1. Principles of Performance Management
Presented by
Andrea Roberts
Martin Elementary, Beaumont, Texas
© 2010, Edvance Research, Inc.

2. Discussion
What does a truly high performing district look like, sound like, feel like?
Pose questions and give participants 10 minutes to discuss at their tables and post responses on chart paper around room.

3. Discussion So, what does it take to make this happen?
What role do data and information play in making this happen?
Have people call out generally. Ask this question, allowing for just a few responses (this is “food for thought” to transition into the training)
This is the dilemma for many educators—how do we build what we intuitively know would be a high performing system of learning? How do we take the good parts of the current education system, continually improve them and guarantee that the parts work well together?

4. Translating… Strategic Feature Private Sector Public Education
General Strategic Goal
Competitiveness
Success of all students
General Financial Goals
Profit; growth; market share
Cost reduction; efficiency
Values
Innovation; creativity; good will; recognition
Accountability; integrity; fairness
Desired Outcome
Customer satisfaction
Student achievement
Stakeholders
Stockholders; owners; market
Students; parents; community
Budget Priorities Defined by:
Customer demand
Accountability requirements; leadership priorities
Key Success Factors
Growth rate; earnings; market share
Highly qualified staff
Differentiation (in price, quality, service, etc.)
Student engagement/participation
Advanced technology
Actionable information
SCRIPT
Research on performance management in K-12 is scarce. However, there is a wealth of information from the private sector that we can learn from and apply. But first, we need to understand some differences in key drivers in the private sector versus K-12. Also, since performance management was rooted in the private sector, several terms may be unfamiliar to some educators. So before we proceed, let’s take a few moments to talk about the different drivers in the public education as compared to the private sector.
All organizations have an overarching strategic goal. For most businesses, it relates to being competitive; in education, we want all students to be successful. All organizations have financial goals…obviously, a business needs to make profit to stay in business; most want to control as much of the market as possible. In education, it’s about being good stewards of the taxpayers’ money-reducing costs and increasing efficiencies.
<read through the others; when you get to key success factors, ask audience if there are others>
Most public organizations exist not for profit but to fulfill their mission. A business can change any way it pleases at any time if its leaders decide to do so. A public sector organization is constrained to work within its authorized mission until such time a change is mandated our authorized by legislation or other decision-making body.
Nevertheless, when education, government or other non-profit leaders commit to fulfilling the organization’s mission, going beyond legislative requirements and accountability, it is then that we can see the many similarities between business and the non-profit. Often, it’s simply a matter of understanding these different approaches to strategy.

5. PM definition and overview

6. What is Performance Management?
A holistic approach to improving the capacity of a district to gain insight and manage its performance at all levels.
Components of PM include all the practices, technologies, methodologies and metrics used to gather and apply relevant information to improve performance.
“Performance Management is a critical MEANS to an end and aims to systematically empower leaders and staff to diagnose what is working and what is not, and institute a culture of rewards and consequences that leads to action.”
--MSDF

7. What is Performance Management?
Performance Management  Accountability
SCRIPT:
It is important to note that performance management is not the same as accountability.
Educational accountability has become more comprehensive over that last eight years following the passage of the No Child Left Behind (NCLB) Act of Schools have felt the impact of increased oversight of educational outcomes, particularly the focus on results of statewide standards-based assessments that measure progress toward proficiency. As such, many educators feel that accountability is something that has been done to them. Performance management is about looking at information proactively in a way that can transform efforts.

8. Accountability vs. Performance Management
Standards/targets are set externally.
Stakeholders determine what results the district really wants/needs.
Connection between actions and goals.
District goals and desired results are more closely aligned.
Perception by some that efforts to educate are misdirected by what “has” to be done.
Can elicit wide-scaled support/buy-in from stakeholders.
Response is to external stakeholders.
Response is to internal stakeholders.
An accountability-focused district tends to use state or federal standards as the basis for goal setting where as a district integrating performance management strategies incorporate stakeholders in determining what results the district really wants and needs. In this table are other examples of accountability-focused versus performance management focused district behaviors.

9. What is Performance Management?
Closed loop, district wide approach for fact-based diagnosis and intervention
Leadership and culture
Data collection
Data into information
Information into outcomes

10. What is Performance Management?
Closed loop, district wide approach for fact-based diagnosis and intervention
Leadership and culture
Leaders set vision, define excellence and direct resources
Leadership experience, vision and commitment
PM strategy, project planning and management
Business planning and goal setting
Organization structure and resource alignment

11. What is Performance Management?
Closed loop, district wide approach for fact-based diagnosis and intervention
Information into Outcomes
System-wide rewards and consequences exist for all staff to use information to change practice
HR: Performance/Development planning, career pathing
Community: Public distribution of data, surveys

12. Six Sigma- DMAIC Improvement Process
Define the project goals and deliverables for both internal and external customers.
Measure the process to determine current performance.
Analyze and determine the root cause(s) of the defects.
Improve the process by eliminating defects.
Control future process performance.
DMAIC is Six Sigma’s version of the Plan Do Study Act model
The five phases in the DMADV project methodology are:
Define design goals that are consistent with customer demands and the enterprise strategy.
Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks.
Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.
Design details, optimize the design, and plan for design verification. This phase may require simulations.
Verify the design, set up pilot runs, implement the production process and hand it over to the process owners.

13. The nine tenets of a performance-driven organization

14. The Nine Tenets of a Performance-Driven Organization
#1: Finds truth in numbers. A single version of the truth guides performance at all levels of the organization.
#2: Sets accurate expectations. Every part of the business is directed by a shared commitment to strategic goals.
#3: Anticipates results. A thorough understanding of business drivers and key performance indicators leads to an ability to anticipate results.
From The Performance Management Revolution by Howard Dresner.

15. The Nine Tenets of a Performance-Driven Organization
#4: Plans with impact. Insight and dynamic processes produce actionable plans that continually guide the organization to success in changing conditions.
#5: Achieves on-demand visibility. A system that combines data from existing transactional systems across the enterprise gives manager transparent access to performance information anytime, anywhere.
#6: Delivers continuous improvement. A commitment to knowledge and understanding produces insight that drives continuous performance improvement.

16. The Nine Tenets of a Performance-Driven Organization
#7: Reports with confidence. Detailed, integrated, and accessible financial and operation information enables executives to personally certify business results.
#8: Executes with conviction. Truth, clarity, and confidence forge a powerful link between strategy, plans and execution.
#9: Stands up to scrutiny. A comprehensive approach meets the highest standards of accountability and confidence.

17. Key principles to effective performance management

18. Key Principles of PM in Education
Establish and deploy a PM office and director.
Refresh, communicate and manage strategy.
Develop and deploy data management strategy and policies.
Measure, monitor and manage metrics that matter.
Manage and leverage knowledge.
SCRIPT:
The available studies, articles, case studies and our own observations have help identify a set of key principles for successful implementations of performance management.

19. Refreshing, Communicating and Managing Strategy
Only 5% of the work force understand the strategy
The Vision Barrier
9 of 10 companies fail to execute strategy
Only 25% of managers have incentives linked to strategy
The People Barrier
85% of executive teams spend less than one hour/ month discussing strategy
The Management Barrier
A study conducted by David Norton found that 9 of 10 companies fail to implement their strategies successfully due to four barriers. These blockers are related to communication, management focus, resources and people.
Vision barrier
Research shows that only 5% of company employees fully understand their company’s strategy. Strategy is rarely communicated in terms that relate to people’s everyday objectives, roles and responsibilities.
Management barrier
Research indicates that 85% of executive teams spend far less time discussing strategies and strategic issues than traditional operating results.
Resource barrier
Most companies don’t link budget to strategy. Companies may be pursing financial strategies that differ from, or worse, conflict with their operational and customer strategies.
People barrier
Management incentives link to the company strategy only 25% of the time. Most companies are rewarding management for activities not linked to company strategic and operational plans.
60% of organization don’t link budgets to strategy
The Resource Barrier
Source: Renaissance Worldwide/Business Intelligence Survey

20. What does a performance-driven district look like?
Concluding Thoughts
What does a performance-driven district look like?
Revisit main points
MSDF:
At each level of the organization (district leadership, network, principals, teachers, central office), people are willing and able to systematically look at information to drive action and change behavior
The district has a set of relevant goals and measures that define success
The district has tools that provide timely and actionable information
People have the time and processes to act based on information
Rewards and consequences are linked to performance

21. “Perfection is not attainable
“Perfection is not attainable. But if we chase perfection, we can catch excellence” —Vince Lombardi