Measurable improvement in your development process

League of California Cities

Measurably Improving your Development Process

Joseph HorwedelCity of San Jose

Gerry DeYoungRuth & Going

Our plan for today• Setting the stage : Why are we

here today?• What are the expectations in

development process? Whose expectations?

• Capacity Building• Talking to your customers• Setting a plan in action• Tracking progress

Why are we here in this session?

• Complaints and frustrations• Want to do better at your city• Is a consultant is good idea• All the other sessions were full

'Horrible' business climate at root of COMPAC's drive July

3, 2006 • How do you rank the business climate

here? • Try getting a permit for something. It

can take months or years. What happens is that business people find out they need to get a permit for something. They go to city hall and find out they are not welcome and the city doesn't care. You hear that time and time again. Improving the business climate here is like rolling a boulder up a hill.

How the development process is reported in the papers

Sources of Frustration

• Lack of communication

• Unmet expectations• Unclear outcomes• Cost of the process• Length of process• Lack of

transparency• Trust Issues

What does everyone want from the process?

• Quality Outcome

• Predictability / Certainty

• Timeliness• Respect

Top 10 Consultant Recommendations• Coordination between departments• Adequate budget for desired outcome• Clarity of city development philosophy• Designated owner of the process• Information on the web• Treat customers as partners, not

enemies• Hire competent staff• Streamline the process and delegate

down• Use technology to share information• Monitor performance to targets

Pillars of Customer Satisfaction

Sustainability of Organization• Fiscal Stability

Are there resources to support the desired outcomes?

• Service Standard Consensus Is there agreement of what are

the desired outcomes?• Staff Development

Has staff been chosen and developed to achieve the outcomes?

Fiscal Stability• Is the development program expected to

be full cost recovery? Fully loaded costs?

• Use of Enterprise and Segregated Funds

• Reserves. Proper use Policy• Market pricing.

Service Standard Consensus• Is there clarity of what is the

expected level and type of service?

• Customer• Council members• Public• Staff

Staff Development• Do you have the right team to get

it done?• Pick staff for attitude, train for

content.• Continue to invest in your staff

development• Build succession in the

organization• Don’t forget about management

and leadership development.

How to Measurably Improve Your Organization

• Create a Framework for Performance Improvement

• Drive the Organization for Improvement

• Teaching the Organization to Improve

Create a Framework for Performance Improvement

Create a Framework for Performance Improvement• Defining the role

of the organization

• Understanding your customers needs.

• Identifying where performance is of greatest issue

• Setting achievable targets

Problems from Lack of Role Clarity “Another problem has been elected

officials and managers inserting themselves into areas of the planning process where they don't belong. Often, planners are receiving mixed messages from elected leaders, and in some cases being told to "work it out" or ignore city policy to make a project work, according to the report.

Those problems stem from "the roles and limits of authority" of stakeholders being unclear” Citygate study of a Utah City.

Problems from Lack of Role Clarity "Elected officials feel forced to

circumvent the planning and development permitting review process because they are unable to trust the existing process to make fair, consistent and timely decisions," the report states. "The ineffective process feeds on itself and then continues to degenerate into ever-increasing dysfunction."

Reconciling Policy and Reality

• Inconsistency between the General Plan Vision and Zoning cause confusion

• Community values typically show up first in the GP.

• Many development headaches are from zoning standards that have not kept pace.

• Investing in continuous review of you ordinances and guidelines is essential to reduce frustration and uncertainty.

Talking with your customers

• Don’t assume you know what is important to them.

• Look at your different customers by groups

• Engage them on their turf.

• Don’t stop talking to them.

Talking with your customers

Part of the process is also one of opening up. Once customers feel the City really wants suggestions – more will come. Also, once the City welcomes suggestions without becoming defensive – more will come. Change and progress is not a one-time event. It must take place on a daily basis.Paul Zucker, 1994 San Jose Assessment

Talking with your customers

Drop in on them at the counter or out in the field

Attend their board meetings

Host your own roundtable and committees

Make sure your staff knows you are regularly doing it.

Identify Improvement OpportunitiesLook for potential performance deficits in

the process and organization• Inputs – Staff capabilities• Processes – Plans, strategies, processes.• Outputs – Process over outcomes

• Make a deliberate choice on what to focus.

• Small and quick vs. Large and meaningful

• Make sure staff and customers know.

Process Review Think about why

your customer is dealing with your staff.

Are your policies created to help the customer be successful, or make it easier for staff?.

Process Message for staff

The small business owner did not have a goal of getting a permit. They had the goal of running a successful business.

Process Improvements Opportunities

Zucker Systems, San Jose 2002

Proposed Reform New Initiatives (FY 08-09)

Estimated Completio

n Date

Streamline application intake

Develop a universal planning permit application and application submittal requirements. To ensure consistency in the application intake process, staff is developing a Universal Permit Application to cover the major development projects (Site Development, Conditional Use Permit, Planned Development Permit), as well as develop a matrix for submittal requirements based on project type. Both these efforts will eliminate confusion as to what application form to fill out and submit, and will set forth a schedule of submittal requirements that fit the project and the level of review it will go through. (Darryl B.)

Spring 2009

Improve timeliness of Public Works memo

Phase 1: 30-day Letter - The newly created 3rd Senior (Coach) position has the responsibility to ensure that Public Works meets Planning's goal of producing a 30-day letter to new development applications to the City. (Primo D./ Mike L.)

In place, progress on-going

 

Phase 2: Public Works Business Study / User Fee Study: Public Works has commissioned a comprehensive third-party evaluation of their current business model in an effort to provide an improved and more financially solvent operation in FY 2009-10. Analysis will include a user fee study that will align fees to support the improved service model. If there are opportunities to adopt any proposed changes in advance of 2009-10, Public Works will pursue early adoption. (Primo D./ Mike L.)

April 2009

Supplemental experience and institutional knowledge in the Public Works Department

Phase 1: Senior Project Involvement: For FY 2008-09, when necessary, Senior Management in Public Works will get involved to resolve difficult project issues. In addition, monthly internal training sessions will occur in order to provide structured and detailing training on the varying technical aspects of our work within the overall development process. (Primo D./ Mike L.)

In place, on-going

Process Improvements Opportunities

Ask Open Ended Questions

Planning PermitsBuilding Permits

Note difference in responses between customers satisfied vs. dissatisfied:

Process simplification and online information

vs.

Coordination and processing times

Setting Achievable Service TargetsDon’t go looking for the perfectperformance measure. It doesn’texist. So, start with a good measureor two. Identify their flaws.Be alert for them. Can you livewith them? Make some adjustments?Still, you’ll never eliminate all of the

flaws. Get over it.

Bob Behn, Kennedy School of Government

Setting Achievable Service TargetsEffective targets should be based on:

•What the customer needs or wants.

•What the organization can deliver.

•Choice and consequence balance.

•What can be tracked and reported.

•Match phase of process.

Challenges with Targets “Whether their mission is to protect children, to

put out fires, or to defend the nation, many public-sector professionals are philosophically resistant to measurement.”

Robert Behn, Kennedy School of Government

“We’re professionals. We know what we're doing. We have that tacit knowledge, that sixth sense that tells us when we're doing well and when we're not. So give us the money and leave us alone.”

Input Performance Targets• Average Projects per staff• Complete applications at submittal• % cost recovery of program• Average years staff experience• % of staff certified as LEED or BiG

Process Performance Targets• Called applicant with/in 3 days of submittal• Draft Permit conditions to applicant prior to

hearing• Project comments provided within target• Number of review cycles per project

Output Performance Targets• Staff provided clear direction• Staff helped resolve issues• Community opinion of

development• Staff acknowledges and fixes

mistakes• Cost per unit of service

Drive the Organization for

Improvement

Drive the Organization for Improvement

• Track progress to targets

• Communicate the progress

• Small Wins / Big Success

• Celebrate the victories

• Accurate and Timely Intelligence Shared by All

• Rapid Deployment of Resources• Effective Tactics and Strategies• Relentless Follow-up and

Assessment

CitiStat Goals:

Resources to Help Track Progress

Tracking Progress: CitiStat

• Measurement against targets• Monthly Comparisons• Volume and percent of all activity• Trends

Tracking ProgressDiscretionary Processes

• Zoning and Land Use• Public Process• More discretion• More difficult to

manage

Ministerial Processes• Building and grading

permit• No outreach• Follow code, get permit• Easier to manage

outcome

Tracking Progress: Overall Satisfaction

Overall Satisfaction & Service Improvement Data(Discretionary Process: e.g. Zoning and Planning Approvals)

86

72

92

86

76

85

71

62

63

79

66

71

81

66

68

72

82

72

68

81

7878

72

72

40 50 60 70 80 90 100

Service Improved Last 12 Months

Fire Department

Public Works

Plan Check

Public Hearing

Project Manager

Permit Application & Issuance

Overall Project Satisfaction

2006 2007 2008

Quality of Service Measurement

Tracking Progress Cycle Time Measurements

Easiest to measureTypical staff complaint about lack of quality

Communicate the Progress• Talk with staff

about their results

• Publish quarterly and annual reports

• Make sure your elected officials know

• Find opportunities to celebrate

Publish Reports

Publish Reports

Publish Reports

Teaching the Organization to

Improve

Teaching the Organization to Improve

• Aligning results to your mission

• Bring measurement to the work group

• Reassess you progress

• Repeat

Aligning Results to Mission

Improvement takes more than just showing up

You need to: • understand

challenges, • focus on what is

achievable

Bringing Measurement to the Workgroup: Dashboards

• Dashboards help staff and managers talk about performance

• Use customer stories to connect staff to service delivery issues.

Bringing Measurement to the Workgroup: Dashboards in San Jose

Bringing Measurement to the Workgroup: Pitfalls

• Be aware of this emphasis in CitiStat• Your staff will research CitiStat• Control the message around celebrating

victory, not failures.

Bringing Measurement to the Rest of the Organization

Bringing Measurement to the Rest of the Organization

Cash Amounts - PlanningAll Transactions

$0.00

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

1 101

Finance Director says “I want you to charge your customers a credit card convenience fee because the annual charge from the bank is too big.”

Credit Card Amounts - PlanningAll Transactions

$0.00

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

1 101

201

301

401

501

601

701

801

901

1001

1101

Credit Card Amounts - Planning Less than $1000

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

I used data to point out “Majority of charge transactions is for about $200, assuming a 4% fee is $8. Can you process a receipt for $8?” He shut up!

Reassessing Your ProgressBe aware of distortions in your

progress• Targets can encourage perverse

behaviors• “Teaching to the Test”

What get measured gets donePeter DruckerUsing outputs to measure the performance of

an agency or an individual can drive public employeesto maximize the outputs while ignoring the outcomes.

Reassessing Your Progress

Are outputs or results achieving the desired outcome?

Your Path to Success• Create a

Framework for Performance Improvement

• Drive the Organization for Improvement

• Teaching the Organization to Improve

Resources For Process Improvement