1. LEAD VIRGINIA
Virginia’s Approach to Performance
Leadership and Accountability
APRIL16, 2011
JANE N. KUSIAK
EXECUTIVE DIRECTOR

2. Outline
Introduction to the Council on Virginia’s Future and
Virginia’s Approach to Performance Leadership and
Accountability
Continued Evolution of Virginia Performs
Vehicles for Communication and Dialogue
Special Focus: Regional Competitiveness
Concluding Remarks
2

3. Introduction to the Council on Virginia’s
Future and Virginia Performs

4. Council Overview and Membership
Established in 2003 (Code of Virginia, The Honorable Robert F. McDonnell, Chair
§ 2.2‐2683 et seq.) to serve as an Governor, Commonwealth of Virginia
advisory board to the Governor and The Honorable William T. Bolling Mr. John O. (Dubby) Wynne, Vice Chair
the General Assembly, the Council is Lieutenant Governor, Commonwealth of Virginia President & CEO (retired), Landmark Communications
a forum where legislative, executive General Assembly Members Citizen and Business Community Leaders
branch, and community leaders
come together for work that The Honorable Ward L. Armstrong The Honorable William D. Euille
transcends election cycles, Minority Leader, Virginia House of Delegates Mayor, City of Alexandria
partisanship, organizational The Honorable Charles J. Colgan Mr. W. Heywood Fralin
boundaries, and short‐term thinking. President pro tempore & Chairman, Senate Finance President & CEO,
Committee, Senate of Virginia Medical Facilities of America, Inc.
The Council: The Honorable M. Kirkland (Kirk) Cox Mr. Edward W. Gillespie
Majority Leader, Virginia House of Delegates Principal & Founder, Ed Gillespie Strategies
• Provides a long‐term focus on
high‐priority issues. The Honorable William J. Howell Mr. Harris N. Miller
• Creates an environment for Speaker of the House, Virginia House of Delegates President & CEO, Career College Association
improved policy and decision‐
The Honorable Yvonne B. Miller
making. Member, Senate Finance Committee,
Dr. Edward G. Murphy
President & CEO, Carilion Clinic
• Increases government Senate of Virginia
accountability, operations, and
The Honorable Thomas K. Norment, Jr. The Honorable Michael J. Schewel
performance. Minority Leader, Senate of Virginia Partner, McGuireWoods LLP
• Informs citizens about
performance and engages Cabinet Members
The Honorable Lacey E. Putney
them in dialogue about Chairman, House Appropriations Committee Virginia
The Honorable Richard D. Brown
House of Delegates
Virginia’s future. Secretary of Finance
The Honorable Richard L. Saslaw Mr. Martin L. Kent
Majority Leader, Senate of Virginia Chief of Staff to Governor Robert F. McDonnell
Council support provided by the Weldon Cooper Center for Public Service at the University of Virginia and the Virginia Department Planning and Budget,
in cooperation with the Governor’s Office.
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5. ROADMAP FOR VIRGINIA’S FUTURE
Review and
update the
Roadmap
Assess progress as needed
against long-term
objectives, current Establish
service levels, and a vision
productivity for the
improvement Commonwealth
Vision for Virginia
Virginia * Vibrant economy
* Well-educated citizenry
Performs * Best managed state in the nation
* Informed and engaged citizens
Evaluate and
improve Establish priorities
performance and develop plans
(Continuous that link to long-term
Improvement) Adjust funding objectives and the
based on goals budget (Strategic
and results Planning)
(Performance-
based
Budgeting)
Council Executive Branch
VISION, GOALS AND SPECIAL ISSUES DEVELOPMENT PERFORMANCE
ASSESSMENT OF PROGRESS EFFICIENCY AND EFFECTIVENESS
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6. ‐‐‐‐‐‐‐‐‐‐‐ Executive Branch ‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐ Council ‐‐‐‐‐‐ Virginia Performs Architecture
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7. 7

8. Are We Making Progress?
Improving Maintaining Losing Ground
Business Climate Business Startups Personal Income, Wages
Workforce Quality Employment Growth & Salaries
Economy Poverty
Unemployment
Third Grade Reading College Graduation Lifelong Learning
Fourth Grade Reading High School Dropout
Education & Math Achievement High School Graduation
Educational Attainment School Readiness
Adoption Cancer Health Insurance
Smoking Life Expectancy Obesity
Health & Family Cardiovascular Disease Foster Care Suicide
Child Abuse & Neglect Immunization
Teen Pregnancy Infant Mortality
Crime Juvenile Intakes
Public Safety Traffic Fatalities Emergency Preparedness
Adult & Juvenile Recidivism
Natural Air Quality Land Preservation Historic Resources
Resources Water Quality Solid Waste & Recycling
Land Use Infrastructure Condition
Transportation Traffic Congestion
Bond Rating Internet Access Civic Engagement Consumer Protection
Government & Taxation
Citizens Voter Registration &
Turnout
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9. Virginia Performs Structure and Outcomes:
How Does Virginia Compare to Other States?
INDICATOR RANK 1‐10 11‐20 21‐30 31‐40 41‐50 INDICATOR RANK 1‐10 11‐20 21‐30 31‐40 41‐50
ECONOMY EDUCATION
Business Climate  College Graduation (4‐Year) 
Business Startups  College Graduation (2‐Year) 
Employment Growth  Fourth Grade Reading 
Personal Income  Fourth Grade Math 
Poverty  High School Dropout 
Unemployment  PUBLIC SAFETY
Workforce Quality  Emergency Preparedness 
HEALTH & FAMILY Property Crime 
Cancer Deaths  Violent Crime 
Cardiovascular Disease  Traffic Fatalities 
Health Insurance  TRANSPORTATION
Immunization (Childhood)  Infrastructure (Deficient Bridges) 
Infant Mortality  Traffic Congestion (Commute Time) 
Obesity  GOVERNMENT & CITIZENS
Smoking  Bond Rating 
Suicide  Charitable Giving 
Teen Pregnancy  Consumer Protection (Fraud) 
NATURAL RESOURCES Internet Access (Broadband) 
Historic Districts  Taxation (State and Local) 
Energy  Voter Turnout 
9

10. Virginia Performs Structure and Outcomes:
How Are Virginia’s Regions Doing? (A Sampling of Indicators)
Trend Key:  Improving  Maintaining  Worsening
ECONOMY Central Eastern Hampton Roads Northern Southside Southwest Valley West Central
Business Startups        
Employment Growth        
Personal Income        
Poverty        
Unemployment        
EDUCATION Central Eastern Hampton Roads Northern Southside Southwest Valley West Central
School Readiness        
High School Graduation        
High School Dropout        
HEALTH & FAMILY Central Eastern Hampton Roads Northern Southside Southwest Valley West Central
Cancer        
Cardiovascular Deaths        
Foster Care        
Infant Mortality        
Obesity        
Suicide        
PUBLIC SAFETY Central Eastern Hampton Roads Northern Southside Southwest Valley West Central
Property Crime        
Violent Crime        
Juvenile Intakes        
Traffic Fatalities        
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11. Are Agency Measures Aligned with High‐
Priority Goals?
SOCIETAL INDICATOR AGENCY PERFORMANCE MEASURES
Performance
Baseline /
Target
Trend
Indicator Agency Key Measure
Education
84%/
Third Grade Reading ] Education Third graders passing the reading SOL test
95%
74%/
High School Graduation ] Education High school students exiting with a diploma
80%
Health and Family
21%/
Foster Care ] Social Services Children adopted within 24 months of entering
foster care 37%
81%/
Immunization ] Health Two-year old children fully immunized
90%
Public Safety
946/
Traffic Fatalities ] Transportation Traffic crash-related fatalities
846
Juveniles convicted of a new crime within a year of 38.8%/
Recidivism ] Juvenile Justice
release 31.7%
Natural, Cultural, and Historic Resources
Environmental Nitrogen nutrients discharged in the Chesapeake 25.7/
Water Quality ]
Quality Bay watershed (millions of lbs.) 22.3
Conservation & Cumulative acres (000s) preserved for 67.3/
Land Preservation ]
Recreation conservation purposes 400
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12. Continued Evolution of Virginia Performs

13. History and Next Steps
Development Phase Implementation Phase Current Next Steps
(2003‐2005) (2006‐2009) Status (2010‐2013)
Define and Create the Strengthen Links to Performance, Continue Development
Level Performance System Improve Transparency & Enhancement
‐‐‐ Council ‐‐‐
• Overall vision and long‐ • User‐friendly Virginia Performs • Strong foundation in place • Identifying and tracking a critical
term goals for the website that integrates societal‐ • Well‐developed system few drivers of economic
Societal Commonwealth and agency‐level views
• Refinement continues
competitiveness in Virginia
• Special focus on higher education (Competitiveness Index)
How Is Virginia Doing? • Development of Hampton Roads • Complete first phase of regional
Performs competitiveness study (May 2011)
• Agency key measures: First step • No formalized or systematic • Enterprise Level:
toward gaining enterprise way to track enterprise‐level ‣ Short term: Capture metrics
Enterprise perspective priorities related to top priorities (e.g.,
‐‐‐‐‐‐‐‐‐ Executive Branch ‐‐‐‐‐‐‐‐
land preservation, college
degrees)
Are We Getting
‣ Long term: Capture enterprise‐
Results on Our wide plans and metrics that
Highest Priorities? transcend secretarial and
agency boundaries
• Consistent and integrated • Strengthened focus on agency • Continued training and technical • Full implementation of
strategic planning outcomes and results assistance needed to improve Performance Budgeting System,
• Service area plans linked to • Regular reporting by agencies on measures including strategic planning
the budget performance measures • Initiation of assessment and ‣ Short term: Report progress in
• Began development of evaluation of strategic planning FY2011 on existing measures
Agency process and metrics
Performance‐Based Budgeting ‣ Long term: Assess overall
System • Completed the first phase of the system in preparation for
Are We Improving • Initiated the Productivity Performance‐Based Budgeting submission of 2012‐2014
Government Services Investment Fund to complement System biennium budget
and Operations? enhanced focus on performance • Productivity Investment Fund: • Focus on continuous
management 31 projects with 17 state improvement, formalize cost‐
agencies, projected 4.8X ROI saving incentives
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14. Continued Evolution of the System
14

15. Vehicles for Communication and Dialogue

16. 16

17. Council Products
Information / Business Intelligence Analysis, Dialogue & Recommendations
Virginia Performs 1
website: User‐
friendly data at
2
state, region and
locality levels; portal
to state agency
strategic plans and
performance 3
measures
Publications and Research:
The Virginia Report: 1. Outcome data by legislative district compiled for members of the General Assembly
Annual report with 2. White papers and custom presentations on key topics
high‐level assessment 3. Council e‐newsletter with updates on the Roadmap and special issues, assessment,
of Virginia’s progress performance, and productivity improvement
in areas important to
quality of life;
highlights challenges s
idea
&
and provides analytic s Forums to bring together
t
thought leaders on issues
igh
information for
ins
decision‐making vital to Virginia
virginia
futures forum
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18. Regional View: Hampton Roads Performs
Home page
!
Scorecard
!
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19. Special Focus: Regional Competitiveness

20. Special Focus: Regional Competitiveness
Maximizing the effectiveness of the state‐local
government service delivery system.
Accelerating regional efficiency and effectiveness.
Strengthening regional economic competitiveness.
20

21. Virginia Performs Structure and Outcomes:
Trends Over Time: A Regional View
VirginiaPerforms !"#$%&'()"'*#+#,-#%'.$%/,0-)"&1
!"#$%&'()"*+,#
-.,#,/0 -12.&$+,# Central
6% 45%
Annual 5% Third Grade Northern
Percent 4% Reading SOL (Leading Region)
Change in 3% Advanced
40%
Employment 2% Pass Rate Virginia
(
1%
0% National
-1% '00 '01 '02 '03 '04 '05 '06 '07 '08 35%
'06 '07 '08 '09 '10
90%
$65,000
Per Capita $60,000
On-Time
Personal High School 85%
$55,000
Income Graduation
$50,000
(2008 Rate 80%
$45,000 (
Dollars)
$40,000
75%
(
$35,000
$30,000
'00 '01 '02 '03 '04 '05 '06 '07 '08 70%
'08 '09 '10
See the Council
16%
60%
presentation to the
Poverty 14% Residents with Intergovernmental
Rate Advanced 50% Relations committee for Age-
(Percent of 12%
Degrees other regional profiles. Cardi
40%
Population (Bachelor’s and Available at Dea
10%
Living Beyond) 30% future.virginia.gov (per
Below 8% ( Pop
Poverty 20%
Level) 6%
10%
(
4%
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 0%
'00 '05-'09
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22. Per Capita Personal Income and Educational
Attainment: Virginia’s Regions
$60,000 Northern
Per Capita Personal Income, 2008
$50,000
Virginia
Hampton
Roads Central
$40,000
Eastern West Central
Southwest Valley
$30,000
Southside
$20,000
10% 25% 40% 55%
Percent of the Population 25 and Over with at Least a Bachelor’s Degree, 2005-2009
Source: Educational Attainment - Current Population Survey (table creator), 2005-2009, U.S. Census Bureau; Adjusted
2008 Per Capita Personal Income - Regional Economic Information System, Bureau of Economic Analysis, U.S.
Department of Commerce.
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23. Do Regions Matter?
Regional differences may persist: relatively prosperous
regions grow more rapidly than less prosperous ones
$70,000
High Incomes,
Per Capita Personal Income, 2008
Northern
High Job Growth
$57,500
Central
$45,000 Hampton
Roads
West Central Eastern
Southwest Valley
$32,500
Southside
Lower Incomes,
Lower Job Growth
$20,000
-0.75% 0% 0.75% 1.5% 2.25% 3%
Average Annual Job Growth, 2000 - 2008
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24. Facilitating Sustainable Change in a
Complex Environment
Funding Rules & Service
Sources Regulations Delivery
Multiple jurisdictions and
Funding flows from various A variety of rules and regulations
agencies are responsible for
sources govern service delivery
service delivery
•State general fund •State laws, regulations •State agency
•State nongeneral fund (e.g., •Federal laws •Locality
tuition, fees, and sales revenue) •Grant provisions •Not‐for‐profit on behalf of the
•Federal government •Local regulations state
•Industry and federal grants •Industry and federal grants
• About 48 percent of the state’s general fund budget is aid to localities.
• Accountability systems are sometimes at a different level than rules, regulations, and funding.
• Linkages between performance and funding are sometimes limited.
• Outcome targets are not incorporated into formulas driving significant investment.
• It can be difficult to isolate specific metrics for monitoring outcomes.
• Accountability for outcomes is weakened and diffused when the service or program has
multiple funding sources.
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25. Concluding Remarks

26. Concluding Remarks
• Put results first: public investment decisions should be clearly tied
to meaningful societal goals and desired outcomes and evaluated
through a focus on results.
• Measure the right things: the adage, “you can’t manage it if you
don’t measure it” should be modified to read, “you can’t manage
it well if you don’t measure it well.”
• Openly access progress: emphasize transparency in operation
and promote accountability.
• Encourage positive change: provide the right tools and incentives
to promote innovation and productivity improvement.
• Meaningful change requires a long‐term commitment.
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27. Sites of Interest
Virginia Performs:
VaPerforms.virginia.gov
Hampton Roads Performs:
HamptonRoadsPerforms.org
Council on Virginia’s Future:
future.virginia.gov
JANE N. KUSIAK
EXECUTIVE DIRECTOR
COUNCIL ON VIRGINIA’S FUTURE
1001 E. BROAD ST., SUITE 430
RICHMOND, VA 23219
804.371.2346
JANEKUSIAK@VIRGINIA.EDU
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