Completing the Performance Management System Implementing Productivity Measures
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1 Cmpleting the Perfrmance Management System Implementing Prductivity Measures Ric Brwn, Department f Planning & Budget DB Smit, DMV Pat Finnerty, DMAS Aneesh Chpra, Secretary f Technlgy
2 Gvernr Kaine s Perfrmance Management System Histry and Future 2005 Implemented a new strategic planning and budgeting apprach, including bjectives, measures, and targets; plans linked t budget thrugh service areas Identified 200 agency key bjectives and metrics (v. 2,000 service area metrics) Refined key measures and aligned them with scietal indicatrs; linked budget decisins t perfrmance New prductivity measures will strengthen the relatinship between internal imprvement investments and desired utcme and perfrmance targets. 1
3 Backgrund DPB is charged with ensuring that the perfrmance management system imprves the efficiency and effectiveness f state gvernment peratins. (Chapter 900, 2003 Acts f the Assembly) The Gvernr made perfrmance management ne f his gals. The Gvernr and state agencies have established key bjectives t begin t measure the effectiveness f state gvernment. The next step is t address the efficiency f state gvernment peratins. This is where prductivity measures cme int play. 2
4 What are Prductivity Measures? Prductivity measures are a rati f the vlume f input t the vlume f utput. Example cst per license issued. Fur pilt agencies (DMV, DMAS, DMME and DJJ) wrked with DPB, SOF and COVF t create a guidebk n develping prductivity measures. Each agency shuld develp ne prductivity measure. The measure shuld be tied t a key prcess. 3
5 Imprtant Dates Date Event Jun-08 1-Aug-08 Aug-08 Agency training (1/2 day) Deadline fr agency entry int Virginia Perfrms Cabinet and DPB review and feedback n measures Sep-08 Gvernr s Office review and apprval f measures 1-Oct-08 Prductivity measures live n Virginia Perfrms 1-Oct Jan-09 Agency data cllectin begins First data reprting n prductivity measures due 4
6 Case Study #1: Department f Mtr Vehicles DMV Prductivity Measure Virginia DMV Cst t Renew Vehicle Registratin DMV currently uses Activity Based Csting t mnitr and evaluate its activities fr cst effectiveness. This allws DMV t determine unit csts acrss an array f activities. Vehicle Registratin Renewals represent the highest vlume activity at DMV and impact mst Virginians n an annual basis. Vehicle Registratin revenue primarily supprts Virginia s Highways, but DMV retains $4 ut f every registratin t cver administrative csts. $7.95 Custmer Chice: Majrity chse a cst-effective methd, but thse wh dn t drive up DMV s csts and wait times fr ther custmers $4.81 $3.45 $3.19 Avg: $5.29 $3.19 Measure - DMV will reduce the average cst f cmpleting a vehicle registratin renewal transactin by mving transactins t cst effective delivery channels By Service Center By DMV Select By Mail By Internet By IVR Pursuing cst effective service delivery will supprt tw f DMV s Key Perfrmance Measures: Custmer Wait Time and Custmer Churn Rate Rm fr Grwth: Only 17.8% f all renewals take place ver the web in March, up frm 16.5% in March
7 Case Study #2: Department f Medical Assistance Services (DMAS) DMAS Backgrund Administer Virginia s Medicaid and SCHIP (FAMIS) prgrams Serve 700,000 participants Cntract with mre than 50,000 prviders FY09 budget: $5.8 billin (ttal funds) Gal: Increase electrnic claims and reduce paper claims Prductivity Measure: Cst f prcessing/ adjudicating a prvider claim Numeratr: (Payment t Fiscal Agent + DMAS Admin Csts) Denminatr: Number f Claims Prcessed (Avg. 50 millin claims/year) 6
8 Case Study #2: DMAS (Cnt d) Prcess/Reasns fr Selecting Measure Integral business prcess Efficiencies benefit Cmmnwealth and prviders Measurable metrics We knw we can d better Ties in with Prductivity Investment Fund (PIF) grant t institute webbased claims submissin Hw can Prductivity Measure Help DMAS? Mnitr impact f claims prcessing changes Imprve relatins with key business partner (prviders) thrugh faster/mre accurate payment and less administrative burden Summary: Higher percentage f claims prcessed electrnically equals: Fewer errrs Less Staff time Fewer reprcessed" claims Faster payment Lwer csts 7
9 $MM Invested Prductivity Investment Fund: Seed Capital t Kick-start Innvative Prjects $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Annualized Savings Ptential Base Case $1.40 DGS Wrkfrce system t align staff t demand, t deliver 10% prductivity gains $0.12 TAX $0.80 DMV $1.4M invested DMME ODU t leverage webchannel t expand access 4x at lwer cst $0.02 $0.05 $0.13 TAX 2 TAX 3 $0.73 ODU $2.80 Ttal Prductivity Investment Fund in Brief Capital: Gvernr Kaine established $3M fund in January 2007 t simplify gvernment peratins. Gals: In additin t perating cst savings, PIF encurages agencies t lwer cnstituent transactin time and advance the Gvernr s key perfrmance measures. Prtfli: Acrss tw runds, we have invested $1.4M t fund the fllwing savings initiatives: DGS: Cnslidated Mail Dept f Tax: Image Cash Letter DMV: Wrkfrce Mgmt System DMME: Field GIS Tax 2: Crprate E-File Tax 3: Eliminate Vuchers ODU: VIDEO-D-U Using the base case, the 3-year return per dllar invested is apprximately $6 8
10 Seed Capital t Plan fr Streamlined Enterprise Operatins Ready fr Implementatin Mapping Enterprise Opprtunities By Size f Implementatin Cst A Strategic Investment Healthcare Admin Data Exchange Identity Management A Future Need esignature epayments Ready t Implement VEAP Paperless Gvernment Requires Diligence Size f Savings Opprtunity APA Reprt: Chief Applicatins Officer Addressing IT Gvernance Nvember study expresses cncerns regarding Cmmnwealth apprach t IT Gvernance Chief Applicatins Officer Gvernr Kaine appinted Peggy Feldmann in January, 2008 t wrk with all key stakehlders t address APA cncerns VEAP Applicatins strategy fcused n existing spend and demand gvernance; VEAP partners with lead agencies n enterprise capabilities esignature (DMME, VDOT, DGIF): Paperless Gvernment (DEQ) VEAP - Financials (VDOT, DOA) epayments (Treasury, DOA) $591K $591K investment investment yielded yielded fur fur viable viable prjects prjects including including a a public-private public-private healthcare healthcare partnership partnership Dentes Size f Investment Cst at Full Implementatin 9
11 Virginia s Integrated, Outcme-driven Perfrmance Management System Versin 2.0 Nearly Cmplete Agency Management Practices Effective & Efficient Agency Operatins Prductivity Measures Due in 2008 Management Screcard Virginia s Perfrmance Management System Perfrmance & Prductivity Measures Agency Planning and Budgeting Outcme-Based Key Measures Linked t Lng-Term Objectives Key Measures Cmpleted in
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