Presentation on theme: "Performance Management Overview"— Presentation transcript:
1Performance Management Overview Pennsylvania Banner Users Group 2008 Fall ConferencePerformance Management Overview# of ODS clients# of EDW clientsRoleIT?User?Who am I?Mike SalisburyBPRA Product ManagerSunGard Higher Education15461
2Topics Why Performance Management? What is Performance Management? What is a Key Performance Indicator (KPI)?What is a Scorecard?What is a Dashboard?
3External Pressure to Perform Policymakers highlight six key performance challenges for higher education today:LEARNING OUTCOMESMeasure and report student progress and learning outcomes; perform research that benefits societyPROGRAM EFFECTIVENESSRespond to learner, market and workforce needs with appropriate programs and servicesCOST MANAGEMENTStabilize operating costs; increase productivity; grow income or revenueACCOUNTABILITYLet’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.AFFORDABILITYKeep college affordable for all qualified students; optimize financial aid and pricing strategiesCONVENIENCEOffer more flexible options to access education, complete degrees, and engage learnersCAPACITYManage enrollment, diversity, and demand; reach more people, more effectivelyACCESS
4Information Needs are Crucial and Pervasive Information and business intelligence required to address key performance challenges:Executives: monitor progress towards strategic plan and institutional goalsAdministrators: increase departmental effectiveness, manage costs and monitor day-to-day operationsEM/Admissions Officers: improve yield and monitor progress towards recruitment goals and objectivesRegistrars/EM/Student Services Officers: improve student engagement, retention and persistenceAdvancement officers: measure the progress and effectiveness of their fundraising programsInstitutional Research: guide institutional planning and to support reporting and complianceIT: meet stakeholder needs for enterprise intelligence and reporting4
5Improving Performance Requires Organizational Alignment Align the organization to strategic goalsLink managerial action to accomplish those goalsAlign budget requests and funding to the desired outcomesLeaders Are Focused on Difficult Strategic IssuesMonitoring ongoing effectiveness of recruitment campaignsMatching enrollments with institutional programsRecruiting best qualified applicant poolResponding to demand for increased accountabilityLeaders Have Strategies to Solve These IssuesStrategies identify goals, objectives and desired outcomesExecution of strategy is essential for successSupporting 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.
6What 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 GroupSo 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-alonebalanced scorecard initiative, sometimes exist outside the realm of an overall BI strategy.However, this approach usually struggles to drive performance management into day-to-dayoperations because of the lack of any integration with the systems used to manage performanceat an operational level. As a best practice, organizations must consider BI and performancemanagement together to emphasize the need for organizations to consider the broader vision andportfolio of pervasive BI, and to reflect the increased focus and interest on performancemanagement.
7What is Performance Management? Clarification of vision and strategy across silosTranslation of strategy into operational terms using scorecardsComprehension and alignment of multiple perspectives, all of which are vital to the institutionAlignment of internal activities with the strategic planFostering employee abilities and commitment to objectivesDefined measures of performance and target called key performance indicatorsDriving Decisions Based on DataEasy accessibility to “single version of truth” by all information consumers using BI technologies such as dashboardsLine-of-sight across business processes to the status and trends key performance indicatorsCulture of using information in the planning and decision-making process Clarification of vision and strategy across silosTranslation of strategy into operational terms using balanced scorecards and strategy mapsComprehension and alignment of multiple perspectives, all of which areAlignment of internal activities with institution mission and strategyFostering employee abilities and commitment to objectivesDefined measures and targetsLeveraging of Business Intelligence toolsEasy accessibility to “single version of truth” by all information consumersMultidimensional view of information, scorecards, dashboardsTrend analysis, alert mechanisms
8Business Intelligence Needs for Performance Management EXECUTIVES:Need visibility into progress towards our goals, objectives“Am I achieving my goals?”Performance dataScorecards,Executive DashboardsMANAGEMENT:Need timely trends, summaries, analytics of our operations“How am I doing?”“What should we be doing?”Trend, summary dataKNOWLEDGE WORKERS:Need to analyze trends and root causes“Why is this happening?”Operations DashboardsAnalysis ToolsThe 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.ScorecardNetwork of metrics, thresholds, history, and accountabilities that connect strategy to individuals– “Am I achieving my goals?OLAP AnalysisAnalyze trends and root causes by ad-hoc data navigation- “Why is this happening?”DashboardCompound, visual report– “How am I doing”ReportingSummary 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 dataDetail ReportsBasic Report Tools
9Performance Management Process Review and PlanPerformanceInformationBecause 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 backnote 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 AnalyzeMonitor and Measure
10PM Process Example: Recruiting and Admissions Review and PlanEnrollment LevelsCampaignsFinancial Aid LevelsPerformanceInformationReport and AnalyzeMonitor and MeasureYield rates, Trends and CausesCampaign EffectivenessKPIs vs. External BenchmarksTrack Enrollment FunnelRecruiting programsBudget Execution
11PM Process Example: Advancement Campaign Management Review and PlanBudget ExpectationsFund-Raising CampaignsCapital Campaign TargetsPerformanceInformationReport and AnalyzeMonitor and MeasureAccounts to DonorsFinancial StatementsVariances and TrendsSpending PatternsCampaign EffectivenessBudget Execution
12PM Process Example: Grant Management Review and PlanGrant Budget ExpectationsIndirect Cost Recovery RatesGrant Expense TimingPerformanceInformationReport and AnalyzeMonitor and MeasureEffectiveness/Burn rateKPIs, Trends and VarianceGranting Agency reportsProposal pipelineGrant SpendingIndirect Cost Recovery
13Performance Management Example ProfileLand grant institutionCarnegie Doctoral/Research-Extensive4 affiliated community collegesHeadcount 26,000FTE 16,500Banner UDC clientBanner Data Warehouse (ODS, EDW) clientPerformance Management ChallengesStrategic plan lacked benchmarked performance metrics and link to budget allocation processInstruction and General budget process driven by state appropriation incentives receivedMultiple years of flat enrollmentAbsence of budget reallocation mechanism
14Performance Management Example Strategic BudgetingDevelop base budget at a percentage of actual revenue producedReserve unallocated revenue for strategic growth investmentsIncrease unrestricted revenue independent of operating costsInstructional PlanningLink college budgets to instructional credit revenueExamine faculty workload and use of adjunct facultyAlign quantity of faculty positions to departmental workloadFocus budget allocation on enrollment growth and management goalsCompensation BudgetingBenchmark compensation to peersEvaluate financial impact of union proposalsExamine and forecast benefit costsBenchmark budgets to peersExamine faculty and staff compensation for equityResearch StrategyReview research revenue, subsidies and the support it provides for administration and growth of institutionExamine cost share, cost recovery, research workload and student support providedTotal RevenueOperating revenue (includes GASB non-operating revenue)Other revenue (capital, gain on permanent endowments)Operating RevenueRestricted 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 revenueState 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 InstructionNine factor matrixLower, upper, graduate divisionTier 1/2/3Ranges from approx $125/hr to $1500/hrEnrollment-based increases require either a 3% increase in student credit hours or workload dollars generated from the base yearEnrollment-based decreases require a 5% decrease in student credit hours from the base yearSalaries and benefits are 65% of operating expenseBenchmarked analysis of all staffing structuresFull compensation review in progressReview of fixed costs and appropriate funding sourcesHold budgets to revenue-based allocationsFreeze I&G support budgets pending workload adjustments
15MetricsOK – 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. RetentionQuality! 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 experienceSmyth, AAIR ConferenceDivision Level! EFTS! Income and expenditure! $ Resource use! Productivity of space! Academic FTE! Number of classes taught and class sizeResearch! Publications and premium publications! Research contract income! Thesis supervisions! Subject evaluations! Pass ratesTo these, we add some institutional indicators – such as assets per EFTS and market share – togetherwith some benchmark data derived from annual reports and Ministry of Education statistics. We alsolook at indicators of performance in support units.“What gets measured, gets done.”
1710 Characteristics of Effective KPIs AlignedAlways aligned with your institution’s strategy and objectivesOwnedSomeone must be accountablePredictive“Leading” indicators of desired performanceActionableTimely data, providing owners and managers with opportunities to intervene and impactEasy to understandDefinition, trends and status should be obvious to userThe 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 fromthem;! 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.7There is a balance to be struck between complexity and simplicitySource: Performance Dashboards, Eckerson
1810 Characteristics of Effective KPIs Few in number!Too many = loss of focusAs few as reasonably possibleBalanced and linkedKPIs should balance and reinforce each otherDon’t create KPIs that undermine othersTrigger changesMeasuring should enable insight leading to positive changesStandardizedCalculations, numbers, assumptions should be the same across the institution so that metrics can be comparedContext drivenKPIs tailored to user roles and their processesProvide targets and trends to see where you are and in what direction you’re headedExaxmple: 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 imporveData without context is meaningless- for example if you just compareRetention between one institution and another it’s not going to giveYou the whole story because the profiles of the student population aareRelevant too (part-time vs. full-time, % that work,socioeconomic status)Source: Performance Dashboards, Eckerson
19Pitfalls of KPIs Less is more Have one version of “the truth” Too many metrics will cause metric overload and nobody will use themHave one version of “the truth”Indicators need to be looked at as a groupCannot focus on one area at expense of othersPeople start making decisions that undermine other KPIsPerformance indicators don’t tell the whole storyShow trends but not why trend is occurringBe wary of simplistic comparisonsExplore the drivers of performance for comparative insightLongitudinal analysis more robust than lateral comparisonsPerformance indicators cannot tell thewhole story. Certainly, an indicator will rarely tell you WHY a trend is occurring. Rather, it will tellyou 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 theperformance indicator for the performance itself. An indicator is just that; a window to a slice ofa process. In most cases, performance in the process as a whole is best assessed by reading thewhole basket of related indicators.! Valid comparisons can be made laterally – between institutions or between units – only providedthe 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 beexplored and articulated if comparison is to be meaningful. Comparisons are much more robust ifthey are longitudinal, rather than lateral.! Someone involved in PI analysis and interpretation needs to understand the processes used tocollect the data elements so as to be aware of the extent to which (for instance) process changessubtly alter data, so as to contribute cognisance of the robustness of the data elements and so as toensure that comparisons are made with due care.! Remember that PI will not tell the whole story. It is conceivable that good PI measures couldmask weakness. There is a danger that managers could manage to PI, not for performance.
20KPI ExampleGraphic display of progress towards plan, goals, objectivesHow 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
21Scorecards and Dashboards OK – I know my KPIs, but how do I monitor our status and progress on achieving our goals and targets….
22Scorecards vs. Dashboards Monitor the execution of strategic objectives and initiativesNetwork of metrics, planning targets, thresholds, history, and accountabilities that connect strategy to individualsOften deployed using a formal methodology such as the Balanced ScorecardEmphasize collaborationDashboardCompound view of performance information made up of scorecards, graphs, and summary viewsMonitor overall performance daily at a glanceProvide data visualizations of performance status and trendsPersonalized for userThe 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
23Scorecard Example Begins with institutional plans Performance measures identified to monitor progress
24Scorecard ViewGoals, objectives, performance targets configured into ScorecardAssessment of progress provides visibility into performanceExecutives <click> on a goal or objective to learn more about related performance outcomes and key initiativesGoalsGraphic display of progress towards plan, goals, objectivesHow 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 strategyObjectivesAssessment of progress towards goals and objectives
25Scorecard ExampleObjectives enable executives to monitor progress towards related Key Performance Indicators (KPIs) and initiativesGraphic display of progress towards plan, goals, objectivesHow 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
26Scorecard ExampleKPIs have targets, actuals, assessments, management commentsActual values loaded from data warehouse foundationDrill-down to reports and analyticsGraphic display of progress towards plan, goals, objectivesHow 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
27Scorecard ExampleInitiatives and Milestones Are Also Monitored
28Dashboards Different dashboards for different purposes and user types StrategicExecutives, managersTacticalManagers, analystsOperationalSupervisors, specialistsWhat key areas require attention?What are the contributing factors and effects?Where are the problems focused?Who is effected?
29What Makes a Good Dashboard? Fits Role of Target UserWhat 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 needsWhat 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/analysisWhat 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 allDashboards need to be tailored and flexible
30What Makes a Good Dashboard? Monitor overall performance at a glanceMultiple charts provide coverage of all KPIsCharts highlight good and bad performance exceptionsData is refreshed at required frequencyNavigate and filter data to analyze trendsPopulation filters are simple to apply and sharedDrill-down navigation paths are intuitiveLevel of detail required for cause-effect analysis availableSupport for collaborative, data-driven decision-makingViews and analysis can be sharedLevel of detail for taking corrective actions availableDashboards are not 4 reports on a pageDashboards need to be dynamic
31Dashboard Example Personalized view of KPIs Multiple charts provide status at-a glanceLeading and lagging indicators of performanceCommon KPI and business rules definitionThis 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
32Good Performance Management Solutions Aligns the organizationStrategy has driven development of objectives and measuresCommon KPI definition with shared dimensionsMonitors Key Performance Indicators (KPIs) of both strategic and operational performanceSets targets for measures that are achievableEnables understanding of what’s important and what’s changedPromotes proactive versus reactive decision makingCrystallizes “single version of the truth”Reduces time and effort required to answer ad-hoc questionsExposes business trends sooner and supports shortened decision cyclesAllows management by exceptionBased on data warehouse foundationReduce risks to development and deploymentAcceleration of ROIDesigned for analytics performanceUse of architecture best practices for scalability and extensibility
33Our Unique SolutionsSunGard Higher Education understands these emerging performance obligations and related information requirementsWe offer multiple levels of solutions for accessing, managing and analyzing key performance data for institutions of Higher EducationBanner Data Warehouse SolutionsPackaged Performance Management SolutionsBanner Performance Reporting and Analytics is our foundation that enables all levels of staff to create their own reports, analytics and ad-hoc queriesCreates 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 infrastructureAn institution-wide solution that can be implemented in phases, all at once or just for a single organization or business function.WSU Peer clientsAuburnMississippi StateColorado StatePurdueTexas A&MTennessee Board of Regents, system
34Performance Solutions Bringing Value to All Levels of the Institution DataEXECUTIVESScorecards forPerformance ManagementMANAGEMENTDashboards, Reports andAnalytics to Monitor ProgressTrend,SummaryDataKNOWLEDGE WORKERSAd-hoc analysis tools to identifyand understand trendsDetailedDataSTAFFProduction reports andad-hoc access fordaily operations34March 28, 2017Confidential and Proprietary Information – SunGard Higher Education, Inc