Performance Alignment: Linking Resource Management to Organizational Goals

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Full slide deck for fmi*igf webinar of 2012-11-08

Text of Performance Alignment: Linking Resource Management to Organizational Goals

  • 1. Welcome to the fmi igf WebinarThursday, November 8, 20121:00 PM ESTPerformance Alignment: LinkingResource Management toOrganizational Goals

2. Webinar OperationIn the Ask a question box, please askthe presenter a question or send yourquestion via twitter @fmi_igfTechnical sound/visual difficulties? Clickon Technical and send a messageWebinar will be archived underwww.fmi.ca 3. Speaker:Mike HaleyLandmark IntersolModerator:Marcel BoulianneTreasury Board of Canada Secretariat 4. Performance Alignment:Linking Resource Managementto Organizational GoalsPresenter:Mike Haley, LandmarkIntersol & Board Member FMI Halifax 5. Speaker Bio Mike HaleyMike Haley leads the Performance Alignment practice at Landmark-Intersol, a strategic partnership between Landmark Decisions Inc.of Halifax and The Intersol Group Ltd. of Ottawa. The firms' focus isa methodology that brings sound concepts for integrated businessmanagement together with enterprise-class performance and costmodeling technologies all built on strong fundamentals of disciplineddata management. In doing so, Landmark-Intersol helps clientsunderstand both their current performance environment and a meansto develop a blueprint for enhanced organizational performance.Since the early 90s, Mike has worked with clients worldwide in the training, technologytransfer and general application of performance and cost management concepts to thetelecommunication, manufacturing, pharmaceutical, food processing, distribution,government and financial service industries. Public sector clients include a wide variety ofFederal, Provincial/State and Municipal Governments such as Fisheries & Oceans Canada,the Public Health Agency of Canada, Health Canada, Transport Canada, Ontario Ministry ofFinance, City of Charleston, the US Navy and various departments in the New ZealandGovernment.Mike sits on the Board of PPX, the Performance & Planning Exchange, a Canadian non-profitcentre of excellence for learning, sharing and developing expertise in performance andplanning across the public sector. He has a M.Sc. from Dalhousie University and lives inHalifax, NS where he also serves on the board of the local FMI chapter. 6. From Performance Measurement to Performance Alignment...the use of performance management techniques__for coordinating the activities and resources___necessary to ensure all aspects of business____management (i.e. planning, risk management_____and project Alignment management) are integrated.the adoption of practices and tools by_which an organization establishes__strategic and operational plans and then___executes and adjusts these plans using____performance measurement data.Managementthe definition & collection of data_used by organizations to track__progress against stated goals,___objectives and intended results. MeasurementOrganizationalPerformanceMaturity 7. Why is Performance Alignment important? Senior Management & Employee Engagement Involvement in Development Process Clearly Defined Expectations Improved Change Capacity Enhanced Decision Making Capacity Results Against Expectations Resource Requirements (i.e. Value for Money or Efficiency & Economy) Support for Strategic Reviews Reduced Time & Effort on Planning, Reporting & Evaluation Departmental Reporting RPP/DPR, PMF, Horizontal Initiatives Consistent Approach Across Department (Economies of Scale) Evaluations (Built In by design) Improved Compliance with Central Agency Requirements TBS Policies & Directives MAF Ratings & Action Plans OAG Findings / Recommendations / Action PlansDrives an Organizational Performance Culture Shift! 8. Driving Forces for Improved Resource Management in GOCRevisions to the Management Resources & Results Structure (MRRS) Introduction of Efficiency Indicators for lowest level programs in the PAA Development of standardized performance indicators for Internal Services New Results Management Component (RMC) System (~ technology enablement)Continued Management Accountability Framework (MAF) Enhancements Proposal for new Integrated Management for Results AoM Focus on use of MRRS information for decision making (~ technology enablement)Standing Committee on Government Operations & Estimate (OGGO)) Strengthening Parliamentary Scrutiny of Estimates and Supply (June 12) Move from O&M, Capital & G&C Votes to Program Based Appropriations Proposal to table Estimates and Report on Plans & Priorities on the same day RPP to contain 3 years of history, 3 years of forecast and variance analysis Development of a searchable online database (~ technology enablement) 9. Recent GoC Definitions on Linking Outcomes & ResourcesEconomy: minimizing the use of resources. Economy is achieved when thecost of resources used approximates the minimum amount of resources needed toachieve expected outcomes.Efficiency: the extent to which resources are used such that a greater levelof output is produced with the same level of input or, a lower level of input is usedto produce the same level of output. The level of input and output could beincreases or decreases in quantity, quality, or both.Effectiveness: the extent to which a program is achieving expectedoutcomes.Performance: the extent to which effectiveness, efficiency and economy areachieved by a programSource: TBS Policy on Evaluation (2009)Core Issue #5:Demonstration of Efficiencyand EconomyAssessment of resource utilization in relation tothe production of outputs and progress towardexpected outcomesDirective on the Evaluation Function (April 2009) 10. The Logic ModelVisualizing the Linkages between Resources & OutcomesPerformance Indicators that populate the indicators of all dimensions of a measurement frameworkEfficiencyTime, Quantity, Quality, Throughput,Resource UtilizationEffectivenessSatisfaction, Reach, Benefits, Impacts,Achieving Expectations & TargetsEconomyBudget Variance,Resource CapacityRESOURCESACTIVITIESProcessOUTPUTSEfficiency & CostDirectOutcomesFinalOutcomesEXTERNAL FACTORSCLIENTSOutput and ClientGroup CostsResource Utilization& Cost EfficiencyCosting Indicators that explain how costs are consumed in the organization. 11. The Logic Model as a Performance PlanA Foundation for Performance Alignment and ResourceManagementOutputCause(Outputs)PerformanceIndicatorsEffect(Outcomes) Line of SightDepartmental,Business, orProgramPlanStrategicOutcomeStrategicOutcomePerformance Plan(Logic model)IntermediateOutcomeIntermediateOutcomeIntermediateOutcomeImmediateOutcomeImmediateOutcomeImmediateOutcomeOutputOutputAccountabilityPlanning(Business Structure)RegionsDirectoratesCross FunctionalTeamsBranchesUnitsDepartmentalBusiness orProgramStructurePerformanceIndicatorsPerformanceIndicatorsPerformanceIndicatorsPerformanceIndicatorsPerformanceIndicatorsPerformanceIndicatorsPerformanceIndicatorsPerformanceIndicatorsPerformanceIndicatorsPerformanceIndicators 12. Aligning Project Management PracticesDepartmentalBusiness orProgramPlanStrategic ProjectsStrategicOutcomeStrategicOutcomePerformance Plan(Logic Model)IntermediateOutcomeIntermediateOutcomeIntermediateOutcomeImmediateOutcomeImmediateOutcomeImmediateOutcomeOutputOutputOutputProject ScopeIndicatorsOperational ProjectsProject RiskIndicatorsProject ScheduleIndicatorsProject ResourceIndicatorsProjectManagementProcessEstablish ProjectResourcesDefine ProjectScopeAssess ProjectRisksDevelop ProjectSchedule 13. Aligning Risk Management PracticesOrganizationalBusiness orProgramPlanStrategicOutcomeStrategicOutcomePerformance Plan(Logic Model)IntermediateOutcomeIntermediateOutcomeIntermediateOutcomeImmediateOutcomeImmediateOutcomeImmediateOutcomeOutputOutputOutputRisk ManagementProcessIdentifyRisk FactorsRisk FactorIndicatorsDevelopRisk MitigationStrategyRisk MitigationIndicatorsAssess &Prioritize RiskRisk AssessmentIndicatorsStrategic RisksOperational Risks 14. Aligning Resources with Business Management PracticesResourceManagementFinancial ManagementFinancial IndicatorsWorkforce ManagementWorkforce/HR IndicatorsAsset ManagementAsset IndicatorsDepartmentalBusiness orProgramPlanStrategicOutcomeStrategicOutcomeRisk Management ProcessIntermediateOutcomeIntermediateOutcomeIntermediateOutcomeImmediateOutcomeImmediateOutcomeImmediateOutcomePlan Management ProcessOutputOutputOutputEstablish ProjectResourcesProject Management ProcessDefine ProjectScopeAssess ProjectRisksDevelop ProjectScheduleWhats missing?Activities! 15. Insightful References on Resource Management . Questions can only beanswered by analyzing theactivities that are needed toattain objectives. 1954 !Doing Things Right - Operational ChangesReduced CostsImproved EfficienciesResource Capacity PlanningResource Constraint ManagementDoing the Right Things Strategic Changes Program / Services Rationalization Business Process Design Impact on Outcomes Shared Service Opportunities Value for Money1998 16. GoCs 7 Step Approach to Costing7. Sign off6. Calculate & Validate Results5. Select Cost Assignment Methodology4. Define Cost Classifications (direct vs. indirect)3. Establish the Cost Base (costs to be included)2. Determine the Cost Objects (end result)1. Define the Purpose of the Costing Exercise (scope)Source: TBS-OCG Guide to Costing (2008) 17. Output Costing ModelVisualizing, Calculating and Validating Economy & EfficiencyOperational CauseResourcesWhat we pay for$$$ $$$ $$$ActivitiesWhat we doOutputsWhat we supply& serviceCost = $$$Capacity Capacity FieldPersonnelEquipment CorporateSite Visit Support CallVisits CallsService 1 Service 2MonthlyUpdateReportsCapacityLabour Hrs Eq. HrsPersonnelLabour HrsCapacity = 4000Building Actual = 3800SqFtThroughput =Labour Hrs / VisitUtilization = 95%Financial EffectProgram Cost orCost to Serve 18. Benefits of Output Costing ModelsOutputCostingModelsOPERATIONS MANAGEMENTResource Allocations/SchedulingCapacity PlanningAlternative Program DeliveryFINANCIAL MANAGEMENTPlanning &a