TAIEX Workshop on Financial Management in Judiciary Kiev

TAIEX Workshop on Financial Management in Judiciary Kiev 23 -24 March 2011 Performance Based Court Management and Funding Dr Axel G Koetz Kiev, 24 March 2011 This Document is complete only together with the oral presentation; use of isolated pages might lead to misunderstandings. Questions: Dr Axel G. Koetz, Managing Partner, KPI Management and Policy Consultants Unicenter 2920, D-50939 Cologne, axel. koetz @ koetz-ag. com, Tel/Fax +49 (0)221 -9411801 / 05 KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance

This presentation refers in part to results of work generated by the author during the Project ACCOUNTABILI TY AND EFFECTIVENES S OF UKRAINIAN KPI JUDICIARY Dr Axel G Koetz, KPI International Management and Policy Consultants , Unicenter 2920, D-50539 Cologne Germany, axel. koetz@koetz-ag. com Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance

Three Interlinking Elements Performance Management Human Resources Management (Court Civil Service + Support Staff) KPI Management and Policy Consultants Court Statistics, Case Management. IT Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 3

What do we want ? • Performance Budgeting (Funding) Assignment of State Resources according to the performance of the courts Orientation to the financial dimension KPI Management and Policy Consultants • Performance Management Ensure best possible Service delivery by the couer Multi-Dimensional Approach (finance is one dimension) Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 4

What do we need 1. A working system to collect / retrieve the necessary information in the necessary disaggregated form 2. A system to present the data in an understandable form with complete „drilling thru“ and analysis capacities 3. An evaluation and reaction system (legal / organizational framework) 4. At the end a complete Management Information System (MIS) for the courts KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 5

Dimensions of Performance Dimension Key Customer Quantitative Output (in Workload Categories) Ministry of Finance Quality Court User Speed Court User Systems (HR, IT, Structures, Internal use Workflows) KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 6

The Basic Approach – Balanced Scorecard Multi-Dimensionality of „Performance“ in the Court system Interaction of performance dimensions Strategic long term controlling and optimization Based on customer / stakeholder goals KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 7

A BSC Approach takes Multi-Dimensionality and Interaction into consideration • Take Multi-Dimensionality into consideration • There is not one single goal, there are more than one, usually – Our financial situation today – Satisfaction of the customers to ensure our profit of tomorrow – Staff capacity to keep satisfaction and income – Investments in the future to ensure the profit of next year • Take Interaction into consideration – Investment in Staff, Systems, Innovation today improves performance in the future KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 8

BSC – From Private Sector Needs to Court Needs Company • • Profit Customer Satisfaction Trained + Motivated Staff New Products / Markets Court • • Court productivity Speed / Minimized Backlogs Trained and motivated staff Minimized (successful) appeals Elaborate Goals for all Dimensions Supervise goals continuosly by Indicaters Dont allow the priority of one dimension Care for a „balanced“ score KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 9

Judge productivity: Working hours per weighted standard case in the District courts in 6 Oblasts KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 10

Court Comparison: Cumulated Civil Cases Duration in Months 100% 90% 80% 70% 60% 1 -Cum 2 -Cum 50% 40% 30% 20% 10% KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance more 120 60 36 24 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0% 11

Court Comparison: Cumulated Admin Cases Duration in Months 100% 90% 80% 70% 60% 1 -CUM 50% 2 -CUM 40% 30% 20% 10% KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance more 120 60 24 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0% 12

Quality Indicators: Appeals and District Court Quality 988, 824 (100%) Wrong Decision ? Missing Knowledge of new Jurisdiction ? Bad Knowledge of Procedures ? Wrong Case Bad Communication ? Investigation Greedy Lawyers ? Wrong Law Application Failure in Proceduresmax Different Legal 97, 275 Opinion (9. 8%) 25, 587 min (26. 3%) Local Court Decisions KPI Management and Policy Consultants Appeals (Procedural Mistakes) Successful Appeals Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 13

Systems Indicators in Human Resources and IT Human Resources: ICT Systems Staff Turnover (Retention of qualified staff is a success indicator, so the value should be low. Different development stages exist and can be measured by a IT quality indicator Training days (More training improves staff quality, leads to more output, higher speed, less failures KPI Management and Policy Consultants In general, the more staff has access to a server based intranet with common databases and functions and central internet access, • the higher the staff productivity, • the higher the work speed, • the lower the share of failures Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 14

BSC (Standard Form) For a Sample Court Goal ? ? ? City average 847 Oblast average 977 Oblast best 25% 1. 072 4 Pilots Average 819 Productivity 872 Speed 144, 85 Quality 9, 96 % 3, 17% (new + leaving/2) staff Of total staff p. a. Management and Policy Consultants DAYS to decisive meeting Staff Turnover KPI Weighted (standard) cases per judge/year Successful Appeals of Considered cases Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 15

Where BSC Data Come From (Proposed Initial Model) Output Weighted Caseload of cases completed In the court between Jan 1 and Dec 31 of last year in 5 categories (Criminal, Civil-Court Order, Admin Offense) divided by Judges FTPE HR Development Median of training days received by court staff members (judges + civil services) between 1 Jan and 31 Dec of last year KPI Management and Policy Consultants Speed Median of Consideration Time (CT) of cases completed between Jan 1 and Dec 31 of the last Year (CT. Criminal + CT. Civil + CT. Admin)/3 Quality Relation of succesful appeals against District Court Decisions in Criminal, Civil, Administrative Cases as % of all appeal cases coming from this Court completed by the respective appeal courts between Jan 1 and Dec 31 of the last Year Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 16

BSC Diagram - Model KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 17

BSC Table - Model Introduce government goals for this KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 18

A View to Reality – Denmark (1) KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 19

A View to Reality – Denmark (2) Інформація, яку можна отримати завдяки показникам. Вживання відповідних заходів. KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 20

Learning from the BSC Result and Identifying the Source of Problems. . . Which informations come from the national Average ? National Oblast level Court Level KPI Management and Policy Consultants Judge level Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance Where come Differences in Oblast performance from ? Which courts have problems, Which are fine ? Are there problems of Judges ? 21

We need „Drilling Thru“ and Extended Analytical Capacities OBLASTS COURTS JUDGES KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 22

Performance and Management • Put instruments in place to identify the real reasons for performance problems in whatever BSC area • Give Ho. C the Instruments to identify and solve problems in their own courts • Try to create Incentives for good performance • Re-arrage the staff distribution between courts in an oblast if needed • Develop plans to improve the „System“ situation (HR and IT) KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 23

Performance and Funding • Assign Budget and Posts according to the weighted caseload of the courts (we need the case complexity based workload determination systems) • Have an instrument in place to give relief to courts with problems (Judge Pool – retain a percentage of open posts for this) • Consequently withdraw posts from „inefficient“ courts and put judges to courts with work overload. • Put a bonus system in place for very efficient courts, giving extra funding for example for IT, materials and so on. KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 24

Feedback Loop and „Continuous Improvement“ • Performance management should not end with isolated reactions on individual indicator problems. • Follow up of results over the time and the analysis of the effects of changes is necessary • Continous improvement has to be a key element: – – You never reach an „Optimal“ result and it is in no case in one step If you implemented one improvement, you see what can be done next Actively promote re-thinking all achievements Use BSC Indicators to measure the effect of each step • Knowledge exchange Groups should be established to learn from each other and to improve the indicators continuously KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 25

A Technical Summary of Todays Problems and Development Steps Problems • Lack of key data makes performance management imposible • Problem Nr 1: Missing case weighting / judge workload system • Problem Nr 2: Missing data elements (in the databases but not retrievable): Speed of Execution • Problem Nr. 3: „aggregation“ of data KPI Management and Policy Consultants Proposals • Come to a workable case weighting system • Improve the statistical system to make already entered data available and connectable, providing „drilling thru“ functions • Generate a general Performance information System • Make the Performance information System a performance management system by connecting performance and budget • Train the Management and delegate responsibilities Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance 26

End of the Show Thanks again for not falling asleep Additional Questions: Dr Axel G Koetz Managing Partner, KPI Consultants Cologne, Germany e-mail: axel. koetz@koetz-ag. com KPI Management and Policy Consultants Taiex Workshop on Financial Management in Judiciary (Int Markt 43289) – Performance