Performance Management: Are we there yet? - Summer 2014 NCLGBA Conference

1. Performance Management:
Are We There Yet?
David Ammons & Ellen Liston
NCLGBA Conference 2014

2. Performance Measurement ≠
Performance Management
Strategic Planning ≠
Performance Management
Benchmarking ≠
Performance Management
Dashboard ≠
Performance Management

3. “Performance management is the intentional
application of strategies and techniques to
achieve desired results. It is not passive;
instead, it is action oriented. It includes a host
of practices designed to influence
performance. It is more than merely declaring
goals and trusting that program officials and
employees will somehow achieve them. It is
more than simply measuring performance and
hoping that the act of measurement will
provide all the impetus needed.”
--Leading Performance Management in
Local Government (ICMA Press, 2008)

4. “Performance management is the intentional
application of strategies and techniques to
achieve desired results. It is not passive;
instead, it is action oriented. It includes a host
of practices designed to influence
performance. It is more than merely declaring
goals and trusting that program officials and
employees will somehow achieve them. It is
more than simply measuring performance and
hoping that the act of measurement will
provide all the impetus needed.”
--Leading Performance Management in
Local Government (ICMA Press, 2008)

5. “Performance management is the intentional
application of strategies and techniques to
achieve desired results. It is not passive;
instead, it is action oriented. It includes a host
of practices designed to influence
performance. It is more than merely declaring
goals and trusting that program officials and
employees will somehow achieve them. It is
more than simply measuring performance and
hoping that the act of measurement will
provide all the impetus needed.”
--Leading Performance Management in
Local Government (ICMA Press, 2008)

6. “Performance management is the intentional
application of strategies and techniques to
achieve desired results. It is not passive;
instead, it is action oriented. It includes a host
of practices designed to influence
performance. It is more than merely declaring
goals and trusting that program officials and
employees will somehow achieve them. It is
more than simply measuring performance and
hoping that the act of measurement will
provide all the impetus needed.”
--Leading Performance Management in
Local Government (ICMA Press, 2008)

7. Without active leadership,
systems intended to influence
performance—such as
performance measurement,
performance budgeting, or
performance pay—are merely
passive systems of rules,
deadlines, and reports.

8. Fundamentally,
performance
management entails the
use of performance
feedback to influence
operations.

9. Performance Management Doctrine
• Goal clarity
• Performance information that is relevant,
actionable, and readily available
• Greater emphasis of results than inputs and
compliance with procedures
• Engagement of elected officials in priority
setting, strategic goals, data-influenced
decision making
• Engagement of top executives in
performance management
• Devolved decision authority
• Managerial flexibility in the use of resources
• Incentives/sanctions tied to performance

10. Performance Management Doctrine
• Goal clarity
• Performance information that is relevant,
actionable, and readily available
• Greater emphasis of results than inputs and
compliance with procedures
• Engagement of elected officials in priority
setting, strategic goals, data-influenced
decision making
• Engagement of top executives in
performance management
• Devolved decision authority
• Managerial flexibility in the use of resources
• Incentives/sanctions tied to performance

11. Performance Management Doctrine
• Goal clarity
• Performance information that is relevant,
actionable, and readily available
• Greater emphasis of results than inputs and
compliance with procedures
• Engagement of elected officials in priority
setting, strategic goals, data-influenced
decision making
• Engagement of top executives in
performance management
• Devolved decision authority
• Managerial flexibility in the use of resources
• Incentives/sanctions tied to performance

12. Performance Management Doctrine
• Goal clarity
• Performance information that is relevant,
actionable, and readily available
• Greater emphasis of results than inputs and
compliance with procedures
• Engagement of elected officials in priority
setting, strategic goals, data-influenced
decision making
• Engagement of top executives in
performance management
• Devolved decision authority
• Managerial flexibility in the use of resources
• Incentives/sanctions tied to performance

13. Performance Management Doctrine
• Goal clarity
• Performance information that is relevant,
actionable, and readily available
• Greater emphasis of results than inputs and
compliance with procedures
• Engagement of elected officials in priority
setting, strategic goals, data-influenced
decision making
• Engagement of top executives in
performance management
• Devolved decision authority
• Managerial flexibility in the use of resources
• Incentives/sanctions tied to performance

14. Performance Management Doctrine
• Goal clarity
• Performance information that is relevant,
actionable, and readily available
• Greater emphasis of results than inputs and
compliance with procedures
• Engagement of elected officials in priority
setting, strategic goals, data-influenced
decision making
• Engagement of top executives in
performance management
• Devolved decision authority
• Managerial flexibility in the use of resources
• Incentives/sanctions tied to performance

15. Performance Management Doctrine
• Goal clarity
• Performance information that is relevant,
actionable, and readily available
• Greater emphasis of results than inputs and
compliance with procedures
• Engagement of elected officials in priority
setting, strategic goals, data-influenced
decision making
• Engagement of top executives in
performance management
• Devolved decision authority
• Managerial flexibility in the use of resources
• Incentives/sanctions tied to performance

16. Performance Management Doctrine
• Goal clarity
• Performance information that is relevant,
actionable, and readily available
• Greater emphasis of results than inputs and
compliance with procedures
• Engagement of elected officials in priority
setting, strategic goals, data-influenced
decision making
• Engagement of top executives in
performance management
• Devolved decision authority
• Managerial flexibility in the use of resources
• Incentives/sanctions tied to performance

17. Performance Management Doctrine
• Goal clarity
• Performance information that is relevant,
actionable, and readily available
• Greater emphasis of results than inputs and
compliance with procedures
• Engagement of elected officials in priority
setting, strategic goals, data-influenced
decision making
• Engagement of top executives in
performance management
• Devolved decision authority
• Managerial flexibility in the use of resources
• Incentives/sanctions tied to performance

18. Performance Management Mantra
“Make Managers Manage…”
and
“…Let Managers Manage”

19. Our Set of City and County
Governments
• Original group of 91 local governments
cited for performance management efforts
• 66 local governments with complete
responses
– 45 municipal, 21 county
– 25 different states
– Median population 311,000, smallest at 12,000

20. Our Findings
Cities & Counties having a reputation for performance
management tended…
• to have more extensive sets of measures, and to include
more measures of quality, efficiency & outcomes;
• to do strategic planning, with some linking their strategic
goals to their performance management efforts;
• to grant significant discretion to departmental officials but to
withhold significant discretion from operating supervisors;
• to have senior managers engaged in regular reviews of
operating performance and, perhaps more often than
prescribed by performance management doctrine,
intervening in operating decisions;
• to be no more likely than cities and counties in general to
have performance-based incentives or sanctions.

21. Our Findings
Cities & Counties having a reputation for performance
management tended…
• to have more extensive sets of measures, and to include
more measures of quality, efficiency & outcomes;
• to do strategic planning, with some linking their strategic
goals to their performance management efforts;
• to grant significant discretion to departmental officials but to
withhold significant discretion from operating supervisors;
• to have senior managers engaged in regular reviews of
operating performance and, perhaps more often than
prescribed by performance management doctrine,
intervening in operating decisions;
• to be no more likely than cities and counties in general to
have performance-based incentives or sanctions.

22. Our Findings
Cities & Counties having a reputation for performance
management tended…
• to have more extensive sets of measures, and to include
more measures of quality, efficiency & outcomes;
• to do strategic planning, with some linking their strategic
goals to their performance management efforts;
• to grant significant discretion to departmental officials but to
withhold significant discretion from operating supervisors;
• to have senior managers engaged in regular reviews of
operating performance and, perhaps more often than
prescribed by performance management doctrine,
intervening in operating decisions;
• to be no more likely than cities and counties in general to
have performance-based incentives or sanctions.

23. Our Findings
Cities & Counties having a reputation for performance
management tended…
• to have more extensive sets of measures, and to include
more measures of quality, efficiency & outcomes;
• to do strategic planning, with some linking their strategic
goals to their performance management efforts;
• to grant significant discretion to departmental officials but to
withhold significant discretion from operating supervisors;
• to have senior managers engaged in regular reviews of
operating performance and, perhaps more often than
prescribed by performance management doctrine,
intervening in operating decisions;
• to be no more likely than cities and counties in general to
have performance-based incentives or sanctions.

24. Our Findings
Cities & Counties having a reputation for performance
management tended…
• to have more extensive sets of measures, and to include
more measures of quality, efficiency & outcomes;
• to do strategic planning, with some linking their strategic
goals to their performance management efforts;
• to grant significant discretion to departmental officials but to
withhold significant discretion from operating supervisors;
• to have senior managers engaged in regular reviews of
operating performance and, perhaps more often than
prescribed by performance management doctrine,
intervening in operating decisions;
• to be no more likely than cities and counties in general to
have performance-based incentives or sanctions.

25. • Linking strategic goals and performance management
significantly increases the likelihood of receiving
anticipated performance management benefits.
However, an “unlinked” strategic plan brings no
apparent performance management benefits.
• Organizations whose senior managers routinely
review the performance of operating units enjoy
significantly greater performance management
benefits.
• Some evidence that the combination of executive
engagement in performance management and
devolved authority does make a positive difference in
reported achievement.

26. Key Elements of Effective
Performance Management
• Establishing a performance culture
• Sharpening performance perceptions
• Establishing performance expectations
• Identifying causes of performance
deficiencies and prescribing corrective
actions
• Motivating improvement
• Incorporating meaningful performance data
into management and policy decision
processes

27. A Few Questions to Ponder
1.Who is the primary audience for your
performance information? Secondary
audience(s)?
2.Are you ever frustrated by lack of
performance data use? Where is your
frustration directed?
3.Which is more impressive in your
organization—the “trappings,” the
processes, or the products of performance
management?

28. Performance Management
at the City of Coral Springs, Florida

30. strategic plan
“planning”
data analysis
“learning”
citizen input
“listening”
output to citizens
“informing”
Budget
“funding”
business plan
“implementing”
FeedbackLoop
FeedbackLoop

31. budget
business plan
strategic plan
policy
operations

32. Timing of strategic planning process (after
elections)
Incorporating input from elected officials and
boards and committees
Regular reporting in easy to use format (with
the good, the bad and the ugly)
Never lose an opportunity to show how
performance management enhances good
decision-making (model the behavior you
encourage)

33. Workforce
Performance
Management
and
Individual Goal Setting
through the
Incentive
Pay System (IPS)
City Mission
Key Intended
Outcomes
Department
Objectives
Individual Employee
Objectives

34. . . . And What Gets Talked
About Gets Measured

35. KIO Summary
used by
Management
Team and City
Commission

37. 0
50
100
150
200
250
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Numberofaccidents
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Population
Accidents Population

38. Goals are understandable by the
people who drive results
Practical and Actionable
Feedback loops allow people to see
their input make a difference
Flat organizational structure helps
remove obstacles to action
Open and transparent
Data trumps politics!
“Nothing You Can’t Spell Will Ever Work” - Will Rogers

39. Satisfied Customers
(95% quality rating)
Low tax rate
(one of lowest in our competitive cities)
Low crime rate
(one of nation’s lowest crime rates, lowest in
FL)
Happy, motivated Employees
(97% satisfaction rate)

40. 40