1. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 1 TAIEX Workshop on Financial Management in Judiciary Kiev 23-24 March 2011 Performance Based Court Management and Funding Dr Axel G Koetz Kiev, 24 March 2011 This Document is complete only together with the oral presentation; use of isolated pages might lead to misunderstandings. Questions: Dr Axel G. Koetz, Managing Partner, KPI Management and Policy Consultants Unicenter 2920, D-50939 Cologne, axel.koetz @ koetz-ag.com, Tel/Fax +49 (0)221-9411801 / 05

2. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 This presentation refers in part to results of work generated by the author during the Project Dr Axel G Koetz, KPI International Management and Policy Consultants, Unicenter 2920, D-50539 Cologne Germany, axel.koetz@koetz-ag.com KPI  Management and Policy Consultants ACCOUNTABILITY AND EFFECTIVENESS OF UKRAINIAN JUDICIARY FUNCIONING: Civil Service Component EuropeAid/125611/C/SER/UA

3. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 3 Three Interlinking Elements Court Statistics, Case Management. IT Human Resources Management (Court Civil Service + Support Staff) Performance Management

4. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 4 What do we want ? Performance Management Ensure best possible Service delivery by the couer Multi-Dimensional Approach (finance is one dimension) Performance Budgeting (Funding) Assignment of State Resources according to the performance of the courts Orientation to the financial dimension

5. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 5 What do we need 1.A working system to collect / retrieve the necessary information in the necessary disaggregated form 2.A system to present the data in an understandable form with complete „drilling thru“ and analysis capacities 3.An evaluation and reaction system (legal / organizational framework) 4.At the end a complete Management Information System (MIS) for the courts

6. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 6 Dimensions of Performance DimensionKey Customer Quantitative Output (in Workload Categories) Ministry of Finance QualityCourt User SpeedCourt User Systems (HR, IT, Structures, Workflows) Internal use

7. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 7 The Basic Approach – Balanced Scorecard Multi-Dimensionality of „Performance“ in the Court system Interaction of performance dimensions Strategic long term controlling and optimization Based on customer / stakeholder goals

8. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 8 A BSC Approach takes Multi-Dimensionality and Interaction into consideration Take Multi-Dimensionality into consideration There is not one single goal, there are more than one, usually –Our financial situation today –Satisfaction of the customers to ensure our profit of tomorrow –Staff capacity to keep satisfaction and income –Investments in the future to ensure the profit of next year Take Interaction into consideration –Investment in Staff, Systems, Innovation today improves performance in the future

9. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 9 BSC – From Private Sector Needs to Court Needs Company Profit Customer Satisfaction Trained + Motivated Staff New Products / Markets Court Court productivity Speed / Minimized Backlogs Trained and motivated staff Minimized (successful) appeals Elaborate Goals for all Dimensions Supervise goals continuosly by Indicaters Dont allow the priority of one dimension Care for a „balanced“ score

10. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 10 Judge productivity: Working hours per weighted standard case in the District courts in 6 Oblasts

11. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 11 Court Comparison: Cumulated Civil Cases Duration in Months 1-Cum 2-Cum

12. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 12 Court Comparison: Cumulated Admin Cases Duration in Months

13. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 13 Quality Indicators: Appeals and District Court Quality 988,824 (100%) 97,275 (9.8%) Local Court Decisions Appeals (Procedural Mistakes) Successful Appeals max min Wrong Decision ? Missing Knowledge of new Jurisdiction ? Bad Knowledge of Procedures ? Bad Communication ? Greedy Lawyers ? Wrong Case Investigation Wrong Law Application Failure in Procedures Different Legal Opinion 25,587 (26.3%)

14. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 14 Systems Indicators in Human Resources and IT Human Resources: Staff Turnover (Retention of qualified staff is a success indicator, so the value should be low. Training days (More training improves staff quality, leads to more output, higher speed, less failures ICT Systems Different development stages exist and can be measured by a IT quality indicator In general, the more staff has access to a server based intranet with common databases and functions and central internet access, the higher the staff productivity, the higher the work speed, the lower the share of failures

15. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 15 BSC (Standard Form) For a Sample Court Productivity 872 Weighted (standard) cases per judge/year Speed 144,85 DAYS to decisive meeting Staff Turnover 9,96 % (new + leaving/2) staff Of total staff p.a. Quality 3,17% Successful Appeals of Considered cases Goal ??? City average 847 Oblast average 977 Oblast best 25% 1.072 4 Pilots Average 819

16. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 16 Where BSC Data Come From (Proposed Initial Model) Speed Median of Consideration Time (CT) of cases completed between Jan 1 and Dec 31 of the last Year (CT.Criminal + CT.Civil + CT.Admin)/3 Output Weighted Caseload of cases completed In the court between Jan 1 and Dec 31 of last year in 5 categories (Criminal, Civil, Civil-Court Order, Admin, Admin Offense) divided by Judges FTPE Quality Relation of succesful appeals against District Court Decisions in Criminal, Civil, Administrative Cases as % of all appeal cases coming from this Court completed by the respective appeal courts between Jan 1 and Dec 31 of the last Year HR Development Median of training days received by court staff members (judges + civil services) between 1 Jan and 31 Dec of last year

17. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 17 BSC Diagram - Model

18. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 18 BSC Table - Model Introduce government goals for this

19. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 19 A View to Reality – Denmark (1)

20. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 20 A View to Reality – Denmark (2) Інформація, яку можна отримати завдяки показникам. Вживання відповідних заходів.

21. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 21 Learning from the BSC Result and Identifying the Source of Problems... National Oblast level Court Level Judge level l Which informations come from the national Average ? Where come Differences in Oblast performance from ? Which courts have problems, Which are fine ? Are there problems of Judges ?

22. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 22 We need „Drilling Thru“ and Extended Analytical Capacities JUDGES COURTS OBLASTS

23. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 23 Performance and Management Put instruments in place to identify the real reasons for performance problems in whatever BSC area Give HoC the Instruments to identify and solve problems in their own courts Try to create Incentives for good performance Re-arrage the staff distribution between courts in an oblast if needed Develop plans to improve the „System“ situation (HR and IT)

24. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 24 Performance and Funding Assign Budget and Posts according to the weighted caseload of the courts (we need the case complexity based workload determination systems) Have an instrument in place to give relief to courts with problems (Judge Pool – retain a percentage of open posts for this) Consequently withdraw posts from „inefficient“ courts and put judges to courts with work overload. Put a bonus system in place for very efficient courts, giving extra funding for example for IT, materials and so on.

25. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 25 Feedback Loop and „Continuous Improvement“ Performance management should not end with isolated reactions on individual indicator problems. Follow up of results over the time and the analysis of the effects of changes is necessary Continous improvement has to be a key element: –You never reach an „Optimal“ result and it is in no case in one step –If you implemented one improvement, you see what can be done next –Actively promote re-thinking all achievements –Use BSC Indicators to measure the effect of each step Knowledge exchange Groups should be established to learn from each other and to improve the indicators continuously

26. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 26 A Technical Summary of Todays Problems and Development Steps Problems Lack of key data makes performance management imposible Problem Nr 1: Missing case weighting / judge workload system Problem Nr 2: Missing data elements (in the databases but not retrievable): Speed of Execution Problem Nr. 3: „aggregation“ of data Proposals Come to a workable case weighting system Improve the statistical system to make already entered data available and connectable, providing „drilling thru“ functions Generate a general Performance information System Make the Performance information System a performance management system by connecting performance and budget Train the Management and delegate responsibilities

27. KPI  Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Management Kiev, 23-24 March 2011 End of the Show Thanks again for not falling asleep Additional Questions: Dr Axel G Koetz Managing Partner, KPI Consultants Cologne, Germany e-mail: axel.koetz@koetz-ag.com