Measuring Up! Performance Measurement for Economic Development
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1 Measuring Up! Performance Measurement for Economic Development Ontario First Nations Economic Development Association August 26, 2015
2 Training Objectives To describe what performance measurement is and why it is important To provide a step-by-step systematic approach to putting performance measurement into action To apply the ideas to your work examples and share experiences amongst participants 2
3 What is Performance Measurement? It is a process to manage the performance of your implemented plan by assessing its outcomes It helps to answer: How will we know when we get there? How will we know when we reach our desired outcomes? How will we know if we do well and are on track? 3
4 Why is Performance Measurement Important? Airline Story Good Use of One Measure 4
5 Why Performance Measurement? Increases accountability Informs decision-making Demonstrates changes over time Builds momentum and buy-in among stakeholders. 5
6 Survey of Economic Development Professionals Did your Economic Development plan have measurement? 57% No or Not Sure Do you feel that performance Measurement would help your overall economic development role? 77% Extremely Helpful 6
7 Performance Measurement Challenges Too many goals and objectives in your plan Desired outcomes are not agreed upon Starting with measures in mind rather than outcomes Trying to measure everything or data overload Building a culture for measurement Not sharing or communicating the benefits 7
8 Inputs Activities Outputs Outcomes Some Key Terms for Performance Measurement 8
9 Differences in Measures Inputs Activities Outputs Measures of Execution Efficiency Outcomes Impact Measures of Change Effectiveness 9
10 Family Vacation Example Inputs Activities Outputs Outcomes Flight schedule Family schedule Weather Budget Create family schedule Get flight information Buy tickets Tickets for all family members Family arrives at hotel Family members enjoy vacation Continued good family relations Book taxi and hotel 10
11 Why Focus on Outcomes? Defining and agreeing on desired outcomes is an important early step in the strategic planning process Outcomes are what we expect to see as a result of implementing activities or programs Outcomes provide the basis on which we allocate resources, design activities and identify target client/sector Achieving outcomes is why you do all the activities that you do 11
12 Examples of Outcomes and Related Measures Outcomes Creation of good jobs Well educated workforce Increased competitiveness An expanded or diversified business sector Improved innovation capacity Measures Increased employment numbers in certain occupations or industries Improvement in the educational attainment level among working age adults Amounts of export and/or trade activity Number of new business starts New products and/or production lines Level of patenting or new product development 12
13 High Attribution and Control Medium Low Outputs Short-term Midterm Long-term Outcomes 13
14 Performance Measurement Resources: Measuring Up! Awareness and common terminology. A step-by-step systematic process supported by scenarios and templates. 14
15 15
16 16
17 Performance Measurement in Strategic Planning Strategy Formulation Who are we? Where do we want to go? What does success look like? Mission and Vision Outcomes / Goals Performance Measurement How will we get there? Strategies What shows that we got there? Key Performance Measures Where did we start and how far do we want to go? Baselines & Targets What do we need to do what we want to do? Resource Allocations 17
18 18
19 Building Culture for Performance Measurement Involve & Engage Outcomes Monitor & Communicate Sense of ownership Loyalty and Commitment Providing a stake in the outcome Strengthen accountability Effect positive behaviour 19
20 Understanding the Human Dimension of Change Change Advocates (2-10%) Supporters of the Change (20-30%) (Potential) Allies (30-60%) Resisters of Change (15-40%) 20
21 21 Focus
22 22 If you don t know where you are going, you might not get there. Yogi Berra
23 23 Create a Logic Model
24 24 Logic Model Example 1
25 25 Logic Model Example 2
26 A Logic Model for Local and Regional Collaboration MED-TERM OUTCOMES LONG-TERM OUTCOMES 26
27 27 Logic Model Template
28 Logic Model Exercise 1. Working in pairs, decide on an economic development project example from your work to use to complete one logic model together 2. Using the blank template provided, fill in the ultimate long term outcome(s) for this project at the top 3. Note any intermediate or short term outcomes to achieve before you will reach your long term outcome 4. Note activities that will be done and what the outputs of these activities will be that will lead to the outcomes 28
29 29
30 What is a Performance Measurement Framework or Plan? It is a detailed plan for the performance measures aspect of your economic development strategy It includes details on data collection It is used for monitoring a changing environment in order to adjust and adapt your plan as needed It is a continuous process It is planning for success 30
31 What to Include in Your Performance Measures Plan/Framework Identify expertise and who is measuring Identify measures for each desired outcomes Decide on the methodology Identify sources of data Note who is reporting and to whom Determine frequency for reporting Obtain your baseline Decide on your performance targets Identify the keepers of the plan and data 31
32 32 Developing A Performance Measurement Plan
33 33 Short Listing Measures Template
34 34
35 Types of Measures Quantitative Numbers($, Qty) Rates (%) Ratios (2 to 1) Qualitative Anecdotal Informal The success story 35
36 Things to Note for Each Performance Measure The outcome that is being measured A description of the measure The rationale for using it Who will be responsible to ensure that the measuring gets done Who will be the one gathering the measurement data The methodology and source of data used for measuring The source of data for the measure Who the audience is (internal, external or both) How frequently or how often the measures will be reported The baseline or initial measures data The benchmarks or points of comparison The target or specific measure that will indicate success 36
37 Baseline, Benchmarks and Target Setting Baselines measures are the starting point measures needed before you implement your projects to be able to measure change Benchmarks are measures gathered from other similar projects or communities as a comparative reference for your measures Based on baseline measures and benchmarks, targets are set in terms of measures you hope to achieve 37
38 38 Template for Each Measure
39 Some Data Sources What are primary versus secondary sources of data? What are some examples of primary data you have collected? What are some examples of information you already have available that you are collecting? What are some other sources of secondary data? 39
40 Things to Consider When Reporting on Performance Measures Are you reporting: to different audiences needing different information at different frequencies? in an understandable format providing consistency in reporting for year to year comparisons? results in a timely manner? on valid and reliable data? 40
41 How to Break through the Performance Measure Barriers Embed performance measurement into organizational culture Recruit and engage senior leaders Communicate the purpose of performance measurement Ensure performance information drives continuous improvement Encourage stakeholder participation Train and educate stakeholders 41
42 Thank you! Questions? Vicki Luke Agriculture and Rural Economic Development Advisor Ministry of Agriculture, Food and Rural Affairs
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