Example ofExample of

Maryland Performance ManagementMaryland Performance Management

Neil J. Pedersen, AdministratorMARYLAND STATE HIGHWAY ADMINISTRATION

Fall 2008

Maintains a network of 16,700 lane-miles of road and 2,500 bridges.

3,200 employees at 40 facilities around the state, including seven engineering district offices and 28 maintenance shops.

Quick facts about SHA

Our Mission at SHA is to Efficiently provide mobility for our customers through a safe, well-maintained and attractive highway system that enhances Maryland’s communities, economy

and environment.

Our Vision is Providing our customers with a world class highway system.

1986Total Quality Management (TQM)Focus Areas at that time were Customer Satisfaction, Participation (Participative management and Teamwork), Continuous Improvement and Measurement

1996

Continuous Quality Improvement (CQI)• Focused on continually improving work processes• Reinforced by the concept of CPPI• Created Quality Breakthrough Teams, Quality Circles and Process

Improvement Teams to review our processes and develop ways to do things smarter, faster and at a lower cost.

2002

Performance Excellence (PE)• Built on a solid foundation of Quality at SHA• Based on concepts from the Malcolm Baldrige

Criteria for Performance Excellence• Folds in Strategic Management for Public Agencies,

Managing for Results, and includes concepts found in both TQM and CQI

Performance Excellence Timeline

Combined 7 Baldrige criteria into 5 Vision Areas

Customer Satisfaction

Process Improvement

Business Planning

Workforce Planning

Leadership

PerformanceExcellence

1

3 4 5

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SHA Vision Areas

Leadership

• Leadership development programs– Supervisors, Managers, Advanced Leadership Program

• Leadership competencies– Performance appraisal pilot

• Employee surveys– Questions matched to performance excellence vision – Employee focus groups– Identify process improvements needed– Measure performance of managers (overall leadership

skills, fair practices/equity in treating employees)

1

Business Planning and Performance Measurement

• SHA business plan– Key Performance Area (KPA) councils– Bi-weekly KPA performance reviews– Used for budgeting and resource decisions

• Internal office/district business plans– Link to managers’ individual performance plans– Identified common measures for districts

• StateStat Reviews with Governor’s Staff– Monthly meetings include performance data reports

and discussions on current issues– Accountability across all state agencies

2 4 7

• Internal performance excellence assessments (based on Baldrige criteria)– Use employee survey results, business plan results,

external customer survey results– Three-year cycle

• Office/Districts process improvements and OFI’s* – Self-identified 3-year improvement plan

• SHA-wide process improvements and OFI’s* – Cross-functional process improvements– Employee survey vital few OFI’s* (recruitment,

understanding ethical obligations)

Process Improvement and Management

6

*opportunities for improvement

Workforce Planning and Development

• Business Planning – sets direction• Strategic Staffing - competency needs linked to

business plan key performance areas• Succession Planning

– Focus on maintenance and construction functions– Plans for individual critical positions

• SHA University– Structure accountability and funding for course delivery– Professional development plans (PDP’s) linked to

curriculum• Knowledge Management

– Retention of knowledge linked to core capabilities (traffic engineering, materials)

– Slowly evaluating virtual knowledge sharing on web

4 5

Customer Communications, Service and Satisfaction

• External customer survey– Areas needing improvement aligned with program

funding (litter, pavement quality)• Senior Management Team Strategic Planning

– Data reporting (Customer Care Management System)– Resources and customer response standards– Employee recognition and communication– Website

• Business Plan Objectives– Overall customer satisfaction– Project satisfaction– Stakeholder/ partner satisfaction

3

Implement, Track & Sustain

• Staffed with small division• Business plan bi-weekly reviews• Monthly StateStat meetings• Regular internal assessment cycle• OFI’s tracked• Vision implementation matrixes track activities• Vision implementation plan (VIP) teams• Ongoing focus groups with employees

• Increased use of performance data in resource allocation and policy decision-making– Maintenance activities and operating budget– Safety (DUI Task Force)– Environmental stewardship and compliance

• Measurable process improvements– Reduced hiring time by about 40%– Change orders kept down to 4%; well below the 8%

target– Reduced planning time for sound barrier projects by 3

months• Improved reliability of delivering training classes• Overall Improvement in Employee Satisfaction!

Sampling of Results Achieved

• Tightening link of business plan measures to financial measures

• Emphasis on data controls• Linking future workforce decisions to future

business needs • Using process improvements to better support

IT projects• Cross-referencing OFI’s, processes, business

plan objectives, and workforce competencies to align them

Future Opportunities