Performance measurement of social security … · performance at the Belize Social Security Board ... performance appraisal has often been difficult to ... data collector from all

International Social Security Association Inter-American Conference on Social Security

ISSA-CISS Regional Conference for the Americas

Strengthening Social Security in the Americas

St. Michael, Barbados, 3-7 November 2003

Performance measurement of social security administrations

Performance Dashboard and the Balanced Scorecard: An approach to improving performance at the Belize Social Security Board Narda Garcia General Manager Belize Social Security Board Belize

ISSA-CISS/AMER/RC/BARBADOS/03

1

BELIZE SOCIAL SECURITY

BOARD

PERFORMANCE MEASUREMENT

OF SOCIAL SECURITY ADMINISTRATIONS

2

Performance Dashboard and the

Balanced Scorecard:

An approach to improving

performance at the Belize Social Security

Board

3

AGENDA

•Background

•Introduction

•Process Overview

•Results Review

•Implementation Steps

•Next Steps

4

BACKGROUND

•Since 1999 the Social Security Board has been undergoing significant changes as a result of the ongoing reform process. These changes coupled with greater demand for improved customer service and accountability has underscored the need to have ongoing evaluation of the organization’s performance.

- Although performance measures have been implemented in the past, a clear and concise group of indicators had not been developed and data sources and standardized collection methods had not been defined.

- Individual performance has never been linked to specific, quantitative measures and as a result, performance appraisal has often been difficult to communicate accurately.

- BSSB divisional directors, managers, and employees are committed to the implementation of a Performance Dashboard and agree that the Balanced Scorecard approach in developing performance measures is an effective and useful tool.

- Presently we are still in the process of finalizing the Performance Dashboard and we anticipate to implement by 1 January 2004.

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PERFORMANCE DASHBOARDINTRODUCTION

What is it?

•Performance targets, known as “key performance indicators” (KPI’s), are determined for all levels of an organization

•They have assigned accountability and are tracked on a regular basis and used to set managerial incentives

•They are categorized using the Balanced Scorecard framework, which provides an integrated construct to ensure that the Performance Dashboard metrics are weighted appropriately and provide a holistic perspective on overall effectiveness

Objective:

•It is a management tool used to align the metrics, performance targets and allocation of resources of all operational levels with the mission and vision of an organisation

•The Performance Dashboard makes strategic vision actionable

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BALANCED SCORECARDINTRODUCTION

The fathers of the Balanced Scorecard, Drs. Kaplan & Norton, introduced four generic perspectives from which to view any business. These are:

-Financial-Customer-Internal Processes and-Learning and Growth

Each of the four areas responds to the strategic needs of a company with regard to achieving their vision and mission.

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BALANCED SCORECARDINTRODUCTION

The Financial Perspective. In the Financial Perspective we ask ourselves:

“How should we present ourselves to our owners and investors in order to be considered a financial success and an attractive investment?”

In the context of SSB this perspective is related to the establishment of an efficient public institution that effectively provides the pension, health and welfare benefits it was created for in a sustainable manner. The definition of indicators will reflect this objective.

The Customer Perspective. In the Customer Perspective we ask:

“What is the Customer Response we need in order to reach our Financial Objectives listed above, and what is the customer value proposition that will give us such a response?” or How can SSB best serve its clients, internal and external?

The Internal Processes Perspective. In the Internal Processes Perspective we ask:

“In what activities must we excel in order to deliver our value proposition as described in the Customer Perspective and, finally, in our Financial Objectives?”

The Learning And Growth Perspective. This is the final question:

”What do we need to change in our Infrastructure or Intellectual Capital to achieve our internal processes objectives?”

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This figure shows how the vision and mission of BSSB are translated into four dimensions of KPIs, for each of the four dimensions of the dashboard, and how the KPI’s are, in turn, translated into Management Performance Measures for each division and, subsequently into Operational Performance Measures at the department level. This cascading structure is reproduced in each division and department.

KPI

Customer

KPI

Finance

KPI

Learning

OPM Dept.

OPM Dept.

OPM Dept.

MPM-Division Finance

MPM-Division Admin

MPM-Division NHI/EI

MPM-Division Benefits

Vision/ Mission

OPM Dept.

OPM Dept.

OPM Dept.

MPM-Division Finance

MPM-Division Admin

MPM-Division NHI/EI

MPM-Division Benefits

KPI

Process

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•What we have done:

- Operational Performance Measures (OPMs)8OPMs were developed for MPMs (Management Performance Measures) and still need to be defined by divisional directors and managers with key staff members.

- Target Setting8Given that BSSB performance measures in the past have been defined differently and were of a more qualitative nature, targets for the new KPIs, MPMs, and OPMs were established with less reliance on historical performance and more focused on benchmarking and strategic goals.

- Accountability8High level KPIs have root data sources through 4 divisions of BSSB: Finance, Administration, NHI, and Benefits.8The Internal Audit division will be responsible for appointing adata collector from all four divisions and production manager for development and distribution of the Performance Dashboard.

- Information Systems8Currently, methods of data collection for the KPIs, MPMs, and OPMs have not been clearly articulated, since there are few systems already in place. 8Divisional Managers will work with Internal Audit to develop efficient and effective inter department data capture methodologies for MPMs and OPMs in order to be able to feed data to the Internal Audit division for high level KPI performance.

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PROCESS OVERVIEW

•Background

•Process Overview

•Results Review


•Next Steps

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METHODOLOGY

Workshops were conducted with various BSSB divisions in order to develop strategic objectives, KPIs, MPMs, and OPMs

Meeting Time Attendants Objectives

• Introduction• Tuesday,

April 9• All directors,

managers• Performance Dashboard

Overview

• Background• Tuesday,

April 9• All directors,

managers • Example Implementation

• Organizational Workshop

• Tuesday, April 9

• All directors• Define mission

statement, strategic objectives

• Organizational Workshop

• Wednesday, April 10

• All directors • Define high level KPIs

• Benefits Workshop

• Thursday,April 11

• Henry Link and divisional members

• Define divisional MPMs

• Finance Workshop

• Monday, April 15

• Rolando Zetina and divisional members


• Admin Workshop• Tuesday, April 16

• Dalila Castille and divisional members


• NHI Workshop• Wednesday, April 17

• Dalila Castille and divisional members


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PROCESS OVERVIEW

The development of a Performance Dashboard is a 6 step process.

BSSB was able to complete several steps of the process during the workshops

Complete

Incomplete

Strategic Objectives

Select Strategic Metrics(KPIs)

Develop Metric

Cascade

Set Management

and Operational

Targets

Assign AccountabilitySet

Strategic Targets

Develop Dashboard

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PROCESS DETAILSpecifically, two process steps in the development of a Performance Dashboard have been partially completed or have yet to be discussed = fully completed

Process Step Activity Involved Parties Progress

•Strategic Vision

• Defined high level definition of BSSB’s mission statement

• GM, All Directors

•Operation Performance Measures

• Need to define measures of individual activity, and assign individual accountability

• Directors, Managers, keystaff members

•Strategic Objectives

• Defined high level objectives aligned with BSSB’s mission


•Key Performance Indicators

• Defined broadest level ofBSSB’s performance towards achieving strategic objectives


•Management Performance Measures

• Defined specific measures within accountable departments affecting high level KPIs

• Directors, Managers, key staff members

•KPI, MPM, and OPM Targets

• Need to set targets based on strategic goals, historical performance, and benchmarking studies

• Directors, Managers, key staff members

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AGENDA

•Executive Summary

•Process Overview

•Results Review


•Next Steps

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DEFINITION OF STRATEGIC VISION

BSSB Performance Dashboard workshop participants agreed that the BSSB Strategic Vision should remain unchanged

BSSB Strategic Vision

"The Board of Directors, Management and staff of Social Security envision a Social Security Scheme publicly accepted and respected for its commitment to, and

success in, providing top quality service through universal coverage, effective fund management and socio-economic development programs relevant to the

needs of the population of Belize."

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Strategic objective #1: Collect accurate and timely contributions from all required employers as stipulated by the social security legislation

Strategic objective #2: Achieve 100 percent registration of all eligible persons in Belize

Strategic objective #3: Provide the appropriate benefits as per legislation to reduce economic insecurity within a financially sustainable framework

Strategic objective #4: Achieve productive investment to contribute to the socio-economic development of Belize

Strategic objective #5: Improve public awareness of rights and responsibilities of the population regarding BSSB benefits and programs

BSSB STRATEGIC MISSION

To effectively manage its operations to deliver the best quality service to

insured persons, employers and the general public, through efficient

collection of contributions, prompt payment of benefits and prudent

investment of reserve funds.

Financial KPICustomer

KPILearning/Development

KPIProcess KPI

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DEFINITION OF STRATEGIC OBJECTIVES

High level strategic objectives were defined using BSSB’s key functions approach:

Collections, Registration, Provision of Benefits, Fund Management, and Public Education


Strategic objective #2: Achieve 100 percent registration of all eligible persons and required employers in Belize

Strategic objective #3: Provide the appropriate benefits to reduce economic insecurity within a financially sustainable framework


Strategic objective #5: Improve public awareness of rights and responsibilities of the population regarding BSSB programs

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Learning KPIs

BSSB Strategic

Objective #1

Financial KPIs• Total contributions (revenue)• Total collection rate (contributions collected/expected collections)

(revenue)• Contribution collection per branch office (asset use)• Percentage of each dollar revenue spent collecting from large,

medium, and small companies (cost)• Percentage of employers in arrears (cost)

Customer KPIs

• Percentage of formal sector employers enrolled with BSSB (acquisition)

• Percentage of self employed individuals enrolled with BSSB (acquisition)

• Employer satisfaction rates with BSSB service (customer satisfaction)

• Employer delinquency rate by zone (inspector productivity)• Inspector job satisfaction rates (employee satisfaction)• Collections employee turnover rates (retention)• Percentage of key staff members that are on track for skill plan

(productivity)

Internal KPIs

• Percentage of late contribution payments (operations)

• Total process time to reconcile bank statements (operations)

• Percent of employers in arrears who make payments (service)

• Percentage of cases tried and won by BSSB

• Percentage of complaints resolved (service)

• Benefit payments errors (internal)

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Strategic objective #2: Achieve 100 percent registration of all eligible persons and required employers in Belize

Learning KPIs

• Front desk clerk job satisfaction rates (employee satisfaction)

• Registration employee turnover rates (retention)• Percentage of key staff members that are on track for

skill plan (productivity)

BSSB Strategic

Objective #2

Financial KPIs

• Total registrants costs* (costs)• Registration costs per registrant *(costs)• Registrations* per branch office (asset utilization)

Customer KPIs

•Registrant satisfaction with registration process (customer satisfaction)

•Percentage of total Belize’s population registered with BSSB (acquisition)

•Total registrant complaints(customer satisfaction)

Internal KPIs

•Processing time of cards from point of registration to card production (operations)

•Delivery time from card production center to Branch offices (operations)

•# of cards in queue at branch office (customer service)

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Strategic objective #3: Provide the appropriate benefits to reduce economic insecurity within a financially sustainable framework

Learning KPIs• Benefits authorizers job satisfaction rates (employee

satisfaction)• Benefits employee turnover (retention)• Percentage of key staff members that are on track for

skill plan (productivity)• Benefits processed per employee (productivity)

BSSB Strategic

Objective #3

Financial KPIs•Average benefit payment for long term benefits (cost)•Average benefit payment for short term benefits (cost)•Average benefit payment and cost of service for employment benefits (cost)

•Benefit payments per branch office by type (asset utilization)

•Average cost of service for NHI (cost)

Customer KPIs

•Employee satisfaction with benefit payments (customer satisfaction)

•Employee satisfaction in reducing economic insecurity (customer satisfaction)

•Customer complaints on benefit claims (satisfaction)

Internal KPIs

•Turnover time to pay benefit by category (operations)

•Percentage of benefits claims that are not reconciled with records (operations)

•Percentage of benefits payment errors (operations)

• Percentage of benefits claims complaints resolved (service)

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Learning KPIs• Finance employee satisfaction (employee satisfaction)• Finance employee turnover (retention)• Percentage of key staff members that are on track for skill

plan (productivity)• NHI Support services provider turnover and provider

satisfaction (retention and satisfaction)• Expected returns/actual returns (productivity)

BSSB Strategic

Objective #4

Financial KPIs• Impact on health status of population due to productive investment of

NHIF (asset utilization)• ROIC (revenue)• Annual contributions surplus (revenue)• Investment maintenance cost (cost)• Percentage of non-performing loans (cost)

Customer KPIs

• NHI user satisfaction with value for money (customer satisfaction)

• Customer satisfaction with timeliness of loan approval and loan dispersal (satisfaction)

• Total number of loans approved (acquisition)

• Loan turnover (retention)

Internal KPIs

• Number of system advancements made by Finance (innovation)

• Loan approval process time (operational)

• Percentage of loans approved with timely communication of terms and conditions (operational)

• Average time to report delinquent loan (operational)

• Turnaround time to resolve customer complaint (service)


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Strategic objective #5: Improve public awareness of rights and responsibilities of the population regarding BSSB programs

Learning KPIs• PR employee job satisfaction rates (employee satisfaction)• PR employee turnover rates (retention)• Percentage of key staff members that are on track for skill

plan (productivity)• Number of programs and publications developed per

employee (productivity)

BSSB Strategic

Objective #5

Financial KPIs

•Total cost of educational programs as % of total expenditures (cost)

•Total cost of educational programs per “customer” by HQ and Branches (cost)

•Effectiveness of dollars spent on “registration” theme (asset use)

Customer KPIs

•Belize population awareness of various programs (customer satisfaction and retention)

•Circulation of BSSB developed materials (acquisition)

•Customer satisfaction with BSSB’s effort to educate population (customer satisfaction)

Internal KPIs

•Time to develop various literature (operations)

•Time to develop a new program (innovation)

•% of total population with access to BSSB educational information (service)

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AGENDA


•Process Overview

•Results Review


•Next Steps

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IMPLEMENTATION STEPS

Description • Identify individuals at BSSB who will oversee project

• Establish budget for project

• Define specific processes that feed data to previously defined MPMs and OPMs

• Define targets for

• KPIs• MPMs• OPMs

• Assign individual accountability

• Identify measures that currently do not have tracking systems in place and develop collection tools

• Develop internal data management system necessary for BSSB to produce Performance Dashboard

Responsible Party

• Internal Audit Department

• General Manager

• Board Members

• Finance

• All Directors and Managers



• MIS


• MIS

Time to Implement(estimation)

• 1 week • 1 week • 2 weeks • 4 weeks • 2 weeks

Nominate project

champions and ensure

BSSB commitment

Define Operational Performance

Metrics

Set Targets and

Accountability

Develop data collection tools

Develop information flow system

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Implementation Step 1

BSSB needs to establish key players in the implementation and ongoing maintenance of the Performance Dashboard, with an approved budget set aside to realize project goals

Nominate Project

Champions

Establish Budget

for Project

Necessary Steps

• Identify key BSSB members that will ensure that Performance Dashboard project is implemented at BSSB

•Project Leader• Performance

Dashboard Committee

• Set timelines and deadlines for rollout of Performance Dashboard and ongoing production

• Define a budget based on

•One time costs• New information

system costs•Ongoing costs

• Personnel hours spent on system maintenance

• Dashboard production costs

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Workshops identified KPIs and MPMs, but OPM definition still needs to be completed by Directors and Managers

LevelStage of Completion

•Identified broadest measuresof BSSB’s performance and assigned divisional responsibility

- Current KPIs measure of critical factors influencing strategic objectives

- Current KPIs build on a set of inter-related management performance measures

Board/Executive

Key Performance

Indicators(KPIs)

•Identified specific measuresof processes key to influencing the KPIs within each division

- Current MPMs need to build on a set of measures of specific operational activities

DivisionalManagementPerformance

Measures (MPMs)

•Need to identify measures of discrete activity, driving the overall process

•Need to assign individual accountability

Operation Performance

Measures (OPMs)

Individual

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Targets have been defined for KPIs, MPMs and OPMs using information from the parameters indicated below

Historical Performance

CountryBenchmarking

StrategicObjectives

• • •

• • •

• • •Learning/Growth•

BSSB S

trat

egic

KPI

’s

• • •Process/Internal•

Financial•

Customer•

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Setting target key takeaways

•Target setting is not mechanical and was customized based on:

- historical performance- benchmarking - strategic objective

•Targets should stretch the organization to meet performance potential, representing significant improvement over current performance levels

•Stretch targets must be realistic enough to motivate action

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BSSB needs to identify tracking tools that already are in place and develop new tracking tools to capture information for various measures (KPIs, MPMs and OPMs)

Identify Existing

Tracking Tools

Develop New

Tracking Tools

Necessary Steps

• Establish which of defined metrics are currently being tracked

• Catalogue each of the current tracking systems in place by the following categories:

- Format- System capabilities- Opportunities for

expansion

• Use above information to identify current tracking systems that might be able to capture additional information for other KPIs, MPMs, and OPMs

• Identify which of KPIs, MPMs and OPMs cannot be captured with current tracking systems at BSSB

• Identify which tracking tools should be developed using the following criteria:

• Importance of data• Ease of capturing data

• No. of system inputs• No. of involved

individuals• Cost of capturing data• Number of KPIs, MPMs,

and OPMs measured by system

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Necessary Steps

BSSB needs to develop an efficient system to manage the production of the Performance Dashboard on a monthly basis

Appoint Performance

Dashboard

Production Team

Develop Data

Management System

• Identify key individuals who will be responsible for the monthly production of the Performance Dashboard

• Production Manager • Data Collector • Researcher

• Identify key divisional managers

responsible for MPM and OPM

data feeds

• Develop database maintaining all

Performance Dashboard related data

• Develop Performance Dashboard

output templates which focuses

on consistency of data presentation

and easy to understand results- Identify software that transfer

data into easy to read graphs and text for Performance

s

Dashboard publications

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AGENDA


•Process Overview

•Results Review

•Outstanding Implementation Requirements

•Next Steps

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NEXT STEPS

•Identify Performance Dashboard program implementation leader for BSSB

•Refine specific targets and goals for the implementation plan based on further analysis

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Thank You for your attention!

NARDA GARCIA (MRS.)

General Manager

Belize Social Security Board

P.O. Box 18

Belmopan, BELIZE

Email:

[email protected]

Tel: 501 -822-2163

Fax:501-822-3331

Documents

Performance measurement of social security … · performance at the Belize Social Security Board ... performance appraisal has often been difficult to ... data collector from all