Strategic Planning Presentation_ Part IIProcess and Planning

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					MANAGEWARE




                    STRATEGIC PLANNING




                               PART II
                     PROCESS & PLAN COMPONENTS


 Office of Planning and Budget
 Division of Administration
 State of Louisiana
               Strategic
               Planning      ANSWERING THE FIVE
                           MANAGEMENT QUESTIONS



                     APPLYING THE STRATEGIC
                      PLANNING PROCESS,
                        COMPONENT BY
                          COMPONENT




January 2013                   2     Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                      Who are we?




                  VISION

                  MISSION

                  PHILOSOPHY (VALUES)




     Together, these constitute the organization’s unique identity—its
                           organizational DNA.


January 2013                        3           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                                  Who are we?
           CRYSTALLIZING THE ORGANIZATION’S IDENTITY

                                   ●   Linking vision, mission, and values creates a
                Vision                 powerful synergy.
                                   ●   Each is important yet they are codependent.
                                         • Without a vision, there is no inspiration.
    Mission              Values
                                         • However, a vision without a mission is
                                           an impractical notion.
                                         • And a mission without values could lead
                                           to an "ends justify means" philosophy.

               KEY       Crystallizing the organization's identity is a responsibility of
                         leadership but, to be successful, it should be based on input
               POINT     from all.


January 2013                                    4             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS         VISION

       A COMPELLING CONCEPTUAL IMAGE OF THE DESIRED
                         FUTURE




                           Your visions become your
                           reality.
                                 - Star Wars: The Phantom Menace


January 2013                 5            Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                      VISION

        A COMPELLING CONCEPTUAL IMAGE OF THE DESIRED
                          FUTURE


      A vision statement should be:
         • brief and memorable
         • inspiring and challenging
         • descriptive of the ideal
         • descriptive of future service levels
         • extraordinary but authentic
         • appealing to everyone in the organization and to customers and
           other stakeholders


January 2013                             6         Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                               INSPIRING VISIONS
   To be a low cost producer of the highest quality products and services that provide the
   best customer value.
                                         Ford Motor Company

   North Carolina will be a desirable place to live a productive, rewarding and satisfying
   life. Its people will have a shared sense of place, stewardship and values.
                                           Commission for a Competitive North Carolina

   To provide innovative and creative leadership focused on outcomes and improvements
   that promote a new image for Louisiana.
                                           Louisiana Division of Administration

   Minnesota's economic activity will create wealth and provide a good standard of living
   for all our people.
                                          Minnesota Milestones




January 2013                                      7                Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                         MISSION

        A BROAD, COMPREHENSIVE STATEMENT OF PURPOSE
   The mission identifies what an organization does and for whom it does it.
   That is, it describes an organization’s products or services and its
   customers.
   The mission is all encompassing and rarely changes. It is the ultimate
   rationale for the existence of the organization.

               A well-written mission statement:
                 • Identifies purpose but not process.
                 • Identifies customers or users of the organization’s products.
                 • Identifies services or products provided by the organization.
                 • Is clear and succinct.


January 2013                                8              Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                      MEANINGFUL MISSION
                                             STATEMENTS
   EXAMPLES:
   The Alliance for Youth, led by General Colin Powell, is dedicated to mobilizing
   individuals, groups and organizations from every part of American life to build and
   strengthen the character and competence of our youth.
                                            - America’s Promise

   California Literacy, Inc. is a non-profit, volunteer assisted, educational organization
   which provides statewide leadership to new and existing literacy programs and their
   students by offering diverse training, resources, consultation, and advocacy to help
   people gain the literacy skills they need to participate more effectively in society.
                                               - California Literacy Incorporated
   The mission of the Education Commission of the States is to help state leaders
   develop and carry out policies that promote improved performance of the education
   system.
                                            - Education Commission of the States


January 2013                                 9              Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                     MEANINGFUL MISSION
                                            STATEMENTS
    LOUISIANA:

    “The mission of the Department of Environmental Quality is to maintain a
    healthful and safe environment for the people of Louisiana.”

    “The mission of the Department of Health and Hospitals is to protect and promote
    health and to ensure access to medical, preventive, and rehabilitative services for
    all citizens of the State of Louisiana.”




January 2013                               10             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                     MEANINGFUL MISSION
                                            STATEMENTS

    LOUISIANA:
    "The mission of the Criminal Law and Medicaid Fraud Program is to seek justice
    on behalf of the citizens of the State of Louisiana by the execution of superior,
    professional, and effective investigation and prosecution of all matters referred to
    the Department of Justice.“




    FEDERAL GOVERNMENT:
    “The mission of the Office of Management and Budget (OMB) is to help the
    President in carrying out his constitutional and statutory duties.“




January 2013                               11             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                  WRITING A MISSION
                                         STATEMENT

               POINTER: Write a mission statement with the assumption
               that readers have no knowledge of the organization, what it
               does, whom it serves, why it is needed, or how it works.


               POINTER: Avoid using technical terminology,
               abbreviations, and acronyms.


               POINTER: To develop a brief, clear mission statement,
               imagine giving a one-minute explanation of the organization
               to a legislative committee, the general public, or a
               community group. Think about how to best describe the
               organization in terms they can understand.


January 2013                         12           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                       WRITING A MISSION
                                              STATEMENT

                 POINTER: Use the following template to help develop a
                 mission statement.


       The purpose of the      (fill in the name of the organization)                is to
       provide     (identify the service or deliverable)        to      (identify the
       customers who will receive the service or benefit from the service or
       deliverable)   .




January 2013                              13               Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                           WRITING A MISSION
                                                  STATEMENT

    Some organizations may opt to expand the mission statement by
    adding one of the following phrases to the end of the mission statement:
    “in order to____________________________________________” or
    “so that ______________________________________________” or
    “so they can _________________________________________.”


    Although this additional material is not required, it is sometimes helpful to an
    organization (particularly, at the program or activity level) that is struggling to
    identify desired outcomes (goals and objectives) and performance measures.
    Use this approach cautiously, however, in order to avoid rambling, unfocused
    mission statements.




January 2013                                 14              Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                      PHILOSOPHY (VALUES)

        CORE VALUES DESCRIBING HOW THE ORGANIZATION
         CONDUCTS ITSELF IN CARRYING OUT ITS MISSION
   Philosophy puts a foundation of principles or beliefs behind the vision and
   mission.
   Philosophy statements express the organization’s attitude about three
   things:

         PEOPLE: The way in which people inside and outside the organization are
         treated.
         PROCESS: The way in which the organization is managed, decisions are
         made, and products or services are produced.
         PERFORMANCE: Expectations concerning the quality of its products and
         services.



January 2013                             15            Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS              EXPRESSIVE PHILOSOPHY
                                       STATEMENTS


  "We want to give the best customer service of any company in the world."
                                - International Business Machines

   "Working together to create an environment for positive change."
                                - Louisiana Division of Administration

  “Quality is job one.”
                                - Ford Motor Company




January 2013                              16             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS              EXPRESSIVE PHILOSOPHY
                                       STATEMENTS

  "Economic development is primarily a private sector phenomenon, the offspring of
  an active free enterprise system. Actions taken by government should be designed
  to foster private development, not to supplant it.
  Government should attend to infrastructure needs: education, public sector
  research and development, transportation, and communications. Appropriations
  should be viewed as investments in the economic future, not as expenditures.
  Government should provide a stable and fair tax, regulatory, and legal environment
  in which business may be done efficiently and profitably. In many cases, strong,
  effective public-private partnerships should be utilized to achieve economic
  development objectives.
  Louisiana must continue with its significant and sustained efforts to change the way
  it does business. While the new Louisiana called for in Vision 2020 will be a better
  place economically, educationally, and environmentally, it should remain identifiably
  Louisiana, a place like no other."
                                           - Louisiana: Vision 2020 (2003 Update)


January 2013                               17             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS               EXPRESSIVE PHILOSOPHY
                                        STATEMENTS

   All members of the Department shall serve the public to the best of their ability by
   being dedicated and accountable and by managing all allocated resources
   effectively and efficiently. This agency seeks to preserve the peace and to protect
   the persons, property, rights, and privileges of all people in the state of Texas
   through ethical leadership and superior employee development. To this end, it is
   imperative that all employees uphold the Department motto of COURTESY –
   SERVICE – PROTECTION and respect the constitutional right of all persons to
   liberty, equality, and justice.
                                          - Texas Department of Public Safety




January 2013                               18             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS            What makes the organization
                                        unique?
                         CRYSTALLIZING THE ORGANIZATION’S
                         IDENTITY



               VISION


               MISSION


               PHILOSOPHY (VALUES)




January 2013                         19      Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS              Where are we now?

                 INTERNAL/EXTERNAL ASSESSMENT
     AN ANALYSIS AND EVALUATION OF INTERNAL CONDITIONS
     AND EXTERNAL FACTORS THAT AFFECT THE ORGANIZATION

  The process of conducting an assessment if often referred to as a SWOT
  analysis because it involves a review of an organization’s internal
  Strengths and Weaknesses and external Opportunities and Threats.
  A thorough understanding of both internal and external factors enables
  planners to most advantageously position the organization to respond to its
  environment and prosper in the future.
  The internal/external assessment should be conducted prior to goal
  setting.



January 2013                          20           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                              INTERNAL/EXTERNAL ASSESSMENT
   Internal/external assessment involves:

               Situation Inventory – an assessment of an organization’s position,
               performance, problems, and potential.

               Environmental Scan – an analysis of key external elements or forces
               that affect the environment in which an organization functions.

               Foresight or Anticipation – explicit efforts to systematically identify,
               monitor, and analyze long-term trends and issues that are likely to affect
               the organization’s future environment and to examine the implications
               those trends and issues may hold for alternative organization goals and
               possible organization actions.

               Issue Analysis – an identification and analysis of strategic issues—
               problems or concerns of critical importance to the organization and its
               customers, other stakeholders, and expectation groups.

January 2013                                 21             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS           SITUATION INVENTORY
               AN ASSESSMENT OF AN ORGANIZATION'S POSITION,
                  PERFORMANCE, PROBLEMS, AND POTENTIAL




                 Position                      Customers

                 Performance                   Services
                 Problems                      Authority

                 Potential                     Capacity

                 Strengths                     Track Record

                 Weaknesses                    Opportunities




January 2013                       22         Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS                    CONDUCTING A SITUATION
                                            INVENTORY
   A situation inventory asks:
   Who are the organization’s customers (internal and external), other
   stakeholders, and expectation groups? What are their needs and
   expectations?
         • Stakeholders
         •     Customers
         •     Compliers
         •     Expectation Groups


   Where has the organization been?
         • What is the track record?
         •     What has changed?

January 2013                            23         Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS                    CONDUCTING A SITUATION
                                            INVENTORY
     Where is the organization now?
     • What are the organization’s current programs and activities? Under what
       authority does the organization operate them?
     • Does the existing program structure make sense? If not, what changes would
       benefit both the organization and its customers?
     • What is going on in programs and activities? How do processes work? What
       is being done well? What is being done poorly? Are performance standards
       being met?
     • What is the public perception of current programs and activities?
     • What benchmarks compare the quality and cost of the services, programs, and
       activities?
     • Do current programs support one another? Are any in conflict? Do they
       support or coordinate with programs in other agencies? Do any conflict,
       duplicate or overlap?
     • Are planning, budgeting, and accountability integrated?

January 2013                               24            Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS               CONDUCTING A SITUATION
                                       INVENTORY

               POINTER: When you break down a policy, program, or process
               into its component parts, you use "systems logic" to develop a
               model of how it should work.




         INPUT              PROCESS              OUTPUT & OUTCOME
                                                     QUALITY
                          EFFICIENCY

               Use metrics to gauge and assess your process, diagnose
               problems, and formulate solutions.



January 2013                          25          Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS                CONDUCTING A SITUATION
                                        INVENTORY
   What opportunities for positive change exist? What remains to be
   accomplished?
      • How are the needs and expectations of customers changing?
      • Has the organization planned to accommodate that change?


   What are the organization’s strengths and weaknesses?
      • What advantages does the organization possess?
      • What barriers or constraints does the organization face?
      • What is the organization’s capacity to act?
      • How can the organization build on its strengths and overcome its
        weaknesses?


January 2013                           26             Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS                CONDUCTING A SITUATION
                                        INVENTORY
   INFORMATION SOURCES:
      • Policy development files
      • Internal databases
      • Annual reports
      • Budget requests
      • Undersecretary management/program evaluation reports (Act 160
        reports)
      • Program evaluations
      • Financial and performance audits
      • Quality assessment surveys
      • Employees
      • Customers


January 2013                         27         Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS                    CONDUCTING A SITUATION
                                            INVENTORY

                REMINDER: The strategic plan must include a brief statement
                identifying the principal clients and users of each program and
                the specific service or benefit derived by such persons.
                Remember to identify internal and external customers during
                the situation inventory. Relate these customers to the services
                or benefits they receive.


                REMINDER: The information gathered as part of the situation
                inventory will be used throughout the planning process. It will
                help define mission, express philosophy, set goals, formulate
                objectives, build strategies, and select performance indicators.



                REMINDER: Keep records. Not only will this facilitate and
                enhance the rest of the planning process, but you will be
                prepared for performance audit.



January 2013                                28               Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                      ENVIRONMENTAL SCAN
          AN ANALYSIS OF KEY EXTERNAL ELEMENTS OR FORCES THAT
           INFLUENCE THE ENVIRONMENT IN WHICH AN ORGANIZATION
                              FUNCTIONS
               Many external factors influence an organization and its mission.

                                             Tradition

                                  Public Opinion
                                                         Government
                           Demographics
                                               Political Climate
                                Technology
                                                    Physical Environment
                             Economy
                                          Marketplace




                                               Use environmental scanning to
                                                keep tabs on external factors.


January 2013                                  29               Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                                         CONDUCTING AN
                                       ENVIRONMENTAL SCAN

  An environmental scan examines the current environment and,
  combined with foresight methodologies, anticipates changes in the
  future environment. An environmental scan asks:

               What is the current environment?
           • What external environmental elements currently affect the
             organization? How? Do they help or impede the organization?
             Which are most critical?
           • What major current issues or problems affect the organization?
             Are these local, statewide, regional, national, or global in scope?
             Why are they of such importance?
           • What current events, issues, or trends have captured the attention
             of the public? How do these affect the organization?

January 2013                             30           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                                              CONDUCTING AN
                                            ENVIRONMENTAL SCAN


                 How may the environment differ in the future?
               • What are the biggest external threats and opportunities?
               • What forces that might alter key elements of the environment are
                 at work?
               • What are the most likely scenarios for the future?
                   • Are trends likely to continue or are changes forecast?
                   • What major new issues are anticipated?
                   • What implications do these future forces and environmental
                     changes (trends and issues) hold for the organization? Which are
                     most critical?




January 2013                                  31            Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                                CONDUCTING AN
                              ENVIRONMENTAL SCAN

               INFORMATION SOURCES:




      You could try




                    But we recommend




January 2013                   32      Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                                        CONDUCTING AN
                                      ENVIRONMENTAL SCAN

               INFORMATION SOURCES:

      • Federal and state government statistical reports and databases
      • Federal, state, and local government legislation, regulations,
        executive orders or actions, budgets, policy statements, and special
        studies
      • Court decisions and actions
      • National and regional professional organizations or associations
      • Interest or advocacy groups
      • Media
      • University and college resource centers
      • Agency advisory and governing boards


January 2013                           33           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                      CONDUCTING AN
                                        ENVIRONMENTAL SCAN

               REMINDER: The strategic plan must include an identification
               of potential external factors that are beyond the control of the
               organization and that could significantly affect the achievement
               of its goals and objectives.


               REMINDER: The information gathered as part of the situation
               inventory will be used throughout the planning process. It will
               help define mission, express philosophy, set goals, formulate
               objectives, build strategies, and select performance indicators.


               REMINDER: Keep records. Not only will this facilitate and
               enhance the rest of the planning process, but you will be
               prepared for performance audit.




January 2013                              34             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS         FORESIGHT (OR ANTICIPATION)

               Foresight methods generally fall into four categories:


     • Issue identification - involves methods to identify policy issues that
       are likely to occur in the future.
     • Goal setting - generally used to develop directions or chart the
       future course for an organization.
     • Trends analysis - often used in demographic, economic,
       technological, and social forecasting, to analyze trends and attempt
       to project future developments.
     • Alternative futures - a method that uses scenario building to
       investigate possible or probably future paths.




January 2013                           35           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS          ANALYZING ISSUES

               An issue is a matter in dispute—a point of controversy.
               Before an issue can be addressed, it must be analyzed.
               This involves:
                • Define the issue or problem; determine its parameters.
                • Understand who is affected and how they are affected.
                • Determine how serious and immediate the issue or problem
                  is.
                • Project future trends for the issue or problem.
                • Determine the underlying causes of the issue; identify and
                  verify the key cause(s).
                • Assign a priority relative to other concerns.




January 2013                             36           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                    STRATEGIC ISSUES

               ISSUES OF CRITICAL IMPORTANCE TO THE ORGANIZATION
                                 AS A WHOLE
   Strategic issues are high priority issues that merit special attention.
   These might be described as the “make you or break you” kinds of
   issues. Strategic issues:
      • may arise as a result of an organization’s internal assessment;
      • may be generated by external forces;
      • may lead to strategic planning goals;
      • may lead to management improvement efforts or budget modifications;
      • may be addressed in the short-term or long-term;
      • may emerge in an unexpected manner and become important after the
        strategic plan has been completed and approved.



January 2013                               37              Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                   Where do we want to be?

                          GOALS AND OBJECTIVES

               Goals establish direction and destination. They describe
               the general end results toward which effort is directed.

               Objectives are specific, measurable targets for
               accomplishment.



                       Do not attempt to set goals and formulate objectives until you
                       have completed the “Where are we now?” portion of the
                       strategic planning process. Use the results of your
                       internal/external assessment to support the setting of goals
                       and formulation of objectives.



January 2013                               38             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                       GOALS

      THE GENERAL END RESULT TOWARD WHICH EFFORT IS
                        DIRECTED

    • Goals are a description of the desired future that is possible.


    • Goals chart direction and provide a framework for more detailed levels
      of planning.


    • Goals describe the “to be” state.




January 2013                              39         Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                   Why set goals?

  "Our plans miscarry because we have no aim. When a man does not know what
  harbor he is making for, no wind is the right wind."
                                            - Seneca (4 B. C. - 65 A. D.)

  "If you don't know where you are going, every road will get you nowhere."
                                            - Henry Kissinger

  "If you don't know where you're going, be careful. You might get there."
                                            - Yogi Berra

  If you don't know where you are going, any path is as good as another...but you won't
  realize if you're lost, you won't know what time you'll get there, you might unknowingly
  be going in circles, and other won't understand how they can help. And, since you
  could pass right by without knowing it, you won't get the satisfaction of having arrived.
                                 - Jim Lundy, Lead, Follow, or Get Out of the Way


January 2013                                40             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                  CRITERIA FOR GOALS

      Harmonize with the organization’s vision, mission, and philosophy as well as
      other goals.
      Are within the organization’s authority.
      Chart a clear course for the organization but do not determine specific ways to
      get there.
      Reflect the primary concerns and strategic direction for the organization—not a
      comprehensive listing of everything an organization does.
      Reflect the results of an internal/external assessment and are developed in
      response to strategic or critical issues.
      Encompass a relatively long period.
      Tend to remain essentially unchanged until a shift in the environment under which
      they were created occurs.
      Are challenging but realistic and achievable.
      Have some degree of measurability.

January 2013                                 41           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                  WRITING GOALS

               POORLY WRITTEN GOAL STATEMENTS


               GOAL: To continue to provide services to customers.
  Try Again!   (What’s wrong? Not challenging.)



               GOAL: To conduct one seminar in every institution each
               year.
  Try Again!

               (What’s wrong? Unclear purpose; may be more appropriate as part
               of an objective or strategy.)




January 2013                           42           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                       WRITING GOALS

               WELL WRITTEN GOAL STATEMENT


               GOAL: To create a clean, healthy, and attractive environment,
               minimizing pollution, litter, and physical deterioration while instilling
  Well Done!   civic pride.


               (What's right? Clear direction and destination are identified. A
               strong framework for further planning is built. The goal provides
               clear pointers to areas in which specific objectives and effective
               strategies can be developed--for example, improvements related to
               "clean, healthy, and attractive environment," and reductions in
               pollution, litter, and physical deterioration.)




January 2013                                43             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                       WRITING GOALS

               WELL WRITTEN GOAL STATEMENT

               GOAL: To assure clean and sufficient statewide water supplies
               through conservation, development, and pollution control in order to
  Well Done!   protect public health and preserve beneficial water uses.

               (What's right? Again, clear direction and destination are identified
               and a strong framework for further planning is built. The goal can
               lead to the formulation of specific objectives related to water quality,
               supply, and usage as well as the development of strategies related to
               conservation, development, and pollution control.)




January 2013                                44             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                       WRITING GOALS

               WELL WRITTEN GOAL STATEMENT

               GOAL: To promote traffic safety, the preservation of the peace, and
               the prevention and detection of crime.
  Well Done!

               (What's right? Again, clear direction and destination are identified
               and a strong framework for further planning is built. The goal can
               lead to the formulation of specific objectives and strategies related to
               traffic safety, law enforcement, crime prevention and investigation.)




January 2013                                45             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                     TIPS FOR GOAL SETTING

               Hold your goal-setting session away from the office.




               Use the information gathered in your internal/external assessment.




               Verify that it is within your authority to set goals in particular areas.




               The number of goals will vary among organizations. However, keep the
               number of goals manageable.




January 2013                                   46              Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                  TIPS FOR GOAL SETTING


               Goals may be internal or external.
                 • Internal goals reflect improvements to process and productivity;
                   they are concerned with the way things are done.
                 • External goals usually relate to major components of the mission
                   or address strategic issues; they are concerned with the things
                   to be done.


               Some strategic plans may have no internal goals; these plans may
               address internal or process issues at a strategy level.
               Other plans may contain several internal goals emphasizing an
               overriding need to address process changes.
               However, strategic plans should not focus exclusively on internal
               goals.


January 2013                               47            Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                      TIPS FOR GOAL SETTING

      REALITY       There is a natural tendency to focus on internal issues, such as pay and civil
      CHECK         service job classification plans, communications, technology, equipment,
                    travel, training, management policies, and organizational image. These are
                    troubling issues for many organizations, particularly since available
                    resources generally have not kept pace with the demand for services.
                    However, many of these issues fall back on management by input."
                    "Managing for Results" shifts the focus to outcomes rather than inputs.


   Internal goals should point to an end result that positions an organization to provide better
   services or outcomes. Many state agencies experience high employee turnover rates because
   of low pay scales; others cannot provide the level of employee training that is desired. A goal
   to improve employee pay and training emphasizes inputs; it does not point to an improvement
   in services or outcomes. In fact, this poorly written goal elevates a strategy to goal level.
   Improving employee pay and training is a means to an end. That end result is a stable, skilled,
   and equitably compensated workforce. Having such a workforce would have a positive impact
   on the services provided by the organization. Therefore, a better way to address this issue
   would be a goal to develop a stable, skilled, and equitably compensated workforce.




January 2013                                    48               Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                     TIPS FOR GOAL SETTING

               To the extent possible, goals should be placed in a priority sequence.


               An internal/external assessment reveals many issues that could be the
               focus of management’s attention and organization resources. The goal-
               setting process must surface the most vital and establish priorities
               among them.




January 2013                                 49             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                   OBJECTIVE

               A SPECIFIC AND MEASURABLE TARGET FOR
                           ACCOMPLISHMENT

    • Objectives describe specific results that a program seeks to achieve
      and set targets for performance.

    • Objectives are measurable, time-based statements of intent.

    • Objectives represent milestones, interim steps, or intermediate
      achievements toward realizing vision, mission, and goals.

    • Objectives relate to achievement, not means.




January 2013                          50             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                CRITERIA FOR OBJECTIVES

               Well written objectives are SMART.

               That is, they are:

                   S pecific

                   M easurable

                   A gressive but A ttainable

                   R esult-oriented

                   T ime-bound



January 2013                             51         Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS               WRITING OBJECTIVES

               POORLY WRITTEN OBJECTIVES

               OBJECTIVE: To reduce processing time.
               (What's wrong? The objective is not specific, measurable, or time-
  Try Again!   bound. How much reduction in what kind of processing will be
               achieved within what timeframe?)



               OBJECTIVE: To eliminate highway deaths.
               (What's wrong? The objective is not realistic; it is simply not
  Try Again!   possible to achieve this outcome. The objective sets up failure.
               Even if it were realistic, it does not specify a time frame.)




January 2013                             52             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                  WRITING OBJECTIVES

               POORLY WRITTEN OBJECTIVES
               OBJECTIVE: To maintain current service levels through FY
               2003-2004.
  Try Again!   (What's wrong? This objective does not give specifics or target
               change. Perhaps the organization has had static funding levels and
               does not anticipate any additional revenues. Perhaps it is a
               challenge just to continue serving the same number of clients over
               the next few years. However, this objective fails to tell the full story.)


               OBJECTIVE: To receive and process applications for
               permits, collect application fees, and issue permits.
               (What's wrong? This objective targets no specific outcome or time
  Try Again!   frame; rather it seems to be a list of ongoing activities or strategies
               to achieve something. It is a list of what the program does, not what
               it accomplishes.)


January 2013                                 53              Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                   WRITING OBJECTIVES

               WELL WRITTEN OBJECTIVES

               OBJECTIVE: To reduce the average cost of processing new hires by 5%
               (from the FY12 base of $100) by June 30, 2018.
  Well Done!   (What's right? A specific amount of change is targeted within a specified
               time frame. Progress can be measured and compared directly with the
               targeted outcome. The amount of change does not seem
               unreasonable.)


               OBJECTIVE: To reduce the state's highway death rate from 2.1 in 2012
               to 1.9 by 2017.
 Well Done!    (What's right? Again, a specific amount of change is targeted within a
               specified time frame. Progress can be measured [highway death rate is
               a standard statistic calculated for each state annually] and compared
               directly with the targeted outcome. The objective does not represent an
               impossible target.)


January 2013                                 54            Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                   WRITING OBJECTIVES

               WELL WRITTEN OBJECTIVES

               OBJECTIVE: To maintain the number of clients served at 2,500 annually
               while holding per client cost to no more than $3,500 through FY 2016-
  Well Done!   2017.
               (What's right? This organization anticipates a standstill budget over the
               next few years but will maintain service levels at the same cost per client
               by growing more efficient. This objective is specific, measurable, and
               time-bound as well.)

               OBJECTIVE: To reduce liquefied petroleum gas accidents by 10%
               between June 30, 2013, and June 30, 2018.
 Well Done!
               (What's right. This objective targets a specific, measurable outcome
               within a designated time frame. One of the strategies to achieve this
               objective involves the permitting of handlers of liquefied petroleum gas.)




January 2013                                 55             Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS               FORMULATING OBJECTIVES

   1.    Review the organization’s mission and goals.
   2.    Be sure that you understand the internal and external factors
         affecting the organization.
   3.    Decide what results you want.
         •     Baseline performance; benchmarks; room for improvement
         •     Targets
         •     Variables or factors that may influence outcomes
         •     Standards or expectations (mandated or not)
         •     Consistency with policies, values, priorities

   4.    Set a time frame for achievement of results.
   5.    Build in accountability.


January 2013                                  56               Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS             FORMULATING OBJECTIVES



               REMINDER: Each strategic plan must have a statement of
               objectives relative to each program which the organization
               expects to achieve in attaining its goals. Each plan must
               include, where applicable, a description of any program
               evaluations used to develop objectives and an identification
               of the primary persons who will benefit from or be
               significantly affected by each objective within the plan.


               REMINDER: Use the information gathered in your internal/
               external assessment (situation inventory, environmental scan,
               foresight activities, and issue analyses) to support the
               formulation of objectives.




January 2013                               57              Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS             FORMULATING OBJECTIVES

  Consider the following input variables:
        TARGET GROUP VARIABLES
        Demographic and economic characteristics of the target population.


        POLICY AND PROGRAM VARIABLES
        Those things that the program manipulates (such as resource allocation,
        intensity of service, or incentives for performance).


        EXTERNAL VARIABLES
        Factors not controlled through the program that may have independent and
        significant effects on outcomes (such as economic downturns, population
        shifts, technological advances, or cultural differences or changes).


January 2013                              58             Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS            FORMULATING OBJECTIVES

                     BASELINE PERFORMANCE LEVEL
   Assess baseline performance levels before deciding how much change is
   needed or wanted.

      • A baseline is established with data collected at the beginning of an
        improvement process so that it can be compared with future data to measure
        progress and improvement. In other words, baseline performance represents
        the “before” state in a “before/after” evaluation.

      • If historical data are available, they can be used to determine the baseline.
        The baseline is usually derived from the most recent one-year period or, if
        appropriate, an average of several prior years. Sometimes industry averages
        can be used.




January 2013                              59             Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS                    FORMULATING OBJECTIVES
                                           BENCHMARKING
               Benchmarks are the highest levels of quality within specific programs,
               processes, or services.
                 > Best in the business
                 > Professional standards, accreditation standards, or quality practices
                 > Highest or lowest rankings (whichever is more desirable)
                 > Performance or workload levels set in statutes, regulations, or official
                  guidelines

               Benchmarking is the process of rating an organization's practices,
               processes, and products against the best and then emulating them.
                 > Seek out best-in-class performers inside or outside your organization.
                 > Study them to determine why they are the best at what they do.
                 > Apply what you have learned to your own operations.


               Benchmark for both best management practices and best
               measurement practices.


January 2013                                        60                Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS            FORMULATING OBJECTIVES
                          ROOM FOR IMPROVEMENT
      After comparing baseline status and the benchmarks for a particular program
      or service, managers and staff know how far the organization must go to equal
      the best performers. This difference or gap between the actual baseline
      performance and the benchmark target represents "room for improvement."




         BASE LEVEL PERFORMANCE                               BENCHMARK

January 2013                              61            Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS                  TIPS FOR BENCHMARKING
  1. Do the benchmarking study quickly or not at all.
      > Resources              > Groundwork
      > Experts                > Scope

  2. Identify suitable issues or activities to benchmark. Choose a broad-and-shallow or
     narrow-and-deep scope. Place higher priority on issues or activities that:
       > Have the highest costs;
       > Are key to service delivery or program survival (critical success factors);
       > Appear to have room for improvement; and/or
       > Have the capacity for improvement.

  3. Identify suitable benchmarking partners.
       > Direct comparables
       > Parallel comparables
       > Latent comparables
       > Out-of-category organizations

  4. Gain the cooperation of benchmarking partners.

  5. Gather information from benchmarking partners.
      > Questionnaires          > Interviews             > Visits

  6. Use the information gathered to identify improvement opportunities and implement
     changes. Manage the change from the start.


January 2013                                    62              Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                How do we get there?

                   STRATEGIES AND ACTION PLAN
                   To achieve results, it is not enough to know where you
                   want to be. You must know how to get there.
                           Strategies indicate in general terms how goals
                           and objectives will be achieved. Action plans
                           detail tasks and assign responsibilities for
                           strategies.


  STRATEGY – The method used to accomplish goals and objectives.
  ACTION PLAN – A detailed description of how a strategy will be
                implemented.




January 2013                           63           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                       HALLMARKS OF
                                        SUCCESSFUL STRATEGY
                                             BUILDING

               Successful strategy building incorporates:

                    Reality and reasonableness
                    Self-awareness
                    Awareness of competition
                    Emphasis on action, execution, and follow through
                    Willingness to change and/or take risks
                    Diverse thinking
                    Inclusiveness and perspective



January 2013                             64           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS           BUILDING STRATEGIES AND
                               DEVELOPING ACTION PLANS

                           Alternative strategies may be identified
                           through:

                             • Brainstorming how to achieve results
                             • Researching what works
                             • Evaluating what is already in place




January 2013                          65          Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS            BUILDING STRATEGIES AND
                                DEVELOPING ACTION PLANS

   Cost-benefit analysis is an excellent tool. Cost-benefit involves
   calculating or estimating the known costs and potential benefits of a course
   of action under consideration. It is a method to compare various
   alternatives and facilitate a ranking of these alternatives.

      • Costs are generally considered to be the inputs required to implement
        a course of action. These include personnel, operating expenses, and
        capital expenses.
      • Benefits are the anticipated outputs (services provided) and outcomes
        (results) of the course of action.

      • Cost-benefit can be summarized as a comparison of:
               What do we give? What do we get?

January 2013                          66           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS            BUILDING STRATEGIES AND
                                DEVELOPING ACTION PLANS

                 REMINDER: Each strategic plan must include a statement of
                 each strategy that the organization will use in achieving each
                 stated goal and objective; an explanation of how duplication of
                 effort will be avoided when the operations of more than one
                 program are directed at achieving a single goal, objective, or
                 strategy; and a description of any program evaluations used to
                 develop strategies.


                 POINTER: Be sure that you consider the costs and benefits of
                 alternative strategies; explain the rationale for your selected
                 strategy or strategies; and keep records for process
                 documentation.




January 2013                            67            Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS               BUILDING STRATEGIES AND
                                   DEVELOPING ACTION PLANS

   Once a s trategy has been chosen, the steps necessary to successfully
   im plem ent the s trategy need to be identified. These are the action steps
   that w ill appear in the action plan. An action plan operationalizes a
   strategy. The action plan is w here actual production occurs. Action plan
   steps describe w ho does w hat and w hen he or she does it. To successfully
   develop and m anage an action plan, it is necessary to:

       > Assign responsibility for com pletion.

       > Set a tim e fram e for com ple tion.

       > Detail the action plan in s teps.

       > Determ ine the fiscal im pact of the action plan and the resources
         needed to carry it out.

       > Organize the action plan.


January 2013                                 68      Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS            BUILDING STRATEGIES AND
                                DEVELOPING ACTION PLANS

                 REMINDER: Action Plans are valuable for internal program
                 management. However, they generally should not be surfaced
                 for inclusion in the agency strategic plan.




                 POINTER: Use the sample format for action plans to set up
                 action plans and the sample format for tracking action plans to
                 follow progress.




January 2013                            69            Louisiana Office of Planning and Budget
                    When we come
                    back, we’ll talk
                    about building in
                    accountability.




January 2013   70    Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                   How do we get there?

                                 ACCOUNTABILITY
                    THE METHODS USED TO MEASURE RESULTS

       To succeed, you have to know how well you are doing. The most
    comprehensive, elegant, and technically perfect plan written is of no worth
                              unless it works.

                           What gets measured gets done.
                         What gets measured gets changed.

     Accountability monitors progress. It tracks the extent to which strategies
     have been implemented. It measures performance and compares actual
                  with expected results of goals and objectives.
                 Accountability must be built into the strategic plan.




January 2013                               71             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                 BUILDING IN ACCOUNTABILITY


          WHAT PERFORMANCE ACCOUNTABILITY IS NOT

               Balance Sheet
               Debits    Credits
                                   Accounting
               $xx.xx   $xxx.xx
               $\x.xx   $xxx.xx




               Office Policies
                                   Conformance with Rules and
                                   Regulations



                                   Traditional Quality Control
               Inspected by
               No. 435
                                   (End-line Inspection)



January 2013                                 72           Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS
                              HALLMARKS OF SUCCESSFUL
                             PERFORMANCE ACCOUNTABILITY

                  Built into strategic plans and policy development
                  Built into internal management and decision making
                  Primary focus on outcomes
                  Balanced sets of performance indicators
                  Consistent data over time
                  Internal and external comparisons
                  Reports regularly and publicly
                  Good feedback system




January 2013                           73          Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS               BUILDING IN ACCOUNTABILITY


     PERFORMANCE INDICATORS ARE THE TOOLS
     USED TO MEASURE PERFORMANCE.
     Performance indicators are made up of two parts:

               • Name of indicator - describes what you are measuring

               • Value of indicator - the numeric amount or level achieved during
                 a given measurement period.


     EXAMPLE:
     Indicator Name                               Indicator Value
     Number of clients served                          3,250

January 2013                              74           Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS          BUILDING IN ACCOUNTABILITY

               POINTER: Concentrate on the development of a
               balanced set of performance indicators for each
               objective. A balanced set of indicators will provide a
               clear picture of performance without needless detail.
     Louisiana uses five types of performance indicators:
                 Input
                 Output
                 Outcome
                 Efficiency
                 Quality

     A balanced set may include more than one of any indicator type and
      none at all of some.

January 2013                          75          Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS                 BUILDING IN ACCOUNTABILITY

     Act 1465 required that a strategic plan include, for each objective, one each of
      four kinds of performance indicators.
                      Input
                      Output
                      Outcome
                      Efficiency


     Act 1169 of 1999 amended Title 39 to require at least one of any of the
      following:
                    Outcome
                    Efficiency
                    Quality
        accompanied by as many input and output indicators as needed.

        SO, NOW YOU CAN DEVELOP, USE, AND REPORT A BALANCED SET OF
        PERFORMANCE INDICATORS FOR EACH OBJECTIVE.


January 2013                               76            Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS                     BUILDING IN ACCOUNTABILITY

Performance indicators are based on process or systems logic--that
is, how the system or process works.


      Inputs                           Process                      Outputs & Outcomes
      (Demand)                                                        (Products)           (Results)
        (Need)                                                        (Services)
  (Size of Problem)
     (Resources)
                                      Outputs                  (Expenditures compared to productivity;
                                                               caseload per staff member.)
                                       Inputs
     Efficiency:                                               (Cost per item produced, service
                            Outputs or Outcomes                provided, or client served; cost per
                                                               result achieved.)
                                     Cost
                            Outputs or Outcomes                (Production or turnaround time;
                                                               timeliness of results.)
                                    Time

     Quality:         Effectiveness in meeting the expectations of customers, other stakeholders;
                      and expectation groups.

January 2013                                      77             Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS               BUILDING IN ACCOUNTABILITY

      EXAMPLES OF INPUT INDICATORS

        Budget allocation
        Number of staff members or full-time equivalent (FTE) employees
        Current illiteracy rate in Louisiana
        Number of clients eligible for program
        Number of customers requesting service
        Number of applications received
        Number of school age children
        Current level of child immunization against communicable disease
        Current teen pregnancy rate
        Current visitor rate and advertising/revenue ratio at museum
        Level of motor carrier compliance with weight limits


January 2013                                78           Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS              BUILDING IN ACCOUNTABILITY

     EXAMPLES OF OUTPUT INDICATORS

       Number of students enrolled in an adult literacy program
       Number of clients/customers served by program
       Number of applications reviewed
       Number of vaccinations/inoculations given
       Number of teens enrolled in pregnancy prevention class
       Number of museum visitors
       Dollar amount of museum revenues raised
       Number of motor carrier weight violations cited




January 2013                              79              Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS             BUILDING IN ACCOUNTABILITY

     EXAMPLES OF OUTCOME INDICATORS
       Number/percentage of students able to read and write after completing an
        adult literacy program
       Percentage change in number of applications reviewed
       Percentage change in number of clients/customers served
       Percentage change in number/percentage of school age children who are
        vaccinated/inoculated against communicable disease
       Reduction in incidence of communicable disease
       Percentage of teens enrolled in pregnancy prevention program who become
        pregnant within 12, 18, 24 months after program end
       Percentage change in museum visitor rate and revenues raised
       Change in motor carrier compliance with weight limits
       Percentage completion of database


January 2013                              80            Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS              BUILDING IN ACCOUNTABILITY

     EXAMPLES OF EFFICIENCY INDICATORS
       Cost per student in an adult literacy program
       Cost per application reviewed
       Average or maximum processing time for application review
       Administrative cost as a percentage of total program cost
       Average cost per client/customer served by program
       Number/percentage of eligible clients receiving services
       Average or maximum waiting time on eligibility list
       Average cost per vaccination/inoculation
       Cost per teen enrolled in pregnancy prevention program
       Annual cost per visitor to operate museum
       Revenue return on every advertising dollar spent on promoting museum
       Savings (time, personnel, and/or costs) from automation of processes and
        procedures

January 2013                               81            Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS                BUILDING IN ACCOUNTABILITY

     EXAMPLES OF QUALITY INDICATORS
       Number of repeat audit findings
       Number/percentage of errors during application review
       Compliance with error tolerance levels in program guidelines
       Percentage accuracy of data entry
       Customer survey satisfaction rate
       Number of client/customer complaints filed
       Percentage of client/customer complaints substantiated
       Awards or recognition for service excellence
       Accreditation of program/facility or licensing of staff
       National or regional ranking



January 2013                                 82             Louisiana Office of Planning and Budget
   APPLYING THE STRATEGIC
     PLANNING PROCESS       BUILDING IN ACCOUNTABILITY


     PERFORMANCE INDICATOR LEVELS

      Some performance indicators will be used only for internal
       management purposes.

      Some indicators will surface for performance-based
       budgeting decision making.

      Some indicators will be used for both purposes.




January 2013                      83          Louisiana Office of Planning and Budget
     APPLYING THE STRATEGIC
       PLANNING PROCESS           BUILDING IN ACCOUNTABILITY

    PERFORMANCE INDICATOR LEVELS

    For performance-based budgeting, present performance
    information at different reporting levels in order to surface key
    data while maintaining the availability of support and explanatory
    material.

      Louisiana uses:

            Key Performance Indicators

            Supporting Performance Indicators

            General Performance Information

            Explanatory Notes


January 2013                              84     Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS              BUILDING IN ACCOUNTABILITY

                             EXPLANATORY NOTES

         How do we know what a performance indicator actually means?

         Explanatory notes help everyone gain a more complete understanding of
         performance indicators. They establish context and fill in the background.
         They identify input variables, program variables, and external variables and
         explain how those variables affect performance.

         Explanatory notes provide a link among indicators that should be used in
         tandem.

         Explanatory notes justify differences between performance standards and
         actual performance.


         BOTTOM LINE: When reporting performance, feel free to footnote.


January 2013                                85             Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS            BUILDING IN ACCOUNTABILITY

               CRITERIA FOR PERFORMANCE INDICATORS

  The usefulness of performance indicators is dependent upon their
  validity, accuracy, and reliability.


  Performance indicators should be:
      Valid and meaningful – a good fit
      Accurate, reliable, and verifiable – solid source, reproducible data
      Clear and simple – understandable by layman
      Balanced – tells a complete performance picture



January 2013                            86           Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS          BUILDING IN ACCOUNTABILITY

               POINTER: When selecting performance indicators to
               measure progress, compare for:

   Validity – appropriateness to activity/objective being measured
   Clarity – clear and simple terms; no jargon
   Timeliness – frequency of reporting and time from observations
   Reliability and consistency – proven, consistent data and source
   Calculation methodology – standard or nonstandard measure
   Cost to gather and analyze – practical
   Utility – internal management or external reporting or both




January 2013                          87           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                               DEVELOPING PERFORMANCE
                                     INDICATORS
                 TO SELECT PERFORMANCE INDICATORS:

    • Review objectives. What outcomes are targeted?.
    • Determine what evaluation methods will be used.
    • Decide what information is needed to tell whether or not expected
      changes are occurring.
    • Determine whether actual or proxy indicators will be used.
    • Consider what types of indicators will best tell the performance story.
    • Consider potential reporting levels (key, supporting, or general
      performance information).
    • Generate an initial list of indicators; then review and compare
      alternatives.
    • Select a balanced set of indicators to monitor and report performance.

January 2013                           88           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                               DEVELOPING PERFORMANCE
                                     INDICATORS
                 USEFUL TECHNIQUES:

     • Identify objectives that have obvious indicators associated with them
     • Review performance information that is collected already
     • Ask key decision makers what they most want to know
     • Think about what stakeholders most want to know
     • Benchmark
     • Seek expert advice




January 2013                           89           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                              DEVELOPING PERFORMANCE
                                    INDICATORS
               POINTER: When selecting performance indicators to
               build a balanced set of indicators, keep in mind how
               you will evaluate performance. Select performance
               indicators that will support your evaluation
               methodology.

  Common ways to evaluate performance are:
        Comparison of planned performance with actual performance

        Comparison of “before” and “after” data
        Comparison of population segment(s) served and not served by
          project, service, or grant
        Controlled, randomized experimentation
        Feedback from clientele
January 2013                          90           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                                   DEVELOPING PERFORMANCE
                                         INDICATORS

                 POINTER: If much of your service delivery is
                 performed through grant recipients and/or
                 contractors, keep in mind the requirements of
                 performance-based contracting.

       Some agencies administer significant amounts of “pass through” funding.

       Under Louisiana’s performance-based contracting provisions and
       procedures, contracts for professional, personal, consulting, or social
       services must include specific goals and objectives, measures of
       performance, and a plan for monitoring the services to be provided.

       “Pass through” funds distributed by contract may fall under these
       requirements. If so, information related to service provision and service
       beneficiaries should be available. Use this information to show the results
       generated by the administering program through contract service providers.


January 2013                                91             Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                     BUILDING IN ACCOUNTABILITY
                                      CUSTOMER SURVEYS
        One of the m os t overlook ed and unde rus ed tools for m onitoring perform ance
        in state program s is the custom er s urvey. To find out how w e ll a program is
        delivering se rvice s, ask the re cipients of those se rvice s.

        Rem e m ber, how e ver, that to be m e aningful, custom er s urveys m ust be w ell
        planned and des igned, scie ntifically valid, and auditable.

        PROCESS:

               1.   Plan, tes t, and docum e nt the s urvey proces s.
               2.   Identify cus tom e rs.
               3.   Cons truct and ask que stions.
               4.   Edit and archive data.
               5.   Analyze data and re sults. Explain the res ults of the analysis.



               Customer Survey Card             How's my driving?
                    _____________               Call 1-800-xxx-xxx.
               __________________
               __________________




January 2013                                          92              Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                                DEVELOPING PERFORMANCE
                                      INDICATORS

                 POINTER: When selecting a balanced set of
                 performance indicators to measure progress toward
                 each objective, consider:
         What data you already collect, analyze, and report.
         How you collect, analyze, and report existing data.
         What additional data you need to collect, analyze, and report.
         How (and at what cost) you will collect, analyze, and report.
         How the indicator will be used—internal management and/or
          performance based budgeting.

  After selecting a balanced set of performance indicators, organize
  to collect, analyze, and report data.

January 2013                            93           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                                   TIPS FOR SELECTING
                                PERFORMANCE INDICATORS

           Get consensus among those who establish expectations (set
           goals and objectives), those who bear responsibility for achieving
           expected outcomes, and those who evaluate, utilize, or value
           performance.

           Since it is often necessary to settle for proxy (or surrogate)
           indicators, be sure that proxy indicator is as close to the real thing
           as possible.

          When both available and proxy indicators are not sufficient, it may be
          necessary to change the way that data are collected--to establish
          new databases; to sort or analyze existing data differently; to gather
          comparative data from other states or programs; and/or to use
          multiple sources.



January 2013                              94            Louisiana Office of Planning and Budget
APPLYING THE STRATEGIC
  PLANNING PROCESS
                                TIPS FOR SELECTING
                             PERFORMANCE INDICATORS

           Some programs gather volumes of data, much of which is
           necessary for good program management. Program managers
           should select and use as many performance indicators as they
           need to ensure quality service delivery.

           However, avoid the trap of reporting too many measures to
           higher management levels or for budget decision making. This
           can signal a lack of clarity about program mission, goals, and
           objectives.

           Anticipate the levels at which performance indicators will be
           reported. Although all performance indicators should be useful
           for internal management decision making, not all indicators
           need to surface for performance-based budgeting.


January 2013                            95          Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS
                                 TIPS FOR SELECTING
                              PERFORMANCE INDICATORS

           Take care that performance measures do not lead to wrong
           incentives. For example, if you focus on the number of cases
           processed, staff may be tempted to accept only the easiest cases in
           order to generate the highest processing ratings.
           A balanced set of measures can help overcome this potential
           shortcoming. Another approach is to group measures for internal
           purposes (such as by type of customer/client or by geographical
           area) to reflect workload difficulty.

           Develop and select performance indicators, when objectives are
           set. Do not wait until time to report performance to develop
           performance indicators.

           Keep records.


January 2013                            96          Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS       BUILDING IN ACCOUNTABILITY




                POINTER: Complete the Performance Indicator
                Documentation Sheet (in MANAGEWARE and OPB
                guidelines) for each indicator. Questions from that sheet
                are shown on the following slide.


January 2013                         97           Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS          BUILDING IN ACCOUNTABILITY
               PERFORMANCE INDICATOR DOCUMENTATION
  Indicator Name:                                LaPAS PI Code:

   What is the indicator type and level?
   What is the rationale for the indicator?
   How will the indicator be used in management decision making and other agency
    processes? Will the indicator be reported for performance-based budgeting?
   Is the indicator clear? Does it contain jargon, acronyms, or technical terms?
   Is the indicator valid, reliable, and accurate? How do you know? Has it been
    audited?
   What is the source of the indicator data? What is the frequency and timing of
    collection or reporting?
   How is the indicator calculated? Is this a standard calculation?
   What is the scope of the indicator? Is it aggregate or disaggregate?
   Does the indicator have limitations or weaknesses? Proxy? Biased source?
   Who is responsible for data collection, analysis, and quality?


January 2013                           98            Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS            BUILDING IN ACCOUNTABILITY

                  POINTER: In addition to determining how you will
                  measure and evaluate performance, you must decide
                  how you will monitor and report performance
                  progress.

   As part of your plan for monitoring and reporting performance,
   determine:
      • Who will monitor and report performance? Assign responsibility.
      • How and with what frequency will performance be monitored and reported?
      • How will performance progress be reported? For what purpose? (Internal
        management? Budget development?) Format and frequency?
      • How will performance data be checked (or audited) to ensure accuracy?




January 2013                              99            Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS          BUILDING IN ACCOUNTABILITY

               KEY      When you identify and select performance
                        indicators to measure progress, you are committing
               POINT    to the use and reporting of those indicators over the
                        lifetime of the strategic plan. For those indicators
                        that are to be used and reported as part of
                        performance-based budgeting, you must be
                        prepared to report those indicators in your
                        operational plans and LaPAS for five years.


      There must be a compelling reason to change performance indicators
      during the lifetime of a strategic plan. Such changes must be justified
      and should be discussed with other users of those data before
      changes are made.



January 2013                           100          Louisiana Office of Planning and Budget
 APPLYING THE STRATEGIC
   PLANNING PROCESS           BUILDING IN ACCOUNTABILITY

      Built-in performance accountability links strategic planning,
      budgeting, and implementation of statewide, agency, and program
      activities.
     Performance                                Performance measures are
     accountability feeds                       identified during strategic
     further policy                             planning.
     development,
     strategic planning,
     and operational
     planning.

     Actual performance is                        Performance standards
     monitored and tracked                        are formulated during
     during the fiscal year                       budget development and
     through performance                          appropriation processes.
     progress reporting.



January 2013                       101         Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                RESOURCE ALLOCATION

       THE DETERMINATION AND ALLOTMENT OF RESOURCES
        OR ASSETS NECESSARY TO CARRY OUT STRATEGIES
         AND ACHIEVE OBJECTIVES, WITHIN THE PRIORITY
         FRAMEWORK ESTABLISHED IN THE GOAL-SETTING
                          PROCESS

       • Strategic planning leads ultimately to resource allocation decisions.
       • Strategic planning identifies the highest priorities or best uses for
         funds, personnel, facilities, equipment, and other resources.
       • Strategic plans drive annual operational plans.
       • Strategic plans guide capital outlay plans.




January 2013                            102            Louisiana Office of Planning and Budget
               TRANSLATING STRATEGIC PLANS INTO
                  BUDGETS: Louisiana’s Experience
     Louisiana: Vision 2020

                     AGENCY                    CAPITAL
                  STRATEGIC PLAN               OUTLAY
                                              REQUEST
                                              TRACKING
                 PERFORMANCE                   SYSTEM
                ACCOUNTABILITY                                 CAPITAL OUTLAY
                                                                  BUDGET
                                                                 DECISIONS


                                 OPERATIONAL PLAN


                                         OTHER BUDGET
                                         REQUEST FORMS
                    PERFORMANCE            & ADDENDA
                      PROGRESS
                                                                  OPERATING
                       REPORTS
                                                                   BUDGET
                                                                  DECISIONS

                  AUDITS


January 2013                                 103         Louisiana Office of Planning and Budget
               TRANSLATING STRATEGIC PLANS INTO
                  BUDGETS: Louisiana’s Experience

               As part of the total operating budget request package, each
               budget unit must submit an annual operational plan that
               includes:
                     Department and/or budget unit mission and goals

                     For each program in the budget unit:

                         program description (including program mission and goals
                          and brief description of major activities)
                         program performance objectives from strategic plan
                         performance indicators for each objective

                     Contact person(s)




January 2013                                104              Louisiana Office of Planning and Budget
  APPLYING THE STRATEGIC
    PLANNING PROCESS                              INFORMATION

      See the Office of Planning and Budget website for guidelines
      and requirements for strategic planning.

                  “Applying the Strategic Planning Process” (under Performance-
                   Based Budgeting Forms & Guidelines)

                  “How to” information in MANAGEWARE (under Publications)



                            OPB Website Address:
                            http://www.doa.louisiana.gov/opb/index.htm




January 2013                                105            Louisiana Office of Planning and Budget

				
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