Are we successful?” - Platform Trust · Are we successful? What does ‘Green’? Four options 1....

Draft - 25th March 2014

Measuring and Managing

NGO Performance

“Are we successful?”

Mike Bazett – Director Government

Performance

1© 2013 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative

(“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand.

Measuring and managing NGO performance... Why?

In the dark?

Reveal the rocksReveal performance Then Act

Are we successful? What’s not working? What do we need to do

to be more successful?



Performance Management - Are we successful now?

High

Low

Low High

Energy

Focus on strategic

objectives

Energy

Focus

Energy

Focus

Energy

Focus / Agility

Energy

Focus

0

10

10

5

5

What is the energy in your organisation?

What is the extent this energy focuses on your strategic objectives?

Where is your organisation now?



Purpose of Strategic performance management. What are we trying to do?

2. Future performance

(Vision, Targets)

Where do we want to

get to?

1. Current

performance

Where are we

now?

How do we get there?

3. Strategy

Strategic

objectives

■ How are we doing?

■ Is strategy working?

■ Are things likely to get better or worse?

■ How can we do better?

4. Performance

measurement

framework



Overview of performance management framework and key components

Drivers:Enablers &

Results

The system & causal logicStrategyStrategic Objectives

Sphere of influence -

Accountability

Governance

Inputs

Actions to drive performance

Sustainability

Supp lier

performance

Operational success

Operational

capability

Readiness gap

Readiness profile

Residual capability

Tasking

Actual readinessstate of Force

Element

O

O

Force Element

act ivity levels

O

Budget

Stability ofglobal

environment

O

Equipmentavailability at

readiness

Ability toRegenerate

Force Elements

Total number ofForce Elements

Trained

strength

Quality of collective

training

<Residual capability>

Quality of

maintenance

Quality of

management

<Supplierperformance>

Uniformed

gapped billets

O

Bearing

Untrained

strength

Ability toregenerate

people

Retention

Morale

Quality of life

Recruitment

O

Personal

effectiveness

Individual

training

<Quality ofmanagement>

<Quality of collective

training>

<Budget>

<Quality ofmanagement

>

<Trained strength>

Ability to

part icipate in

exercises

O

Quality of external

relations

<Budget>

Amount ofefficiencyachieved

<Uniformed

gapped billets>

Desire for

operational success

<Operat ional

success>

Quality of leadership

Strength of ethos

Access toappropriate training

facilities

Resource

constraints

Manpower

availability

OO

O

Quality of logistics support

Quality of supplier

infrastructure


Government directives

<Resource

constraints>

O

Polit ical will

Deployability

<Political will>

Level of

operational Risk

O

<Quality of

collective training>

O

O

<Uniformed

gapped billets>

O

<Budget>

<Force Element

act ivity levels>

O

<Quality of external

relations>

<Actual readiness state

of Force Element>

O

<Uniformed

gapped billets>

O

Outputs Outcomes

Cascade & line of sightMeasures, Information & Reporting

Process to get it right and buy-in



ResultsCustomer/

Stakeholder

Processes People

Performance management context - From strategy to value

$

Info Systems &

Reporting

People Processes

Organisational

Processes

Value

Inputs Outputs Outcomes

StrategyMonitoring

Framework

(KPIs &

Targets)

Behaviours

Decisions &

Actions

Org processes:

• Budgeting/resource

allocation

• Projects/initiatives

• Operational strategy

People processes:

• Recruitment/retention

• Culture

• Training/capabilities

• Individual PM



Enablers – “How likely are we to be successful in the future?”

– Identifying and tracking leading indicators or enablers

Results

From: “Trust me, It will all

come good in the end”

To: “Given our agreed strategy, earlier improvements in our key

strategic drivers (enablers) give confidence that strategic outcomes

(results) will be delivered”.

Results (Outputs & outcomes) Customers & Stakeholders

Internal Processes Information & People

Results

From: “We never saw it

coming”

To: “We had early warning signs that provided the chance to intervene

to take corrective actions and avoid failure”.



Designing strategic measures and scorecards: 10 Principles

1. Start with strategy and focus on turning

this into value

3. Understand the system, cause and affect

and key drivers - Intervention logic

4. Measure what counts… Don’t count what’s

easiest to measure

PM Framework

2. Confirm ownership up front - Governance

Customer

Satisfaction

Account Management Effectiveness

Customer sacrifice

OEase of complaining

OEase of Payment

OEase of using service

Experience of competitor services

Satisfaction with collection issues

Satisfaction with contact/info

Satisfaction with Delivery issues

Satisfaction with products/services

O

O

Sustainability

Supp lier

performance

Operational success

Operational

capability

Readiness gap

Readiness profile

Residual capability

Tasking

Actual readinessstate of Force

Element

O

O

Force Element

act ivity levels

O

Budget

Stability ofglobal

environment

O

Equipmentavailability at

readiness

Ability toRegenerate

Force Elements

Total number ofForce Elements

Trained

strength

Quality of collective

training

<Residual capability>

Quality of

maintenance

Quality of

management

<Supplierperformance>

Uniformed

gapped billets

O

Bearing

Untrained

strength

Ability toregenerate

people

Retention

Morale

Quality of life

Recruitment

O

Personal

effectiveness

Individual

training


<Quality of collective

training>

<Budget>

<Quality ofmanagement

>

<Trained strength>

Ability to

part icipate in

exercises

O

Quality of external

relations

<Budget>

Amount ofefficiencyachieved

<Uniformed

gapped billets>

Desire for

operational success

<Operat ional

success>

Quality of leadership

Strength of ethos

Access toappropriate training

facilities

Resource

constraints

Manpower

availability

OO

O

Quality of logistics support

Quality of supplier

infrastructure


Government directives

<Resource

constraints>

O

Polit ical will

Deployability

<Political will>

Level of

operational Risk

O

<Quality of

collective training>

O

O

<Uniformed

gapped billets>

O

<Budget>

<Force Element

act ivity levels>

O

<Quality of external

relations>

<Actual readiness state

of Force Element>

O

<Uniformed

gapped billets>

O



In

Outside

Designing strategic measures and scorecards: 10 Principles (Cont.)

6. Cascade strategy down.

Create line of sight up

5. Measure what’s inside your sphere of

influence. Use to drive accountability

7. Ensure an appropriate number of measures

and minimise the measurement burden

Inside

control

Out

OutInside



Are we successful? What does ‘Green’?

Four options

1. Comparison of a service over time

2. Comparison of the same service

across providers

Pro

ble

m g

amb

lin

g

Alc

oh

ol

Dep

ress

ion

To

bac

co

4. Comparison with analogue

services

3. Comparison of a service

internationally

Are we

successful

?



Assessing performance – Are we successful?

Example NZ Road Policing

Note: Casualty information for Australia uses a wider

definition and includes all accidents occurring on the road,

including crashes involving, for example, a cyclist and a

pedestrian, or a vehicle and a train if the crash occurs at

an intersection of a road and the train tracks.

Sources

-NZ: Motor Vehicle Crashes in NZ 2011. Statistical Statement Calendar Year 2011. Ministry of Transport; Statistics New Zealand.

-AUS: Trends in serious injury due to land transport accidents, Australia 2000–01 to 2008–09. Australian Institute of Health and Welfare.

- Canada: Road Safety Annual Report 2013. OECD International Transport Forum; Canadian Motor Vehicle Traffic Collision Statistics: 2010

Statistics Canada.

- Social cost: Social Cost of Road Crashes and Injuries June 2012 update. Ministry of Transport 2012.

NZ 2001-2011

Decreased

$268 per

head pop.S

ocia

l cost per

head o

f popula

tion

Social cost per head of population

New Zealand

4.3% pa

$-

$200

$400

$600

$800

$1,000

$1,200

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Looking good ...

1. Success over time



Assessing performance – Setting targets

If NZ performed equivalent to the best:

■ 150 lives would be saved each year

■ And nearly $600 Million a year.

0

2

4

6

8

10

12 NZ 6.5 fatalities per 100,000. 21st highest out of 25

Best Worst

Road fatalities (Per 100,000 population 2011. Source: OECD, 2012)

Conclusion:

Room for

improvement

3. Success compared to

international experience



Measuring drivers – fit for purpose, not an industry

Management

Judgement

- Collective views of

the management

team

Informal

judgement

- Pub talk

Accurate

measure

- High quality,

trusted data

- 95% confidence

Cost – benefit?

Example: What is your assessment of the quality of leadership at your agency?

Management judgement – a good start

Low cost

Low confidence

High cost

High confidence

Fit for purpose

Measuring performance spectrum

Proxy, or interim

measure

- Eg GDP



What’s inside your sphere of influence? - Mobil example

Bob McCool - Executive Vice President Mobil

“From what I can see, we had a good quarter, ... even though financial

results were disappointing.

The poor results were caused by unusually warm winter that depressed

sales of natural gas and home heating oil. But market shares in our key

customer segments were up. Refinery operating expenses were down.

And the results from our employee satisfaction survey were high.

In all the areas we could control, we moved the needle in the right

direction.”

© 2013 KPMG, a New Zealand partnership and a member firm

of the KPMG network of independent member firms affiliated

with KPMG International Cooperative (“KPMG International”), a

Swiss entity.

All rights reserved. Printed in New Zealand.

The KPMG name, logo and “cutting through complexity” are

registered trademarks or trademarks of KPMG International

Cooperative (“KPMG International”).

Mike Bazett

Director

KPMG Advisory DDI +64 (4) 816 4801

PO Box 996 MB: +64 (27) 553 4437

Wellington 6140

New Zealand

[email protected]

Are we successful?” - Platform Trust · Are we successful? What does ‘Green’? Four options 1....

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