Annual Service Plan Reports 2004/05 -- Ministry of Management Services

Over the past year, the Ministry of Management Services has made a concentrated effort to refine its performance measures to ensure they are more meaningful to our clients and customers and that they more accurately reflect the ministry's performance in terms of meeting its goals and objectives. For that reason, this Annual Report also includes some new measures developed for the 2005/06 – 2007/08 Service Plan to track performance.

Each of the performance measures contributes to the ministry's vision of connecting citizens, communities and businesses with government services and being a valued partner in the delivery of innovative services to the public sector. The 2004/05 – 2006/07 Service Plan can be viewed online at: http://www.bcbudget.gov.bc.ca/bgt2004/sp2004/mser/mser.pdf. Appendix D provides supplementary performance information relating to the measures.

Results Achievement Summary Table

Goal 1: Cost-effective and efficient access to government services and information for citizens, businesses and the broader public sector

For the ministry to be a leader in connecting customers to government services and to transform the way those services are delivered, it must ensure that citizens, businesses and the broader public sector can access services in ways that are convenient for them and that make responsible use of taxpayers' dollars. The challenge for the ministry is to find a balance between delivering cost-effective services and maintaining a customer-focus.

Core Business Areas: Service Delivery to Citizens and Businesses, Service Delivery to the Public Sector, and Governance

Objective 1: Provide cost-effective, high quality, multi-channel, and integrated service delivery

By providing cost-effective, high quality, multi-channel, and integrated service delivery, the ministry ensures that customers can access services in ways that suit their personal and business needs. In order to achieve this objective, the ministry must anticipate customer preference and integrate channels in ways that meet differing customer needs at a time when technological change is occurring at a rapid pace.

Strategies

Performance Measures: Rate of Customer Satisfaction

Performance Measure	2003/04 Actual	2004/05 Target	2004/05 Actual	Variance	Target Met?
Rate of customer satisfaction (index)¹	96%	90-96%	96%	0


¹	Benchmarking/Explanatory Information: The performance result is consistent with the previous year's performance. The index is comprised of customer satisfaction survey results for Service BC — Government Agent Offices and Service BC — Enquiry BC and is weighted based on volume of customers served (Government Agents 66% and Enquiry BC 33%). Source: BC Stats.

The 2004/05 – 06/07 Service Plan had separate customer satisfaction measures for a number of individual services provided by Service BC. The majority of these measures are now captured in a single index that demonstrates how satisfied customers are with the quality of service provided when they access government programs and information through Service BC. Appendix D provides further information on the methodology. In 2004/05, Service BC continued to maintain a high level of customer satisfaction.

Volume Served

Performance Measure	2003/04 Actual	2004/05 Target	2004/05 Actual	Variance
Volume served (in millions):
Service BC — Government Agents (customers)	1.99	1.99	1.99	0
Service BC — Enquiry BC (customers)	1.00	1.00	1.05	+.05
BC OnLine (transactions)	6.43	6.43	6.89	+.46

This is a measure that existed but was not included in the Service Plan and has been added as a performance measure during the year. It demonstrates that customers are accessing services through a range of channels that meet their needs, and that public sector clients are able to deliver services through a variety of channels.

Average per Minute Cost for Service Delivery

Performance Measure	2003/04 Actual	2004/05 Target	2004/05 Actual	Variance	Target Met?
Average per minute cost for service delivery¹	N/A	$1.63 per minute	$1.63 per minute	0


¹	Benchmark/Explanatory Information: This measure is calculated using the total service delivery workload (based on transaction times and transaction volume) and the salary and overhead costs of Service BC — Government Agents and Service BC — Enquiry BC. Source: Service BC.

This is a new measure introduced this year. The ministry is working to deliver services and information in a cost-effective and efficient manner. The average cost per minute for service delivery demonstrates the efficiency of Service BC — Government Agents and Service BC — Enquiry BC operations. This measure is used to demonstrate progress in this area, and is influenced by more efficient use of resources; expansion of the number of services provided; encouraging customers to use the most cost-effective channels; and working with client agencies to reduce the length of time it takes to deliver their services.

Objective 2: Provide or expand existing high-speed, broadband Internet access to British Columbians

Closing the digital divide is one of Government's New Era commitments. British Columbians will benefit through improved access to health and education services, and businesses will be able to take advantage of opportunities for expansion. Internet access is both an effective and efficient way of connecting customers to services. Building successful partnerships with the private and broader public sectors is critical to achieving this objective.

Strategies

Strategic and tactical plans for bridging the digital divide were implemented in 2004/05, including:

1. Implementing the tactical and strategic plans to address the digital divide.

2. Providing support to ministries in the implementation of electronic service delivery initiatives.

Worked with partner ministries to ensure their activities were co-ordinated and integrated with bridging the digital divide.

Performance Measure: Percentage of Communities with Access to Broadband Facilities

Performance Measure	2003/04 Actual	2004/05 Target	2004/05 Actual	Variance	Target Met?
Percentage of communities¹ with access to broadband facilities	54%²	75%³	84%⁴	+9

This measure is a key indicator of the success in bridging the digital divide. It is of note that the digital divide is closing faster than expected. As of March 31, 2005, 308 out of 366 communities have either direct access to broadband or an Internet point of presence from which the community can secure broadband access.

Goal 2: Cost-effective and efficient internal management services to core government and the broader public sector

Providing clients with cost-effective and efficient internal management services supports the transformation of service delivery by eliminating duplication and championing new business processes. The challenge is to find a balance between reducing costs and maintaining or improving service to customers.

Core Business Areas: Service Delivery to the Public Sector, and Service Transformation

Objective 1: Reduce unit and overall shared services costs

Reductions in unit and overall shared services costs to core government are reflected in reductions in the corporate services budgets of individual ministries. This reduction is driven by a combination of factors, including a reduction in the size of government and efficiencies resulting from consolidation, technological improvements, business streamlining, and process improvements. A reduction in costs allows ministries to focus resources on core priorities.

Strategies

In 2004/05 the following strategies were used to achieve the objective of reducing costs:

1. Performing on-going review and streamlining of business processes to achieve cost savings including:

3. Implementing a strategic sourcing strategy, integrated with iProcurement to leverage government's purchasing power to improve price, service and quality.

4. Determining the optimal delivery model for each service type and, where appropriate, develop and implement new strategic service delivery partnerships with the private sector, including:

5. Co-ordinating and integrating alternative service delivery initiatives across government to ensure a consistent focus and governance.

Performance Measures: Percentage increase in total Solutions BC revenue generated from the broader public sector

Performance Measure	2003/04 Actual¹	2004/05 Target	2004/05 Actual	Variance	Target Met?
Percentage increase in total Solutions BC revenue generated from the broader public sector	$48.6 million	2.5% increase over 2003/04	6.7%	4.2%


¹	The performance result for 2003/04 actual has been restated. The 2003/04 external recoveries for CITS included Provincial Learning Network in error. As a result the actual total recoveries has been reduced. Recoveries for other lines of business have also been adjusted slightly to reflect finalized numbers.

This measure is based on the premise that shared services reduces costs by taking advantage of reduced unit cost associated with a larger customer base. Ministries are required to purchase the majority of their services from Solutions BC and form the majority of Solutions BC's client base. However, broader public sector customers have the option of using Solutions BC or purchasing services on their own. Increasing the client base requires Solutions BC to expand its broader public sector market and sell more products and services to that group. This measure reflects the percentage increase in revenue from the broader public sector. The ministry exceeded the target by 4.2 per cent.

Reduction in unit costs

Performance Measure	2003/04 Actual	2004/05 Target	2004/05 Actual	Variance
Unit cost:
POIM/Payroll Services¹	N/A	Baseline cost/ active employee	Baseline achieved	0
Workstation Support Services²	N/A	Baseline cost per workstation per month	Baseline achieved	0

The previous measure, while useful in assessing Solutions BC's ability to create economies of scale, does not relate directly to reduction in unit costs to clients. As a result, a new measure was developed during the year which tracks progression in the reduction in unit costs of key services over time. As Alternative Service Delivery relationships have been negotiated for two of the key services provided by Solutions BC (POIM/Payroll Services and Workplace Support Services), these areas have been selected as the basis for the measure.

Central procurement operational costs as a percentage of value of total goods and services purchased

Performance Measure	2002/03 Actual	2003/04 Actual¹	2004/05 Target	2004/05 Actual	Three year average²	Variance	Target Met?
Central procurement operational costs as a percentage of value of total goods and services purchased	0.73%	1.03%	Industry standard of <1%³	0.58%	0.78%	0.25%


¹	The performance result for 2002/03 and 2003/04 have been adjusted based on current information. The previous value for 2003/04 reflected a reporting lag. The values of each of the fiscal years have been adjusted to incorporate the most current information available.
²	The performance result of 0.78% is an average of 2004/05 and previous two fiscal years. Averaging the results over this period is a more accurate representation of performance because it takes into account the variability in the annual expenditures for goods and services year over year. This variability is due to fluctuations in the timing and value of procurement activities.
³	The industry standard is established by the National Institute of Governmental Purchasing.

This measure evaluates the efficiency of the government's central procurement services. The cost required to operate procurement services is contrasted with the value of goods and services managed. Operational costs as a percentage of value of total goods and services purchased should be no more than one per cent. A lower percentage indicates greater efficiency and cost-effectiveness in the delivery of procurement services. As in previous years, the ministry has exceeded the industry standard.

Savings from centralized procurement activities

A third measure contained in last year's Service Plan — savings from centralized procurement activities — has not been included, as it is difficult to calculate this result with an acceptable degree of reliability or accuracy.

Objective 2: Maintain a high level of customer and client satisfaction

Shared services is client-led and customer-focused. By monitoring client and customer perceptions, Solutions BC can refine its service delivery processes and drive satisfaction to higher levels. Maintaining a high level of customer and client satisfaction must be balanced against delivering services in a cost-effective and efficient manner.

Strategies

Strategies developed or implemented to achieve this objective in 2004/05 included:

Performance Measures: Average customer satisfaction rating with service (index); and Average client satisfaction rating with effectiveness of service delivery

Performance Measures	2003/04 Actual	2004/05 Target	2004/05 Actual	Variance	Target Met?
Average customer satisfaction rating with service (index)¹	N/A	N/A	77%	N/A	N/A
Average client satisfaction rating with effectiveness of service delivery (index)	52.5%	57.5%	67%	+10.5


¹	Benchmark/Explanatory Information: The 2004/05 information forms the baseline. The index is comprised of customer surveys of selected services in CITS, POIM/Payroll, Corporate Accounting, and Procurement & Supply Services. Source: BC Stats.

As with Service BC, a weighted index of customer and client satisfaction with individual services was introduced this year. These performance measures focus on the satisfaction of Solutions BC's customers and clients with service. Satisfaction ratings are established through surveys and allow for comparisons. Customer satisfaction with payroll processing (84% in 2004/05) and the per cent of Queen's Printer orders shipped on time (96% in 2004/05), which were listed as separate measures in the Service Plan, now form part of the index measure.

Rate of success in meeting service standards (index)

Performance Measure	2003/04 Actual	2004/05 Target	2004/05 Actual	Variance	Target Met?
Rate of success in meeting service standards (index)¹:
CITS	N/A	N/A	82%	N/A	N/A
CBS	98.2%	98.04%	TBD²	N/A	N/A


¹	Benchmark/Explanatory Information: The CITS index is comprised of service standards established for Workstation Support Services and Incident Resolutions (Priority 1 — 4) and has not previously been reported. Sources: CITS: (Workstation Service Interim Delivery Model Service Level Reports and ITIMS Reports). For CBS, the index is based on eight service standards related to reliability and five service standards for timeliness and delivery. Source: CBS (Service Level Agreements). For CBS this measure existed but only two service standards were reported.
²	The 2004/05 actual percentages are in the process of being verified.

This performance measure was also added this year. It assesses Solutions BC's CITS and Common Business Services (CBS) ability to meet service standards as established in service schedules and catalogues. These documents establish service expectations regarding standards such as timeliness, accuracy, reliability, and availability. This measure is useful in assessing Solutions BC's ability to meet client expectations. The per cent of highest priority Information Technology service interruption incidents resolved within time commitment — a separate measure in the 2004/05 – 2006/07 Service Plan — forms part of the index measure.

Goal 3: Effective electronic service transformation initiatives

The use of technology is key to transforming service delivery in government. The challenge is ensuring that technology is recognized as a tool for supporting transformation rather than leading transformation.

Core Business Areas: Service Transformation and Governance

Objective 1: The successful delivery of critical strategic information technology initiatives

New technology approaches must be implemented in ways that support customers and clients in order to be effective.

Strategies

Strategies implemented to support successful delivery of critical strategic information technology initiatives in 2004/05 included:

A measure contained in last year's Service Plan relative to the number of ministries that have converted information, identified as being of highest importance to British Columbians, to the Enterprise Portal in 2004/05 has not been included. The context for identifying priority Internet content was adjusted during the year and is not considered to be an effective measure of cross-government co-ordination.

Objective 2: Co-ordinated cross-government strategic planning and investment to transform electronic service delivery

Service transformation requires that government co-ordinate the planning for purchase and implementation of information technology. Lack of co-ordination can result in duplication of effort and incompatible systems.

Strategies

Performance Measure: A rolling strategic plan that co-ordinates e-government decision making and investment across government

Performance Measure	2003/04 Actual	2004/05 Target	2004/05 Actual
A rolling strategic plan that co-ordinates e-government decision making and investment across government	N/A	Complete the strategic plan and initiate the e-government strategy (the e-BC Strategy).	e-BC Strategic Plan completed March 2004
			e-government plan published in December 2004
			Completed in January 2005

This measure reflects the ministry's commitment to effectively co-ordinate planning and investment in information technology. The documents listed in the measure can be found at http://www.cio.gov.bc.ca/.

Performance Measure: Progress in implementing information management and technology infrastructure processes (COBIT-based scales)

Performance Measure	2003/04 Actual	2004/05 Target	2004/05 Actual	Variance	Target Met?
Progress in implementing information management and technology infrastructure processes (COBIT-based scales)¹	N/A	Level 3 of 5 industry standard maturity model	Level 3 of 5 industry standard maturity model	0

Benchmarking/Explanatory Information: The framework underlying the maturity model used to assess processes supporting information and technology infrastructure for the CIO is COBIT (Control Objectives for Information and related Technology), Third Edition, issued by the IT Governance Institute. Level 3 represents an organization where processes are defined; Level 4 represents an organization where processes are managed and Level 5 where processes are optimized.

This is a new measure adopted for 2004/05. It provides an industry standard for assessing government's ability to implement co-ordinated cross-government strategic planning and investment to transform electronic service delivery. Effective decision-making processes assist in maximizing the value of government's information and technology infrastructure. One method of assessing the effectiveness of these processes is to apply a "maturity model". The maturity model describes a five-level evolutionary path of increasingly organized and more mature processes, starting with a state where there is nothing in place and moving towards one that is marked by best practices being followed and automated. By assessing itself against the model, government can establish a performance level.

Goal 4: A customer-focused, results-oriented, innovative and knowledgeable team

In order to transform service delivery for British Columbians, ministry employees must have the necessary skills to implement the strategies set out in the Service Plan and understand how their work contributes to achieving the Service Plan goals and objectives. The ministry must also support a culture that fosters a customer-focused, results-oriented approach.

Core Business Area: Executive and Support Services

Objective 1: Skilled and motivated staff

Employees who have the appropriate skills and are motivated to be customer-focused and results-oriented will drive service transformation.

Strategies

Performance Measure: Percentage of staff with a current Employee Performance and Development Plan (EPDP)

Performance Measure	2003/04 Actual	2004/05 Target	2004/05 Actual	Variance	Target Met?
Percentage of staff with a current Employee Performance and Development Plan (EPDP)	100% of Management Level employees by March 31, 2004	100% of ministry employees by March 31, 2005	95%	-5.0

Ensuring that all employees have a current EPDP that is linked to the Service Plan is key to driving changes in culture and performance and ultimately ensuring that the ministry meets its goals and objectives. Significant headway was made towards completing EPDPs for all of the ministry's employees.

Objective 2: A performance-focused workforce

The outcome of this objective is that employees understand how their work contributes to the achievement of Service Plan performance targets and that they are accountable for that performance.

Strategies

Performance Measure: Rating of key employee satisfaction categories (index)

Performance Measure	2003/04 Actual	2004/05 Target	2004/05 Actual	Variance	Target Met?
Rating of key employee satisfaction categories (index)¹	67%	70%	69%	-1.0


¹	Benchmarking/Explanatory Information: This result is comprised of responses received to a number of key questions in the annual employee survey that support this objective. Source: BC Stats.

This is a new performance measure that incorporates two measures included in the 2004/05 – 2006/07 Service Plan — percentage of employees surveyed who understand how their work contributes to the achievement of Service Plan performance targets and the success of the ministry²; and percentage of staff surveyed who are satisfied with their employment with the ministry³.


²	The 2004/05 target for this performance measure was 65%. The actual achieved was 64%, however, the result for the previous year was 36%. The result represents significant improvement.
³	The 2004/05 target for this performance measure was 70%. The actual achieved was 68%.

The index, which is comprised of a series of questions included in the ministry's annual Employee Satisfaction Survey allows for a broader number of categories to be included. This survey focuses on employee perceptions of leadership, support of employee development, communication throughout the organization, and support for learning and innovation. Employee satisfaction is an indication of the progress being made towards ensuring that the ministry's culture and leadership are supporting high-performance.

Deregulation

The 2004/05 – 2006/07 ministry Service Plan contained information on the deregulation activities undertaken by the core business areas. The chart below and the measure have been amended to represent the deregulation activities for the ministry as a whole, which also includes the BC Public Service Agency and BC Buildings Corporation. The ministry met its target of a zero per cent increase.

Objective	Performance Measure	2004/05 Base	2004/05 Target	2004/05 Actual	Variance	Target Met?
Decrease regulatory requirements¹	Number of regulatory requirements removed	3,439 (June 2004 baseline)	(0% increase)	3,439	0