C I T Y OF A U S T I N

Managing for ResultsBusiness Planning Guide

Revised 2005

TABLE OF CONTENTS

Introduction/History...................................................................................................................... 1

Flow Chart of Managing for Results Process .......................................................................... 6

Summarized Narrative ................................................................................................................. 7

Detailed Instructions for each Business Planning Step

1. Determine Who Participates in Business Planning ................................................14

2. Assessment of Prior Results/Action Plan Achievements ......................................14

3. Conduct Assessment of the Future (Environmental Scan) .................................19

4. Conduct a SWOT Analysis ........................................................................................23

5. Develop Change Dynamics Using the Assessment of the Future and

SWOT Analysis............................................................................................................25

6. Information Systems/Application Challenges and/or Opportunities ....................27

7. Develop Business Process Improvements..............................................................29

8. Review the City’s Vision Statement and Corporate Initiatives .............................30

9. Review or Establish Department Goals ...................................................................31

10. Define or Review the Department Mission Statement ..........................................34

11. Define or Review the Department Vision Statement (Optional) ..........................35

12. List the Services Provided by the Department and Identify Services as

Core, Semi-Core and Service Enhancements. ......................................................36

13. Sort Services into Activities .......................................................................................39

14. Define or Review Activities and Activity Objectives ...............................................40

15. Define or Review Performance Measures for each Activity .................................41

16. Sort Activities into Programs .....................................................................................48

17. Define or Review Programs and Program Objectives...........................................49

18. Review Business Plan for Alignment to Goals .......................................................51

TABLE OF CONTENTS

19. Identify Key Indicators ................................................................................................52

20. Develop Action Plans to Achieve Goals ..................................................................53

21. Submit Business Plan to Budget Office / ACM for Review...................................57

22. Revise the Business Plan Based on Feedback......................................................60

23. Integrate the Business Plan with the Performance Budget..................................60

24. Communicate Business Plan to Employees and Customers ...............................60

25. Integrate SSPR’s and Business Plans .....................................................................60

26. Track Measures on a Monthly Basis ........................................................................61

27. Track Action Plans for Achievements on a Regular Basis ...................................61

28. Report Results on a Regular Basis ..........................................................................62

29. Conduct Self-Assessment of Performance Measurement Data .........................62

Glossary.......................................................................................................................................77

Introduction/History What is Managing for Results? Managing for Results is a business system that links people, dollars, and resources to the results customers and citizens expect from City services. The system integrates strategic planning with budgeting, performance measurement and decision-making. The goal of Managing for Results is to have an effective performance management system that is accountable to citizens for achieving results. The City of Austin’s Managing for Results program is committed to meeting this goal. Managing for Results is built on the long-standing performance management principles of “Plan, Do, Check, and Act.” The Managing for Results program in Austin is based on an annual cycle: Cycle

§ Assessment of Prior Results/Action Plan Achievement § Performance measure analysis § SSPR evaluations § Environmental Scan and SWOT Analysis § Business Plan Development § Business Plan Review § 5 – Year Forecast § Budget Proposal § Budget Approval § SSPR Planning that coincides with the City’s fiscal year

. The annual cycle enables the City to:

• Be more responsive to changes in strategic and economic conditions of the City

• Identify results achieved with resources expended, • Support informed decision-making, • Provide effective services at reasonable costs, and, • Guide the City toward achievement of long-term goals.

In order to make good business decisions, citizens and City government need the highest quality performance information available. The use of performance measures makes it possible to:

• Identify results departments intend to achieve, • Monitor performance and provide feedback,

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• Make good business decisions based on reliable, understandable and consistent data, and,

• Know when success has been achieved. How does Managing for Results Work? City departments assess the past, present and future to develop plans for the upcoming fiscal year. Program budgets are developed based on the goals and results departments expect to achieve in the upcoming year. Performance information is collected throughout the year to monitor progress towards department goals and objectives. Performance information is used to improve the effectiveness of services provided to citizens. History Managing for Results and/or the Performance Based Budgeting process had its beginnings in the City of Austin with the passing of Resolution-920904-42. This resolution began as the offshoot of the 1992 audit of the City’s performance measurement and reporting system or processes. The resolution stated,

“…performance measurement should be the City’s way of determining whether it is providing quality services at reasonable cost.”

BUSINESS PLANNING PERFORMANCE-BASED DECISION-MAKING

PERFORMANCE BUDGETING

PERFORMANCE REPORTING

• Measurable Goals • Program/Activity Objectives • Core Services • Organizational Performance

Measures

• Structural Alignment • Program Budgeting • Action Plans

• Organizational Performance Results

• Program and Management Audits

• Individual SSPR Evaluations

§ Citizens’ Expectations § Council Direction § Management Decisions § Improved Services

Plan

Do Check

Act

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The charge to the City Manager required each department to submit goals and efficiency (cost), effectiveness and customer satisfaction measures to Council for approval within 120 days. The resolution also required the City Manager,

“…to develop service plans which describe anticipated accomplishments, performance measures which reflect actual program or function accomplishments and a process for analyzing and using this information to make decisions.”

The first year for the City to implement and present a performance-based budget was fiscal year 1994-95. Following the 1992 resolution, the City began working toward compliance. City departments worked to refine and increase the variety and number of their performance measures, focusing on effectiveness and efficiency (cost) measures. The City Manager, in his communications, emphasized the principal of accountability and continued to provide guidance to departments on performance measure fundamentals, as did the Budget Office as it served as the coordinator of the performance measurement process By the 1994-95 fiscal year, the City produced three year-end corporate performance reports: • “Performance Report fo r 1994-95,” • “FY 1994-95 Assessment”, and, • “A Measure of Our Success,” (Audit Report, July 1996), a highlights report The City Manager then issued an October 1995 memo to the City Council entitled, Affordability: A Strategy for the Year 2000. This document outlined the City’s concentration on six initiatives:

1. Development of organizational tools to readily affect change and be adaptable, 2. Establishment of management systems to create and sustain healthy self-

examination, 3. Benchmarking of basic services, 4. Conversion to program budgets, 5. Evaluation of every city program, and, 6. Reengineering of key business processes.

The memo initiated further changes and development of the City’s performance-based budgeting process. As mentioned in the 1998 Audit report, the City continued to make “great strides” in performance measurement and reporting, although the City Auditor determined that performance measurement and reporting had not been fully implemented. At the time of the report, the City had put into operation several key components of a performance measurement and reporting system. The components included: • converting to a program based budget, • establishing performance based compensation systems,

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• benchmarking several basic services, • refining and increasing the variety of performance measures, and, • expanded reporting. The City of Austin also began participation in the ICMA Center for Performance Measurement in 1995. This tool provides the best ability to gather benchmarking information from other jurisdictions of similar size. The 1998 Audit report brought up five recommendations:

1. In continuing development of the City’s performance measurement and reporting systems, the City Manager should take steps to accomplish the remaining improvements needed to fully implement the recommendations from the Office of the City Auditor’s (OCA’s) 1996 Performance Measurement and Reporting audit,

2. To ensure that the results achieved from grant-funded activities support local priorities and grantor requirements, the City Manager should strengthen performance measurement and reporting,

3. To update and strengthen the City’s commitment to performance measurement and reporting as fundamental to government performance accountability in the City of Austin, the City Manager and Council should adopt Performance Measurement Policies which establish overall planning, measurement, reporting, and decision making in the City. The policies should reflect standards, processes and guidelines developed during this audit, which are contained in Appendix B of the report,

4. The City Manager should develop an action plan to implement performance management policies developed under recommendation #3, specifying who will be responsible for each element of the plan and when activities will be accomplished, and,

5. In developing the aforementioned action plan and corporate initiative, the City Manager should include steps to address key issues emerging from the audit.

In the fall of 1998 and the spring of 1999, the City Manager instituted the City’s Managing for Results (MFR) program. The Austin Fire Department in the fall of 1998 began working with a consultant on the development of a business plan for the Fire Department. This information was shared with City Management and the decision was made to use the consultant for the citywide implementation. The citywide movement included three steps initially and a fourth step later in the spring of 1999. The three major steps included:

1. Development of the Resource Guide for Business Planning, 2. Citywide training of staff on business planning, and, 3. Meetings to develop departmental business plans. The fourth step of corporate review occurred after departments completed their initial plans.

During the fall of 1999, the 2000 business planning process focused on compliance. The corporate team developed a process for creating each department’s business plan

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and performance measures. At this point, top down leadership was necessary as the process was new and there existed a need for consistency. Most departments finished creating their business plans in fiscal year 1999-2000 (FY 2000). In FY 2000, all departments that completed their business plans also tied their accounting structure to the business plans. In FY 2001, departments also began to tie individual employee Success Strategy Performance Reviews (SSPRs) to the business plans. SSPRS are the tools used to plan individual performance for the year, track performance over time, and formally evaluate success. The SSPR is the primary tool for internalizing a culture of managing for results within Departments by demonstrating the alignment between individual performance and the achievement of results at the activity, program, Department, and City levels. In FY 2001 and FY 2002, the focus was practice. As with any new process, departments and individuals need time to work with the system and become comfortable with its use. In these two years departments became familiar with entering performance data into the City of Austin Reporting and Management Analysis (CARMA) database, using the terminology of the business planning process, and understanding the corporate expectations. The departments went through the business planning process again in FY 2001 with a focus on making their goals measurable. It became clear that not every specific goal could be measured on its own and that it is necessary to group measures together to determine the success rate of a goal. FY 2003 focused on the use of the “Core Services Initiative.” This initiative identified and classified services into core, semi-core or service enhancements based upon corporately established criteria. In FY 2003 departments also worked on dividing measures into performance measures to be reported corporately and operations measures to be tracked and used at the department level. The FY 2003 business planning process also employed a user survey to find out departments’ opinions of the process and how to make it more user-friendly. FY 2004 introduced the use of action plans to define departments’ progress toward their goals and involved a detailed service review to ensure that services of each activity describe end products (deliverables). FY 2005 focused on improving the reporting process. The City developed and implemented the performance measures database that reports performance and operations measures both internally and externally. FY 2006 will focus on cleaning performance measures, by clarifying measure descriptions, performing self-assessments on performance measures and converting all measures to numerical data to improve reporting and notification.

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2. Assessment of Prior Year

Results and Action Plan Achievements

12. List Services Provided by Department (deliverables to

customers) and identify services as core, semi-core or

service enhancement

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Summarized Narrative of the Business Planning Process 1. Determine Who Participates in Business Planning and What Needs to be

Accomplished • Who needs to participate in the process? • Who will serve as facilitator? • How to obtain input from all department levels? • The timeline and schedule for completion, including:

o Date for review of plan by Assistant City Manager; o How to communicate the new business plan to all employees.

2. Assessment of Current/Prior Year Results and Action Plan Achievement

• Review performance data from previous 3 years. • Review action plan steps from the previous year. • Did goals, key indicators, and measures achieve targets? Why or why not? • What previous internal and/or external factors affected performance? • Describe or discuss progress on the previous year’s action plans. • Describe or discuss how decisions were made based on performance

information. • Provide highlights in the Executive Summary.

3. Conduct an Assessment of the Future (Environmental Scan) An Assessment of the Future is an analysis of the major internal and external factors that are likely to influence how a Department achieves its mission and goals. Departments will include an assessment of the future as a critical part of the development of the business plan. The assessment of the future: • Looks at the future using information, data, and common sense; • Provides a perspective on what will, or may, happen; and • Provides a context for developing Department goals that express, in terms

of results, what must be done to prepare for, respond to, or influence the future.

4. Conduct a SWOT Analysis

A SWOT Analysis is a tool that can help Departments look internally at strengths and weaknesses and externally at opportunities and threats. This method examines the data developed through the assessment of the future in four areas: § What are the department’s Strengths? § What are the department’s Weaknesses? § What Opportunities do the assessment factors present? § What Threats must the department be mindful of?

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5. Develop Change Dynamics Using the Assessment of the Future and the SWOT Analysis Change Dynamics: • Are one sentence summaries that briefly describe major issues/trends and

the impact they have on the department or its customers; • Describe what is, or what will happen; • Do not imply solutions, needs or goals; • Each department should narrow its Change Dynamics to no more than 10.

6. Conduct an Information Technology Assessment

Departments will conduct an assessment of their Information Systems/ Applications. • Describe IT challenges and opportunities that will have a major effect on

the department and its customers over the next 2 – 5 years. • If none, state not applicable. • Summarize whether current IT infrastructure will support steps required to

reach department’s goals and objectives. • If current IT infrastructure can no longer support attainment of goals, how

will the department manage the gap? • Report information via the intranet site developed by Communications and

Technology Management. 7. Develop Business Process Improvements

Using the Change Dynamics developed in Step 5, Departments will identify 1-3 significant Business Process Improvements that will be the focus during next fiscal year as part of its business plan. • Review information gathered during the SWOT Analysis. • Ask the following:

o How can we work more effectively? o How can we work more efficiently? o How can we deliver improved services?

• Identify 1-3 business process improvement opportunities. • Describe the link to applicable activity(ies) and/or goal(s).

8. Review City Vision/Initiatives

Review the City Vision to “…become the most livable community in the country.” Review the City Initiatives, Integrity, Innovation, Access and Customer Service.

9. Establish/Review Department Goals

Goals translate the mission of the Department into specific results to be achieved over the next 1-5 years. They provide a corporate identity for the Department and a results-oriented basis for making good business decisions.

Goals are: • Accomplished through multiple programs;

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• Directly measurable, both by timeframes and targets; • Focused on the customer and on improving the Department; • Developed through a participatory process; and • Designed to establish alignment between the mission and the operations,

performance, and budget of the Department.

10. Define/Review Department Mission A Mission is a clear statement of the purpose of the Department that aligns to the Department’s goals. A mission includes: • Name of the Department • General description of services provided • Customers • Intended benefits NOTE: Departments that already have a mission statement can review and, if necessary, revise it using the managing for results template.

11. Define/Review Department Vision (optional) While a Vision statement is an optional element in department business plans, it describes what the future would look like if the Department’s goals were all achieved and the mission fulfilled. An inspired vision is: • Based on the analysis of the future developed through the assessment of

the future; • Fueled by thoughtful imagination about what the future can be like; • Linked to the operations, performance, and budget of the Department; and • Developed through a collaborative process.

12. List Services Provided by Department and Identify them as Core, Semi-core or Service Enhancement § A Service is measurable as a count of something. § Services represent the “end product” or “delivered service”, to either internal

or external customer, rather than an action. § Services should not be described as steps in a process. § Services should be expressed without qualifiers. § All services must be classified as core, semi-core or service enhancement

using the outlined criteria.

13. Sort Services into Activities Activities are a set of services with a common purpose that produce outputs and results important to citizens. Group common services into the activities of the department.

14. Define/Review Activities and Activity Objectives

An Activity Objective is a clear statement of purpose developed using the managing for results template and includes: • Name of the activity • Service or product provided

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• Customer • Intended benefit for the customer. Each activity has four categories of performance measure established for it: demand, output, result, and efficiency.

Each activity will also identify the responsible employee for achieving the stated objective of the activity.

15. Define/Review Performance Measures for each Activity Performance Measures help to ensure good business decision-making based on performance information; to understand what Departments are trying to achieve; and to realize when they have achieved success. Good performance measures are results-oriented, reliable, understandable, consistent, comparable, and timely.

Data collection plans will be developed by the department to ensure that data supporting the performance measures is available for decision-making and performance evaluation. Activities shall be measured by a family of performance measures that includes these four categories:

• Demand – the expected or anticipated level of service; customer demand

• Demand measures are recommended if applicable to the situation. • Demand, in and of itself, doesn’t indicate anything. It’s only in

conjunction with Output that you can show gaps between supply and demand. If a department wants to be able to talk about service gaps, they better have ‘demand’ data.

• Output – amount or number of something produced or provided • Result – impact of output on the customer; also commonly known as

outcomes • Efficiency – cost per output

There are two types of measures, performance and operations. Performance Measures are the measures reported externally and included in the budget document and used by City Management to make decisions. Operations Measures are measures used by the Department to make day-to-day business decisions.

16. Sort Activities into Programs

Programs are a set of activities with a common purpose that produce results for citizens. Group common activities into programs of the department.

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17. Define/Review Programs and Program Objectives Each program is described by a program objective that is a clear statement of purpose. The program objective is developed using the managing for results template which includes:

• Name of the program • Service or product provided • Customer • Intended benefit • Every program has performance measures that measure the impact on

citizens or customers. These performance measures are the results performance measures established for the activities grouped together to form the program.

• Program objectives align with the goals and mission of the Department. • Programs developed in the business plan translate directly into the City’s

performance budget. The program objective, the performance measures and the budget request are the primary information used for budget decisions at the corporate level.

Programs shall be assessed by the results measures for the activities that comprise that program.

18. Review the Business Plan for Alignment to Goals The City is continuing to build a corporate culture in which all departments are managing for results. A critical success factor in creating this culture is the extent to which the people, resources, and systems within each department are aligned to achieve the department’s goals and the City’s Vision.

The essential resources departments have for achieving alignment are:

• A corporate culture committed to the effort; • Leadership within the department; • Department business plans; • Measurable results at all levels of the department, and; • Success Strategy Performance Reviews (SSPR’s).

19. Identify Key Indicators

Key indicators are high-profile performance measures that let the department and the reader distinguish if the department is achieving its goals. Typically a department should provide four to eight indicators that allow the reader to quickly evaluate how well the department is doing. Key indicators need to be performance measures in the department’s business plan.

20. Develop Action Plans to Achieve Goals

An action plan defines the steps the department will take to accomplish their goals. It itemizes the steps to be taken, the responsible person or

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organizational unit, the required resources, and the performance period for accomplishing the action step(s).

Action Plans provide the departments the following: § A process to think through what is needed to accomplish the goals and the

performance measures established for it; § Additional opportunities to involve line supervisors and staff in the

development of the business plan; § A commitment to take specific steps to achieve results and; § A tool for monitoring progress toward accomplishing activities.

21. Submit Business Plan to ACMs and Budget Office for Review The completed business plan is submitted to the appropriate Assistant City Manager and then the Budget Office, which provides feedback to the departments.

22. Revise Business Plan Based on Feedback

Departments revise their business plans based on the feedback received from the Assistant City Managers and the Budget Office.

23. Integrate Business Plan and Performance Budget

The approved Business Plan becomes the structure for the department’s Budget. The Activities and Programs provide the cost centers and performance locators for the Department Budget. The Business Plan provides the goals and key indicators for the department.

24. Communicate Business Plan to Employees and Citizens

The completed business plan is communicated to employees, customers and stakeholders.

25. Integrate Business Plan and SSPRs

The City of Austin has developed the Success Strategy Performance Review (SSPR) to communicate expectations to employees of individual performance for the year, track performance over time, and formally evaluate success. Business plans will be integrated with the SSPRs to create fully aligned departments where every employee knows how their job contributes to all levels in the organization.

Key points regarding Business Plan and SSPR Integration: • Integration of the business plans and SSPRs is achieved at the director,

senior level manager, supervisor, and individual employee levels; • Integration is accomplished by ensuring that all activity and program results

are reflected in the appropriate individual’s performance measures written in their SSPR;

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• Management’s primary role in this integration is to ensure that all key program or activity performance measures for which individuals are accountable are reflected in SSPRs of those employees responsible for implementation; and

• The integration of business plans and SSPRs facilitates the alignment of people in a department to work together to achieve results.

26. Track Performance Measures

Track and record performance measures. On a monthly basis send your department’s measures spreadsheet to the Budget Office for updating in CARMA.

27. Track Action Plans for Achievements

Monthly and quarterly review of action plans for achievement of goals. The responsible employee on the action plan should track and verify achievement on a monthly basis.

28. Report Results

Monthly and quarterly reporting of performance information. On a monthly basis, report performance information to your staff and to your Assistant City Manager. On a quarterly basis, report your key indicators to the Budget Office for inclusion in the quarterly performance report. Also, through the “ePerf” database developed in 2004, the Austin City Council and citizens are able to view performance information by program and activity through the internet.

29. Conduct Self-Assessments of Measurement Data

Departments are encouraged to conduct self-assessments of their performance measurement data. The Corporate Internal Audit Office will be conducting formal performance measures certification audits on a regular basis. And for the FY 2006 business planning process, the self-assessments of two key indicators will be a deliverable of the business plan submission to the Assistant City Manager’s Office and the Budget Office.

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Detailed Instructions for Each Business Planning Step 1. Determine Who Participates in Business Planning and

What Needs to be Accomplished Overview In order for Business Planning to be successful the department director must be closely and directly involved in the process from the beginning. Responsibility for determining or revising the mission and goals of the department and accountability for performance measures ultimately rests with the director. Obviously these leadership functions cannot be delegated. People support what they help create, and therefore it is also important for the business planning process to be inclusive and meaningfully involve the entire leadership team. Employees from all levels of the department should be included if at all possible. All employees must ultimately understand the department mission and the goals and measures that apply to them. Steps Determine:

• Who needs to participate in the process • Who will serve as facilitator • How to obtain input from all department levels • The timeline and schedule for completion, including:

o Date for review of plan by Assistant City Manager o How to communicate the new business plan to all employees

No Template No Example 2. Assessment of Prior Results/Action Plan Achievements Overview It is important to review past performance as departments prepare business plans for the coming year. The review of past performance often provides a direction for future strategies.

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The Assessment of Prior Results gives each department an opportunity to review performance results over time. This is where departments should identify trends in their performance measures. Steps § Review performance data from the previous 3 years. § Review action plan steps from the previous year. § Check to see if goals, key indicators, and measures achieved the budgeted

targets. § If goals, key indicators and measure were met, state what helped the

department to meet the targets. § If goals, key indicators and measure were not met, state what caused the

targets to be missed. § Check to see if the steps of the action plans were achieved. § If the steps were met, state what helped the department to reach them. § If the steps were not met, state the factors that prevented

accomplishment. § Did the action plans help to keep the Department on track to achieve their

associated goals? Why or why not? § State what internal and/or external factors affected performance. § Describe how decisions were made based on performance information. § Provide highlights of decisions, performance information, and action plan

progress in the Executive Summary. Template

Dept:

Goal: Budget Actual Budget Actual Budget Actual Budget Actual Budget Estimate

Performance Measures:

2005

Assessment of Prior Results

2001 2002 2003 2004

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Example

Dept: Municipal Court

2003Goal: Court Goals Budget Actual Budget Actual Budget Actual Budget

Performance Measures:DACC

Percentage of cases for which offenders complete their court mandated CSR hours 65.00% 61.56% 29.00% 42.68% 42.86% 61.22% 57.14%Percentage of offenders who complete treatment recommendations 25.00% 38.42% 42.00% 43.18% 35.00% 47.96% 35.19%

Central Booking Total number of higher charge arrest and search warrants issued

NM 4,800 4,782 5,441 5,040 6,350

TBD Number of cases magistrated & arraigned

94,000 67,951 75,500 65,554 64,000 88,831 TBD

Class C Proceedings

Number of warrants issued 90,000 111,203 91,000 111,476 100,000 100,368 110,000

Total number of cases set on docket (excluding arraignment)

105,000 127,506 123,680 128,380 123,680 147,331 134,750

Case Initiation & Management

Number of cases initiated by Case Initiation & Management (Operators plus VPTA) 247,000 260,389 240,000 234,671 240,052 256,782 223,000 Percentage of cases initiated within (5) business days from violation date 72.00% 56.89% 68.00% 45.21% 53.00% 67.90% 70.00%

Records Management

Number of cases placed in file NM NM NM 451,113 560,000 597,586 614,800 Records Support Rate 98.00% 97.61% 97.61% 96.24% 97.26% 97.70% 97.22%

Courtroom Support Number of cases scheduled on Court Dockets (excluding arraignment) 105,000 127,506 123,680 128,380 123,680 147,331 134,750 Number of cases updated by Courtroom Support NM 0 NM 1,800 NM 22,704 TBD

Warrant Processing Number of warrants prepared 101,500 129,534 110,000 127,209 120,999 122,550 122,222 Percentage of warrants issued to prepared 88.67% 85.85% 89.00% 87.63% 90.91% 81.90% 90.00%

Warrant Collections Number of phone calls connected per clerk NM NM NM 1,603 1,714 2,267 2,500 Collections per clerk NM NM NM 135,791 130,000 309,081 200,000

Assessment of Prior Results

2000 2001 2002

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Example continued Highlights of the Assessment of Prior Period Results FY’02 Highlights:

• Revenue of $16,114,945 exceeded budget of $16,000,933 even though cases filed fell short of budget, 424,168 versus budget of 438,900.

• Expenses, including encumbrances, are expected to be $9,242,702, well below the budgeted $9,885,484.

• Special collections projects contributed to revenue, including warrant round-ups and delinquent parking cases mail campaign

• Third party collection contract was negotiated, approved, and implemented at the end of the year

• Municipal Court received a high level of customer satisfaction from the Voice of the Customer survey

• Judges made document and/or process improvements including the design of a one page warrant

• Significant cross training, especially among customer service personnel, occurred

• Lobby hours were extended for walk in customers • Self-reporting of performance measure data increased involvement of

managers and supervisors and generally improved data quality • A number of process and form improvements increased the overall efficiency

of Court Operations • DACC began holding jury and bench trials

Positive Achievements Resulted From:

• Excellent teamwork in the face of budgeta ry constraints • Performance measures were more widely understood and targets set were

more realistic • Special projects encouraged a faster work pace • Technological contributions • Focused on making processes better • Performance feedback from Managing for Results approach

Review by Activity, FY 2002: The following summarizes historical performance measure data for the measures discussed below. The “Assessment of Prior Results” spreadsheet presents supporting statistics for this section.

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DACC Program The Community Service Restitution [CSR] activity improved completion on CSR sentences from 42.68% for the prior year to 61.22%, exceeding budget of 42.86%. The completion rate for treatment recommendations for Rehabilitation Services improved from 43.18% for the prior year to 47.96%, exceeding budget of 35.00%. Judiciary Program The Central Booking activity magistrated or arraigned a considerably larger number of cases, 88,831 compared to 65,554 for the prior year and exceeded budgeted levels of 64,000. Higher charge arrest and search warrant production increased from 5,441 to 6, 350 exceeding budget at 5,040. Class C Proceedings issued 100,368 warrants, down from the prior year production of 111,476 and below budget of 110,000 in part due to the lower number of cases filed. Cases docketed increased substantially from 128,380 for the prior year to 147,331, sharply exceeding budgeted levels of 123,680. Contributing to this rise, mitigation dockets increased by 8,000 cases due to a combination of the warrant round up, other special collection efforts, and, towards the end of the year, the new collections contract. Defendants requesting appearance at traffic appearance dockets [TRAD] increased 12,000 cases over the course of the year, as more defendants pled not guilty and chose to speak with a prosecutor at that docket. Municipal Court Operations Program Case Initiation entered more cases into the court records system, 256,782 compared to 234,671 for the prior year. The volume increase, despite slightly lower overall case filings, occurred due to more timely case initiation throughout the year. When cases are not initiated in a timely fashion by this activity, Customer Services personnel initiates them at the front counter, as customers appear to handle their cases. This, in turn, increases customer wait time and may decrease throughput at the front counters. More timely initiation and increased volume of cases initiated by Case Initiation resulted in fewer front counter initiations by Customer Services. Confirming this trend, the percent initiated within five business days increased from 45.21% for the prior period to 67.90%, exceeding budget of 53.00% and reflecting more complete staff coverage of the data entry function.

3. Conduct Assessment of the Future (Environmental Scan)

Overview The Assessment of the Future gives the department the chance to identify challenges and opportunities facing the department and then plan accordingly.

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An Assessment of the Future is an analysis of the major factors that are likely to influence how a department achieves its mission and goals . Departments will include an assessment of the future as a critical part of the development of the business plan.

The assessment of the future:

• Looks 1-5 years into the future, using information, data, and common sense;

• Provides a perspective about what will, or may, happen; and,

• Provides a context for developing departmental goals that express, in terms of results, what must be done to prepare for, respond to, or influence the future.

The assessment examines:

• factors within the department related to issues such as work force, attitudes toward authority, technology and professional requirements, that will impact its ability to achieve results; and,

• factors external to the Department such as the economy, demographics, annexation, traffic, politics, and the environment, that will impact its ability to achieve results;

The department will examine the relationship between the internal and external factors and then produce an easily articulated list of Change Dynamics.

Steps 1. Decide who will be involved in the assessment. Tap into a wide range of

knowledge, experience, and perspective by utilizing staff throughout the department.

2. Decide if the assessment will be completed by department staff in advance of the business plan development sessions or be developed during these sessions.

3. Review summaries of information and data that may show emerging issues and trends within the department.

4. Discuss the information and data, as well as the observations of senior staff that are based on common sense and their own experience.

5. Synthesize the analysis of data and the observations into a brief list of key factors emerging within the department.

Potential Sources of Information and Data for the Internal Assessment

• Department Performance Measures

• Customer/Citizen Surveys

• Analysis of Service Demands

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• Program Reviews

• Employee Surveys

• Work Force Analysis

• Annual Reports

• Trade Journals

• Community Scorecard

Questions to Ask in the Internal Assessment of the Future:

• What do previous assessments conducted by the Department tell us? Are the issues and trends previously identified relevant today?

• How has the department performed in achieving results? What does that tell us about what will need to be done differently in the future?

• What do we know about our work force? How it will change or need to change in the future?

• Is the organizational culture focusing its beliefs, behaviors and language on managing for results?

• Who are our customers and how may their needs change in the future?

• What do customer surveys tell us about how our performance is perceived and valued? How will we (or might we) have to change

• Is there anything in the department’s organizational structure that needs to change in order to better achieve results?

• What do others in our business (trade journals, conferences, etc.) tell us that may have implications for the department?

• What are the department’s most important opportunities in the future?

• What are the biggest problems facing the department in the future?

• What does the senior staff see changing outside the department that could have a major impact on our ability to achieve our goals?

Potential Sources of Information and Data for the External Assessment

• Federal and State Government Statistical Reports and Data Bases

• University and College Resources Centers

• Court Decisions and Actions

• Media

• International City/County Management Association (ICMA)

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• National League of Cities (NLC)

• Other City Departments’ Assessments

Questions to Ask in the External Assessment of the Future: • What do past assessments conducted by the department tell us? Are the issues

and trends previously identified relevant today?

• What does the information and data tell us about emerging issues and trends that will effect the department’s business in key issue areas such as:

Ø Demographics and Population

Ø Economy

Ø Work Force

Ø Politics

Ø State and Federal Government Funding and Regulation

Ø Technology

Ø Traffic

Ø Recreation

Ø Environment

Ø Public Opinion

(These can be factors at the local, state, and national levels.)

• Is the department in a competitive market?

• Are there other organizations that can do what the department does? Do they or will they want the business?

• In what ways are the department’s customers changing? What implications do those changes have for the department?

• How does the department’s performance match up to its peers in other cities who are in the same business?

• What do annual reports tell us about external factors?

• What can be learned from other cities or national associations about how external circumstances will change?

• What is happening in the business, statewide and nationally, that will effect the department? What can be learned from these changes?

• What does the senior staff see changing outside the department that could have a major impact?

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4. Conduct a SWOT Analysis Overview The SWOT Analysis allows the departments to highlight areas the department does well and areas for improvement. A SWOT Analysis is a tool that can help departments look internally at strengths and weaknesses and externally at opportunities and threats. This method examines the materials developed through the Assessment of the Future in four areas: S - Strengths are our major assets. W - Weaknesses are those conditions or restrictions that prevent us from moving in a particular direction or achieving results. O - Opportunities are external circumstances or events that are likely to occur, or those we might help occur, that could have a major positive impact on the department. T -Threats are circumstances or events that would have a negative impact on the department Steps A facilitated discussion is a simple method for analyzing the department’s ability to respond to the internal and external factors. The discussion should result in a summary of responses to the four basic questions: • What are the department’s strengths?

• What are the department’s weaknesses?

• What are the expected opportunities?

• What are the expected threats?

Template

SWOT

Strengths 1. 2. 3. 4.

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Weaknesses 1. 2. 3. 4. Opportunities 1. 2. 3. 4. Threats 1. 2. 3. 4. EXAMPLE

SWOT Conducted by Austin Municipal Court

Retreats were held with directors, managers, and supervisors to revise the Court’s

FY 2004 Business Plan. A SWOT analysis was conducted and major factors extracted from common themes.

Strengths

1. Collective knowledge and experience of the Court allows adaptation to

change with minimal disruption to customer service. 2. Staff is bound together by mutual caring and is able to pull together to

accomplish large tasks. 3. Staff is committed to excellence. 4. Staff is willing to consider new ideas. 5. Court personnel continue to strengthen through educational and training

opportunities. 6. Procedures and processes have been defined and documented. 7. Staff is committed to “continuous improvement” (working smarter). 8. Court currently has a security and technology fund available, which is

separate from the General Fund.

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Weaknesses

1. Due to retirement, employee turnover, and budget cuts fewer employees are available to do the same amount of work.

2. Poor working environments, parking issues and lack of pay raises may negatively affect employee motivation.

3. Quality of work may diminish due to continued or increased demand for services and fewer resources, including personnel.

4. Court must rely upon other agencies, especially APD and Transportation, to issue citations, which directly affect revenue.

5. A recessed economy negatively affects the ability of defendants to pay their fines. It may also negatively affect employee’s household finances causing additional stress.

Opportunities

1. Outside entities may enhance the Court including legislative bodies, vendors from the private sector, and other City and County agencies including corporate Human Relations, Austin Police Department [APD], Transportation (parking enforcement), and Travis County Criminal Justice Center [CJC].

2. Examination and redesign of Court processes and procedures may enhance efficiencies and promote process changes to offset budget cuts.

3. Expanded cross training may be used to cope with inconsistent workloads, for example in ticket issuance, with fewer employees, and with staffing changes due to transfer, promotion, and retirement.

4. Training opportunities that don’t significantly draw upon General Fund resources may be organized and will create a forum for new ideas.

Threats

1. The expectation of employees to assume duties due to staff reductions despite lack of salary increases despite demonstrated effort or cost of living changes.

2. Key technology funding legislation sunsets unless new supporting legislation is sponsored and passed by September 2005.

3. Increased awareness or concerns about safety stemming from terrorist threats.

5. Develop Change Dynamics Using the Assessment of

the Future and the SWOT Analysis Overview Change Dynamics allow departments and City Management the ability to quickly review and define pressing issues.

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A Change Dynamic is a one-sentence statement of fact that summarizes a major issue or trend and the impact on the department or its customers. It describes what is, or what will happen, but does not imply solutions, requests or goals. A summary of the Assessment of the Future and the SWOT Analysis makes it possible to effectively communicate the current environment to employees, customers and stakeholders. The summary also facilitates the process of checking the department’s goals against the assessment to ensure that achieving the goals will keep the department in a leadership position. Steps Review the information from each assessment (The Assessment of the Future, The Information Technology Assessment and The SWOT Analysis) and identify the factors most likely to impact the department’s ability to achieve results. Summarize these factors into a brief list of 6-10 Change Dynamics. No Template Example Change Dynamics for FY 2004 by the Austin Public Library During the October 8 work session, a considerable amount of discussion centered on the major factors anticipated for FY 2004 and the department’s ability to respond to these issues. The Library Management Team identified six major factors likely to affect the department and our customers over the next twelve to twenty-four months:

• Increases in demand by a diverse population have led to an increased need for space to support the growing library collection and new technological information sources to improve customer service, connectivity, and information sharing.

• The City’s significant investment in new and expanded branch library facilities and technology will require the Library to protect these assets.

• The potential for retirement of employees in key positions leads to increased demand for professional librarians qualified for public library work, especially those who reflect the diversity of Austin.

• Demand for materials and information in increasingly diverse formats including print materials, audio materials, remote access, DVD, CD, on-line, and foreign languages are expected to increase.

• As diversity in the City of Austin increases, we must communicate the availability of library services to new residents in their own languages.

• The breakdown of the social fabric has led to increasingly serious security incidents at many branch locations as well as the Central Library.

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6. Information Systems/Applications Challenges and/or Opportunities

Overview The information systems challenges and opportunities section provides City Management descriptions of issues facing the departments and is collected centrally by the Chief Information Officer. Departments will conduct an assessment of their Information Systems/Applications. This assessment has been added to the Business Planning process at the request of the Chief Information Officer (CIO) and the Budget Office for the purpose of early identification of Information Systems needs looming on the horizon. The summary of this assessment by all departments will provide City Leadership with an opportunity to identify common needs and open the possibility of combining similar departmental needs to find the most effective and efficient means of providing solutions. Steps During this assessment, departments might ask the following questions:

1. Can our business needs be met with the current legacy IT solutions in place? If not, which legacy applications will need to be updated, replaced, or modified over the next two to five years?

2. What are the hurdles, challenges, and impediments to accomplishing this (what is the ‘this’)? i.e.: need assistance in programming, business process review, business analysis, IT resource allocation, Business Case based prioritization of projects, etc.

3. Are factors identified in the environmental scan affected by our current IT systems?

4. Are there opportunities for significant improvement by the introduction of new IT solutions that will aid in accomplishing our department's goals?

The IT Assessment Summary should include a general description of each department’s current IT system and the associated issues. It should not include hardware specifics such as numbers of PC’s or Servers.

The assessment summary should be developed in relation to how existing Information System solutions are working to help meet the goals, key indicators, and performance measures included in your Business Plan. New for the Fiscal Year 2005-2006 Business Planning cycle, the IT Challenges/ Opportunities will be submitted directly to Communications and Technology Management (CTM) via the City of Austin’s intranet site. The login site is: http://coafusion.ci.austin.tx.us/it_challenges/default.cfm. A user id and password is needed to login. Once in the site, follow the instructions given. If necessary, contact the Budget Office for assistance with this site.

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If specific needs materialize into actual projects, the City will use industry IT standards such as Project Management Institute (PMI) and Software Development Life Cycle (SDLC) approaches to obtain the necessary details about the project.

Template § Summarize IT challenges and opportunities that will have a major effect on

the department and its customers over the next 2 – 5 years § If none, state N/A § Summarize whether current IT infrastructure will support steps required to

reach goals § If not, describe how will the department manage the gap

EXAMPLE

EMS FY 2004 Business Plan

Information Technology Assessment Station connectivity One of the most fundamental technological barriers faced by EMS is a lack of consistent, fast, and reliable station connectivity. Computers are a vital communication link with crews across a 1,100 square mile service area. EMS operates out of 27 stations as well as a helicopter hangar owned by Travis County. Station connectivity is currently provided through a combination of COATN (formerly GAATN) connections and ISDN lines. Virtual private networks will be needed to replace those stations currently serviced by ISDN lines. COATN connectivity to all EMS facilities would be preferable in the future. Expansion and upgrades to the COATN system should be a city emphasis. As EMS implements the new Computer-Aided Dispatch (CAD) system and becomes more reliant on the Records Management (RMS) system, connectivity will be even more important. Crews will be entering billing data from their stations in the near future, but this time-sensitive data entry will be compromised by inadequate network connections. New Systems and Processes Needed

• Personnel accountability on-scene tracking system to assist in the management and tracking of personnel in the field for homeland security, mass casualty events, fire standbys and related incidents

• Database to access usable fleet maintenance records and fuel usage –

uploads from Fleet Services into RMS may provide a solution

• Common access card system (one single smart card or a biometrics system) to access all city buildings. Such a system would be especially important for

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public safety personnel during emergencies, to address homeland security issues, and HIPAA (patient confidentiality) requirements.

• A standing advisory board composed of representatives from all of the City’s

public safety agencies should be created to provide input on citywide IT issues. This body is especially needed to assess the impact of IT initiatives on homeland security and patient confidentiality. At the same time, A/TCEMS needs the flexibility to make technological advances independent of AFD and APD since operating structures between these three public safety departments vary greatly.

7. Develop Business Process Improvements Overview The Business Process Improvement component is another opportunity for Departments to tap into the knowledge and experience of Department Staff by soliciting ideas and identifying opportunities for process improvements. Departments should continuously identify opportunities to streamline and improve its business processes. While many process improvements will occur informally, Departments will identify 1 to 3 significant Business Process Improvements that it will focus on in the next fiscal year as part of its business plan. Steps Review your department SWOT analysis. Identify opportunities to improve the effectiveness and/or the efficiency of the department through process changes. Review all information collected and select 1-3 significant improvements the Department will focus on in the next fiscal year. Develop a summary of each improvement opportunity. Questions the department should be asking include:

• How can we work more effectively? • How can we work more efficiently? • How can we deliver improved services?

Template

§ Describe improvement opportunity

§ Identify origin (where did the idea come from?)

§ Describe link to applicable activity objective and/or goal

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§ Identify expected outcomes/benefits

EXAMPLE

EMS FY 04 Business Plan – Business Process Improvements

Process Improvement – Billing Services Research Activities The Billing Research functions will be shifted during FY 03 to provide more attention to researching patient insurance information at the start of the Billing process – as opposed to later stages – in an effort to obtain accurate patient insurance information, such as secondary insurance or automobile insurance information. By researching information earlier in the Billing process, insurance claims can be filed more quickly and accurately, and billing to individuals can be deferred until all insurance avenues have been exhausted. This also entails more researching of hospital databases in an effort locate accurate information. This process change will also provide greater comfort and customer service to patients as collection efforts are focused more toward insurance than the patients themselves. For FY 01-02 $4.7 million, or 51%, of ground transport billing revenues collected, were from private insurance. By redesigning the Billing research process to increase the focus at the beginning of the billing cycle, and on obtaining all insurance information possible, it is anticipated that the percentage of revenues collected from private insurance will increase by about 2.5% in FY 04, over FY 02 levels. This will in turn improve overall collections, generate an estimated $110,000 in additional revenue, and potentially increase customer satisfaction. 8. Review the City’s Vision Statement and Corporate

Initiatives Overview Business planning needs to have a focal point. The focal point for the City of Austin’s business planning is the City’s vision statement. A Vision Statement defines what the City would be like if all departments’ goals were met. Ultimately, the goals of the department and the services provided to citizens should contribute to achieving the City’s vision. Corporate Initiatives are additional focus areas that define a great organization. By paying attention to these initiatives the City sends a message to citizens that the way in which Austin achieves its vision is also important. City Council Priorities

• Public Safety • Youth, Health and Family Vitality • Sustainability • Affordability

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City Vision “We want Austin to be the most livable community in the country.” Corporate Initiatives

• Integrity • Innovation • Customer Access • Customer Service

Steps § Confirm that the department’s goals contribute to, or support, achieving the

City’s Vision and the Corporate Initiatives. § Revise the goals, as necessary.

No Template No Example 9. Review or Establish Department Goals Overview

Goals are necessary in Managing for Results (MFR) because they:

• focus the department’s efforts on achieving results for citizens;

• provide a results-oriented basis for making good business decisions;

• establish alignment with the mission; and,

• provide focus and purpose for the people who work in the department. Goals define the significant results that departments seek to achieve over the next 1-5 years. Goals are results-oriented and relatively long-term. They translate a department’s mission into specific results to be achieved for the department’s customers, and may be accomplished through multiple programs, each with results-oriented performance measures. While the development of the department’s mission is based on its goals, it is possible and even likely to revise those goals during the discussion of the mission. Why Develop Goals? Because goals are broad and may encompass several programs and work units, they provide a corporate identity for the department. Goals provide the basis for measuring and evaluating the performance of the department as a whole. Further, goals enhance open communication with citizens about the results they expect from

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their City government. Results-oriented, measurable goals provide the opportunity to demonstrate accountability to the City Council and the public.

Goals align the performance of the department with its mission (see Section 10). Goals also clarify how the department aligns and contributes to the achievement of the Vision of Austin as the “The Most Livable Community in the Country.”

Results-oriented and measurable goals make it possible to demonstrate how the achievement of program objectives, in the short term, contributes to the achievement of goals in the long-term. This alignment is critical in making budget decisions on the basis of performance. Activities and programs will often align with and contribute to the achievement of more than one goal.

Departments should prioritize a small number of goals for the Department Director and staff to focus on and be accountable for achieving. Goals are the focus of the entire department. Specific department goals are achieved through the coordinated efforts of multiple programs and the staff working in those programs. This is true at all levels in an aligned organization. Results-oriented departments organize intra-departmental collaboration around long-term results, i.e. goals. This allows for collaboration across traditional organizational units within the department on the highest priority issues and toward long-term results.

Departments can also use their goals to orchestrate and organize collaboration with external partners. When all departments have results-oriented goals in their business plans it is possible to orchestrate inter-departmental collaboration around results. Collaboration between departments is encouraged and can be facilitated when they become aware that they are working toward the same or similar results on behalf of citizens.

Departments that are managing for results develop goals that are focused on the customer and on improving the department. A set of goals that focuses on both the customer and the organization ensures that the department is neither too internally focused nor neglecting to improve its ability to produce results.

Customer-focused goals define results to be achieved for customers, such as: • traffic safety, • access to or use of parks and recreation facilities, • success indicators for children, health of citizens, or, • quality of the environment. Goals focused on improving the department’s work climate may include: • management practices, • investing in the workforce through training or information technology, and, • changing the culture to be more accountable and results oriented. Steps in Reviewing Current Goals • Compare current goals to identified internal and external factors affecting

performance.

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• Confirm that the goals reflect where the department wants to be in 1 – 5 years. Do these goals adequately position the department for the future?

• Confirm that the issues addressed by the goals are still relevant and still a priority. Remove goals that have already been achieved or are no longer relevant.

• Check each goal for time frames and targets that can measure progress toward the goal.

• Review the key indicators to confirm that the key indicators effectively measure the department’s business.

• Develop new goals as necessary. • Include in the business plan a brief statement of why and how the goals will lead

to the fulfillment of the department’s mission.

Suggested questions to ask when reviewing current goals or developing new goals:

• Does the goal reflect the department’s priorities and direction? • Will the achievement of the goal help the department respond to the Change

Dynamics in an anticipatory and proactive manner? • Does the goal provide direction for the identification of programs and activities? • Is the goal focused on the future (1-5 years)? • Is the goal results-oriented? • Is the goal measurable with specified targets and timeframes? Is it reasonably

achievable? • Is the goal easy to understand and articulate? • Is the goal internally or externally focused? Does the department have a balance

of both? • Will the goal provide the opportunity for the department to demonstrate

accountability for results and help decision-makers evaluate the performance of the department as a whole?

No Template

Examples of Measurable Goals

Goals

Provide the public with a single location for development needs to promote efficient use of citizen and City time and resources.

• Ensure that development is in compliance with regulations in an efficient and effective manner by achieving 100% of Code-mandated review and inspection deadlines by FY 2008.

• Maintain 90% of inspections performed within 24 hours.

Protect lives, property, and the environment from the impact of flooding, erosion, and water pollution by:

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• Maintaining and improving water quality • Construct water quality controls to reduce stormwater pollutants from

4,757 acres by 2006. • Conduct business inspections and spill response to recover a total of

18,553,451 gallons and 5,565 cubic yards of pollutants by 2006. • Maintain baseline levels of water, sediment and recreational quality,

aquatic habitat and physical integrity in 50% of watersheds evaluated. • Reducing flood and erosion impacts to life and property

• 10% of erosion sites and threatened structures with increased protection • 10% of threatened structures with increased flood protection through

drainage system improvements by FY 2008. • Prevent loss of life due to flooding.

• Providing adequate maintenance of drainage infrastructure • 100% of residential dry ponds rehabilitated on an annual basis by FY 2008. • 94% of identified creeks (miles) maintained for vegetation control in FY

2005. • Increase percent of prioritized projects with increased erosion protection

from 5.6% to 5.9% in FY 2005.

Maintain 100% of activities compliance with Federal and State permits and regulatory requirements. 10. Define or Review the Department Mission Statement Overview A Mission Statement is a clear statement of purpose for the entire department that aligns to the department’s goals. It defines the department’s primary customers and identifies products or services that they provide. The words and intent in the mission statement must tie directly to goals and programs that are focused on results.

A mission statement not only establishes and maintains consistency and clarity of purpose. It also provides a frame of reference for all major decisions. It enables everyone within the department to focus their efforts in a way that is supportive of the department’s purpose and provides clear communication to customers and stakeholders. The mission provides a corporate identity for the department.

The development of a mission statement enhances the open flow of information to citizens about the core purpose of a department. Mission statements can be developed using the Managing for Results Template on the next page. Steps A mission statement includes: Ø The name of the department, Ø A general description of services provided,

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Ø The customers who receive the services, and, Ø The intended benefits to the customer. Departments that already have a mission statement can review and, if necessary, revise it using the Managing for Results Template. TEMPLATE

Managing for Results Template

The Mission of the ________ Department

is to provide ______________________

to ______________________________

so they can _______________________. EXAMPLE

Mission

The mission of the Austin Public Library is to provide information and services that promote life-long learning, literacy, and love of reading to the public so they can enrich the quality of their lives. 11. Define or Review the Department Vision Statement

(Optional) Overview A Vision Statement describes what the future would look like if the department’s goals were all achieved and the mission fulfilled. A vision statement is an optional element of department business plans.

Steps

An inspired vision statement will be:

• Aligned with the City’s vision,

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• Fueled by thoughtful imagination about what the future can be like;

• Linked to the operations, performance, and budget of the department; and ,

• Developed through a collaborative process.

No Template

No Example

12. List the Services Provided by the Department and Identify Services as Core, Semi-Core and Service Enhancements

Overview

A Service is a completed item of work that is delivered or handed over to a customer. A well-defined service:

• Has an internal or external customer that receives the service, • Is measurable as a count of something, • Represents an “end product” or “delivered service”, rather than an action, • Should be the end-product of a process rather than a step in a process, • Is expressed without verbs or qualifiers (i.e. Conduct Training Courses,

Effective Community Outreach).

Examples

Well-Defined Services Poorly-Defined Services

Restaurant inspections Cleaning supplies and equipment

Dental examinations Filing applications

Press releases Bidding

Construction permits Respond to complaints from citizens

Rental assistance Develop promotional materials

Landscaping Process trouble shooting

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Suggested questions to ask when reviewing current services w Are there any new services? w Are there any services that are no longer provided? w Does the collection of services support the activity objective? w Do the activity performance and/or operations measures represent the full

collection of services? w Are all services classified as core, semi-core or service enhancement? Steps for Core Services Classification

Core Service Business Planning Process Criteria Note: The core service and semi-core service criteria are not infallible and the result of classifying activities and services as core, semi-core, and service enhancement may not be exact. Note: In all criteria, an entity may be another jurisdiction, city department, or city program, activity, or facility

Core Service Criteria (in rough order of priority)

Semi-Core Service Criteria (in rough order of priority)

1 Has a potential immediate or near-term effect on public safety or health

Examples: Police patrol; EMS Ambulance; STD Control

1 Has a potential and beneficial long-term effect on public safety or health, but the loss of the activity or service would not have a potential catastrophic effect. Example: Dental Service

2 Meets but does not exceed a State or Federal mandate or the City Charter. Examples: National Pollution and Discharge Elimination System (NPDES) or other EPA requirements; Building Inspection

2 Is that portion of a core service that exceeds a State or Federal mandate – an augmentation of a core service Example: Assuming a State mandate to inspect 10% of the restaurants in Austin per year, while a Department inspects 15%, the incremental portion of 5% is the semi-core portion.

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3 The loss of the activity or service has a long-term but potentially catastrophic (i.e. sudden, swift, and disastrous) effect on the public, and the activity or service is not a core service of another entity Examples: Flood control; building inspection

3 No semi-core equivalent

4 Has a beneficial effect on the daily lives of a significant segment of the population and is not the core service of any other entity. Examples: Library circulation services; swimming pools and recreation centers

4 Has a beneficial effect on the daily lives of a significant segment of the population but is the core service of another entity. Examples: After school care; workforce development

5 Provides revenue through a direct revenue generating or collection function that is in excess of its total costs and that is not otherwise provided by another entity. Examples: Electric generation,; Municipal Court fine collection

5 Provides revenue through a direct revenue generating or collection function that funds most but not all of its costs and that is not generated or collected by another entity. Examples: Parks & Recreation programs

6 Provides direct support or critical indirect support for a core service. Examples: Austin Police Department administration (direct); Financial Services Department payroll (critical indirect)

6 Provides direct support for a semi-core service or indirect support for a core service. Example: Decentralized purchasing for a semi-core activity; training in the Purchasing Office for decentralized purchasing for core service departments.

Service Enhancement Criteria Any program, activity, or service that does not meet the core service or semi-core service criteria is a service enhancement.

No Template

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Example

13. Sort Services into Activities Overview Activities are a set of services with a common purpose that produce outputs and results important to citizens. Identifying and sorting services into activities is the first step in building a department’s business plan.

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Steps

An “Affinity Diagram” exercise is an excellent way to sort a collection of services into activities.

1. Develop a list of services according to criteria from Step 12. 2. Print each service on a post–it-note. 3. Place all the post–it-notes on a large flat surface like a table or wall. 4. Without consideration of current organizational structures, arrange the

collection of services into logical groups with a common purpose. 5. Consider the scope and level of detail necessary for each group. Ask:

• “Does this group stand on its own, or is it a subset of another group?” • “Do we want to specifically allocate funding to this level of detail?”

6. Try several different combinations to achieve the best fit. 7. Label each final group with an activity name that best describes the collection

of services. No Template Example From FY02-03 Health and Human Services Department Animal Services Program Random list of Animal Services:

Animal receiving and housing/care, Volunteer program, Enforcement, Pet Registration, Quarantine (rabies), Spay/neuter

voucher program, Humane Education, Rescue Program, Veterinary Services, Adoption Program, Investigations, Animal control

Services organized into Activities:

Shelter Services Activity No-Kill Millennium Activity Animal Control Activity

Animal receiving, housing/care

Quarantine (rabies) Veterinary Services Pet Registration

Humane Education

Spay/neuter voucher program Volunteer program Adoption Program

Rescue Program

Enforcement

Investigations Animal control

14. Define or Review Activities and Activity Objectives Overview

Activities are a collection of services with a common purpose.

The Activity Objective is a clear statement of purpose that is developed using the Managing for Results Template and includes:

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• The name of the activity, • The service or product provided, • The customer who receives the service or product, and, • The intended benefit for the customer. Steps Review Current Activities • List any new activities. • List any activities no longer provided. • Verify that the activity supports the program objective. • Classify all activities as core, semi-core or service enhancement. • Develop a prioritized list of activities. Template

Activity Objective

The Purpose of the ________ Activity

is to provide ______________________

to ______________________________

so they can _______________________. Example The purpose of First Response is to provide a police presence in neighborhoods, respond to calls for service from the community and engage in collaborative problem solving initiatives to the community so that the community can feel and be safe. 15. Define or Review Performance Measures for Each

Activity Overview Performance measures provide a basis for making decisions that reflect citizens’ priorities and that deliver on the public’s desire to get value for their money. For policy makers, performance information makes it possible to make better business decisions and invest resources where taxpayers receive the highest return on their investment. Without good performance information, decision-makers are, in effect, guess-makers.

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Managers can use performance information to make the best decisions about how to maximize the alignment of people, resources and systems in order to achieve results. In Departments that are managing for results, performance and the delivery of results to customers become the focus of every employee. The City’s performance measurement system uses a family of measures that include demand, output, efficiency and result. Individually, these measures provide important information when making management decisions. Together they provide performance information essential for managing results and making good business decisions. The four categories for measuring the performance of activities are defined as follows:

Demand – The amount of services requested by or anticipated from customers of the activity. (optional)

Demand, in and of itself, doesn’t indicate anything. It’s only in conjunction with Output that you can show gaps between supply and demand. Demand data helps departments to discuss service gaps.

Examples: • Miles of creeks needing vegetation control • Number of children requiring subsidized child care.

Output – Units of service provided, products provided or people served through the activity; counts the goods and services produced or delivered.

Examples:

• Miles of creeks maintained • Number of children provided child care services.

Efficiency – Measures the unit cost of an output; cost per unit of service provided.

Examples:

• Cost per foot of creek maintained • Cost per child served.

Result – Measures the impact that an activity has on citizens.

Examples:

• Percent of identified creeks (miles) maintained for vegetation control. • Percent of contracted early child care programs that meet quality

standards.

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Each activity shall have at least one measure of each category (demand, output, efficiency and result), with one possible exception. Although demand measures are considered helpful for decision-making and can help to identify service gaps, there are circumstances when it is not feasible for the department to measure demand. Departments are not limited to developing only one measure in each category, but should take care to not have so many measures that the focus becomes diluted. Good measures are relevant, understandable, consistent, comparable, timely and reliable as identified below:

Relevant - logically and directly related to the organization’s goals or activity purpose

Understandable - communicated in a clear manner

Consistent - used uniformly in the planning, budgeting, accounting and reporting systems

Comparable - provides a clear frame of reference for assessing performance over time to demonstrate performance trends

Timely - available to users before the information loses its value in assessing accountability and decision-making

Reliable - derived from systems that produce controlled and verifiable data

Performance vs. Operations Measures During the 2002-2003 Business Planning process, measures in each category (demand, output, result, and efficiency) were classified as either “performance” or “operations” measures. These classifications enable the City of Austin to have a tiered, or layered, reporting system. This layered reporting system is important because both classifications reach separate audiences. Although both performance and operations measures are reported to the Budget Office for storage in a central database, only performance measures are published in the budget document and performance reports. Performance measures are reviewed by City management, City Council and citizens and help guide policy decisions. Operations measures are reviewed by department and program managers and help guide decisions on day-to-day operations. Numerical Measures As the Budget Office prepares to enhance its central storage database, it is important to confirm that all departmental measures are reported as numerical values and do not include text. In addition, each measure needs to convey only one piece of information. This will enable the graphing of the historical and current period information for each measure.

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Steps Below are the steps recommended to develop and/or review your performance and operations measures. • Identify a team to develop the measures. • Create or review performance and operations measures. • Ensure that each activity has at least one Result, Efficiency and Output

performance measure. Include Demand measures when appropriate. • Develop data collection plans for capturing measure information. • Update the measure change matrix and description sheet (Business Plan

deliverables). • Develop targets and timeframes for each measure (as part of the budget

process). Identify a team to develop the measures Departments are encouraged to use a collaborative and participatory process that involves program, fiscal and research staff to develop performance measures. Because more than one work unit within the department may be responsible for achieving a specific result, all work units involved in producing the outcome should be involved in the development of the performance measures that they will ultimately be responsible for. Even though a collaborative process could take more time and effort to achieve, it produces better results and a better organizational culture. Additionally, departments can consider the involvement of stakeholders outside the department in the development of performance measures. It is important to consider the department’s partners in achieving results: • Boards and Commissions; • other departments who have shared responsibility for the results; • service providers that the City contracts with for service provision; and, • interest and advocacy groups who partner with the City to achieve a specific

result or set of results. Create or review Performance and Operations measures Performance and operations measures should be revisited as programs or activities change or new data becomes available. The Budget Office will review all measures and will provide guidance annually on revisiting measures.

Demand Measures Developing demand measures for activities requires the following steps:

1. Review the definition of a demand measure; 2. Analyze the demand over time and determine if the data reveals any trends; 3. Assess the current demand for the service;

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4. Identify the business area(s) where the measure information will be relevant; 5. Review the Change Dynamics developed through the Assessment of the

Future to determine if future demand may be impacted; 6. Project what the expected demand is for the future and document the

methodology used; 7. Confirm that the measure helps to gather information that progresses toward

the goals and objectives of the activity and the department; 8. Determine whether the measure should be performance or operations; 9. Using the data collection plan, collect the data.

Output Measures Developing output measures for activities involves the following steps:

1. Review the definition of an output measure; 2. Review the outputs previously developed for the activity; 3. Identify the business areas where the measure information will be relevant; 4. Choose outputs have the most direct impact on achieving the result measures

of the activity; 5. Determine if there is a baseline for this measure to aid in reporting and

analysis; 6. Confirm that the measures help to gather information that progresses toward

the goals and objectives of the activity and the department; 7. Determine the sources of data for the measures; 8. Determine whether the measures should be performance or operations; 9. Using the data collection plan, collect the data.

Efficiency Measures Developing efficiency measures for activities involves the following steps:

1. Review the definition of an efficiency measure; 2. Review the efficiencies previously developed for the activity, if applicable; 3. Identify the business areas where the measure information will be relevant; 4. Choose efficiencies that complement result measures; 5. Analyze data trends for this measure to aid in reporting; 6. Confirm that the measures help to gather information that progresses toward

the goals and objectives of the activity and the department; 7. Develop at least one efficiency measure that is defined as ‘cost per output’,

with the cost derived from the City’s accounting system; 8. Determine the sources of data for the measures; 9. Determine whether the measures should be performance or operations; 10. Using the data collection plan, collect the data.

Result Measures Departments are encouraged to give adequate time and effort to ensure that employees understand the difference between outputs and results. Outputs

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measure effort; Results measure impact. This is the most important yet most difficult to understand concept when developing business plans. If activity objectives are written correctly, the activity result measures will simply be a restatement of the intended benefits. These measures are the primary way that departments have of knowing when they are being successful. Reporting result measures is the best way for departments to demonstrate accountability to citizens. They also provide powerful information for making good business decisions. Departments are encouraged to graphically display key performance measures in annual reports and other high profile reporting opportunities. Developing result measures involves the following steps:

1. Review the definition of result measures; 2. Review the activity objective (see Step #14); 3. Review the results previously developed for the activity, if applicable; 4. Determine whether or not these are the appropriate results for the activity; 5. Analyze data trends for the measures to aid in reporting; 6. Confirm that the measures help to gather information that progresses toward

the goals and objectives of the activity and the department; 7. Consult with program managers, fiscal, and research staff members to ensure

that appropriate result measures have been identified for each activity; 8. Determine the sources of data for the measures; 9. Determine whether the measures should be performance or operations; 10. Using the data collection plan, collect the data.

Develop data collection plans for capturing measure information Once performance and operations measures have been identified, the department must identify how to obtain the data. It is important to identify and document data collection and calculation methods that will be used to collect data for new activity performance measures. An important activity performance measure, especially a result measure, should not be eliminated or overlooked only because the data is not initially available. If data is not available, departments should develop a data collection plan to obtain such data. Data collection needs to consider the following factors: • Availability of data required to quantify the activity performance measures; • Staff time and resources available to gather, analyze and refine data; • Determining what data no longer needs to be collected; and, • Organizational issues which require changes in procedure, policy, or priority

setting.

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Update the measure change matrix and description sheet The Measure Change Matrix and the Measure Description Sheet are two Business Plan deliverables that are due at the time of the Business Plan submission to the Budget Office. The Measure Change Matrix summarizes all changes that will occur from one Business Plan to the next, including:

• New measures; • Deleted measures; • Measures that will move from one activity to another; • Re-worded measures that do not change the measure’s meaning; and, • Measures that change status from performance to operations, and

vice-versa. The Measure Description Sheet includes each measure’s:

• Description; • Data source; • Calculation; • Data Limitations; • Reporting frequency; and, • Responsible staff member.

The data collection plans outlined previously will help in creating this document. This information is stored in the citywide measure database and is designed to maintain an institutional history on each measure in the event of staffing or responsibility changes. The Budget Office will provide additional information on these deliverables during the Business Planning process. Develop targets and timeframes for each measure Each measure needs to have a target, or goal, for a particular timeframe, usually the fiscal year. Although these targets are finalized during the budget process, the Business Planning process is the appropriate time to begin setting these targets. The Assessment of Prior Results exercise (see Step #2) can help departments to determine targets that will stretch abilities, yet remain achievable.

Examples of Targets for the 2003-2004 Fiscal Year for the Erosion Repair Activity:

Demand -- “Number of sites on prioritized project list”: 180 Output -- “Number of projects completed”: 10 Efficiency -- “Cost per project completed”: $41,437 Result -- “Percentage of prioritized projects with increased protection”: 94%

Throughout the fiscal year, the Watershed Protection and Development Review Department will collect the data that supports these measures, manage the Erosion Repair Activity to ensure that the targets are met, and report their performance.

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Template The following example illustrates how the result measure is derived from the activity objective:

Example

Activity Objective

The purpose of the: Erosion Repair Activity

(activity)

is to (provide/produce): stabilized creek banks

(service or product)

to or for: property owners and concerned citizens

(customer)

so they can or in order to: protect property.

(planned benefit)

The result measure for Erosion Repair is: 1) Percent of prioritized projects with increased erosion protection.

16. Sort Activities into Programs Overview Programs are a set of activities with a common purpose that produce results for citizens. Programs developed in the business plan translate directly into the City’s performance budget. The program objective, the performance measures and the budget request are the primary information used for budget decisions at the corporate level. Steps • Without consideration of current organizational structures, arrange the collection

of services into logical groups with a common purpose. • Consider the scope and level of detail necessary for each group. Ask,

o “Does this group stand on its own, or is it a subset of another group?” o “Do we want to specifically allocate funding to this level of detail?”

• Try several different combinations to achieve the best fit.

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Template

Dept. Service Purpose Activity Program Explanation

No Example 17. Define or Review Programs and Program Objectives Overview

The City of Austin is committed to well-managed, results-oriented government. Identification of programs and program objectives: • support results-oriented business decision making; • ensure that departments are clear about who their customers are; • identify the intended benefit of every program; • integrate business plans with the performance budget; • link goals to the operation, performance, and budget of the department; and, • enhance the open flow of information to citizens about the results that they can

expect from their local government.

Relationship Between Programs and Activities

One or more activities are grouped together around a common purpose to define a program. A Program is a set of activities with a common purpose that produces results for citizens. Decisions about activities tend to focus on management and service delivery to a specific segment of the population. Policy decisions are more often focused at the program level where the desired results are broader and impact a broader segment of the population.

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Program Objectives and Key Result Measures

Each program is described by a Program Objective that is a clear statement of purpose that aligns with the goals and mission of the department. The p rogram objective, the performance measures, and the budget request are the primary information used for budget decisions at the corporate level. Program performance measures are the key result performance measures for the activities within that program. Incorporating key result measures from activities into their associated programs further ensures alignment of these portions of the business plan. Broad policy and budgetary decisions are made at the program level. Therefore, departments shall use only results measures for programs. Results-oriented performance measures: • provide information on the impact individual programs have on citizens; • help determine where improvements are needed; and, • facilitate decisions on the best ways to invest taxpayer money. Steps in Identifying Programs and Developing Program Objectives

Essential Steps in Identifying Programs:

1. Ensure that all work units and operations are organized into activities; 2. Review the activity objectives; 3. Group the activities together by common purpose, result or population served; 4. Give the program a name and begin developing the program objective.

Essential Steps in Identifying Program Objectives:

Using the Managing for Results Template:

1. Identify the name of the program 2. Identify the service(s) delivered 3. Identify the customer who will receive the services 4. Identify the intended benefit.

Suggested questions to ask when developing program objectives:

• How has the program been defined and named in the past? • Are the terms used to describe the services the same as the public uses? Should

the terms change? • Who has been defined as our customer in the past? Is this correct? • Are too many customers identified? Are we being practical? • Who receives the direct benefits of this program?

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• Is the service named in the objective a summary, not a listing, of the services provided through the activities grouped together in the program?

• What is the planned benefit the department seeks to achieve? • Can the department directly influence the achievement of this result? • Is the planned benefit stated in terms of results? • Is it a result that can and should achieved? Is the benefit of the program aligned

with our goals?

Template Program Objective

The Purpose of the ________ Program

is to provide ______________________ to ______________________________

so they can _______________________. Example The purpose of the Animal Services Program is to provide an array of animal control, health, and pet-owner services to the public in order to promote responsible pet ownership and humane treatment of animals. 18. Review Business Plan for Alignment to Goals

Overview

The City continues to build a corporate culture in which all departments are managing for results. A critical success factor in creating this culture is the extent to which the people, resources, and systems within each department are aligned to achieve the department’s goals and the City’s Vision.

Alignment means that results achieved at any level in the department contribute to the achievement at the next higher level. Through results-oriented performance measures, for instance, it is possible to ensure and illustrate that achieving the key results at the activities level contributes to achieving results at the program level. For individual employees, alignment is achieved by including in their Success Strategy Performance Review (SSPR) at least one performance measure that is also included in the activity in which they work.

Steps

§ Determine if the services are deliverables for the activity; § Determine if the activity measures describe how well the department achieves

the activity objective;

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§ Determine if the activities are common results and outputs for the program; § Determine if the program objective describes what the activities and the

program accomplishes; § Determine if the programs describe what the department does; § Determine if the programs describe what the goals say; § Determine if the goals reflect what the department actually does.

No Template

No Example

19. Identify Key Indicators Overview There is an array of measures collected and used by the City and range from measures used by the City Council to measures used by division managers. The City Council and other policymakers use key indicators in decision-making. Key Indicators are high-profile performance measures that let the department and the reader determine if the department is achieving its goals.

Steps § Identify the most important result and output measures of the department; § Ensure that at least one key indicator uses benchmarking information from

industry-accepted standards derived through a regional/national organization or other entity;

§ Revise the list to keep it to a manageable number; § Ensure that these measures provide a snapshot of your department.

No Template Example Key Indicators The key indicators used by the Human Resources Department include: Previous

Actual Amended Estimate Proposed

Employee Turnover Rate

Employee Ratings of Overall Job Satisfaction

Diversity Representation

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Number of Grievances Average Time to Complete the Recruitment Process

Sick Leave Utilization per 1,000 Hours Worked

Lost Time Injury Rate

20. Develop Action Plans to Achieve Goals Overview Department will develop an Action Plan for each goal. The Action Plan describes the major steps the department must take to achieve the goal. This exercise will help departments think through the financial and personnel resources needed to achieve their goals and provide a format to communicate the department’s progress toward each goal. Action Plans should be updated and revised as needed to ensure the most current information is available for stakeholders and decision-makers. An Action Plan defines a set of steps the department will implement to accomplish goals. An Action Plan explains how a goal will be accomplished by defining the steps to be taken, the person or organizational unit responsible, the resources needed, and the performance period for accomplishing the action step.

Additionally, Action Plans:

• Ensure that specific steps will be taken to achieve results;

• Provide a process to think through what is needed to accomplish the goals and performance measures established for it;

• Provide additional opportunities to involve line supervisors and staff in the development of the business plan; and,

• Give managers a tool for monitoring progress toward accomplishing activities. Steps Each Action Plan will identify:

1. The current status, or baseline, of the goal, 2. An executive sponsor within the department to monitor the progress of the

Action Plan, 3. Activities from the business plan involved in achieving the goal, 4. Department workgroups involved in achieving the goal, and, 5. A brief narrative summary of the Action Plan.

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Departments will use the attached spreadsheet and include it in the department business plan. Template

Action Plan

Department goal: Baseline: Executive Sponsor: Activities Involved Work Units Involved: Action Summary: Actions steps to be Taken

Activity Involved

Estimated time frame to

implement

Related performance measure(s)

Desired Result

Example

EMS - Response Time Action Plan Department goal: Respond to Priority 1 Calls in Under 10 Minutes 90% of the time Baseline: FY 02 Actual: Percent Priority 1 Calls Responded to in Under 10 Minutes: 83.21% Executive Sponsor: Gordon Bergh, Assistant Director, Operations Activities Involved: Emergency Communications, Emergency Services, Academy, Quality Assurance, Safety, Vehicle/Equipment Maintenance, Information Technology Support, Purchasing, and Personnel

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Work Units Involved: Operations Command Staff, Paramedics, Communications, Recruiting, Fleet and Facilities Management, Information Technology Support, Purchasing, Personnel Action Summary: Adding new units will have the most direct impact on improving response times. Once the Far Southeast and Del Valle stations have been staffed, EMS proposes to begin transitioning from a fixed post system to a blended system that encompasses fixed post units as well as peak demand units. Austin-Travis County EMS currently operates a fixed post system which means ambulances are based at stations throughout the service area if they are not responding to or returning from a call. In a blended system, some ambulances will not be assigned to any specific station. Such units, known as “peak demand units”, will be deployed to sections of the service area where demand is greatest. These deployments could shift based on time of day and days of the week to accommodate traffic patterns, weather conditions, large events, holidays, and downtown activity on Friday and Saturday evenings. A blended system will allow for greater flexibility and will alleviate the expense of constructing and maintaining some new EMS stations. New stations could be occupied over time, based on demand in specific areas. A critical component of this plan is the development of consistent and reliable baseline response data. The majority of the EMS response time and call volume data is generated by the City’s Computer Aided Dispatch (CAD) system. This system is over16 years old. Its reporting capabilities are quite limited and consistent data collection has been an ongoing challenge for EMS. The new CAD system, scheduled to be on line by October 2003, should provide more consistent and statistically accurate reporting than is currently available. Data prior to FY 04 will need to be archived in a database that is accessible to multiple users and that provides consistent data results. Extraction of data from the new CAD system may require a data analyst FTE as well as specialized training.

Actions steps to be Taken

Activity Involved Estimated time frame to

implement

Related performance measure(s)

Desired Result

Open Far Southeast EMS station by October 2003

Emergency Services, Academy, Vehicle/ Equipment Maintenance, Facility Expenses

Hire 10 paramedics and order 1 ambulance by April 2003 for station to open by October 2003

Percent Priority 1 Responses in Under 10 Minutes

85% response rate to Priority 1 Calls in Under 10 Minutes for FY 04

Develop scheduling plan to accommodate demand units within the system

Emergency Communications Emergency Services

FY 04 – Using new CAD

Percent Priority 1 Responses in Under 10 Minutes

Plan for how demand units will be scheduled by FY 04

Staff Del Valle Fire/EMS station with an EMS unit by April 2004

Emergency Services, Academy, Vehicle/ Equipment Maintenance, Facility Expenses

Hire 10 paramedics & order 2 ambu-lances in Oct. 2003 for station to open by April 2004

Percent Priority 1 Responses in Under 10 Minutes

87% response rate to Priority 1 Calls in Under 10 Minutes by Q2 of FY 05

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Actions steps to be Taken

Activity Involved Estimated time frame to

implement

Related performance measure(s)

Desired Result

Place 1 demand unit in service within the city limits during FY 05 including the necessary infrastructure support

Emergency Communications Emergency Services Academy Quality Assurance Safety Vehicle/ Equipment Maintenance Info Tech Support Purchasing Personnel

Hire staff and purchase equipment in October 2004 for unit to go online by April 2005

Percent Priority 1 Responses in Under 10 Minutes

89% response rate to Priority 1 Calls in Under 10 Minutes for Q4 of FY 05

Place 1 demand unit in service within the city limits during FY 06 including the necessary infrastructure support

Emergency Communications Emergency Services Academy Quality Assurance Safety Vehicle/ Equipment Maintenance Info Tech Support Purchasing Personnel

Hire staff and purchase equipment in October 2005 for unit to go online by April 2006

Percent Priority 1 Responses in Under 10 Minutes

90% response rate to Priority 1 Calls in Under 10 Minutes for FY 06

Reduce critical fleet failures by 10% by Sept. 2005 by track-ing core fleet problems and outcomes, survey other users, work with Fleet Services to reduce chronic failures, develop rela-tions with CRS on installation specifications

Vehicle/ Equipment Maintenance

FY 03 and FY 04 Percent Priority 1 Responses in Under 10 Minutes Critical Failures per 10,000 miles driven

90% response rate to Priority 1 Calls in Under 10 Minutes for FY 06 0.54 fleet failures per 10,000 miles driven by FY 05

Develop consistent and reliable baseline response time data archives in a database that can be accessed by multiple users

Info Tech Support Emergency Services

January 2003 through June 2003

All response time measures

Accessible, consistent and reliable baseline CAD data from FY 98 through FY 2003

Develop consistent and reliable reporting capabilities from new CAD system

Info Tech Support Emergency Services Emergency Communications

Attend reporting training during FY 03 for new CAD Implement new CAD system by October 2003

All response time measures

Accessible, consistent and reliable CAD data as of FY 2004

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21. Submit Business Plan to Budget Office/ACM for Review Overview The completed business plan is submitted to the appropriate Assistant City Manager and then the Budget Office, which provides feedback to the departments. Steps Shown below are the deliverables for the Business Plan submission: BUSINESS PLANNING DELIVERABLES

1. Executive Summary using the sections identified in the template below. 2. Department Programs with a list of Activities in “tree diagram” format as

shown in the budget document. 3. A revised mission, goals, key indicators page (as shown in the budget

document) using legislative format to mark changes by striking old text and underlining new text.

4. Action plans for each goal showing the steps the department intends to take to achieve those goals.

5. Two self-assessments of the department’s key indicators. 6. The Program and Activity Business Plan pages as printed through CARMA. 7. Changes/corrections to the Business Plan Measures Change Matrix

(including identification of performance and operations measures and efforts to define all measures as numerical values).

8. A bulleted summary of Business Process Improvements recommended by the department.

9. Summary of Information Systems/Applications Challenges and/or Opportunities as submitted via the intranet site set up by the CTM department.

10. Updated Performance Measure descriptions sheets for all measures following the format as described in Step 29 of this Resource Guide.

Templates 1. Department Executive Summary for Next Year Business Planning Should Contain These Sections:

• Brief Overview of the Next Year’s Business Plan • Highlights of the Assessment of Prior Results/Action Plan Achievements • List of identified Strengths, Weaknesses, Opportunities, and Threats • Summary of the major Change Dynamics anticipated for the Next Year • Summary of activity and/or service changes for the Next Year

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• Summary of any major changes to the alignment of programs, activities or services

• Updates to Department Mission, Goals, and Key Indicators • Summary of Action Plans to achieve goals • Identified Process Improvements for the Next Year • Identified IT challenges/applications for the Next Year • Conclusion

2. Department Programs with List of Activities in Tree Diagram Format

3. Revised Mission, Goals, Key Indicators Page See Sections 9, 10, and 19. 4. List of Goals and Action Plans See Sections 9 and 20. 5. The Program and Activity Business Plan pages as printed through CARMA Business Plan Pages The location of the CARMA database for Business Planning is http://carma.ci.austin.tx.us/login.cfm. Contact the Budget Office if you need assistance with your login id and password.

Fleet Service Centers

Vehicle Support Services

Support Services

Transfers & Other Requirements

Inventory Control

Preventive Maintenance

Scheduled Maintenance

Unscheduled Repairs

Auction

Fuel Management

Make Ready

Rental Pool

Taxi

Administration & Management

Facility Expenses

Financial Monitoring/ Budgeting

Information Technology

Support

Personnel/ Training

Purchasing/ M/WBE

Other Requirements

Transfers

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The CARMA database is used for the following information: • Sorting service classifications of core, semi-core, or service enhancement into

the proper category. • Updating Activity and Program objectives. • Updating the Activity history and description section. The first sentence in the

“Activity History and Description” must indicate whether the Activity is a core, semi-core or service-enhancement activity. The second sentence must state what Federal Law, State Law, Legislation, City Ordinance or other legal requirement mandates this activity. If there is not a legal mandate, then state, “No legal mandate.”

• Designating performance and operations measures (this is done both in CARMA and in the Business Plan Measures Change Matrix).

• Adding new measures. Verify the accuracy of performance data pulled from the CARMA database and contact the Budget Office if you find discrepancies.

6. Changes/Corrections to Business Plan Measures Matrix Use the spreadsheet provided by the Budget Office. 7. Business Process Improvements See Section 7. 8. Summary of Information systems/applications and/or opportunities See Section 6. 9. Performance Measure Description Sheets Use the spreadsheet provided by Budget Office. 10. Self-assessments of two key indicators See Section 29. Also, a self-assessment checklist is located on the Budget Office intranet site.

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22. Revise the Business Plan Based on Feedback Departments will revise their business plans based on the feedback received from the Assistant City Managers and the Budget Office. 23. Integrate the Business Plan with the Performance

Budget The approved Business Plan becomes the structure for the department’s budget. The Activities and Programs provide the cost centers and performance locators for the budget. The Business Plan provides the goals, key indicators, measures, and activity alignment for the Department. 24. Communicate Business Plan to Employees and

Customers

The completed business plan should be communicated to employees, customers and stakeholders. The departments are encouraged to hand out copies of activity and program pages to each employee located in that activity and program at the beginning of the fiscal year. This coincides with the SSPR schedule and lets the employee know expectations of the employee and also expectations of the activity and program. The departments should present copies of their performance plan pages from the budget document to their Boards and Commissions for review and input. 25. Integrate SSPRs and Business Plans Overview The City of Austin has an employee performance appraisal program called Success Strategy Performance Review (SSPR). The SSPR program was developed to: • set individual performance expectations for each employee, • monitor performance over time, and, • formally evaluate success.

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Employee SSPR plans will be integrated with business plans in order to create fully aligned departments where every employee knows how his/her job contributes to the department’s goals and objectives. Key points regarding the integration: • The integration of SSPR plans and business plans facilitates the alignment of

people working together to achieve results. • Integration of SSPR plans and the business plans is achieved at the director,

senior manager, supervisor, and individual employee levels. • Integration is accomplished by ensuring that all business plan activity and

program objectives are reflected in the appropriate employees’ SSPR plans, and that individua l performance measures written in SSPR plans are aligned with those objectives.

• Management’s primary role in this integration is to ensure that the program or activity performance measures, for which individual employees are accountable, are reflected in the SSPR plans of those employees responsible for achieving the desired results.

• Employee performance will be evaluated, in part, by reviewing the individual employee’s contribution to achieving the expected results established in program and activity performance measures.

Steps The Organization Development Administration Division of the Human Resources Department provides specific instructions and training for developing and managing the SSPR program. 26. Track Measures on a Monthly Basis Track and record the performance and operations measures. Measures may be entered into the CARMA database either by up-load using an Excel spreadsheet created specifically for each department by the Budget Office or by data entry using the front end of the CARMA database. For ease of use, the Budget Office recommends using an Excel spreadsheet to up-load the information. 27. Track Action Plans for Achievements on a Regular Basis Conduct monthly and quarterly reviews of the department’s action plans for achievement of goals.

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28. Report Results on a Regular Basis Performance needs to be reported regularly in order to be able to make decisions according to up-to-date information. The performance and operation measures will be reported in through ePerf, the performance measures database on the City’s internet site. The location of this database is: http://www.ci.austin.tx.us/budget/eperf/index.cfm. EPerf organizes all of the cities measures by department, program and activity. There is also a keyword function that can be used to find measures city-wide. Citizens can also access this site through the Budget link on the Austin City Connection web page. Key indicators will continue to be reported on a quarterly basis in the performance reports in addition to being available through ePerf. 29. Conduct Self-Assessment of Performance

Measurement Data

Overview

An assessment of Performance Measurement Data is a process that departments can use to ascertain if the performance measurement data that they report to the Budget Office is reliable and if sufficient control systems are in place over the collection, analysis and reporting of that data. The City’s Corporate Internal Audit Office conducts similar reviews that are called Performance Measurement Certification Audits. The purpose of a self-assessment review is:

• To determine if your department is accurately reporting performance and operational measures to the CARMA database. CARMA is the City’s database for tracking departmental and citywide performance measurement data.

• To determine whether your department has sufficient control systems in place

over the collection, analysis and reporting of your performance measurement data.

• To determine the extent to which management and other stakeholder can rely

on performance measures when making budgetary decisions or evaluating specific activities.

• To help increase the extent to which performance measurement data is being

generated from departmental management systems that have adequate internal controls. Adequate safeguards over the collection and analysis of

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performance measurement data increase the probability that reported measures will be accurate over time.

Steps

1. Choose measure(s) to review. 2. Review measure definition and other data relevant to the measure. 3. Identify departmental staff involved in gathering data for the measure. 4. Determine if you can re-create the numbers reported in CARMA. 5. Collect information on the process used to generate performance data. 6. Develop a high-level process flowchart. 7. Determine if the department followed the measure definition. 8. Determine whether adequate controls over performance measure data

exist to ensure consistent reporting of accurate information. 9. Determine if source documents support the measure results reported to

CARMA. 10. Determine the certification category for the measure (optional).

1. Choose measure to review.

___ a. Choose measure(s) to review based on the following suggested criteria: • Concerns with your department measurement system controls raised by

the Budget Office or sources external to your department. • Changes in your departmental organizational structure/key personnel. • Budget size (relative dollars involved or related to a measure). • Concern or interest by Council Members or corporate or senior

management about an activity or area being measured. • Patterns of unexpected performance (either up or down). • Reported in the Community Scorecard or other external reports.

* On Appendix A #1 list the name of the measure you chose and in Appendix A #1a the reason for choosing the measure using the list above, or other reason(s).

2. Review measure definition and other data relevant to the measure.

___ a. Obtain a copy of the measure definition from the Budget Office.

* Attach to Appendix A #2a the Budget Office measure definition.

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The Budget Office requires that the following information be entered into CARMA for every performance measure:

• ID Number • Program • Activity • Measure Name • Type • Description • Frequency

• Data Sources • Calculation • Data limitations • Person responsible, with phone number • Is the measure a key indicator? • Is the measure reported cumulatively? • Is the measure reported to ICMA?

___ b. Determine if the measure definition is clear, specific, and not open to interpretation.

If the measure definition is not clear, not specific, and open to interpretation indicate in Appendix A #2b what needs to be changed. Also indicate when and by whom it will be changed.

___ c. Determine if the calculation method is consistent with the measure’s

definition. ___ d. Determine if the measure name accurately describes what it is measuring.

Tip: Having an accurate measure name is also important because stakeholders will often not take the time to delve into the details of the measure definition.

___e. Has this measure been reviewed in the last three years by sources external to the Department (federal, state, Office of the City Auditor, etc.)? Yes ___ No ____

If yes, discuss the results in Appendix A #2e.

Measure Definition Example:

Measure Name: Percent of Indigent Consumers Whose Dependent Living Risk was diminished

Type: Result

Description: This measure addresses the extent to which services provided by the program enable indigent individuals to minimize their dependency on others due to blindness or severe vision loss.

Frequency: Quarterly

Data Sources: Visually impaired database (VI6)

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How it’s collected: Service personnel in field offices enter all data for the consumers they serve into the department’s database. A record of each consumer is begun at the point an application for services is taken or a referral is received. After assessing the consumer’s situation, service personnel note in the consumer’s database record whether the individual is at risk of increased dependency on others. At the time the consumer’s case is closed, the staff enters a code noting whether or not the consumer’s risk for dependent living is diminished as a result of services provided. Consumer coding is presented in a quarterly custom report that extracts this database information. Calculation (methodology): A percentage is obtained by dividing the number of consumers coded as having a diminished dependent living risk at closure by the number of consumers coded as being at risk during the eligibility phase of their rehabilitation process. Data limitations: The determination of risk of dependence at application and the degree of dependence at closure is based on the judgment of professional staff.

Measure Definition Example:Measure name: Cost per ton of yard trimmings collected Type: Efficiency Description: This measure addresses the total tons of yard trimmings collected during residential collection divided by the total costs for this activity. Frequency: Reported to the SWS performance measurement database monthly and reported to CARMA quarterly. Data sources: Yard trimmings data comes from the Operations Performance System database. The monthly and annual expenditures for this activity comes from the AFS2 Report. Calculation (methodology): The percentage is obtained by dividing the total number of yard trimmings collected by the total expenditures for the yard trimmings activity. How data is collected (data collection methodology): Yard trimmings data is collected by PAYT crews and recorded on Daily Driver Reports. The day following the collection, Yard Trimming supervisors enter the data into the SWS’s Pay-as-You-Throw’s Division Operations Performance System Database (OPS). Data limitations: Because of limitations in the OPS database, yard trimming tons are estimated on Fridays. (For example purposes only).

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3. Identify departmental staff involved in gathering data for the measure. ___a. Obtain the name(s) and title(s) of all personnel who collect data for the

measure. * List their names and titles in Appendix A #3a.

___b. Find out how long have they had responsibility for this information.

___c. Obtain the name(s) and title(s) of anyone else responsible for any part of the

calculation of the measure.

* List their names and titles in Appendix A #3c. ___d. Identify and document who prepares and submits the summary document(s) to

the CARMA Coordinator. Tip: Ensure that the names and title of all individuals involved with the measure is kept

current. 4. Determine if the numbers reported in CARMA can be recreated. ___ a. Gather summary documentation for the measure.

* Attach to Appendix A #4a - a copy of the first page of the summary documentation showing field headings. Also, attach any totals pages.

Definition of summary documentation - Summary documentation shows the final calculations that support the performance data reported in CARMA. Documentation should also include any reports that support the measure result reported to CARMA. Examples of summary documentation:

- Current computer printouts that reproduce summary calculations of the reported performance

- Archived computer printouts produced at the reporting date that document the summary calculations

- Quarterly summary calculation documentation - Spreadsheets - Manual calculation sheets

Note 1: Data to be reviewed should be from the previous fiscal year.

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Note 2: If the department has updated performance information, documentation should be available for both originally reported and updated information.

___ b. Recreate the number reported in CARMA and determine if the summary

documentation is within a tolerable range of plus or minus three percent of the number that was reported to CARMA. If you find that the number is not within three percent, investigate the reasons for the discrepancy, record your results, and provide recommendation(s) for improvement in Step 10. As you continue the certification review for this measure, try to determine what the actual number reported to CARMA should have been.

* Record the results of this step in Appendix A #4b.

Note: If the summary documentation were not within +/- 3%, you would place

the measure in the “Inaccurate” certification category. Continue with the review.

Example A City department has a measure entitled “Number of Applications Processed.” Looking at the CARMA results we find that the department reported 500 applications processed during the previous year. The documented measure definition for “Number of Applications Processed” reads:

The Number of Applications Processed is equal to the total number M plus N plus O plus P applications processed. An application is considered “processed” when the reviewer closes a file for the applicant in the computer. The following is an example of a document with supporting summary calculations.

Number of M applications processed

Number of N applications processed

Number of O applications processed

Number of P applications processed

Total Number of applications processed

Quarter 1 20 30 10 45 105 Quarter 2 40 30 35 30 135 Quarter 3 30 30 35 60 155 Quarter 4 10 10 20 65 105 Year Total 100 100 100 200 500

If the summary documentation for the number of applications processed is between 485 and 515, then the measure is within + or –3 percent of the number reported to CARMA.

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Example A jobs training program reported to CARMA that 1,000 degrees were awarded during the previous year. The documented measure definition for Number of Degrees Awarded states “the number of degrees awarded after completing all of the training courses.” To determine the number of degrees awarded for the entire fiscal year, we must consider the number of degrees awarded each semester. The following is an example of a document with supporting summary calculations.

Semester Total number of degrees awarded Fall 350 Spring 500 Summer I and II 150 Year Total 1,000

If the summary documentation for the number of degrees awarded is between 970 and 1,030, then the measure is within + or –3 percent of the number reported to CARMA. Tip: Review summary documents on a regular basis to ensure that these numbers are the same as the numbers reported in CARMA.

____c. One of the reasons that a number may not be within +/- 3% is that the

department deviated from the measure definition.

If the measure calculation deviated from the measure definition and caused more than a three percent difference between the performance reported to CARMA and the correctly calculated number based on performance measures data, explain in Appendix A #4c.

Tip: Review summary documents on a regular basis to ensure that these numbers are the same as the numbers reported to CARMA. Example

CARMA shows that reported performance for “Number of Applications Processed” is 300. Department personnel informed the auditor that the “Number of Applications Processed” is calculated by adding the total number of the three types of application (M, N, and O applications) processed. The measure definition (stated in the example for step #4) states that type P applications should also be included when calculating the measure. By not including the P applications, 200 applications (from example in step#4) were not incorporated into the reported performance measure result; therefore, the measure is underreported by 40 percent. This measure would be considered inaccurate and classified in the unacceptable category.

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Example CARMA shows that reported performance for “Number of Degrees Awarded” is 1,200. Program personnel informed the reviewer that the “Number of Degrees Awarded” is calculated by adding the total number of entry-level training degrees (1,000 degrees) and advanced level training degrees (200 degrees) awarded. The measure definition states that only entry-level training degrees should be included when calculating the measure. Two hundred advanced level training degrees were inappropriately included in the reported performance measure result; therefore, the measure is over reported by 20 percent. This measure would be considered inaccurate and classified in the unacceptable category. 5. Collect information on the process used to generate performance data. This

information is not required to be documented on Appendix A. ___ a. Identify and document the event(s) that begin the process of collecting data for

this measure. ___ b. Identify and document the events that occur from the beginning of the process

until the data is delivered to the Department’s CARMA Coordinator. ___ c. Identify and document how and where the data is stored (automated or manual)

during the period of collection. ___ d. Identify and document how the performance measure is calculated. ___e. Identify and document if anyone reviews the calculation.

Note: If data comes from a third party, describe the procedures that are followed to ensure that the data is accurate.

Example

For the measure “Number of Applications Processed,” the reviewer would want to know that the process begins when an application is received and stamped by the department. Those who process applications review the application, and a record of the application is entered into a file in the department’s computer system. At the end of the quarter, the computer generates the number o f applications closed.

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Example

For the measure Number of Degrees Awarded, the reviewer would want to know the following details concerning the process used by the program to generate this performance data. The process begins when a student applies for graduation in the training program’s Administrative Office during the semester the student plans to graduate. The graduation advisor in the Administrative Office compares the training plan with the student’s transcript to determine if all Program requirements have been met for graduation. At the end of the semester, final grades for applicants are requested. Grades are posted to training plans to determine if all requirements for graduation are met. Final clearance for graduation is given, and students are p laced on the official graduation list. An electronic tape of graduation data is sent to the department’s Information System’s Office where information is compiled by a computer system. The Administrative Office then receives a copy of the records and reports the information to CARMA by the next reporting date. 6. Develop a high-level process flowchart.

Using the information gathered in the previous step develop a flowchart that represents the key points in the flow of the measurement data.

* Attach the flowchart to Appendix A #6 The example on the next page depicts a Parks and Recreation Department flowchart for the measure “Cost per Acre Mowed with Contract for Industry Standard II”.

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Flowchart of Measure “Cost Per Acre Mowed with Contract for Industry Standard of Mode II”

Parks and Recreation Inspector calls mowing contractor when mowing is needed*

Mowing completed**

Parks and Recreation Inspector inspects zone*** to ensure that cut meets PARD standards

Approved?

Inspector prepares paperwork**** to pay contractor and forwards to PARD’s Financial Manager

Financial Manager reviews paperwork for approval

PARD’s Accounts Payable Department submits paperwork to the City’s Accounts Payable Office

City’s Accounts Payable Office cuts check and sends to mowing contractor

PARD’s Financial Manager submits paperwork to PARD’s Accounts Payable Office

Monthly the Financial Manager calculates cost per acre mowed for contractor

Monthly the Financial Manager forwards performance measurement results to Department’s Performance Measures Administrator

Quarterly the Performance Measures Administrator enters measurement data in CARMA database

Monthly the Performance Measures Administrator enters results in performance measurement database

Approved?

* Contractor has one week in which to begin mowing ** Minimum of 25 acres per day must be cut *** For the purpose of bidding out mowing services, the City’s parkland is divided into ten zones **** Paperwork includes payment documents, inspection checklist, PARD purchase agreement, submitted for payment document, grounds maintenance work order

No

No

Yes

Yes

Mowing redone

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7. Determine whether adequate controls over performance measure data exist to

ensure consistent reporting of accurate information.

Using the high level flowchart that you developed, determine whether the necessary controls exist at each key point in the data flow. Controls should be reviewed from the initial point that performance information is recorded until the accumulated measure information is entered into CARMA. You should examine input, process, and review controls to ensure that an effective control structure exists. The system can be manual, automated or a combination of both. Each performance measurement system is different and may need greater, fewer, or different controls than the one in the examples below to be effective.

___ a. Identify and then determine whether input, process, and review controls should and do exist at each step in the data flow.

Example of Controls for a Manual System Incoming Information Mail Room or Staff Program CARMA Receptionist Personnel Management Input Controls Process Controls Review Controls Input Controls

• Written procedures and guidelines should exist at the point where performance information is first recorded (for example, applications, forms, and telephone complaints). Personnel should be trained to follow these procedures to ensure that they have a uniform understanding of what information is needed.

• Information gathered at the initial point that performance information is recorded should be date stamped or logged when received.

• A regular review of intake information should be conducted. • Departments should obtain written documentation of third-party controls when

possible.

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• If the third party has no controls, the agency should conduct necessary inquiries for assurance that the information received is accurate.

Process Controls

• The person responsible for calculating the performance data should understand

the origin of the information and stay current with any changes in the form of the information.

• Written procedures for collecting and calculating the information should exist. Personnel should be trained to follow these procedures.

Review Controls

• A review of the measure calculations and summary documents should occur before information is reported. This review should be conducted by someone other than the person doing the calculation.

• The person responsible for the accuracy of the data should review information input into CARMA before the CARMA submission is “completed.”

• Periodically, the department should review information submitted by field offices and third parties.

Example of Controls for an Automated System An automated system is one in which the computer is the major source of information and is also the major source of calculations. Input Controls Process Controls Review Controls Field Office Third-Party Database Program Program CARMA

Providers Staff Management Input Controls

• Guidelines and procedures for data entry should be well documented.

Ø Data entry personnel should be trained on which information to enter, how to enter the information and the importance of accuracy.

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Ø The data entry supervisor should review information entered into the computer system for accuracy.

• Controls should exist over third-party sources of information.

Ø Departments should obtain written documentation of third-party controls

when possible. Ø If the third party has no controls, the department should conduct

necessary inquires for assurance that the information received is accurate. Process Controls

• The person responsible for calculating the performance data should understand the origin of the information and stay current with any changes in the form of the information.

• Procedures should be in place to ensure that the computer program used to calculate any portion of the performance data is capturing the correct information and is performing the correct mathematical calculations.

• Controls should in place that ensures that only authorized individuals have the ability to enter or change data in the system.

Review Controls

• The department should periodically review information submitted by field offices and third parties.

• A supervisor should review calculations of the performance data to ensure that they are consistent with the measure definition and to check for mathematical errors.

• The person responsible for the accuracy of the data should review the information in CARMA before the CARMA submission is “completed.”

8. Determine if source documents support the measure results reported to CARMA. The purpose of this step is to test the source documentation that supports the measure results reported to CARMA. Source documents are documents associated with the events that prove the activity occurred. ___ a. Obtain/gather a list of all items counted for the measure for the period in which

you are doing the review. ___ b. Document the criteria that you are going to test for each item.

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For example, when testing the measure “Cost Per Ton of Yard Trimmings Collected” you would want to see if the Daily Driver Reports that you choose for your sample were in the division’s operations database for the data indicated and that the tons collected was recorded accurately.

___ c. Choose a sample of items to test to see if the correct information has been

transferred from the “tested” item to the database or report. In compliance testing, it is recommended that if you find that the controls over the accuracy of the measure are strong, your sample size should be 29. If the controls are weak or moderate, the sample size is expanded to 61. Also, if one error is found in the sample of 29 the sample size should be expanded to 61. If you find more than two errors in the sample of 61 you should categorize the measure as inaccurate. Although these are recommended sample sizes, you may choose to sample a larger number, especially if the controls are weak, or the population is large.

Note: Use a “Random Number Generator” to generate the sample. You can use the State Auditors Office Statistical Toolkit (http://www.sao.state.tx.us/Resources/tools/toolbox.html) and/or the City’s Corporate Internal Audit Office can assist you.

* List in Appendix A #8c the record numbers you’ve sampled, and which, if any,

had errors. 9. Determine the certification category for the measure if you have not already

done so. Place the reviewed measure in one of four certification categories. These include: Acceptable A measure is Certified if reported performance is accurate within plus or minus 3% and if it appears that controls are in place to ensure accuracy for collecting and reporting performance data.

A measure is categorized as Certified With Qualifications under three conditions. First, a measure is Certified With Qualifications when reported performance is within +/- 3%, but the controls over data collection and reporting are not adequate to ensure continued accuracy. Second, a measure is Certified With Qualifications when controls are strong, but source documentation is unavailable or incomplete for testing. Third, a measure is Certified with Qualifications if the department’s calculation of actual performance deviated from the measure definition, but was still within an acceptable range.

*List the process and criteria that you used on Appendix A #8b.

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Unacceptable A measure is categorized as Factors Prevented Certification when documentation is unavailable or incomplete and controls are not adequate to ensure accuracy. Factors Prevented Certification is also given when there is a deviation from the measure definition and the reviewer cannot determine the correct performance measure result. A measure is categorized as Inaccurate when the actual performance is not within 3% of reported performance, or there is a greater than 5% error in the sample of documents tested. * In Appendix A #9 indicate the category you placed it in and the reason. Note: Reviewers should use the criteria above as guidance in determining which category to place the measure. Reviewers should use their judgment in determining if a measure should be placed in a category other than one indicated by the criteria. 10. If applicable, describe plans for improvement An action plan should be developed if the measure was categorized as “factors prevented certification, “Inaccurate”, or if you found control weaknesses during the review. *In Appendix A #10 describe your action plan for improvement. The action plan

should include the individual(s) responsible for the action step(s) and the estimated time frame to implement.

If you have questions or need help as you carry out the self-assessment review contact Carla Steffen, Corporate Internal Audit, 974-2066 or carla.steffen@ci.austin.tx.us .

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Glossary Action Plan - A plan to outline the steps and performance measures to achieve and acknowledge Department’s goals. Activity - An activity is defined as a set of services grouped together by common purpose. An activity has a common purpose that p roduces outputs and results. This includes services to the public and to customers internal to the Department. Activity Objective - An activity objective is a clear statement of the purpose of the activity. The objective includes the name of the activity, the service(s) provided, the customer and the intended benefit for the customer. Refer to Managing for Results (MFR) Template to see how objectives are developed. Alignment - Alignment means that that the achievement of results at one level of the organization contributes to the achievement of results at the next higher level. In an aligned Department it is clear, through performance measures, how the achievement of an activity result measure contributes to the achievement of the program results, and how the programs contribute to the achievement of the goals. The end product of alignment is that everyone in the Department knows how what he or she contributes at all levels in the organization. Assessment of the Future (also known as an Environmental Scan) - An assessment of the future identifies emerging issues and trends that will have a major impact on the Department over the next 2-5 years. The Department uses a variety of resources to conduct the assessment, including information related to external dynamics such as demographics, workforce, environment, regulation and legislation, economic trends, education trends, technology, service demand, and industry trends. The assessment also reviews information about dynamics internal to the Department such as leadership capacity, work force needs, education level, technology, responsiveness to change, facilities, and labor-management relations. Tools such as Consensus, SWOT, or Match Changes are used to produce a small number of easily articulated dynamics of change. These are used as context during the development of the Department’s business plan. Benchmarking - Benchmarking is the business practice of comparing the best practices of one organization to another organization or to the quantified performance of a larger cluster of similar organizations in order to improve performance. Examples are city-to-city comparisons or city to the national average for organizations of similar size. Business Plans - Business Plans are developed by all City Departments, have a 1-5 year horizon, and are revisited annually. Business plans do three things:

1. Improve business decisions by focusing on goals and objectives; 2. Focus the culture of government to manage for results; and 3. Integrate business plans with the performance budget.

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CARMA (City of Austin Reporting and Measurement Analysis) - The City of Austin’s internal database for storing activity, program, service, and measure information. Budget and Business Planning pages are printed using information kept in this database. Change Dynamics - a one-sentence statement of fact that summarizes a major issue or trend and the impact on the department or its customers. It describes what is, or what will happen, but does not imply solutions, requests or goals. Collaboration - Involves sharing resources with other organizations and individuals to achieve results. Collaboration may involve sharing resource management decisions with others in a new governance structure. Core Services - The classifying of department services based upon established criteria into core, semi-core and service enhancement classifications. Culture - The set of beliefs, behaviors and language that define the City's purpose and presence in the community. Customer - A person who directly receives o r consumes a Department’s services. ePerf – The City of Austin’s online database where current year information of each department’s performance and operations measures is reported. ePerf reports information submitted to the internal CARMA database. ePerf can be reached on the internet using the following url address: http://www.ci.austin.tx.us/budget/eperf/index.cfm. Goals - What the department wants to achieve. IT Challenges - Identified potential problem situations due to technology limitations. Key Indicators – high profile performance measures that effectively measure the department’s business. Managing for Results (MFR) Template - The managing for results template is used by City Departments to develop a mission statement, program objectives, and activity objectives. The template brings together in one statement the name of the Department, program or activity, the service or product provided, the customer and the intended benefit. A sample template: The purpose of the _______________________________ (activity) is to provide/produce _______________________________ (service or product) to _______________________________ (customers) so they can (in order to) _______________________________. (planned benefit)

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Mission - The Department’s mission is a comprehensive statement of the Department’s purpose. The mission focuses on the results the Department will achieve. It defines the Department’s primary customers and identifies the products or services that are provided. The words and intent in the mission statement must tie directly to goals and programs. Operations Measures – Measures used by departments at the division level used to make day-to-day decisions. Performance Measures - The City’s performance measurement system uses a family of measures that includes demand, output, results and efficiency measures. Individually these measures provide important information for making management decisions. Together they provide the performance information essential to manage for results and making good business decisions. Policy and budget decisions focus primarily on results, while the full family of measures enables managers to make good management decisions. Following are definitions of performance measures: • Demand - The amount of services requested or expected by customers of the

activity. • Output - Units of services provided, products provided or people served

through the activity; outputs are counts of the goods and services produced or delivered.

• Result - The impact that an activity or program has on citizens. (Result measures are also known as outcome measures.)

• Efficiency - The unit cost of an output or result. Performance Budget - The City’s performance budget was developed as a method to tie appropriations of City funding to the results achieved by programs. Departments develop the performance budget by determining the cost of activities, which are aggregated together into program budgets. Program - A program is a set of activities with a common purpose that produces results for citizens. Program Objective - A program objective is a clear statement of the purpose of the program. Program objectives are developed using the managing for results template, which includes the name of the program, the service or products provided, the customer, and the intended benefit for the customer. Result - A result is the impact or outcome on the customer. Self-Assessment – Departmental review of performance measures using the guidelines provided in the Resource guide. Services - Deliverables made available to the customer. They are represented as end products and not steps in the process.

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Success Strategy Performance Review (SSPR) - The Success Strategy Performance Review (SSPR) was developed to plan individual performance for the year, track performance over time, and formally evaluate success. The SSPR is the primary tool for internalizing a culture of managing for results within Departments by demonstrating the alignment between individual performance and the achievement of results at the activity, program, Department, and City levels. All individual SSPR’s begin with the Department’s vision, mission and goals and then include the program objectives and activity objectives appropriate for each employee. The performance measures for the individual employee will reflect the performance measures established for the activities and program. Stakeholder - A Stakeholder is the person or group outside of the Department who have a vested interest in the services or products provided by the Department. Stakeholders include customers, i.e. those who receive or consume the service, and those who do not receive the services but who have an interest in the results of the services. Strategic Planning - Strategic planning anticipates long-term emerging trends and issues that may affect Austin. Strategic planning focuses far into the future, usually 5-20 years ahead. Strategic plans are not necessarily tied to the immediate operations, performance or budget of the Department. SWOT Analysis – Identifies the Strengths, Weaknesses, Opportunities and Threats both internal and external faced by the department. Tree Page/Tree Diagram – Departmental organizational chart of Programs and Activities. Vision - A vision describes the desire future state or set of circumstances. It is brief and provides a picture of the future as seen through the eyes of the customers, stakeholders and employees. A good vision statement is one that will not only inspire and challenge, but also be meaningful so employees will be able to relate their job to the vision.

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