Gubernatorial Commitment to Performance Outcomes And Productivity. The Honorable Wayne Turnage, Chief of Staff to Governor Tim Kaine

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1 Gubernatrial Cmmitment t Perfrmance Outcmes And Prductivity The Hnrable Wayne Turnage, Chief f Staff t Gvernr Tim Kaine 0

2 Virginia s Perfrmance Management System Histry and Future 2004 Management Screcard established 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 Typical Prblems t Overcme in Establishing an Executive Branch Perfrmance Management System Histrical precedent with perfrmance management Past inactins, failures, r false starts ffered n mmentum Limited interest frm Gvernr s ffice Nt a traditinal pririty f mst Gvernr s Executive Branch staff are very adrit at detecting real versus feigned pririties Lack f familiarity with the subject matter Terms such as utcme-based metrics, prductivity measures, and lng-term indicatrs are nt the nrmal lexicn f State gvernment 2

4 Gvernr Kaine Established Several Key Gals t Guide the Develpment f the System Pririty: Made clear t the State bureaucracy that this was the Gvernr s tp pririty fr the peratin f Virginia Gvernment Simplicity: Kept the system simple and externally fcused limited number f measures and made them utcme-fcused Legislative Invlvement: Enhanced and encuraged the invlvement f key members f the General Assembly Permanency: Nw wrking n institutinalizing a prcess t ensure the lng-term viability f the system 3

5 Establishing the Imprtance f Perfrmance Management The Gvernr created an internal perfrmance management team in his ffice with strng invlvement by the Chief f Staff Cnsistently emphasized with agency heads that perfrmance management is his number ne pririty: Met with every agency head t discuss the imprtance f an utcme-based system Persnally reviewed and cmmented upn every agency key metric Held meetings with the Cabinet ne-year later t review perfrmance Tied budget decisins t perfrmance in his tw-year budget ( ) 4

6 Measures Were Reduced in Number With a Fcus n Outcmes Ttal Key Measures Statewide = 214 (Previus number exceeded 2,000) Prcess Measures 33% 67% Agriculture 100% Cmmerce 73% Admin. Ed.. 58% 47% Finance 50% HHR Natural Resurces 83% 83% Public Safety 53% Transprtatin 76% Outcme Measures Nte: There are five key measures in Technlgy and all are utcme based. 5

7 Gvernr Enhanced Relevance f System by Using Measures t Infrm Budget Decisin-Making 6

8 Cmpleting the Perfrmance Management System Implementing Prductivity Measures 7

9 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 has develped ne prductivity measure which is tied t a key prcess. 8

10 Case Study #1: Divisin 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

11 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) 10

12 Case Study #2: DMAS (Cnt d) 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 11

13 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 12

14 Virginia s Integrated, Outcme-driven Perfrmance Management System Versin 2.0 Nearly Cmplete Best Agency Management Practices Prductivity & Perfrmance Measurement System Prductivity Measures Due in 2008 Management Screcard; Prgram Evaluatin Efficient and Effective Operatins Perfrmance & Prductivity Measures Agency Planning and Budgeting Outcme-Based Key Measures Linked t Lng-Term Objectives Key Measures Cmpleted in

15 Gal Is T Make Plans t Institutinalize the System Establish a high level f visibility fr the prgram Make a big deal f it in the media Deliver n the prmise f transparency Find a hme fr the prgram that is NOT the Gvernr s Office Hld agencies accuntable fr perfrmance Require regular reprting f utcmes Hld regular perfrmance review meetings Strengthen linkage f the system t budget decisin-making 14

16 Cncluding Remarks On Perfrmance Management and Prductivity Gvernr Kaine s leadership fr perfrmance management fcuses n three cre themes: Put results first - Are ur public investment decisins tied t meaningful scietal gals and evaluated thrugh a fcus n utcmes? Openly assess prgress - D we emphasize transparency and prductivity in ur peratins and prmte accuntability? Encurage psitive change and lng-term sustainability - Are we prviding the right tls and incentives t prmte innvatin and prductivity imprvement? Mving tward this visin fr perfrmance management is a lng-term prcess that requires engaged leadership 15

17 Operatinal Reviews 16

18 Cmmnwealth Operatinal Reviews Cncept initiated in February 2007 Inspired by the effrts f the Virginia General Assembly Cst Cutting Caucus and Executive Branch prgress in frmalizing and implementing perfrmance management thrughut the Cmmnwealth ( Operatinal Review Oversight Cmmittee frmed: Delegate Chris Saxman Senatr Emmett Hanger Secretary f Finance Jdy Wagner Jb f Cmmittee review, revise, and recmmend changes t peratin f State Gvernment 17

19 Eleven Operatinal Review Teams Established Teams frmed arund peratinal tpics cmmn t nearly every agency/institutin in State Each team is c-chaired by members frm the Huse f Delegates and Senate, and staffed by vlunteer experts frm the Executive Branch and private sectr Purpse was t prmte higher levels f state gvernment perfrmance, transparency and csteffectiveness in its service t the citizens f Virginia. 18

20 Tpic Areas Reviews initiated in February 2007 (11) Why these? Energy Water Slid Waste Real Estate Fleet Mgt Travel Cmmunicatins Return-t-Wrk Printer/Cpier/Paper Mail Receivables Crss-cutting, fundamental t all agencies Where single ideas, well-shared, can be leveraged acrss a gvernment enterprise fr greater perfrmance and cst-effectiveness 19

21 Reprt Requirements Identify verall csts and cst drivers Identify use (r lack) f best practices Determine whether size is leveraged as a custmer in the market Make recmmendatins fr change that will facilitate a higher perfrming and mre cst effective Virginia State Gvernment 20

22 Study Prcess Teams received guidance frm legislative c-chairs Teams cnducted research and drafted reprts Reprts reviewed and apprved by Legislative cchairs Reprt sent t Operatinal Review Oversight Cmmittee fr actin (OROC) OROC sent reprts t Kaine Administratin fr actin 21

23 Prcess Did Nt Prduce Useful Reprts Reprts were plagued by a number f prblems Ambitius research questins Insufficient data t address questins Pr methdlgical designs Unprven assumptins Ntable exceptin was mail prcessing study Recmmendatins are being implemented by DGS Cst savings have been prduced 22

24 Next Steps Refine reprts where pssible Cllect additinal data Enhance methdlgical designs Lk fr real cst saving pprtunities 23