Using data to drive performance management Presentation to seminar at University of Exeter Tim...

Using data to drive performance management

Presentation to seminar at University of Exeter

Tim Shepherd-WalwynAdrian Theed

Jan 2012

Agenda

Data, performance and SPC – why it matters How sfn presents performance data Making performance management real – some lessons we have learned Q&A

2 Confidential Briefing ©Lightfoot Solutions 2012

Confidential Briefing ©Lightfoot Solutions 2007

1. Data, performance and SPC – Why does it matter?

Thought for the day


Some thoughts about data and performance

Data are the only facts we have about performance – everything else is opinion We don’t know what we don’t know - but if its there its in the dataWaiting until the data improves is never the right thing to doTo be effective and useful we have to use statistical techniques to analyse dataVisualisation is key to helping most people make sense of data


Data, performance and process

Demand

Process 1

Process 2

Process 3

Process 4

Process n

Output

Process examples – Recruitment, Assessment, Research, Help Desk

Everything we manage to achieve an outcome is a process. Performance data is ‘The voice of the process’


Our approach to performance starts with data, not KPIs

Identify KPIs

Define parameters

/targets

Collect data

Produce RAG

dashboard

Address outliers

The ‘corporate dashboard’ approach

The Lightfoot approach

Collect data

Understand / analyse process

Identify improvement opportunities

Initiate improvement

Monitor effectiveness


The data needs to tell its own story

Don’t know what we need to know. Most important requirement is to be able to ask the next questionOnly restriction should be availability of data attributes Eg Demographics, process steps, location, organisation hierarchy, time etc Data analysis is a dynamic process. Need different metrics for different purposes and at different times.


Underpins all successful performance improvement methodologiesBased on the recognition that

Every process generates information that can be used to measure, control and improve its performanceExperience has shown that variability is the single most important obstacle to consistent and efficient service delivery. Identifying and driving out the root causes of unwanted variability is the single most effective element of any successful service improvement programme

Why is SPC important


Who’s the better shot?

BA

The objectives of performance improvement are:To aim at the preferred value - the targetTo continually reduce process variation - the scatter

What is variability?


Runs

Innings

10

50

60

20

30

40

5 1510 20 25

SPC charts - How good is the batsman?


3. How sfn presents performance data


Empirical not statistical approach to dataInvestigates the whole distributionBased on pre-processing of data using SPC techniquesGives powerful insights into large complex datasetsComplements existing research methods

What is different about sfn?

Pre -processes of data using SPC analysis techniques Benefits


Data structure


University Dimensions & Measures

Dimensions Measures


The way sfn manages performance by signals

Single point outside of norm for seasonal time of year . Drives Dial - tactical action required

upper/lower limits

average

observed data

target

39393590

3241

3300

KPI: eg Crime/Incidents/Trouble Tickets


The way sfn manages performance by signals

No. of incidents2690

2253

2132

1928

No. of incidents

Number

2134

1654

1831

1601

KPI: eg Crime/Incidents/Trouble Tickets


The way sfn manages performance by targets

Set realistic targets - likelihood of achieving future

targets

Predictive analysis – indicative of demand

on resources

upper/lower limits

average

observed data

target

What types of P4 calls? Rise in Software and Counter services – 3* more software calls than Counter Services calls


Example Video Conferencing use - Pareto charts


sfn ‘viewer’


David.Robbins

amend to meet client or sector

Areas to Performance ManageThrough one world of data integration:

Number of graduates in employmentImproving pastoral care to reducing drop out ratesManage Finance and ExpenditureTargeting particular groups or sectorsDiversity of intakeStrengthening particular courses & Improve pass ratesIncreasing the size of endowmentsBetter student feedbackNumber of returning post-graduatesQuality of research work & Flexibility of teachingHR – Staff moral and performanceImproved sporting excellence


Understanding the Process & control points

In order to measure the process you need to understand the process

Why Use A Truly Intelligent Dashboard?

How much more efficient would your organisation be if you couldprovide appropriate up-to-date information that:

• was dynamic at all levels of the organisation • drew attention to when action was required• enabled every process to be understood• allowed empowered decision making at all levels• showed what was normal/not normal across an organisation• allowed drill down to root cause to allow action to be taken

– true Business intelligence using signalsfromnoise® !


5. Making performance management real


The performance management journey – from reactive to proactive

Put out fires when they have already taken hold

Put out fires when they have already taken hold

Seek out small fires and put them out before they grow

Seek out small fires and put them out before they grow

Understand what causes fires and prevent them from happening

Understand what causes fires and prevent them from happening

Explore root causes of fires – redesign processes to avoid fires

Explore root causes of fires – redesign processes to avoid fires

Reactive Defensive Analytical Proactive

Incr

emen

tal P

erfo

rman

ce M

anag

emen

t Cul

ture

Retrospective • Audit based• Top down• Heavy on procedures

and directives• Static culture

Prospective• Based on current data• Bottom up• Heavy on process

and principles• Learning culture


There are three interrelated factors that affect performance

Demand + Capacity + Capability = Performance


Issues-Decisions-Actions is the core concept behind our approach to performance management

Top performing teams use factual information to make decisions that lead to effective actions that result in improved performance:

By removing barriers to good performanceBy identifying opportunities to make process changes and develop individualsBy facilitating best practice sharing between individuals and teams

It’s not measures that make a difference, it’s the actions you take.

It’s not measures that make a difference, it’s the actions you take.

Informationhighlights issues

Decisions on solutions

Actionsimplemented


Getting the Performance Management Structure right is critical to success

Three integrated tiers of Performance Management meetingsLinks top level objectives with issues ‘on the ground’ and vice versaFocus is on Issues, Decisions and Actions at all levels, rather than mere reporting and information sharingTakes place on a regular cycle

Every management meeting is a performance management meeting.Every management meeting is a performance management meeting.


For most organisations a three level structure is most effective

Level 3 – Organisation wide Director of Operations, Heads of Department, Head

of performance

Report to Executive Team and Board

Top down overview of

service

Bottom-up engagement in improvements

Level 2 Department Department manager, Section heads, Performance

analyst

Level 1 Front line team Section head, Team managers


Each level has a defined role and authority

Top down overview of

service

Bottom-up engagement in improvements

Level 3 – Organisation wide - Strategic overview• Sets strategic direction and horizon scans for emerging issues• Oversees effectiveness of process• Approves business plan and current improvement portfolio• Manages implementation of strategic initiatives• Coordinates Level 2 issues and approves ‘bottom up’ proposals

referred up from Level 2

Level 2 – Departmental, Regional or Functional overview• Sets direction and horizon scans for emerging issues• Oversees effectiveness of process• Manages implementation of strategic initiatives• Coordinates Level 1 issues and approves ‘bottom up’ proposals

referred up from Level 1

Level 1 – Team level - Local overview• Monitors emerging performance issues• Initiates ‘bottom up’ change• Implements and monitors strategic initiatives• Refers improvement suggestions beyond its authority to Level 2


It takes about 6 weeks for individuals to ‘get it’

How does this work?

What do we need to decide?

Did anybody take any action?

Have we seen any changes?

It does make a difference

We get it now

Un

der

stan

din

g

Cycles


Introducing performance management is a big cultural issue

The regular cycle of Performance Meetings is the ‘way we do things around here’ for all teamsSenior managers ensure their teams are working to the same Performance management process as they do

Job descriptions and personal objectives reflect this roleImprovement goals are setTeam culture of problem solving needs to be fostered


6. Questions?


Using data to drive performance management Presentation to seminar at University of Exeter Tim...

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