Presents activities and changes in approach underway at the Iowa Department of Transportation. Presentation was made the TRB's Annual Meeting held January 2016.

1. Implementing Change
at Iowa DOT
Path to Performance Management
David J. Putz, Ph.D. – Iowa DOT
david.putz@dot.iowa.gov
TRB 95th Annual Meeting – Jan 11, 2016

2. FOCUS ON CURRENT PRIORITIES & NEEDS
So, given our world of ever-shifting
priorities, how are you feeling today?

3. FOCUS ON CURRENT PRIORITIES & NEEDS
So, given our world of ever-shifting
priorities, how are you feeling today?

4. SIMPLE(?) QUESTION
We find ourselves needing to effectively and
efficiently meet current demands and desired
results while simultaneously working to change as
an organization to better meet future needs.
How do you keep an
organization focused on
“current” AND “future?”

5. ACCOUNTABLE GOVERNMENT ACT
As a state agency, the Iowa DOT is required
to conform to the requirements of the
Accountable Government Act when it comes
to organizational planning.
For the Iowa DOT, this means we must
have an annual performance plan and
a multi-year strategic plan.

6. STRATEGIC & PERFORMANCE PLANS
Performance Plan
The primary focus of the performance plan is the mission of
the DOT (what we are responsible for doing and delivering)
and is more operational and functional in nature.
Strategic Plan
The primary focus of the strategic plan is to look ahead and
identify things that need to happen to move the DOT toward
the vision (where we want to be) set for the department.
Any of this sound familiar?

7. STRATEGIC & PERFORMANCE PLANS
Perhaps the most succinct way of describing the
fundamental difference between the two plans is:
Performance plans support
performance management, while
Strategic plans support
change management.

8. ORGANIZATIONAL PLANNING – Basic Model
The performance and strategic plan cycles, when taken
together allow for management of performance AND
change.
Organizational
Planning
Review &
Set Objectives
Performance Plan Strategic Plan
Implement Plan per
Annual Objectives
Implement
Strategic Initiatives
Review Results of
DOT Performance
Review Progress on Initiative
Implementation
Set
Change
Objectives
Set
Performance
Objectives
PerformanceManagement
ChangeManagement

9. PROBLEMS WITH STRATEGIC PLANNING
Work to identify factors impacting strategic planning,
primarily found problems that plague strategic planning.
Reasons cited for strategic plan failure or
ineffectiveness included: (in no particular order)
ORGANIZATIONAL
HISTORY
CONNECTION
FOCUS
FOLLOW-UP
AWARENESS
RESOURCING
LEADERSHIP
UNDERSTANDING
So how often do strategic plans “fail?”

10. STRATEGIC PLANNING “FAILURE” RATE
A review of literature found most strategic plans fail.
• An estimated 50% - 90% of strategic plans fail successful
implementation – often attributed to Kaplan & Norton
• On average, 70% of new, large-scale strategic initiatives fall short
of their goal – Aiken & Keller, McKinsey Quarterly, April 2009
• Greg Bustin, CEO Bustin & Co., wrote about 3% of companies had
executives who reported they were successful in executing their
strategies – Forbes Leadership Forum, 9/15/14
If businesses (where failure may mean they fail to exist)
have this much trouble, how can we as public
agencies be more successful at strategic planning?

11. STRATEGIC PLANNING – Modifications to Approach
Given research on impact of strategic plans & past
efforts, we are approaching implementation differently.
Organizational
Planning
Review &
Set Objectives
Performance Plan Strategic Plan
Implement Plan per
Annual Objectives
Implement
Strategic Initiatives
Review Results of
Performance
Review Progress on Initiative
Implementation
Set
Change
Objectives
Set
Performance
Objectives

12. DOT Strategic Plan Implementation Approach
Areas Needing
Attention
Ways to
Address
Plan for
Implementation
Determine
Develop
Deliver
Management Team
Development Team
Implementation Team(s)

13. DOT Strategic Plan Implementation Approach
Management Team
• Conduct Org Assessment & Review
• Determine Key Areas, Select a Key Area to Work On
• Bring in Team to Develop Concept(s)/Approaches
Development Team
KeyArea
Key Area
3
Key Area
1
Key Area
2
Key
Area …
Key
Area …
Key
Area …
Development
Team

14. DOT Strategic Plan Implementation Approach
Management Team
• Conduct Org Assessment & Review
• Determine Key Areas, Select a Key Area to Work On
• Bring in Team to Develop Concept(s)/Approaches
Development Team
• Gain Understanding of Mgt Team Intent for Key Area
• Research and ID Concepts Needed to Implement
• Develop Set of Concepts and Guidance
• Work with Mgt Team to Reach Final Report
KeyArea
Key Area
3
Key Area
1
Key Area
2
Key
Area …
Key
Area …
Key
Area …
Development
Team
ConceptsConceptsConceptsConcepts

15. DOT Strategic Plan Implementation Approach
Management Team
• Conduct Org Assessment & Review
• Determine Key Areas, Select a Key Area to Work On
• Bring in Team to Develop Concept(s)/Approaches
• Monitor and Determine When To Choose Next
Development Team
• Gain Understanding of Mgt Team Intent for Key Area
• Research and ID Concepts Needed to Implement
• Develop Set of Concepts and Guidance
• Work with Mgt Team to Reach Final Report
• Share Report & Concepts with Implementation Team(s)
Implementation Team(s)
• Gain Understanding of Development Team Work
• Identify Initiative(s) & Implementation Options
• Work with Mgt Team to Finalize Implementation
Plan(s)
• Implement the Plan(s)
• Monitor and Report Progress
KeyArea
Key Area
3
Key Area
1
Key Area
2
Key
Area …
Key
Area …
Key
Area …
Development
Team
Initiative A
•Plan
•Steps
•Timeline
•Resources
Initiative B
•Plan
•Steps
•Timeline
•Resources
Initiative…
•Plan
•Steps
•Timeline
•Resources
Initiative…
•Plan
•Steps
•Timeline
•Resources
ConceptsConceptsConceptsConcepts

17. FIRST INITIATIVE – PERFORMANCE MANAGEMENT
Based on the modified approach for
implementing the strategic plan, of the five
“strategies” our Management Team identified,
the first one was identified fairly quickly:
Performance Management

18. STRATEGIC PLANNING – Modifications to Approach
So our first “initiative” was to put a performance management
system in place.
Organizational
Planning
Review &
Set Objectives
Performance Plan Strategic Plan
Implement Plan per
Annual Objectives
Implement
Strategic Initiatives
Review Results of
Performance
Review Progress on Initiative
Implementation
Set
Change
Objectives
Set
Performance
Objectives

19. FACTORS THAT IMPACT PERFORMANCE MGT IMPLEMENTATION
A literature search was done by the development team regarding factors
that impact the successful development and implementation of
performance management and measurement systems.
The following were identified as key factors when
looking to implement performance management:
Leadership
Awareness & Training
Culture
Information Usage
Resources
Data Systems & Tools
Performance
Measurement System
Design

20. KEY FACTOR - LEADERSHIP
The support and efforts of leadership can make or
break any initiative. Leaders need to voice support
and be active participants.
• Well educated in and understanding performance
management practices
• Defining and communicating the department’s vision,
mission, goals, and outcomes
• Being actively engaged in implementation, communication
and utilization of performance measurement.

21. KEY FACTOR – AWARENESS AND TRAINING
The ability of current and future employees to
understand and utilize the concepts and tools of
performance management will be critical.
• All levels understand the “whats, whys, and hows” of
performance management.
• Specific training based on “current” practices in addition to
general training related to performance management
• Assessment tools to assist work units understand their
strength, weaknesses and area(s) of focus

22. KEY FACTOR – RESOURCES
A performance management initiative will introduce new
practices, and the level of success in implementation will
be influenced by the resources brought to bear.
• Providing immediate resources to facilitate the creation of
materials and support
• Ensuring sufficient resources for staffing, expertise, and
tools to develop and sustain performance mg efforts
• Finding internal experts/champions to leverage existing
skills/tools, perhaps work unit to performance management
• Allowing flexibility to accommodate variety

23. KEY FACTOR – CULTURE
Culture defines both who we are and influences our ability
to get work done. Culture can be slow to change –
supporting desired behavior is necessary to move from
good intentions to an established way of doing business.
• Adopting performance management as a fundamental way
of thinking
• Supporting a measurement-friendly culture, where
information is seen as an asset
• Utilizing formal organizational recognition to support
measurement, improvement and innovation
• Supporting opportunities for more informal recognition
among employees and work unit(s)

24. KEY FACTOR – INFORMATON USAGE
How information generated through this initiative is used
will be an indicator to the workforce that could help or
hinder implementation.
• Organizational improvement through the implementation
of a performance management model and the use of
performance information
• Process improvement where performance information is
used to improve delivery of products and services and to
demonstrate impact and benefit.
• System improvement through regular and iterative review
of the department’s performance management system.

25. KEY FACTOR – PERFORMANCE MANAGEMENT SYSTEM DESIGN
Often where conversations start, system design is listed
lasted (on purpose) to emphasize the discussion and work
that should take place before developing performance
measures.
• How well the work of the organization is understood and
aligned
• The degree to which performance measures help
understand and improve our work and how well our work
supports desired outcomes
• Degree to which measures are valid and reliable
• Balancing data needs with issues of data quality, availability,
and cost

26. PERFORMANCE MANAGEMENT – BASIC DEFINITION
BASIC DEFINITION:
Using information to improve our work
• Use – Active, continual effort
• Information – Data related to our work that is
useful in understanding performance
• Improve – To change with purpose: monitor, adjust
and validate performance to be more in line with
expectations
• Our Work – The tasks, processes and programs we
engage in to fulfill our mission

27. KEY CONCEPT – HORIZONTAL ALIGNMENT
NEED TO CONTINUALLY IMPROVE
We must improve how we deliver our products and
services. To improve, or “change with a purpose,” clear
expectations and outcomes must be set.

28. KEY CONCEPT – VERTICAL ALIGNMENT
NEED TO FOCUS ON
WHAT’S IMPORTANT
To ensure efforts mutually
support each other, we must
improve our evaluation of
outcomes at all levels.
It is no longer enough to be a
“silo” or pocket of excellence.

29. KEY CONCEPT – INTEGRATION
GOAL:
INTEGRATION
Ultimately, our
responsibility is to
make sure efforts
underway to
improve
performance are
focused on those
things we know are
the most important.

30. PERFORMANCE MANAGEMENT – CURRENT STATUS
Though the first “initiative” is still underway, the effort to
date had produced a significant amount of meaningful
work.
• The development team has completed it’s report
• Identified key concepts
• factors impacting successful implementation
• Work has turned to developing approaches which will put a
performance management system in place
• Key Work Underway – Develop methods to:
• Identify & cascade mission-related outcomes (VA)
• Build skills, tools and support to improve work (HA)
• Integrate horizontal and vertical alignment efforts

31. PERFORMANCE MANAGEMENT – LESSONS LEARNED
As with any effort, there are things we have learned
along the way:
• Balance “representation” on development teams with skill
sets and experience
• KISS, but no too simple
• As with anything new, there will be things that need to be
learned
• Remember your audience are adults
• Repetition, repetition, repetition
• Draw a picture

32. CHANGE MANAGEMENT – CLOSING THOUGHT
There is a lot of talk about change and change
management.
• 8-Stage Process of Creating Major Change (John Kotter)
• Establish a sense of urgency, create a guiding coalition,
develop a vision/strategy, communicating the change
vision, empower broad-based action, generate short-term
wins, consolidating gains and producing more change,
anchoring new approaches in the culture
• ADKAR Model for Change (Jeffrey Hiatt)
• Awareness, Desire, Knowledge, Ability, Reinforcement

33. CHANGE MANAGEMENT – CLOSING QUESTION
There is a lot of talk about change and change
management.
Is change what we really want?

34. CHANGE MANAGEMENT – CLOSING QUESTION
There is a lot of talk about change and change
management.
Is change what we really want?
In the short-term, yes.
But only because it is necessary for
improvement.

35. CHANGE MANAGEMENT – CLOSING THOUGHT
If we who choose to lead change hope to
improve things, we need to better understand
and communicate what (not how) the goals
and desired outcomes are.
Never tell people how to do things. Tell them what needs to be
done, and they will surprise you with their ingenuity. George S. Patton

36. Thank you!
David J. Putz, Ph.D. – Iowa DOT
david.putz@dot.iowa.gov
TRB 95th Annual Meeting – Jan 11, 2016