MANAGING FOR RESULTS WORKSHOP. Strategic Planning - SP 101 AzGU Course MGT3001 July 9 & 11, 2003

Transcription

1 MANAGING FOR RESULTS WORKSHOP Strategic Planning - SP 101 AzGU Course MGT3001 July 9 & 11,

2 Workshop Objectives Understand Arizona's strategic planning model Understand basic strategic planning concepts and tools Understand the use of performance measures Be able to apply what you learn to strengthen your strategic plan and performance measures Know the requirements of Arizona s Budget Reform Legislation 2

3 Why Conduct Strategic Planning? Planning for change Managing for results Customer support Adaptability Promotes communication Essential for management Future-oriented If you fail to plan, you plan to fail 3

4 Arizona s Model Asks and answers the following questions: Where are we now? Where do we want to be? How do we measure our progress? How do we get there? How do we track our progress? 4

5 Arizona s Model Asks and answers the following questions: Where are we now? Internal/External Assessment Customer and Stakeholder Identification Where do we want to be? Mission Vision Principles Goals Objectives 5

6 Arizona s Model Asks and answers the following questions: How do we measure our progress? Performance Measures How do we get there? Strategies Action Plans How do we track our progress? Tracking System 6

7 Internal/External Assessment Where are we now? An analysis and evaluation of internal and external data, factors, conditions and issues that affect the organization. Often referred to as a SWOT analysis: referring to internal Strengths and Weaknesses and external Opportunities and Threats. 7

8 Internal Assessment Also called a situation inventory Identifies strengths and weaknesses Evaluates the organization's position, performance, problems and potential Identifies internal critical or strategic issues Evaluates capacity to respond to issues, problems and opportunities Motivates improvement 8

9 Critical Internal Factors Agency scope Agency functions Organizational structure Resource needs 9

10 Key Questions What is the current internal environment? Is any additional training needed? Is the technology adequate? Are all mandated (by statute or law) functions being performed? If not, why not? How can we use our strengths to overcome our weaknesses? 10

11 External Assessment Also called an environmental scan Analyzes key external elements, forces and issues that affect the environment in which an organization functions Focuses on opportunities and threats present in the current environment and anticipates changes in the future environment Identifies external critical or strategic issues 11

12 Critical External Factors Demographics--population, unemployment rate, etc. Economic variables Impact of federal or local government statutes and regulations Technological developments Public policy issues 12

13 Key Questions What is the current external environment? How may the environment differ in the future? What are the implications of political, economic, legislative, etc. changes for the organization over the planning horizon? What are the most promising external opportunities? What are the most immediate threats? 13

14 Internal/External Assessment I N T E R N A L E X T E R N A L STRENGTHS OPPORTUNITIES WEAKNESSES THREATS 14

15 Strategic Issues Issues of critical importance to the organization. May be internal or external to the agency. Do not always fall neatly within the boundaries of a particular program; instead, they may impact several programs or the entire agency. 15

16 Customer Anyone whose best interests are served by, or who receives or uses the products or services of, an agency, program or subprogram. 16

17 Internal Vs. External Customers Internal Customers Any group or person whose work depends upon other work units or persons inside the same organization. External Customers Any user of the organization's products or services. 17

18 Stakeholder Any person or group with a vested interest in, or with expectations of a certain level of performance or compliance from, an agency, program or subprogram. 18

19 Customer/Stakeholder ID Worksheet Expectations Priority Internal Customers External Customers Stakeholders 19

20 Gaining Customer/Stakeholder Input Written or phone surveys Focus groups Interviews Comment forms Board meetings Public meetings 20

21 Mission Where do we want to be? A brief, comprehensive statement of purpose of an agency, program or subprogram. 21

22 Mission Statement Answers the following questions: Who are we? What do we do? For whom do we do it? Why do we do it? Why are public resources devoted to this effort? 22

23 Mission Statement Litmus Test Test Question #1 #2 #3 #4 #5 Does it clearly state what business you are in? Can all employees of the organization see their contribution in the mission? Is the mission rarely changing? Can the mission survive changes in administration? Is the rationale for the program s existence clear? 23

24 Mission Statement Litmus Test Test Question #1 #2 #3 #4 #5 Will it make sense to the average citizen? Does it answer who we are, what and for whom we do what we do and why it s important? Is it obvious why we spend public dollars on such an effort? Will you be embarrassed if you see it in the media? Does it articulate the ultimate outcomes you want? 24

25 Vision & Principles Vision: a compelling, conceptual image of the desired future. Principles: core values and philosophies that describe how an agency conducts itself in carrying out its mission. 25

26 Gap Analysis The process of examining any disparity or "gap" that exists between the current and desired states. Current state: identified during the SWOT analysis. Desired state: identified during the goal setting process. 26

27 What Is A Gap? Desired State (Where we want to be) Current State (Where we are now) Why the Difference? (Gap Analysis) 27

28 Key Questions Are current products and services meeting our customers' needs and expectations? Are any new products or services needed? If so, can they be provided within existing resources using redeployment, reallocation and/or reduction of current services and still meet customers' needs? Are any products or services unnecessary? 28

29 Key Questions How do our internal strengths and weaknesses impact the gap analysis findings? How do our external opportunities and threats impact the gap analysis findings? How do we deal with these gaps in the strategic plan? Do these gaps in service require their own goal statements? 29

30 Planning Assumptions Resources Demographics Economic Policy issues Government/Legislative Technological Development 30

31 Goal The desired end result, generally after three or more years. A goal represents the to be state, not the action of getting to that state. If strategic issues were identified during the SWOT analysis, don t forget to address them in the plan with specific goals. This is especially important if the agency will be asking for additional funds in their budget submittal based on the issues. 31

32 Goals Litmus Test Test Question #1 #2 #3 #4 #5 Does the goal support the mission? Is it consistent with your legislative authority? Does the goal deal with just one issue? Does the goal represent a desired result that can be measured? Does the goal reflect a primary activity, a strategic direction, a strategic issue or a gap in service? Is the goal challenging, but still realistic and achievable? Does the goal encompass a relatively long period, i.e., three years or longer? 32

33 Goals Litmus Test Test Question #1 #2 #3 #4 #5 Is there at least one key goal for each program/subprogram, but not more than can be reasonably managed? Is the goal important to management? Is the goal important to policymakers and customers? When taken collectively, will the goals reflect most of the program s budget? Will someone unfamiliar with the program or subprogram understand what the goal means? 33

34 Objectives Specific and measurable targets for accomplishing goals. 34

35 Developing Objectives Review mission and goals Decide the results that are wanted/needed Set a time frame for achieving results Build in accountability 35

36 Criteria for Objectives Objectives should be SMART Specific Measurable Aggressive but Attainable Result-oriented Time-bound 36

37 The Objectives Stretch Factor Setting achievable objectives that stretch resources and outcomes requires: Knowledge of current and future demand Process and staff capability Baseline and, if available, historical data Benchmarking data to know what is possible Clear idea of actions needed for achievement 37

38 Objectives Litmus Test Test Question #1 #2 #3 #4 #5 Does the objective reflect specific, desired accomplishments? Can progress toward completion of an objective be measured? Is the objective aggressive and challenging, yet realistic and attainable within available resources? Does the objective specify a result rather than an activity? Is there a specific time frame for completion of the objective? 38

39 Objectives Litmus Test Test Question #1 #2 #3 #4 #5 Have you identified who will be accountable for meeting the objective? Will completion of the objective lead to goal attainment? Is there at least one objective for each stated goal? Will someone unfamiliar with the program or subprogram understand what the objective means? 39

40 Performance Measures How do we measure our progress? Used to measure results and ensure accountability. Evaluate performance Track progress against plan Identify improvements Reward performance 40

41 Performance Measures Should be: Meaningful Simple Comprehensive Credible 41

42 Categories of Measures Inputs: Outputs: Outcome: Efficiency: Quality: Resources needed to provide a particular product or service. Products or services provided. Result of providing service or product. How effectively are resources being used? How good are the services and products and how satisfied are the customers? 42

43 Output vs. Outcome Output Patients discharged Is not the same as Outcome Discharged patients living independently Vaccines given Is not the same as Reduction in incidence of vaccine preventable diseases 43

44 Key Questions for Selection of Master List & Budget Measures Ask the impact questions: What did the Agency itself accomplish? Is the outcome for this measure shared with other entities or State Agencies? How much of the outcome is attributed to the Agency? What is the difference between the actual outcomes and the outcomes that would have occurred if the Agency had not existed? Can it be compared to another best-practice government entity? 44

45 Outcome vs. Family of Measures No one comparison of a single outcome measure with a single performance standard will provide a definitive evaluation of a State Agency or program. Therefore, a Family of Measures may provide a more credible and conscientious picture that is comparable to multiple standards for evaluation of performance. 45

46 Family of Measures Internal External Input Output Outcome Efficiency Quality 46

47 Family of Measures: Licensing and Regulation Input Output Outcome Efficiency Quality Internal Number of applications Number of complaints Number of licenses issued Unit cost per complaint Percent reduction in processing errors External Number of licensed practitioners Number of disciplinary actions per 100 licensees Average days from receipt of complaint to resolution Customer rating of service 47

48 Performance Measures Litmus Test Test Question #1 #2 #3 #4 #5 Does the measure relate to the mission it represents? Does the measure relate to the goal it represents? Does the measure relate to the objective it represents? Is the measure important to management? 48

49 Performance Measures Litmus Test Test Question #1 #2 #3 #4 #5 Will it be possible to collect accurate and reliable data for this measure? Taken together, do the performance measures accurately reflect the key results of the budget unit, program or subprogram? Is there at least one key performance measure for each goal? 49

50 Selection Criteria Matrix Choosing Key Measures for the Executive Budget Measures #1 #2 #3 #4 #5 #6 #7 #8 #9 Etc. Aligned to Mission, & Goals Important to Statutory Purpose Important to Customer Important to Executive & Mgt Total 50

51 The Futile Search for the One Best Measure What gets measured gets done, but unfortunately what people measure is often not precisely what they want done. Performance measures can shape behavior in both desirable and undesirable ways and there is no one magic performance measure. Ask instead the PURPOSE for which the measure will be used and if the measure conveys the appropriate message. 51

52 Action Plan How do we get there? A detailed description of the strategies used to implement a strategic plan. 52

53 Developing Action Plans Identify all possible strategies. Evaluate the costs, benefits and consequences/ trade-offs of alternative strategies. Choose the strategy to be taken. Develop step-by-step actions with related timelines. Decide who has responsibility for each step. Determine the resources needed to carry out the plan. (Work within existing resources as much as possible.) 53

54 Action Plan Litmus Test Test Question #1 #2 #3 #4 #5 Does the action plan contain a time frame for completion? Is the action plan broken down into important steps (e.g. have operations, procedures and processes been included). Has responsibility for successful completion of the action plan been assigned? 54

55 Action Plan Litmus Test Test Question #1 #2 #3 #4 #5 Will additional resources be needed to accomplish the action plan? Have arrangements been made for additional resources? Does the action plan contain sufficient detail to track milestones? Will the action plan help to achieve the objective? Does the action plan relate to the goal? 55

56 Tracking and Reporting Results How do we track our progress? The purpose of reporting results is to show movement toward expected results and progress toward the goals in the strategic plan. 56

57 Tracking Document Elements Goals Objectives Performance Measures Identification of the position, unit, section and/or division responsible Room for comments or explanations of actions Information on current status 57

58 Tracking and Reporting Results Keep reports simple, yet meaningful. Determine how the data will be rolled up for various reporting requirements. Display numbers graphically. Using charts, tables, etc. makes reports easy and quick to understand. Establish a regular reporting process and build it into the management system. Recognize that program managers will want more frequent and detailed information than policymakers. 58

59 Levels of Planning Three Levels of Strategic Planning Agency Program Subprogram 59

60 Integrating Plans A G E N C Y Program #1 Program #2 Program #3 Subprogram Subprogram #1 #1 Subprogram Subprogram #2 #2 Subprogram #3 Subprogram #4 Subprogram #1 Subprogram #2 Subprogram #3 60

61 Strategic Management Strategic/Quality Planning Program Evaluation Performance Monitoring & Reporting Results Resource Planning: Human, Capital, Information Technology Budgeting Program Implementation 61

62 Strategic Management Promotes customer satisfaction Emphasizes employee teamwork Focuses on measurable results Supports management by fact Requires top management commitment Strives for continuous improvement 62

63 Strategic Planning Sets strategic direction Defines expected results & aids performance monitoring Facilitates resource allocation Strategic Planning (5 Year Plans) Laws 2002, Chapt 210 Only applicable to Annual Budget Units (17) Due: January 1st Annually Program/Subprogram planning Not submitted--but source documents for Master List Agency Operational Plans Laws 2002, Chapt 210 Included in Master List of State Government Programs Due: September 1st Annually 63

64 Master List of State Government Programs A.R.S Reference document for agencies, policymakers, and the public Defined in Laws 2002, Chapter 210 as the Agency Operational Plan with performance measures linked to the budget resource cycles Includes key goals and performance measures from program/subprogram plans Due: September 1st annually 64

65 Master List Required Elements Mission Description Strategic Issues Goals Performance Measures: Prior year actual and expected for current year and out years in budget request submittals Funding and FTE position information: FY 2003 actuals through 13th month (prior year) FY 2004 appropriated (the current year) FY 2005 as appropriated or requested in budget Capital Fund information is no longer required 65

66 Strategic Program Area Review (SPAR) A.R.S Evaluates efficiency and effectiveness of state government programs selected by the JLBC Results in decision to retain, eliminate or modify the program Includes, as a major component, the full strategic plan for the program/subprogram being SPAR d. Due: June 1, odd-numbered years Next projected SPAR cycle: June 1,

67 Companion Documents Three-Year Information Technology (IT) Plan Articulates IT resources needed to implement agency, program and subprogram goals Due: September 1, every year to GITA Next submittal: September 1,

68 Companion Documents Operating Budget Request Justifies appropriated funds Communicates accountability for spending tax dollars on agency activities Links planned activities and required resources with funding needs: Includes agency goals--from most recent Master List Includes one-page summary of agency key performance measures--from most recent Master List Includes all program/subprogram performance measures Due: September 1, annually Next submittal: September 1,

69 Cascading Nature of Strategic Planning Long-term Comprehensive Mission/Vision Goals Objectives Performance Measures Action Plans Short-term Detailed Focused 69

70 Managing for Results Handbook Arizona State Model Additional detailed information should be reviewed in the Managing for Results Handbook - the textbook for SP101. To download the handbook visit: 70