THE BALANCED SCORECARD IN CHARLOTTE S DOT:

THE BALANCED SCORECARD IN CHARLOTTE S DOT: A PLANNING AND MANAGEMENT TECHNIQUE American Public Works Association Kansas City, Missouri December 6, 2000 1 2 1

ORGANIZATION: CITY OF CHARLOTTE MAYOR AND COUNCIL ATTORNEY HUMAN RESOURCES BUDGET & EVALUATION MANAGER FINANCE SUPPORT SERVICES POLICE FIRE NEIGHBORHOOD DEVELOPMENT PLANNING PUBLIC SAFETY PLANNING & DEVELOPMENT UTILITIES CDOT PUBLIC TRANSIT AVIATION SOLID WASTE ENG G & PROP. OPERATIONAL BUSINESSES 3 CDOT ORGANIZATIONAL STRUCTURE DIRECTOR Deputy Director Mktg. & Comm. Public Service Maintenance & Operations Planning & Systems Engineering & Public Service 4 2

Council Focus Areas City Within A City Mission: to focus on comprehensively dealing with the economic development and quality of life issues in Charlotte s older, urban neighborhoods, including both residential and business areas Transportation Mission: to develop a system of roads, transit, and air transport that is balanced and coordinated in order to offer citizens and businesses safe, acceptable, and timely work travel and mobility Restructuring Government Mission: to ensure the City delivers quality services at competitive costs Economic Development Mission: to support a business environment that fosters economic opportunity for citizens and businesses Community Safety Mission: to ensure the City builds problem-solving partnerships with our citizens to prevent the next crime and to enhance the quality of life throughout our community, always treating people with fairness and respect 5 To achieve our vision, how should we appear to our customers? Financial To succeed financially, how should we appear to our stakeholders? VISION & STRATEGY Internal Business Process To satisfy our stakeholders and customers, at what business processes must we excel? Learning & Growth To achieve our vision, how will we sustain our ability to change and improve? 6 3

CITY FOCUS AREAS Community Safety City Within a City Transportation Restructuring Government Economic Development CORPORATE SCORECARD Reduce Crime Increase Perception of Safety Strengthen Neighborhoods Enhance Service Delivery Maintain Competitive Tax Rate Provide Safe, Convenient Transportation Promote Economic Opportunity Financial Secure Funding/Service Partners Maximize Benefit/Cost Grow the Tax Base Maintain AAA Rating Internal Process Streamline Interactions Promote Community-Based Problem Solving Improve Productivity Increase Positive Contacts Increase Infrastructure Capacity Learning & Growth Enhance Information Management Achieve Positive Employee Climate Close Skills Gap 7 Corporate BSC Objectives and Measures Objective Lead Measure Lag Measure C-1 Reduce Crime C-2 Increase Perception of Safety C-3 Strengthen Neighborhoods C-4 Improve Service Quality C-5 Availability of Safe, Convenient Transportation C-6 Maintain Competitive Tax Rates C-7 Promote Economic Opportunity o crime rate o citizen surveys o owner occupancy rate o employment o citizen complaints o transportation mix o 2015 Plan progress o tax rate o number of businesses Financial F-1 Expand Non-City Funding F-2 Maximize Benefit/Cost F-3 Grow Tax Base F-4 Maintain AAA Rating o funding leverage o cost reductions o cost per customer o building permit value o debt rating Internal Process I-1 Increase Positive Contacts I-2 Promote Community Based Problem- Solving I-3 Secure Funding / Service Partners I-4 Improve Productivity I-5 Streamline Interactions I-6 Increase Infrastructure Capacity I-7 Promote Business Mix o neighborhood based problem solving use o leverage prospects o competitive sourcing o functional consolidation o process improvement o capital investment o customer feedback o neighborhood based problem solving o number of partners o cost per unit o repeat offender incidents o code enforcement o transaction cycle time o capacity ratios o business mix Learning L-1 Enhance Knowledge Mgt. Capabilities L-2 Close Skills Gap L-3 Achieve Positive Employee Climate o IT infrastructure o training o employee goal alignment o information access o skills gap coverage o employee climate survey 8 4

City s Corporate Level Balanced Scorecard Reduce Crime Increase Perception of Safety Strengthen Neighborhoods Improve Service Quality Maintain Competitive Tax Rates Availability of Safe, Convenient Transportation Promote Economic Opportunity Financial Accountability Expand Non-City Funding Maximize Benefit/Cost Grow Tax Base Maintain AAA Rating Internal Process Secure Funding/Service Partners Streamline Interactions Promote Community Based Problem Solving Improve r Productivity Increase Positive Contacts Increase Infrastructure Capacity Promote Business Mix Learning and Growth Enhance Knowledge Management Capabilities Close Skills Gap Achieve Positive Employee Climate CDOT objectives incorporated from City objectives shown 9 COUNCIL FOCUS AREAS SCORECARD OBJECTIVES CDOT CORE PROGRAMS CDOT HIGH IMPACT PROGRAMS CDOT ANNUAL BUSINESS PLAN 10 5

CDOT Balanced Scorecard Objectives CUSTOMER MAINTAIN THE OPERATE THE DEVELOP THE DETERMINE ENHANCE TRANSPORT TRANSPORT TRANSPORT OPTIMAL SYS SERVICE SYSTEM SYSTEM SYSTEM DESIGN DELIVERY FINANCIAL SECURE MAXIMIZE FUND G/SVC BENEFIT / PARTNERS COST INTERNAL PROCESS INCREASE IMPROVE INCREASE INFRASTRUCTR PRODUCTIVITY POSITIVE CAPACITY CONTACTS LEARNING Learning ENHANCE ENHANCE CLOSE EMPOWER AUTOMATED INFO FIELD SKILLS EMPLOYEES SYSTEMS TECHNOLOGY GAP 11 Objective Lead Measure Lag Measure C-1 Maintain the transportation system C-2 Operate the transportation system C-3 Develop the transportation system C-4 Determine the optimal system design C-5 Improve service quality C-1 Repair Response: repair response action C-1 Travel Speed: average travel speed by facility and selected location C-2 Commute Time: average commute time on selected roads C-2 On-Time Buses: public transit on-time C-3 Introduced: newly introduced programs, pilots, or program specifications C-5 Responsiveness: % of citizen complaints and requests resolved at the CDOT level C-1 High Quality Streets: condition of lane miles 90 rating C-2 Safety: city-wide accident rate; no. of high accident locations C-3 Basic Mobility: availability of public transit C-4 Plan Progress: % complete on 2015 Transportation Plan Financial F-1 Expand non-city funding F-2 Maximize benefit / cost F-2 Costs: costs compared to other municipalities and private sector competition F-1 Funding Leverage: dollar value from non-city sources F-1 New Funding Sources: dollar value from sources not previously available Internal Process I-1 Gain infrastructure capacity I-2 Secure funding/service partners I-3 Improve productivity I-4 Increase positive contacts with Community I-1 Capital Investment: $ allocated to capital projects in targeted areas I-2 Leverage funding/service partners: new funding/resource partners identified I-3 Cost per Unit: cost per unit I-3 Competitive Sourcing: % of Budget bid I-3 Problem Identification: source & action I-4 Communications: no.,type,freq. I-1 Capacity Ratios: incremental capacity built vs. required by 2015 Plan I-2 No. of Partners: number of partners I-3 Street Maintenance Cost: cost/lane mi. I-3 Transit Passenger Cost:cost/ pass ge I-4 Surveys: survey results concerning service quality Learning L-1 Enhance automated information systems L-2 Enhance field technology L-3 Close the skills gap L-4 Empower employees L-1 IT Infrastructure: complete relational database across CDOT L-3 Skills Identified: key skills identified in strategic functions L-4 Employee Climate Survey: results of employee survey L-1 Information Access: strategic information available vs. user requirements L-2 Information Tools: strategic tools available vs. user requirements L-3 Skills Transfer: skill evidence in task or job performance L-4 Employee Goal Alignment: training / career development aligned with Mission 12 6

PERSPECTIVE: CUSTOMER SERVICE Objectives C-1: Maintain the transportation system C-2: Operate the transportation system Lead Measures C-1: Repair response action time C-2: Average commute time on selected roads Lag Measures C-1: % of lane-miles > 90 rating C-2: city-wide accident rate 13 CDOT Management Process: Incorporating Strategic Initiatives and Core Functions through Parallel Processes Continuing Contribution Continuing Measures Continuing Work Tasks Council Priorities Citywide Balanced Scorecard CDOT Objectives CDOT Strategic Initiatives Division High Impact Work Unit High Impact Actions Plans CDOT Outcomes Synthesis Division Outcomes Evaluation Work Unit Outcomes Measures Citywide Complete BSC Report CDOT BSC Measurement Report to City CDOT BSC Outcomes Evaluation CDOT Benchm ks Productivity Cost,Quality Work Unit Measures 14 7

Division Prog. No. Program Name Street Maintenance SMD-1 Base Failure Repair: Complete Repairs Associated with Resurfacing SMD-2 Catch Basin Cleaning: Process Management SMD-3 Utility Cut Concrete Repair: Backlog Reduction SMD-4 Co-op Sidewalk: Service Level Improvement SMD-5 SMD Career Improvement Program: Cross Training Crew Chiefs Transportation Operations TOD-1 Signal Detector Loop and Construction Process: Service Delivery Improvement TOD-2 Pavement Marking Intersections: Service Delivery Improvement TOD-3 Traffic Control Sign Fabrication Process: Service Delivery Improvement TOD-4 TOD Career Development Plan, Phase I (Orientation): Cross Training for Targeted Functions Planning TPD-1, 2 Bicycle System and Suitability Plans TPD-3 Public Transportation/Complementary Land Use Plan TPD-4 ½ Sales Tax Referendum TPD-5 County Transit and Governance Plan TPD-6, 7 South Corridor MIS, and Independence Blvd. Busway Demo TPD-8 Air Quality Improvement Program Systems TSD-1 Traffic Signal Systems TSD-2 Transportation Safety Program TSD-3 Traffic Signal Control Equipment Engineering TED-1 Competition/Cost Evaluation, Phase I: the Design Cost Tracking & Reporting System TED-2 Signalization on NCDOT Construction Projects TED-3 Land Development Survey: Coordinated Building Driveway Permit Public Service PSD-1 Traffic Calming Program: Implementation & Evaluation PSD-2 Mayor/Manager/Council Response System: Handling Inquiries PSD-3 Red Light Program PSD-4 Park It! Public Transit CTS-1 Service: Improved Satisfaction with Existing Services CTS-2 Safety Watch Action Team CTS-3 Business Management Enhanced Information Systems CTS-4 Contract Development Special Transportation STS-1 STS Expanded Level of Service: Fill Driver Vacancies and Set Schedules STS-1 STS Expanded Level of Service: Reduce the Number of No-Shows and Cancellations STS-3 STS Expanded Level of Service: Increase Night/Weekend Ridership CDOT Management MKT-1 Transit Marketing Plan ADM-1, 2, 3 Align Resources to Fulfill Program Needs, and CDOT Training ADM-4, 5, 6 Automated Information Systems Implementation 15 STRATEGIC INITIATIVES - HIGH IMPACT PROGRAMS FOR RECENT YEAR Division Prog. No. Program Name Street Maintenance SMD-1 Base Failure Repair: Complete Repairs Associated with Resurfacing SMD-2 Catch Basin Cleaning: Process Management SMD-3 Utility Cut Concrete Repair: Backlog Reduction SMD-4 Co-op Sidewalk: Service Level Improvement SMD-5 SMD Career Improvement Program: Cross Training Crew Chiefs Transportation Operations TOD-1 Signal Detector Loop and Construction Process: Service Delivery Improvement TOD-2 Pavement Marking Intersections: Service Delivery Improvement TOD-3 Traffic Control Sign Fabrication Process: Service Delivery Improvement TOD-4 TOD Career Development Plan, Phase I (Orientation): Cross Training for Targeted Functions 16 8

CDOT Departmental Objectives Program Description Target Outcomes Program Measures C-1 Maintain transportation system to move quickly, easily C-2 Operate transportation system to move quickly, easily Program Name: STS-1 Expand the Level of Service: Fill Driver Vacancies and Set Schedules Target Outcome(s): Increase ridership by 20% Program Measure(s): 1. number of passengers 2. productivity (revenue hours per operating hours) C-3 Develop transportation system to move quickly, easily C-4 Determine optimal system design & implementation for the taxpayer C-5 Improve service quality Supports Objectives: Supports Measures: - C-3 - Basic Mobility - I-3 - Cost per unit - Transit passenger cost Responsible Person(s): Pete Linda Jeff 3. phase in filled vacancies by 2/98 Financial F-1 Expand non-city funding Actions: Critical Factors: Measurement How & When: F-2 Maximize benefit/cost Internal Processes I-1Gain infrastructure capacity I-2 Secure funding/service partners I-3 Improve productivity I-4 Increase positive contacts Learning & Innovation L-1 Enhance automated information systems L-2 Enhance field technology L-3 Close skills gap L-4 Empower employees Attraction: 1. review the City ad 2. look for other avenues to promote openings 3. look for key characteristics: people who like to drive; retirees Hiring: 1. review clearances process (flow chart) 2. identify opportunities for collaboration to cut turnaround time 3. identify alternatives to eliminate steps 4. review training approach to key competencies, such as tools and learning techniques for familiarity with City streets Retention: 1. find out why current drivers stay 2. find out what is turning point in drivers deciding they are personally and financially invested in staying 3. examine how marketing for service leveling the riders would impact split shifts attraction: a) City ad is intimidating b) job fairs/advertising worked before hiring process: c) is too slow d) is subject to external influences (police, drug policy) selective in hiring: e) caring person f) honesty/integrity g) knowledge of City streets h) reliable i) flexible schedule/part time (30 hrs) j) prior experience (school bus drivers, cab drivers, transit drivers) k) criminal background check retention: l) new hires drop out in 6-9 mos. m) go for opportunity, avoid split shifts n) drug test failure o) sense that City doesn t understand or value their job (status; pay) 1. productivity report (annual summary) 2. productivity report (monthly) 3. compare application date to hire date (monthly) 17 CDOT Core Functions (o) and High Impact (x) Aligned with Objectives CDOT Objectives SMD TOD TPD TSD TED PSD STS CTS TOG MKT ADM CDOT Measures C-1 Maintain Transportation System ox o o o o High Quality Streets ox ox x x Repair Response o o o Travel Speed C-2 Operate Transportation System x Commute Time x x x Safety o ox o On-Time Buses C-3 Develop Transportation System o o o Basic Mobility ox ox o x x o o Introduced C-4 Determine Optimal System ox o ox x Plan Progress C-5 Improve Service Quality ox o o ox o ox x o Responsiveness F-1 Expand Non-City Funding x o x o o ox o Funding Leverage x o ox New Funding Sources F-2 Maximize Benefit/Cost o ox ox o ox ox Costs ox I-1 Increase Infrastructure Capacity o xo x Capacity Ratios o o Capital Investment No. of Partners I-2 Secure Resource Partners ox ox o o Leverage Prospects I-3 Improve Productivity o ox o o ox ox ox o o ox Cost per Unit x Street Maintenance Cost ox ox o x Transit Passenger Cost x Competitive Sourcing x x x o Problem Identification I-4 Increase Positive Contacts ox Surveys x x ox Communication L-1 Enhance Automated Systems x x x ox Information Access x x ox IT Infrastructure x o Information Tools L-2 Enhance "Field" Technology x L-3 Close the Skills Gap x x x ox Skills Identified x x x ox Skills Transfer L-4 Empower Employees ox Employee Survey x x ox Employee Goal Alignment 18 9

FOCUS AREA Transportation Mission: to develop a system of roads, transit and air transport that is balanced and coordinated in order to offer citizens and businesses safe, acceptable work travel and mobility. PERSPECTIVE CUSTOMER CITY OBJECTIVE Provide safe, convenient transportation CDOT OBJECTIVE Maintain the transportation system CDOT PROGRAM Complete base failure repairs associated with resurfacing 19 50 %: Savings City Savings Funds $1.00 $0.50 50%: $0.50 Incentives for KBU s Use of incentive funds from City tied to measures and performance through Business Unit Targets No KBU Meet B.U.T. s? Yes 50% Share: City Part Only No KBU Unit Meet Unit Targets? Yes Employee: $0.25 50% City Part 25% (1/2 of KBU Part) 50 % City Part 50 % KBU Part (All of KBU Part) Employee: $0.375 Employee: $0.50 20 10

What we have learned: The public sector is different from the private sector It is difficult and critical to align City priorities with CDOT goals and objectives It is equally difficult and critical to involve everybody in CDOT in the programs and activities which are key to the City & CDOT objectives. 21 The public sector is different from the private sector! Where s the bottom line? Who s the boss? This too shall pass 22 11

It is difficult and critical to align City priorities with CDOT goals and objectives Relationship between City corporate goals and CDOT departmental goals Inherent conflict between political short term and continuing management priorities Potential gap in expectations for guidance and results reported 23 It is equally difficult and critical to involve everybody in CDOT in the programs and activities which are key to the City & CDOT objectives. Find the sell ; Invest in orientation to the purpose and process The front line must own the programs and measures Don t let form dominate substance Don t bite off too much! If you start with High Impact programs, you may leave some people feeling left out 24 12

Thank you! Come to visit us in Charlotte! 25 13