1. Culture of Quality Governance Utah is committed to providing value to our citizens through consistently improving services we offer. We are continuing our focus on improving quality of life through many programs in education, economic development, and improving performance in government.. Governor Jon M. Huntsman

2. Culture of Quality Governance: Areas of Emphasis Strategic Leadership Analytical Framework Leadership Development Strategic Investment Innovative Results

3. Analytical Framework: Measuring for Performance If you can’t measure it, you can’t manage it. When performance is measured, performance improves. “What you measure is what you get. Senior executives understand that their organizations measurement system strongly affects the behavior of managers and employees.” -Kaplan and Norton What gets measured gets done.

4. Analytical Framework: The Balanced Scorecard “The Balanced Scorecard gives government organizations a tool to plan, communicate and drive new strategies to meet the needs of stakeholders, including constituents and legislators…[while] demonstrating accountability for program and organizational outcomes/results.” -Gartner-- Balanced Scorecard: Holistic View of Public-Sector Strategy, 2001

5. Why Scorecard? Translate strategy into action, making strategy everyone’s job. Manage the intangible assets e.g., customer loyalty, innovation, employee capabilities Meausre what matters - the critical few vs. the important many – in real time, not just after the fact Create a daily management system for the day-to-day navigation of the business To Scorecard Successfully Reach cross-functional agreement on strategic direction Translate strategy into “everyday speak” Understand the cause and effect of linkages between strategy/initiatives/processes Identify most important measures of success, critical strategic initiatives, and process drivers Set up “accountability contracts” across organization Cascade the Scorecard into the organization What You’ll Get Alignment and focus of the organization around a common purpose and strategic direction Improved resource prioritization and allocation Improved basis for business development and growth planning An ongoing feedback mechanism to make real-time, mid-course adjustments to priorities A set of balanced metrics “Now I understand how I contribute to the business strategy – and the bottom line.” Analytical Framework: Why Use Balanced Scorecard?

6. What is your mission? Management teams at department and division level discussion and agreement. What is your strategy for fulfilling mission? Reassess current strategy and identify areas of desired improvement or performance acceleration. How do you measure your performance? What must we do well? What can be measured? How will we use the information to make decisions? Analytical Framework: The Balanced Scorecard

7. Increase Productivity Increase Efficiency Improve Customer Service xxx Strategy Identify metrics Controllable Focused Measurable Filter metrics to ‘vital few’ Draft scorecards, targets & iterate IT Platform Training Communications Roles and ResponsibilitiesManagement Process Creating a Balanced Scorecard Confirm or develop strategy xxx First Draft Metrics Execute plan

8. Mission and Vision - What are our human capital issues and requirements (skill mix, critical skills, morale, motivation, training, development, bench strength, etc.)? - What infrastructure resources are critical to our success (tools, methods, knowledge bases, labs, etc.)? - What organizational capital resources are critical (structure, leadership, culture, values, etc.)? - What actions and initiatives do we take in light of the above? - Who takes them? - How do we measure and manage progress? - Who are our shareholders or stakeholders? - What do they expect from us? - What are our goals? - What actions and initiatives do we take in light of the above? - Who takes them? - How do we measure and manage progress? - What processes are critical to our success (efficiency, innovation, learning, etc.)? - What are the critical dependences and relationships among processes? - How must these be structured or organized? - What actions and initiatives do we take in light of the above? - Who takes them? - How do we measure and manage progress? - Who are our customers? - What do they value? - What do we sell? - What value propositions do we offer? - What is our brand image? - How do we establish, sustain, and leverage client relationships? - What actions and initiatives do we take in light of the above? - Who takes them? - How do we measure and manage progress? Balanced Scorecard from 30,000 Feet Balanced? Financial Internal Business Processes Learning and Growth Customer Balanced Scorecard Step 1: Confirm Strategy and Primary Objectives

9. Balanced Scorecard Step 2: Principles for choosing metrics KPIs must have strong and clear linkage with organization vision, strategy, and goals Linked Controllable Cascaded Measurable Focused Balanced Appropriate targets Buy In KPIs must be balanced to include financial and non- financial metrics as well as leading and lagging metrics Performance should be assessed on the ‘vital few’, not the ‘trivial many’ KPIs KPIs must be owned by those who will be accountable Must be measurable with available data that is easily trackable Targets must be set appropriately so that they are stretch, but achievable; they should reviewed frequently Must cascade up/down so that achievement of lower level KPIs ensures company reaches its corporate goals Organizational buy-in is critical and requires that metrics and targets are accepted by each organization Individual metrics Set of metrics Organizational entrenchment

10. Controllable Measurable Mix Focused Balanced Scorecard Step 3: Filter down to ‘vital few’ Initial set of metrics (50+ potential metrics) ‘Vital Few’ (target <15 metrics per scorecard)  Metric owner influences/controls outcome measured  Input data available, objective and comparable over time  Duplication and “non-priority” metrics removed  Leading and lagging financial and non-financial metrics

11. Balanced Scorecard Step 4: Scorecard should be simple and high impact Trend EXAMPLE Customer Principal satisfaction with initiatives6.05.08.0 Parent satisfaction with counselors6.07.0 Process Parent/teacher conference attendance 59%58%60% PA/PTA effectiveness Elementary and middle schools 8.0 High schools 7.09.011.0 PA/PTA involvement Elementary and middle schools 49% High schools 45% Parent Tracking response rate 49% Parent Tracking response time 30% # of communication channels 50% Town hall attendance 50% Communications effectiveness 6.0 Parents touched by counselors 49%40%60% Financial Cost per parent 31.00$ 33.00$ 35.00$ Budget variance 14.016.018.0 Organization Parent advisory board utilization30% Parent training involvement20% Employee satisfaction4.05.0 10.0 Target Last Period This Period Comments Current Status Real data has been removed

12. MetricStatusTrendTargetCurrentPreviousMeasuredDefinition Department/Division Name Period Mission Statement Logo Metric Category FootnotesExecutive Director Contact Info State of Utah Scorecard Template

15. UDOT Performance Management UDOT’s Final Four Strategic Objectives Examples of Performance Measures

16. ‘Key learnings’ from past balanced scorecard projects Work to ensure you have the right objectives that are linked to mission/statute Learn by doing: continue to refine objectives and metrics and replace as needed Focus on the few metrics that will have the highest practical impact Engage people from multiple levels of the organization in developing metrics to ensure buy-in Organizational buy-in is critical Engage IT professionals early on for help in collecting data Don’t be afraid of red: the scorecard is your friend