Strategic Objectives and KPIs

Report
Strategic Goals and Key
Performance Indicators
Phil Maher
Business Process Analyst
Controller’s Office
Objectives of This Session
• In this session we are going to:
– Define what business goals are
– Understand what Key Performance Indicators (KPIs) are
Strategic Plans/Goals
What Comes First?
1. Mission
2. Vision
Then:
3. Strategy
4. Operations
5. Tactics
The Big Picture
• Mission- the what, what is the University trying to achieve?
– Who are our customers?
– What do they expect?
• Vision
• Strategy-the how
• Goals-targets you wish to reach
Mission
• The Big Picture
• You can’t get to where you’re going if you don’t know when or how to
get there
UNC System Charlotte Mission Statements
What’s Your Unit Mission?
• What do you do?
• Usually stated in General Terms
• UNCC Examples
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Business Affairs Mission Vision
Academic Affairs Goals
Facilities Management Mission
Technical Operations and Planning
Internal Audit Mission
• Relates to service
• Relates to the type of results you wish to achieve
Strategic Plans
UNC System Strategic Plan 2013-2018 Brochure
UNC Charlotte Institutional Plan 2011-16
Academic Planning 2011-2016
Facilities Management Strategic Planning
Strategic Plan for Research Growth at UNC Charlotte
Appalachian State Strategic Plan
UNC System and UNC Charlotte Goals
UNC System Goals
UNC Charlotte Goals
Setting degree attainment goals responsive
to state needs
Deliver high quality, affordable and effective educational programs that
produce educated and responsible citizens and a competitive workforce
Strengthen academic quality
Stimulate increased research, creative activities and community
engagement with a focus on programs and partnerships that address the
major needs of the Charlotte region
Serving the people of North Carolina
Enhance opportunities for learning and working together in a socially and
culturally diverse world
Enhance the quality of campus life and the collegiate experience for
students and other members of the campus community, both on-campus
and in adjacent University City neighborhoods.
Build local, state, and national awareness of and respect for the work of
the University and its people.
UNC System and UNC Charlotte Goals
UNC System Goals
UNC Charlotte Goals
Maximizing efficiencies
Improve the readiness of human resources and our academic,
administrative, physical, and technological infrastructure to efficiently
and responsibly operate an urban research university serving 35,000
students.
Ensuring an accessible and financially stable Improve significantly the base of supplemental non-state revenues for
University
academic programs and administrative support, physical facilities, and
student development, particularly need-based student financial aid.
UNC Charlotte Research Strategic Plan Goals
1. Focused Research- To put resources and infrastructure into place to support a finite
number of large-scale focused research areas
2. Emerging Research- To provide a menu of services and resources to support faculty in all
disciplines as they pursue new research efforts and develop as nationally prominent
scholars.
3. Collaboration and Culture- To provide programs, services, and resources that promote
collaboration and a culture of research.
4. Alignment- To provide programs, services, and resources that connect UNC Charlotte
research goals and outcomes with regional and national objectives that impact social,
cultural, and economic communities.
5. Customer Service- To be highly responsive to the needs of faculty, student, and partner
research efforts and be known for efficient and friendly customer service.
6. Research Integrity- To provide programs, services, and resources so that all UNC
Charlotte researchers can operate with integrity and satisfy all requirements for research.
What are Your Unit’s Business Goals???
• Where does your unit fit in with the University Mission and Goals?
• Chancellors Convocation Addresses
– Chancellor's Convocation Addresses 2005-11
• What’s the unit mission
• What do your customers expect?
• Business goals have these characteristics
– They are specific
– They are measureable
– They have a timeframe
– They are attainable
– They make sense
Where Do Your Top 5 Goals Come From?
• What are your critical success factors?
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Increased customer satisfaction?
Improved cycle time?
Improved graduation rates?
More research $$$$$?
Look at your units process functions, activities and task documents
Can you identify your main process functions?
What do you think they are?
How is your unit evaluated?
How are you evaluated?
Chances are these are also your top goals and objectives
Create a Vision for Your Unit
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Begin with the end in mind
What are we trying to accomplish?
Are we doing the right things?
What are the top five goals of your unit?
– Short Term?
– Long Term?
• Rank them in order of importance
• What does management think are your top 5 goals?
– If you don’t know-ask
• What is the desired result?
– What do you expect?
• Who are your customers?
• What do your customers expect?
– If you don’t know-find out
– Financial Services Survey
The Details
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Execution-the action, deliver the strategy
Tactics/Process-doing
Measure-KPIs-how are we doing
Improvement-what are the gaps between the goals and the actual
results
Questions?
Process
How do Process Functions and KPIs Relate?
• Which process functions have the most effect on;
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Students
Faculty
Staff
The financial outcome of the University
• Are they your core (most important)process functions?
• Set performance measures for those process functions and monitor how
the improvement of those process functions affects the overall financial
performance over time
Application:
• Review your process functions and identify potential KPIs
• Flowchart - Payroll.pdf
49er Mart Flowchart
19
Key Performance Indicators
What Can We Learn from Moneyball?
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Who has read the book or watched the movie Moneyball?
What’s the premise? What are they trying to achieve?
What’s the goal of a baseball game?
What indicators did they use?
Was everybody using the same indicators?
Did it change the way people think?
How can we apply those concepts to your unit?
People, Process, Technology, Decisions
Align People, Processes and Technology to performance goals that drive
the mission
• People (don’t forget about the employees and customers)
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Align employee performance to organizational goals
Is educating your employees a critical success factor?
• Process functions
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Improve processes to maximize efficiency and minimize costs
Manage cross functional processes between support groups
• Technology
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Map IT performance to organizational goals
Integrate performance data with budget forecast and strategic goals
• Decisions
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Develop performance measures that drive decision making
Why Do We Need KPIs?
• Sets the relationship to the University strategic plan, goals and
objectives
• What gets measured gets done!!!!!
• Drives improvement by fact not guesswork
• Evaluates where we are and where we want to be
• How are individual members of the team performing?
• KPI is a metric but a metric is not always a KPI
Keys to the Right Indicators
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Aligned-integrated into the University strategic goals and objectives
Owned-assigned to a specific group of employees
Predictive-Forecast capabilities
Based on legitimate data
Actionable
Not too many- 4 to 5 at most (related to your process functions)
• Each unit can have their own KPIs if you desire
Easy to understand
Balanced and linked-Reinforce not undermine each other
Relevant
Targets can be applied to them
Drives decision making
KPI Categories
• Financial
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Cost per unit
• Process
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Cycle time-the whole process not just one of multiple units
• Employee Growth and Learning
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Hours of training
Use of Technology
• Customer-Students, other University employees, other University units
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Complaints, number and type
Student success (graduation rates)
Student Retention
Student Debt Load
Leading and Lagging Indicators
• Leading indicators evaluate actions influencing future results of the work
• Customer satisfaction
• Lagging indicators measure results of past work
• Measure against a pre-specified benchmark
Does Your Unit Collect the Data??????????
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Can the data be collected?
How easy (hard) is it to get?
Who has it?
Is it automated?
Is it understandable by your unit?
Does it tell the story?
Operational (Activity) Performance KPI Examples
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Effectiveness- FTE per unit of output
Efficiency-Cost per unit of output, cycle time
Customer satisfaction-survey
Accuracy-Error rates
Quality-Personnel Performance-all of the above by employee
Compliance-Audit findings (Internal and External)
Your Unit has KPIs Now What?
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KPIs should not be an end in themselves, it’s a management tool
Review your KPIs regularly
Do they still tell the story?
If not go back to the drawing board
Realign with the University mission, goals and strategy
Alignment Grid
UNC System
Unit Unit
UNC System
UNC UNC
Charlotte Division
Division SubSub Division
Charlotte
Mission
Mission
Vision
Vision
Goals
Goals
Objectives
Objectives
Core Process Functions
Processes
Core
Processes
KPIs
Process
Functions/Activities/
Tasks
KPIs
Division
Examples
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Examples:
• UNC-GA FIT KPIs
• UNC Charlotte General Accounting KPIs
• UNCC Ratios FY03-FY12
• UNCC Facilities Management Balanced Scorecard
• Appalachian State Strategic Plan
• Missouri State KPIs
• Northeastern Illinois KPIs
• Key-Performance-Indicators-for-Administrative-Support-Units
• University of North Texas
• Penn State Strategic Performance Indicators
• Recurring Allocation Reduction 2013-14
• UNCC Grad and Retention Rates to Peers
How can we help you?
• Contact us
• Laura Williams Compliance Manager
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[email protected]
• Phil Maher Business Process Analyst
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[email protected]
• Greg Verret Business Process Analyst
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[email protected]
Questions????
E-Commerce and the University Mission, IP and BA
Goals
UNC Charlotte Mission Statement-Serve as faithful stewards of the public and
private resources entrusted to us and provide effective and efficient administrative
services that exceed the expectations of our diverse constituencies.
Institutional Plan 2011-16
University Goal #4 Improve the readiness of human resources and our academic,
administrative, physical, and technological infrastructure to efficiently and
responsibly operate an urban research university serving 35,000 students.
Objective 3.2 -Continue to identify and invest in priorities for strengthening the
capacity and reliability of the institution’s information technology infrastructure
through the work of the IT Portfolio Investment Review Board.
Business Affairs Goal #4-Re-engineer and/or create major business processes to
reduce cost, raise customer service levels, and ensure compliance with legal and
regulatory standards. Design and create new processes to address the rapidly
changing needs of the University.
Business Affairs Goal #5-Leverage technology to increase productivity, reduce cost,
raise customer-service levels, and ensure compliance with legal and regulatory
standards.
E-Commerce
• Convocation Addresses (the future of UNCC)
 Individual campuses are operating as efficiently and effectively as possible (2005)
 35,000 students by the year 2020 (2007) and associated support services (1,600
more next year to make it 26,900 in Fall 2012) means adding 1,000 per year for the
next 8 years
 We aspire to create a seamless customer-service organization with clearly
communicated processes and procedures. (2008)
 Football
 Alternative ways of generating revenue beyond the state dollars we receive
 We seek to push ourselves to private fundraising that exceeds $25 million (2009)
 re-engineer our capacity to raise gifts through our Annual Giving program (2009)
 Parking increases (2010)
 TR from being paper-based to being fully electronic (2011)
 Personnel related processes fully electronic
 36,000 UNC Charlotte donors
 including the development of metrics to hold ourselves accountable for judging what’s
working and, just as importantly, what’s not.
E-Commerce Transactions (including ACH)
• What does a successful E-Commerce operation look like? Describe
it…..
• If you could have it anyway you wanted (create it from scratch)
• Number of transactions
• Dollar value of transactions
• Per ($ and #) 1000 students (25277) and faculty/staff (2903) (headcount)
• Expected growth if nothing changes
• Number of merchants
• Targets
• Speed of realizing revenue versus checks or cash
• Adopt to change
• UNCC org structure
UNCC Revenue Sources
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State Appropriation- 40% (2011)
Tuition and Fees- 27% (2011)- $131 million
Auxiliaries Sales and Service- 10% (2011)-$ 48.5 million
Grants- 6% (2011)
Non Capital Gifts and Grants- 15% (2011)- $71.5 million
Investment- 1.6% (2011)
Other- .4% (2011)
Total Revenue $480.7 million
Revenue to be analyzed for e-commerce activity- $251 million (52% of
total)
• Auxiliaries (sales and service), Tuition, Other Merchant, Gifts
Determine a Realistic Goal for E-Commerce
• Who are your customers?
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Students?
Faculty?
Staff?
Other Stakeholders?
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State
PCI
Management
What do they expect?
$251 million + in revenue to be analyzed
Current E-Commerce activity
What’s the goal?
How much in ACH?
How much in credit/debit card activity?
Other Thoughts E-Commerce
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Branding
Ease of Navigation
Performance
Ability to make changes quickly
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Changes on the horizon
Traffic to the site
Size of average sales ticket
Customers who return to the site
What do we want the sites to accomplish
Target audience
Reduce costs increase speed
Technology changes in the next 5 years, how does it impact the
operation
• Regulatory compliance
• In relation to the strategic objectives
Institution Mission Vision and Goals
Academic, Student Life, Administrative or Service Unit
Mission and Vision
Beneficiaries and Constituency Needs and Expectations
Opportunities and Challenges
Resources
Mission Critical Programs and Services
Operational and Support Programs and Services

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