costs (nominal) were converted to real costs (constant) by the PIPE index (Price index of public expenditure)  PIPE Producer: Statistics Finland, Homepage: http://tilastokeskus.fi/til/jmhi/index_en.html ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department Weighting of the output  Service housing  Client payment grouping (grouping is based on given service hours per month)  Groups 1-6 where one elderly client in group six equate six elderly client in group one  Nursing homes  RUG-III/34 grouping (hierarchical structure)  Cost weigh of client structure (based on clinical status)  average client has weight 1; weight 1,3 means that client need 30% more resources

16. City of Helsinki Social Services Reference: Jääskeläinen, A. 2009 The matrix method Constructing a productivity matrix ENSA, Madrid 2.6.2010 Kari Laakoli, Management accounting City of Helsinki Social Services Department  prioritize the measures  the experience and context specific knowledge important  statistical study to support the decision of the weights  to finalize matrix  collect a measurement data from each measure (previous 3 years)  scaling the matrix 0 – 10  average result got a score of 4  Scores 0 and 10 defined in a way that only single units had such scores  current values of measurements was necessary information