Back to Basics:

Measuring what Matters

A Presentation for the

November 2005 TWC
Conference

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 Overview
This session :
! Why do we have measures?
! What makes a good measure?
! What’s good about TWC
measures?
" Are
there ways to make TWC
measures better?
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 Why do we have Performance
Measures?

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 Why Do We Have Them?

! What gets measured gets done

- Tom Peters

! If you want it, measure it. If you

can’t measure it, forget it
- Peter Drucker

! You can’t tell if you’re winning or

losing if you can’t keep score
- Harry Hatry

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 More Reasons for Measures

! If you don’t measure results you

can’t tell success from failure
! If you can’t see success, you
can’t reward it
! If you can’t see failure, you can’t
correct it
- Osborne and Gaebler, Reinventing
Government

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 And Then There’s

! Because it allows us to
demonstrate our value
! Because its good public policy
! Because the law requires it

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 What Makes a Good Measure?

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 What’s a Good Measure?
! Understandable
" Stakeholders must be able understand
what’s being measured
! Meaningful
" Stakeholders must agree that what’s
being measured is important
! Aligned with Vision & Mission
" Drive Behavior in a Desirable Direction
" Reward actions of value to system
" Don’t create “Perverse Incentives”

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 Texas Workforce System
Vision:
! Texans will view local workforce
development boards, the Texas
Workforce Commission and their partners
as a quality supplier of workforce
solutions
Mission:
! To promote and support a workforce
system that offers employers, individuals
and communities the opportunity to
achieve and sustain economic prosperity
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 Texas Workforce System
System Emphasizes:
! Local Control
! Employer-Driven
! Personal Responsibility
! Excellence
! Innovation
! Integration
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 Strategies for Success
! Identify Employers’ workforce
needs
! Identify Individuals’ skills,
abilities, & employment goals
! Match needs of Employers with
appropriately skilled Individuals

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 Strategies for Success
! Where Community doesn’t have an
adequate supply of Individuals with
skills Employers need, help close
that gap
! Where community has a surplus of
Individuals with given skills, work to
attract Employers to expand to the
area
! Where Individuals have barriers to
Employment, work to reduce those
barriers
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 What’s Good About TWC
Measures?

How Can We
Make Them
Better?

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 Reemployment of Claimants
! Understandable?
" Percent of UI Claimants Reemployed in the
Quarter after receipt of 1st UI Benefit
- Measure uses True Wage Records Only
! Meaningful to Stakeholders?
" Helps Employers find new workers
" Helps Claimants (Individuals) return to work
" Helps Communities prosper
" Reduces costs to Employers in UI taxes

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 Reemployment of Claimants
! Aligned with Vision & Mission?
" Performance improved by:
- Identifying Employers’ needs
- Identifying Claimants’ skills and
abilities
- Matching needs of Employers with
appropriate Claimants
- Helping Claimants with their job
search, resumes, interview skills

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 Reemployment of Claimant in 10 Weeks

! Understandable?
" Percent of Registered Claimants Reemployed
within 10 Weeks based on
- Hired in WIT Job Opening
- WIT Job Development
- Enhanced Services Customers who obtain/enter
employment
! Meaningful to Stakeholders?
" Helps Employers find new workers
" Helps Claimants (Individuals) return to work
" Helps Communities prosper
" Reduces costs to Employers in UI taxes
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 Reemployment of Claimants
! Aligned with Vision & Mission?
" Performance improved by:
- Outreaching more Employers
- Identifying Employers’ needs
- Identifying Claimants’ skills and abilities
- Matching needs of Employers with
appropriate Claimants
- Helping Claimants with their job search,
resumes, interview skills

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 Job Openings Filled

! Understandable?
" Percent of Job Openings in WIT Filled
- Approved Employers or Staff-Created
Orders
! Meaningful to Stakeholders?
" Helps Employers find new workers
" Helps Individuals return to work or
obtain better jobs
" Helps Communities prosper
" Can reduce costs to Employers in UI
taxes (if Claimants fill jobs)
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 Job Openings Filled
! Aligned with Vision & Mission?
" Performance improved by:
- Identifying Employers’ needs
- Identifying Individuals’ skills and
abilities
- Matching needs of Employers with
appropriate Individuals
- Helping Individuals with their job
search, resumes, interview skills

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 Market Share

! Understandable?
" Percent of LWDA Employer Locations
receiving Qualifying Services
- Job Postings, Specialized Testing, Employer Site
Recruitment, Customized Training,
Subsidized/Unpaid Employer Agreements, Rapid
Response, Customized LMI, other Services for Fee
! Meaningful to Stakeholders?
" Helps meet Employers’ needs
" Can offer Individuals more job options
" Helps Communities prosper
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 Market Share
! Aligned with Vision & Mission?
" Performance improved by:
- Outreaching Both Old and New Employers
- Even those who DON’T return to use system
- Identifying Employers’ needs
" Help Drive to an Employer-Driven
System
- Hard to be Employer-Driven with few
Engaged Employers
- More Engaged Employers =
- More Jobs Options for Individuals
- More Information to help guide use of resources

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 Sustainability

! Understandable?
" Percent of Employers Served who are Repeat
Customers
- Repeat Customers are those who have previously
received Qualifying Services in WIT (with at least 30
days between services)
- Qualifying Services are the same as Market Share
- Measure based on Key Account/Tax ID rather than
location
! Meaningful to Stakeholders?
" Measure of Satisfaction of Employers
" Helps meet Employers’ needs
" Can offer Individuals more job options
22 " Helps Communities prosper
 Sustainability
! Aligned with Vision & Mission?
" Performance improved by:
- Outreaching Employers
- Identifying Employers’ needs
- Referring Qualified, Prepared Individuals
- Matching needs of Employers with appropriate Individuals
- Helping Individuals with their job search, resumes, interview
skills
" Continuously Engaged Employers Needed for
an Employer-Driven System
- Hard to be Employer-Driven with few Engaged
Employers
- More Engaged Employers =
- More Job options for Individuals
- More information to help guide use of resources

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 Entered Employment
! Understandable?
" Of those Exiters Unemployed at Date of
Participation, Percent Employed by End of 1st
Quarter After Exit
- Unemployed at DOP includes Individuals notified
they will be laid off
- Exiters are those who go 90 days without receiving
a qualifying service
! Meaningful to Stakeholders?
" Helps Individuals return to work
" Helps Employers find new workers
" Helps Communities prosper
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 Entered Employment
! Aligned with Vision & Mission?
" Performance improved by:
- Identifying Employers’ needs
- Identifying Individuals’ skills and abilities
- Matching needs of Employers with
appropriate Individuals
- Helping Individuals with their job search,
resumes, interview skills
- Enhancing Individuals’ Skills/Education to
meet needs of Employers
- Seeking out new Employers whose needs
align with skills/abilities of those in the
Labor Market
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 Employment Retention
! Understandable?
" Of those Exiters Employed in the 1st Quarter
After Exit, Percent Employed in 2nd & 3rd
Quarters After Exit
- Exiters are those who go 90 days without receiving
a qualifying service
- Employment Not required to be with same Employer
! Meaningful to Stakeholders?
" Helps Individuals return to work or find better
employment
" Helps Communities prosper
" Helps Employers meet labor needs to degree
that Individuals remain employed with same
employer
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 Employment Retention
! Aligned with Vision & Mission?
" Performance improved by:
- Identifying Employers’ needs
- Identifying Individuals’ skills and abilities
- Matching needs of Employers with
appropriate Individuals
- Helping Individuals with their job search,
resumes, interview skills
- Enhancing Individuals’ Skills/Education to
meet needs of Employers
- Seeking out new Employers whose needs
align with skills/abilities of those in the
Labor Market
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 Earnings Change
! Understandable?
" Average Change in Earnings from 2nd&3rd Quarters
Prior to Participation to 2nd&3rd Quarters After Exit of
those Exiters employed in 1st Quarter After Exit
- Exiters are those who go 90 days without receiving a
qualifying service
- Only Uses True Wage Records
- Excludes Exiters whose only Evidence of Employment in
1st or 3rd Quarters after Exit is Based on Supplemental
Records of Employment
! Meaningful to Stakeholders?
" Represents degree to which system can help
Individuals improve/restore their earnings
" Helps Communities prosper
" Helps Employers meet labor needs to degree that
Individuals remain employed with same employer
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 Earnings Change
! Aligned with Vision & Mission?
" Performance improved by:
- Identifying Employers’ needs
- Identifying Individuals’ skills and abilities
- Matching needs of Employers with
appropriate Individuals
- Helping Individuals with their job search,
resumes, interview skills
- Enhancing Individuals’ Skills/Education to
meet needs of Employers
- Seeking out new Employers whose needs
align with skills/abilities of those in the
Labor Market
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 Educational Achievement
! Understandable?
" Of those Exiters in Education/Training
Designed to result in Recognized
Degree/Credential, Percent that achieve it by
End of 3rd Quarter After Exit
- Recognized Degree/Credential means recognized
by Employers
- No Generic Work-Readiness
- Exiters are those who go 90 days without receiving
a qualifying service
! Meaningful to Stakeholders?
" Helps Individuals Improve Skills/Qualifications
" Can help meet Employers’ labor needs
" Can help Communities prosper
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 Educational Achievement

! Aligned with Vision & Mission?

" Performance improved by:
- Identifying Employers’ needs
- Identifying Individuals’ skills and
abilities
- Supporting Education/Training that
meets Employers’ needs where there
is undersupply

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