1. Performance Management Overview
Pennsylvania Banner Users Group 2008 Fall Conference
Performance Management Overview
# of ODS clients
# of EDW clients
Role
IT?
User?
Who am I?
Mike Salisbury
BPRA Product Manager
SunGard Higher Education
1546 1

2. Topics Why Performance Management? What is Performance Management?
What is a Key Performance Indicator (KPI)?
What is a Scorecard?
What is a Dashboard?

3. External Pressure to Perform
Policymakers highlight six key performance challenges for higher education today:
LEARNING OUTCOMES
Measure and report student progress and learning outcomes; perform research that benefits society
PROGRAM EFFECTIVENESS
Respond to learner, market and workforce needs with appropriate programs and services
COST MANAGEMENT
Stabilize operating costs; increase productivity; grow income or revenue
ACCOUNTABILITY
Let’s talk about some of the forces exerting pressure on US higher education institutions to address performance and accountability issues.
Drawing from the collective work of education policymakers, we can sum up the spectrum of pressures facing higher education with six key performance obligations expected of institutions, in the areas of accountability and access.
Learning Outcomes: Measure and openly report learning outcomes in ways that permit comparisons among peer institutions.
Specific examples: Improve retention and graduation rates. Measure student learning and benchmark the results with peers. Assess using independent instruments, such as the Collegiate Learning Assessment.
Program Effectiveness: Respond rapidly to economic development and workforce needs with appropriate degree and certificate programs.
Specific examples: Public and nonprofit higher education can do better at offering degree programs at the capacity required to meet local, state, and national needs for school teachers, health-care professionals, engineers, scientists, IT professionals, etc.
Cost Management: Reduce or stabilize per-student operating costs (to increase institutional productivity).
Specific examples: Per-student operating expenses have been increasing at an unsustainable average annual rate in the 4%-5% range. While productivity has risen for years in almost all sectors of the economy, higher education’s productivity has decreased.
Affordability: Reduce or stabilize inflationary tuition increases to keep college affordable to all qualified students.
Specific examples: The average annual increase in tuition has exceeded the Consumer Price Index for years, making it difficult for lower and middle income students to afford college. Because higher education tends to focus on revenues rather than costs, they also tend to focus on replacing public revenue shortfalls rather than increasing productivity to control tuition inflation.
Convenience: Offer students more convenient, flexible options for accessing education and completing a degree or certificate. Meet expectations of students, alumni and other stakeholders for how they engage with your institution, get information and services, and benefit from a lifelong relationship.
Specific examples: Because of work and family responsibilities, transportation, and other limitations, a growing number of non-traditional and part-time students can’t pursue higher education unless their programs maximize online self-service instruction and student services, as well as real-time electronic access to faculty and staff. Even residential students expect the convenience of “flex” programs and services.
Capacity: Manage the number, quality and diversity of your student body in response to demand. Provide more and better services to a wider audience.
Specific examples: Bottleneck courses and programs where demand exceeds the number of seats available. Limitations in faculty and classroom capacity. Increasingly diverse students bring diverse needs that higher education needs to support. Meet the challenge of providing information and services to a variety of audiences: prospective and current students, employers, families, alumni, staff members, faculty members, friends and community, etc.
Do any of these challenges look familiar to you or to parts of your organization? Most or all of them probably do, because these are all basic, essential business challenges for virtually every college or university.
AFFORDABILITY
Keep college affordable for all qualified students; optimize financial aid and pricing strategies
CONVENIENCE
Offer more flexible options to access education, complete degrees, and engage learners
CAPACITY
Manage enrollment, diversity, and demand; reach more people, more effectively
ACCESS

4. Information Needs are Crucial and Pervasive
Information and business intelligence required to address key performance challenges:
Executives: monitor progress towards strategic plan and institutional goals
Administrators: increase departmental effectiveness, manage costs and monitor day-to-day operations
EM/Admissions Officers: improve yield and monitor progress towards recruitment goals and objectives
Registrars/EM/Student Services Officers: improve student engagement, retention and persistence
Advancement officers: measure the progress and effectiveness of their fundraising programs
Institutional Research: guide institutional planning and to support reporting and compliance
IT: meet stakeholder needs for enterprise intelligence and reporting 4

5. Improving Performance Requires Organizational Alignment
Align the organization to strategic goals
Link managerial action to accomplish those goals
Align budget requests and funding to the desired outcomes
Leaders Are Focused on Difficult Strategic Issues
Monitoring ongoing effectiveness of recruitment campaigns
Matching enrollments with institutional programs
Recruiting best qualified applicant pool
Responding to demand for increased accountability
Leaders Have Strategies to Solve These Issues
Strategies identify goals, objectives and desired outcomes
Execution of strategy is essential for success
Supporting these efforts requires an agile and adaptable management structure. As in business, the chal­lenge lies in creating structures that allow for sufficient control at the top but leave enough autonomy to support the unique and sometimes divergent academic missions of each unit.

6. What is Performance Management?
A disciplined approach to understanding, monitoring and managing drivers of performance of organizations.
It leverages performance management methodologies and business intelligence capabilities.
“Performance Management is a focused and specific type of BI initiative when it integrates performance management users, processes and metrics with analytic applications and the underlying BI platform and infrastructure.” – Gartner Group
So what does this mean to a institution?
Technology is considered a tool that enables strategic planning, but requires significant planning and processes to be in place to be effective
"Performance management" initiatives, such as a stand-alone
balanced scorecard initiative, sometimes exist outside the realm of an overall BI strategy.
However, this approach usually struggles to drive performance management into day-to-day
operations because of the lack of any integration with the systems used to manage performance
at an operational level. As a best practice, organizations must consider BI and performance
management together to emphasize the need for organizations to consider the broader vision and
portfolio of pervasive BI, and to reflect the increased focus and interest on performance
management.

7. What is Performance Management?
Clarification of vision and strategy across silos
Translation of strategy into operational terms using scorecards
Comprehension and alignment of multiple perspectives, all of which are vital to the institution
Alignment of internal activities with the strategic plan
Fostering employee abilities and commitment to objectives
Defined measures of performance and target called key performance indicators
Driving Decisions Based on Data
Easy accessibility to “single version of truth” by all information consumers using BI technologies such as dashboards
Line-of-sight across business processes to the status and trends key performance indicators
Culture of using information in the planning and decision-making process
 Clarification of vision and strategy across silos
Translation of strategy into operational terms using balanced scorecards and strategy maps
Comprehension and alignment of multiple perspectives, all of which are
Alignment of internal activities with institution mission and strategy
Fostering employee abilities and commitment to objectives
Defined measures and targets
Leveraging of Business Intelligence tools
Easy accessibility to “single version of truth” by all information consumers
Multidimensional view of information, scorecards, dashboards
Trend analysis, alert mechanisms

8. Business Intelligence Needs for Performance Management
EXECUTIVES:
Need visibility into progress towards our goals, objectives
“Am I achieving my goals?”
Performance data
Scorecards,
Executive Dashboards
MANAGEMENT:
Need timely trends, summaries, analytics of our operations
“How am I doing?”
“What should we be doing?”
Trend, summary data
KNOWLEDGE WORKERS:
Need to analyze trends and root causes
“Why is this happening?”
Operations Dashboards
Analysis Tools
The common component to measure, account for and improve performance is timely access to accurate information. These means access to information that contains details for staff while providing summary information, trends, and analytics for operations to management and visibility into progress towards institutional goals and objectives at the executive level.
Scorecard
Network of metrics, thresholds, history, and accountabilities that connect strategy to individuals
– “Am I achieving my goals?
OLAP Analysis
Analyze trends and root causes by ad-hoc data navigation
- “Why is this happening?”
Dashboard
Compound, visual report
– “How am I doing”
Reporting
Summary report
– “What is going on?”
- “What do I need to do?”
Higher Education is facing a variety of pressures that tie to how well institutions measure, account for, and improve performance. The common component to measure, account for and improve performance is timely access to accurate information. These means access to information that contains details for staff while providing summary information, trends, and analytics for operations to management and visibility into progress towards institutional goals and objectives at the executive level.
It is information that can be transformed into the information needed at all levels of the institution while providing the tools for detailed drill down.
STAFF:
Need detailed reports in many formats and ad-hoc access
“What is going on?”
“What do I need to do?”
Detailed data
Detail Reports
Basic Report Tools

9. Performance Management Process
Review and Plan
Performance
Information
Because Higher Education has so many complex and inte­grated management processes, it could derive more bene­fit from responding to the implications of Business Performance Management for structuring its information structures than would their business counterparts.
The central circle of insight, the shared information in the Business Performance Management diagram, represents the key to real informa­tion flow.
We pull information out, manipulate it and create something new, and finally, put this new information back
note that the flow arrows in the Business Performance Circle point in both directions, we see the indications of a continuous collabo­ration of information consumption and supply. In fact, management activities rarely proceed in an orderly fash­ion or in any one linear direction.
Report and Analyze
Monitor and Measure

10. PM Process Example: Recruiting and Admissions
Review and Plan
Enrollment Levels
Campaigns
Financial Aid Levels
Performance
Information
Report and Analyze
Monitor and Measure
Yield rates, Trends and Causes
Campaign Effectiveness
KPIs vs. External Benchmarks
Track Enrollment Funnel
Recruiting programs
Budget Execution

11. PM Process Example: Advancement Campaign Management
Review and Plan
Budget Expectations
Fund-Raising Campaigns
Capital Campaign Targets
Performance
Information
Report and Analyze
Monitor and Measure
Accounts to Donors
Financial Statements
Variances and Trends
Spending Patterns
Campaign Effectiveness
Budget Execution

12. PM Process Example: Grant Management
Review and Plan
Grant Budget Expectations
Indirect Cost Recovery Rates
Grant Expense Timing
Performance
Information
Report and Analyze
Monitor and Measure
Effectiveness/Burn rate
KPIs, Trends and Variance
Granting Agency reports
Proposal pipeline
Grant Spending
Indirect Cost Recovery

13. Performance Management Example
Profile
Land grant institution
Carnegie Doctoral/Research-Extensive
4 affiliated community colleges
Headcount 26,000
FTE 16,500
Banner UDC client
Banner Data Warehouse (ODS, EDW) client
Performance Management Challenges
Strategic plan lacked benchmarked performance metrics and link to budget allocation process
Instruction and General budget process driven by state appropriation incentives received
Multiple years of flat enrollment
Absence of budget reallocation mechanism

14. Performance Management Example
Strategic Budgeting
Develop base budget at a percentage of actual revenue produced
Reserve unallocated revenue for strategic growth investments
Increase unrestricted revenue independent of operating costs
Instructional Planning
Link college budgets to instructional credit revenue
Examine faculty workload and use of adjunct faculty
Align quantity of faculty positions to departmental workload
Focus budget allocation on enrollment growth and management goals
Compensation Budgeting
Benchmark compensation to peers
Evaluate financial impact of union proposals
Examine and forecast benefit costs
Benchmark budgets to peers
Examine faculty and staff compensation for equity
Research Strategy
Review research revenue, subsidies and the support it provides for administration and growth of institution
Examine cost share, cost recovery, research workload and student support provided
Total Revenue
Operating revenue (includes GASB non-operating revenue)
Other revenue (capital, gain on permanent endowments)
Operating Revenue
Restricted operating revenue (gifts, grants, contracts, federal appropriations)
Unrestricted operating revenue (state appropriations, tuition and fees, sales and service, indirect cost recovery)
Unrestricted Revenue – 54% of total revenue
State Appropriations - 57%
Primary (Instruction, Academic Support, Student Services, Institutional Support, Operations/Maintenance)
Earmarked (Research, Public Service, Dept Agriculture, Athletics)
Tuition and Fees - 20%
Sales and Services - 13%
Indirect Cost Recovery - 5%
Other Revenue – 5%
State Appropriations for Instruction
Nine factor matrix
Lower, upper, graduate division
Tier 1/2/3
Ranges from approx $125/hr to $1500/hr
Enrollment-based increases require either a 3% increase in student credit hours or workload dollars generated from the base year
Enrollment-based decreases require a 5% decrease in student credit hours from the base year
Salaries and benefits are 65% of operating expense
Benchmarked analysis of all staffing structures
Full compensation review in progress
Review of fixed costs and appropriate funding sources
Hold budgets to revenue-based allocations
Freeze I&G support budgets pending workload adjustments

15. Metrics
OK – I know I want performance management, but what should I measure?

16. “What gets measured, gets done.”
What is a “KPI”?
Viability/Productivity
! EFTS demand, total and first year. Retention
Quality
! Demographics: Student intake quality. Geographic origin
! Academic Performance: Clearance rates/progress rates and completion
! Programme income and costs
! Progress to employment and further study
! Student satisfaction/course experience
Smyth, AAIR Conference
Division Level
! EFTS
! Income and expenditure
! $ Resource use
! Productivity of space
! Academic FTE
! Number of classes taught and class size
Research
! Publications and premium publications
! Research contract income
! Thesis supervisions
! Subject evaluations
! Pass rates
To these, we add some institutional indicators – such as assets per EFTS and market share – together
with some benchmark data derived from annual reports and Ministry of Education statistics. We also
look at indicators of performance in support units.
“What gets measured, gets done.”

17. 10 Characteristics of Effective KPIs
Aligned
Always aligned with your institution’s strategy and objectives
Owned
Someone must be accountable
Predictive
“Leading” indicators of desired performance
Actionable
Timely data, providing owners and managers with opportunities to intervene and impact
Easy to understand
Definition, trends and status should be obvious to user
The literature abounds with good advice on the construction of PIs.6 A balanced set of KPIs will:
! include key non-financial measures, as well as financial;
! be derived from the organisational mission and strategy and from the objectives that flow from
them;
! be detailed, relevant, reliable, understandable, valid, readily updated;
! be focussed on critical success factors;
! be within the power of the unit concerned to influence;
! be results-oriented and able to guide improvements;
! be few enough to be manageable; and
! be many enough to embrace the diversity of the organisational critical success factors.7
There is a balance to be struck between complexity and simplicity
Source: Performance Dashboards, Eckerson

18. 10 Characteristics of Effective KPIs
Few in number!
Too many = loss of focus
As few as reasonably possible
Balanced and linked
KPIs should balance and reinforce each other
Don’t create KPIs that undermine others
Trigger changes
Measuring should enable insight leading to positive changes
Standardized
Calculations, numbers, assumptions should be the same across the institution so that metrics can be compared
Context driven
KPIs tailored to user roles and their processes
Provide targets and trends to see where you are and in what direction you’re headed
Exaxmple: maybe 20/1 is the right faculty/student ratio? Maybe 19/1 is better but at some point the cost to achieve that skyrockets while the service you’re providing may not imporve
Data without context is meaningless- for example if you just compare
Retention between one institution and another it’s not going to give
You the whole story because the profiles of the student population aare
Relevant too (part-time vs. full-time, % that work,
socioeconomic status)
Source: Performance Dashboards, Eckerson

19. Pitfalls of KPIs Less is more Have one version of “the truth”
Too many metrics will cause metric overload and nobody will use them
Have one version of “the truth”
Indicators need to be looked at as a group
Cannot focus on one area at expense of others
People start making decisions that undermine other KPIs
Performance indicators don’t tell the whole story
Show trends but not why trend is occurring
Be wary of simplistic comparisons
Explore the drivers of performance for comparative insight
Longitudinal analysis more robust than lateral comparisons
Performance indicators cannot tell the
whole story. Certainly, an indicator will rarely tell you WHY a trend is occurring. Rather, it will tell
you THAT the trend is occurring. To find out why requires an altogether different type of process.
Here is a (non-exhaustive) list of aids to interpretation:
! An indicator, however well constructed, can tell you only so much. Do not mistake the
performance indicator for the performance itself. An indicator is just that; a window to a slice of
a process. In most cases, performance in the process as a whole is best assessed by reading the
whole basket of related indicators.
! Valid comparisons can be made laterally – between institutions or between units – only provided
the definition of the underlying data elements is consistent. But be wary of facile comparisons;
there will be drivers of performance that qualify simple comparatives and these need to be
explored and articulated if comparison is to be meaningful. Comparisons are much more robust if
they are longitudinal, rather than lateral.
! Someone involved in PI analysis and interpretation needs to understand the processes used to
collect the data elements so as to be aware of the extent to which (for instance) process changes
subtly alter data, so as to contribute cognisance of the robustness of the data elements and so as to
ensure that comparisons are made with due care.
! Remember that PI will not tell the whole story. It is conceivable that good PI measures could
mask weakness. There is a danger that managers could manage to PI, not for performance.

20. KPI Example
Graphic display of progress towards plan, goals, objectives
How many applicants have we received compared to our plan?
Is the number of applicants with ACT > 26 less than expected?
How close are we to our target for Nursing Program applicants?
Numbers specifically selected to match your teams strategy

21. Scorecards and Dashboards
OK – I know my KPIs, but how do I monitor our status and progress on achieving our goals and targets….

22. Scorecards vs. Dashboards
Monitor the execution of strategic objectives and initiatives
Network of metrics, planning targets, thresholds, history, and accountabilities that connect strategy to individuals
Often deployed using a formal methodology such as the Balanced Scorecard
Emphasize collaboration
Dashboard
Compound view of performance information made up of scorecards, graphs, and summary views
Monitor overall performance daily at a glance
Provide data visualizations of performance status and trends
Personalized for user
The sweet spot for dashboards tends to be in the aggregation and monitoring activities. Users have the ability to look at an intuitive visual report (dashboard) with a range of charts, maps and gauges that provide drill down and drill through capabilities.
The scorecards provide the ability to truly measure and manage the key performance indicators. Organizations can assign targets and owners to every metric. They can then begin to manage improvement through history trends, strategy maps and cause and effect diagrams that highlight relationships between metrics and objectives.
Both provide data navigation and analysis capabilities so that users can quickly analyze root causes and effects as well as identify the impact of performance problems

23. Scorecard Example Begins with institutional plans
Performance measures identified to monitor progress

24. Scorecard View
Goals, objectives, performance targets configured into Scorecard
Assessment of progress provides visibility into performance
Executives <click> on a goal or objective to learn more about related performance outcomes and key initiatives
Goals
Graphic display of progress towards plan, goals, objectives
How many applicants have we received compared to our plan?
Is the number of applicants with ACT > 26 less than expected?
How close are we to our target for Nursing Program applicants?
Numbers specifically selected to match your teams strategy
Objectives
Assessment of progress towards goals and objectives

25. Scorecard Example
Objectives enable executives to monitor progress towards related Key Performance Indicators (KPIs) and initiatives
Graphic display of progress towards plan, goals, objectives
How many applicants have we received compared to our plan?
Is the number of applicants with ACT > 26 less than expected?
How close are we to our target for Nursing Program applicants?
Numbers specifically selected to match your teams strategy

26. Scorecard Example
KPIs have targets, actuals, assessments, management comments
Actual values loaded from data warehouse foundation
Drill-down to reports and analytics
Graphic display of progress towards plan, goals, objectives
How many applicants have we received compared to our plan?
Is the number of applicants with ACT > 26 less than expected?
How close are we to our target for Nursing Program applicants?
Numbers specifically selected to match your teams strategy

27. Scorecard Example
Initiatives and Milestones Are Also Monitored

28. Dashboards Different dashboards for different purposes and user types
Strategic
Executives, managers
Tactical
Managers, analysts
Operational
Supervisors, specialists
What key areas require attention?
What are the contributing factors and effects?
Where are the problems focused?
Who is effected?

29. What Makes a Good Dashboard?
Fits Role of Target User
What are the most important business questions they need to answer?
What KPIs are they accountable for?
How much time is spent on monitoring vs. analyzing vs. collaborating?
Meets performance monitoring needs
What is the time horizon they monitor (hourly, daily, year-over-year)?
Which KPIs are leading (process) vs. lagging (outcome)?
What is the highest meaningful level of detail?
Provides easy data navigation/analysis
What type of visualization or chart is appropriate for the user?
Which KPIs should have their trends compared?
What is the lowest level of detail needed to analyze cause-effects?
Dashboards are not one size/fits all
Dashboards need to be tailored and flexible

30. What Makes a Good Dashboard?
Monitor overall performance at a glance
Multiple charts provide coverage of all KPIs
Charts highlight good and bad performance exceptions
Data is refreshed at required frequency
Navigate and filter data to analyze trends
Population filters are simple to apply and shared
Drill-down navigation paths are intuitive
Level of detail required for cause-effect analysis available
Support for collaborative, data-driven decision-making
Views and analysis can be shared
Level of detail for taking corrective actions available
Dashboards are not 4 reports on a page
Dashboards need to be dynamic

31. Dashboard Example Personalized view of KPIs
Multiple charts provide status at-a glance
Leading and lagging indicators of performance
Common KPI and business rules definition
This is meant to look like a dashboard, also an example. You can see the needles on the gauges, and a red/yellow/green area indicating where that is. Dashboards tend to be used where performance is dynamic. An example may be a call center with call wait time. If the average should be a minute or less, but the dashboard may show that measure on a daily basis to see how things are going.
Consider: there may be strategic, tactical and operational performance management. The dashboard is more tactical.
Dynamic charts along with data drilling navigation to analyze trends further

32. Good Performance Management Solutions
Aligns the organization
Strategy has driven development of objectives and measures
Common KPI definition with shared dimensions
Monitors Key Performance Indicators (KPIs) of both strategic and operational performance
Sets targets for measures that are achievable
Enables understanding of what’s important and what’s changed
Promotes proactive versus reactive decision making
Crystallizes “single version of the truth”
Reduces time and effort required to answer ad-hoc questions
Exposes business trends sooner and supports shortened decision cycles
Allows management by exception
Based on data warehouse foundation
Reduce risks to development and deployment
Acceleration of ROI
Designed for analytics performance
Use of architecture best practices for scalability and extensibility

33. Our Unique Solutions
SunGard Higher Education understands these emerging performance obligations and related information requirements
We offer multiple levels of solutions for accessing, managing and analyzing key performance data for institutions of Higher Education
Banner Data Warehouse Solutions
Packaged Performance Management Solutions
Banner Performance Reporting and Analytics is our foundation that enables all levels of staff to create their own reports, analytics and ad-hoc queries
Creates a single version of the truth - pre-built data integration with Banner provide data integrity, security, quality, and accuracy. Create a single, trusted source of institutional data enterprise-wide, quickly and easily.
Designed for Higher Education - data warehouse configures data to answer key questions across wide range of institutional processes. View your performance from summary through to detail, from any perspective, or across departments.
Short time to results - rapid deployment gives you answers to key questions in the shortest time, provides quick wins and minimize impact on your infrastructure
An institution-wide solution that can be implemented in phases, all at once or just for a single organization or business function.
WSU Peer clients
Auburn
Mississippi State
Colorado State
Purdue
Texas A&M
Tennessee Board of Regents, system

34. Performance Solutions Bringing Value to All Levels of the Institution
Data
EXECUTIVES
Scorecards for
Performance Management
MANAGEMENT
Dashboards, Reports and
Analytics to Monitor Progress
Trend,
Summary
Data
KNOWLEDGE WORKERS
Ad-hoc analysis tools to identify
and understand trends
Detailed
Data
STAFF
Production reports and
ad-hoc access for
daily operations 34
March 28, 2017
Confidential and Proprietary Information – SunGard Higher Education, Inc

35. Open to the Floor
Questions
Comments

36. SunGard Higher Education
Thank You!
Mike Salisbury
Product Manager
SunGard Higher Education