1. Performance Management in Colorado Erick R. Scheminske, Deputy Director September 2014

2. Governor's Office of State Planning and Budgeting Guiding Principles of Colorado’s Performance Management System Every employee in Colorado State Government participates in at least one process that delivers a good or service to a customer Each discrete process is measurable in a meaningful way Every State agency should work continuously to improve their processes in order to better serve their customers Effective, efficient, and elegant service to the customer Each of us participates in an activity that serves a customer We can, and should, measure each of these activities We should work continuously to improve our daily work 2

3. Governor's Office of State Planning and Budgeting Performance Management in Colorado Target State 3

4. Governor's Office of State Planning and Budgeting Lean in Colorado In October 2011, OSPB launched the Lean Program using $2.5 million in remaining ARRA Funding, with three guiding values Examine and strengthen as many processes as possible, as quickly as possible Empowering Colorado State employees with the right tools to cultivate continuous improvement Working together to enhance our vision of outstanding service, performance, and results 4

5. Governor's Office of State Planning and Budgeting Early Application of Lean in Colorado Our early success hinged upon helping employees understand two key precepts Lean is not a budget-cutting exercise OSPB provides the tools, but State Employees provide the answers We did not use data to determine where to apply Lean. Instead, OSPB chose projects based on our assessments of: Probability for success Largest number of customers affected Biggest “Bang for the Buck” 5

6. Governor's Office of State Planning and Budgeting Lean Process Improvement Projects in Colorado Local Affairs – Housing Choice Voucher Program – Number of forms used by the program reduced by 56 (or 50 percent) Education – Educator License Evaluation – Improved cycle time by 50 percent Regulatory Agencies – Call Center – Achieved a 60 percent reduction in initial call connection time – Improved first-call resolution of issues by 90 percent. Between October 2011 and July 2014, Colorado’s Lean Program provided resources to support 94 Lean projects in 19 of our Executive Branch agencies. Departments have independently completed an additional 100 projects. We have trained over 3,000 State employees in Lean methodologies 6

7. Governor's Office of State Planning and Budgeting Where are we now? Accomplishments State employees believe in Lean and are hungry for more Executive managers (including cabinet members) are realizing the value of continuous process improvement, and are excited to keep momentum rolling The General Assembly provided an ongoing appropriation for Lean and Performance Planning within OSPB Challenges/Opportunities State employees believe in Lean and are hungry for more State employees need greater understanding of process and system improvement methodologies beyond Lean “Obvious” projects are complete, and more complex remain – where do we spend the next Lean dollar? Institutional inertia hampers implementation of improvements Metrics remain an ongoing challenge 7

8. Governor's Office of State Planning and Budgeting Performance Management System Strategic Policy Initiatives Executive leaders determine policy and budget direction through Strategic Policy Initiatives (SPIs) that set agency-wide goals. Informational Performance Measures Managers set performance measure goals for process improvements that support strategic policy initiatives, and track their progress Day-to-Day Operations Programs track their progress in achieving performance goals through a centralized, Statewide system 8 *Adapted from Simon Sinek’s “Golden Circle”

9. Governor's Office of State Planning and Budgeting OSPB’s “Strategic Policy Initiative” Training Lean Process Improvement Customer- Focused Performance Management Catalog every critical, discrete process within Colorado’s Executive Branch by FY 2019-20 Each aspect of our efforts to train employees in process improvement strategies, engage in Lean projects, and ultimately connect operational data to strategic policy initiatives gets us closer to ensuring that government works better for our customers 9

10. Governor's Office of State Planning and Budgeting National Governor’s Association Delivering Results Initiative Change the Who of state government by recruiting and retaining the employees necessary to provide the best future government services, including harnessing employees from the private sector. Change the How of delivering services to citizens by adopting Lean processes, using new technologies, empowering employees to focus on customer service, and reducing unnecessarily rigid regulation. Change the What of policies and programs by using the growing volume of research to inform policymakers about what works. As chair of the NGA, Governor John Hickenlooper chose to focus the efforts of his annual initiative on improving the efficiency and cost-effectiveness of state government operations. This initiative will: Showcase the success of governors leading changes in governance and provide opportunities for sharing best practices; Hold an experts meeting in Washington, D.C.; Hold a Delivering Results Summit in Denver, Colorado; Produce a governor’s guide, The Who, How and What of Delivering Results, as well as webinars, webcasts and issue briefs to broadly disseminate the results of the initiative. 10

11. Governor's Office of State Planning and Budgeting For more information on Colorado’s Lean Program Visit… www.colorado.gov/ospb/ …and click the “Lean” link in the upper right corner 11