Maxwell School: Performance Measurement for ADR Professionals

Strategic planning and performance measurement can be confusing terms, especially because they are often used interchangeably. However, while both are related elements they each serve a specific purpose. Strategic planning and performance measurement generally fall under the larger “Managing for Results” system, which is a future-oriented process emphasizing the achievement of results. “Managing for Results” has become popular in recent years, due to an emphasis on the need to be able to measure the actual effectiveness of an organization, as well as federal legislation (Government Performance and Results Act) that encourages the process. This website is designed to provide a practical base in strategic planning and performance measurement for ADR professionals. For more information on these elements of the “Managing for Results” process, please go to the Resources component of the Research & Resources section, where a number of “Managing for Results” handbooks have been cited.

Strategic Planning is the part of “Managing for Results” within which many organizations are already somewhat familiar. An organization’s vision, mission and goals are all part of the strategic planning process. The process of strategic planning involves identifying where the organization is now, and what the organization will look like or will have accomplished in the future.

After an organization has gone through the strategic planning process, it knows where it is currently, including strengths and weaknesses, current resources and needs, and it knows where it wants to be in the future. However, strategic planning itself gives an organization no means to determine if it is actually accomplishing its vision and goals. Performance measurement is the process of taking an organization’s strategic plans and determining how success will be determined and measured. The actual data used to measure the success of an organization at meeting its goals are called “performance measures.” Performance measurement describes the process involved in identifying and measuring these data.

There are many ways of viewing and identifying the various components of the “Managing for Results” process. The following matrix from the state of Delaware provides one such representation:

Define/refine Department Mission	→	Development of the Mission	Why do you exist? -- Mandates -- Policy Agendas
Discuss/Review Internal/External Factors	→	Environmental Scan	Major effects on the organization’s capacity to most effectively pursue its mission
Departmental Key Objectives	→	Development of Key Objectives	Describes what the agency needs/wants to do stated in the form of outcomes
Roles of Programs	→	Development of Strategic Initiatives	How do you accomplish the key objectives? What strategies should be employed?
Strategy Activities of Programs	→	Activities	Activities constitute the strategies for accomplishment of key objectives. Multiple programs.
Performance Measures	→	Monitoring/Evaluation	Progress towards key objectives. Plan implementation phases. Evaluation process

(Source: Adopted from State of Delaware, Strategic Planning Guidelines: Shaping Delaware’s Future.)

The following matrix of the “Managing for Results” process from the State of Arizona offers a close representation of the information provided within this website:

Ask:	To Get the Answer:
Where are we now?	Perform an Internal/External Assessment, which consists of a situation inventory and environmental scan. Perform a Customer/Stakeholder Identification, which consists of a formal definition of those directly or indirectly using the agency’s services.
Where do we want to be?	Develop a Mission, which is a brief, comprehensive statement of purpose. Develop a Vision Statement, which is a compelling, conceptual image of the desired future. Develop Principles, which are the core values of the agency. Develop Goals, which represent the desired end results after three or more years. Develop Objectives, which are specific, measurable targets to accomplish goals.
How do we measure our progress?	Develop Performance Measures, which measure results, ensure accountability, encourage the use of targets that are linked to continuous improvement, and allow benchmarking against the “best in class.”
How do we get there?	Develop Action Plans, which embody the strategies and steps to implement a strategic plan and lead to resource allocation.
How do we track our progress?	Develop a Tracking System, which measures progress and compiles management information.