Colorado State Government: Performance Management Overview For the Denver Metro Chamber Public Affairs Council Henry Sobanet, Director Office of State Planning and Budgeting David Padrino, Chief Performance Officer April 29, 2016

Our starting point (I)

$27B conglomerate (Fortune’s top ~120) with 19 principal departments ~30,000 person workforce Constitutional and legislative controls on spending priorities and revenue Era of “do more with less”

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Our starting point (II)

“To improve an organization you have to improve its systems - the processes that produce widgets for customers to achieve results.” - Ken Miller

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Pursuing a culture of customer-focused operational excellence at every level of state government 1. Results focused – customer value creation, measure what matters 2. Organizational alignment – clear goals understood by all, operations drive towards long term vision 3. Continuous process improvement – consistent emphasis on making processes more efficient and effective 4. Engaged employees – employees who are ready (understand their role and goals), willing (motivated to support the vision) and able (have the skills / authority to do the job)

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Performance Management Framework Key Program Elements

What are our priorities?

How will we achieve them? How will we know we are successful? How do we make it last?

Vision & Values

• • •

Administration strategic planning Department Performance Plans Department, Administration and Cabinet member goal alignment

Governance, Planning & Execution

• • •

SMART Act legislation Cabinet working groups Perf. Mgt team support for Depts.

Reporting & Evaluation

• • •

Administration results dashboard SMART Act reports Results First

Customer-focused Culture

• • •

Statewide Lean program Performance Management Academy Employee engagement support

Administration goals

Department Performance Goals

Promoting a culture of customer-focused operational excellence across state government

Performance Management Framework Key Program Elements

What are our priorities?

How will we achieve them? How will we know we are successful? How do we make it last?

Vision & Values

• • •

Administration strategic planning Department Performance Plans Department, Administration and Cabinet member goal alignment

Governance, Planning & Execution

• • •

SMART Act legislation Cabinet working groups Perf. Mgt team support for Depts.

Reporting & Evaluation

• • •

Administration results dashboard SMART Act reports Results First

Customer-focused Culture

• • •

Statewide Lean program Performance Management Academy Employee engagement support

Administration goals

Department Performance Goals

Promoting a culture of customer-focused operational excellence across state government

Performance Management Academy

Performance Management Academy Overview Performance Management Vision • Support a sustainable, customer-focused culture that drives continuous performance improvement and operational excellence Academy objective • Provide the knowledge, skills, tools and network to help leaders create and implement high quality performance plans Audience and structure • About 80 attendees from all departments • 6 full days every other week • Outside speakers (e.g. Ken Miller), and numerous Department speakers • Incorporates adult learning principles and private sector teaching approach • Topics include: vision, strategic and operational planning, Lean, culture & leadership, with a focus on practical tools and frameworks

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Structured curriculum

Dept and outside expert speakers

Performance Management Academy

Example of key Academy tool: CO State Patrol Logic Tree Strategic choices

Targeted, practical tools (e.g. Logic Tree)

Programs

Highway supervision Enforce laws around the most dangerous driving behaviors (HVPT, DUID, seat belts)

How do we... Reduce the number of fatal & injury crashes from 3,725 to 3,166 by 2018 for highway users under the CSP’s jurisdiction?

Enhance public awareness around the risks of dangerous driving behaviors

Highway patrolling DUI / DUID checkpoints

Measures # Troopers (input) # Trooper contact hours (output) # Seatbelt citations (output) % adults wearing seatbelts (output) # DUI citations (output)

Trooper education

Recruitment & Training

# Trooper training hours (output)

Public education & outreach

Community visits

% Schools visited (output) # community events attended (output)

Enforcement Implement primary seat belt legislation

Trooper scheduling & deployment Highway patrolling

Public education & outreach

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Operations Trooper scheduling & deployment

Media campaign

# Trooper contact hours (output) # Seatbelt citations (output) % adults wearing seatbelts (output) # media impressions (output) % public w/accurate understanding of law

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Performance Management Academy

Academy participation focused on key roles Reaching reaching critical mass with 200 participants across all Depts Academy participants - by role

80 67

70 60 50

37

40 30 20

24

22 17

14

12

9

10 0 Dpt Deputy Director

Division Director

Deputy Division Director

Academy 1

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Performance Manager

Academy 2

Budget Director

Program Manager

Policy

Other

Academy 3

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Performance Management Academy

Impact: Improving capability with performance management And driving high customer satisfaction and net promoter scores

93% 96%

100% 80%

96% 100%

79% 82%

60% 40%

2015

20%

2016 0%

Comfort with Perf Mgt Concepts & Tools

Satisfaction

Net Promoter

“I have been in state government for 20 years, and this is the best professional development experience I’ve ever had. Thank you.” - 2016 Academy attendee, CFO for one of State’s largest Departments Source: Academy attendee survey 2015 and 2016

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Performance Management Framework Key Program Elements

What are our priorities?

How will we achieve them? How will we know we are successful? How do we make it last?

Vision & Values

• • •

Administration strategic planning Department Performance Plans Department, Administration and Cabinet member goal alignment

Governance, Planning & Execution

• • •

SMART Act legislation Cabinet working groups Perf. Mgt team support for Depts.

Reporting & Evaluation

• • •

Administration results dashboard SMART Act reports Results First

Customer-focused Culture

• • •

Statewide Lean program Performance Management Academy Employee engagement support

Administration goals

Department Performance Goals

Promoting a culture of customer-focused operational excellence across state government

Administration level strategic planning

Strategic planning: Administration level Overview Purpose of the effort • Define critical Administration goals and define success with clear metrics • Develop structure and tools to support regular review cadence and follow up • Further strengthen our cross-Cabinet collaboration and silo-busting What we did • Governor, Cabinet and senior staff retreats • 150+ performance team meetings with depts to consider current plans, goals and metrics

Administration Goals Group

HEALTH

Administration goals

Goals • Reduce incidence of substance use disorders • Reduce impact on daily life from mental illness • Control obesity rate • Increase immunization rate • Improve health care coverage • Improve value in health care service delivery

• Ensure air and water quality are improved and protected by reducing air and water pollution • Enhance land stewardship through increased conservation ENVIRONMENT / • Increase recreational usage of state land ENERGY • Ensure a sustainable water future (metrics to be set late 2015) • Continue to be the leader in community-sensitive and environmentally responsible energy development WORKFORCE / EDUCATION

• Close the attainment gap • Align resources and improve access to information within the workforce ecosystem to best meet customers’ (employer, jobseeker, student) needs • Increase job placement rate, continued employment rate and average wages in our programs

• Expand broadband access and speed ECONOMIC • Promote entrepreneurship and business growth by streamlining regulations and making government business DEVELOPMENT/ services and requirements easier to navigate INFRASTRUCTURE • Increase travel time reliability in two corridors (I-25 and I-70) through transportation and technology infrastructure enhancements GOVERNMENT SERVICES

• Reduce the recidivism rate • Reduce fatal and injury highway crashes • End veteran homelessness

DRAFT FOR DISCUSSION: Confidential, protected work product

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3. Example Roadmap - Goal: Close the attainment gap 3. Example Roadmap - Goal: Close theLead attainment gap Outcome measures measures 3. Example Roadmap - Goal: Close the attainment gap

Roadmaps (project plans)

• Increase FAFSA Completion for all Colorado High School seniors • Increase graduation rates for underserved student groups including: Hispanic, Outcome measures Lead measures • Increase enrollment for underserved students in public IHEs African American, Native American & Pacific Islanders in our public IHEs • Increase retentionFAFSA rates Completion for underserved inHigh our public • Increase for allstudents Colorado SchoolIHEs seniors • Reduce• attainment gap between adultstudent population aged 18-24, Hispanic, Increase graduation ratesthe forColorado underserved groups including: Outcome measures Lead • Increase number of awards (certificate