City of Helsinki Social Services Department City of

City of Helsinki Social Services Department City of Helsinki Social Services Matrix Method for Measuring Productivity in Elderly Social Services ENSA, Madrid, June 2010 Elderly thematic group meeting Kari Laakoli – City of Helsinki Management accounting advisor E-Mail: kari. laakoli@hel. fi ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department Outline of the presentation <information of the elderly projects <from aggregate to disaggregate approach City of Helsinki Social Services <matrix method <map of productivity affecting factors <prioritized measures <matrix of service housing <productivity results in service housing in years 2007 - 2009 <conclusion ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department Information of the elderly projects <pilot projects in the elderly services in years 2007 - 2009 <13 units of service housing <four nursing homes City of Helsinki Social Services <aim was to develop a solution to a productivity measurement problem from a practical field <utilization of workshops as a method <two different working teams included <two researcher from Tampere University of Technology <3 -5 persons of elderly services (unit manager, workers representatives, accounting experts) ENSA, Madrid June 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department The matrix method From aggregate to disaggregate approach Top down Bottom up City of Helsinki Social Services Aggregate measures Component are intended to measures examine productivity of (disaggregate) a large organizational capture the entity or the whole productivity of a organization single activity or unit <Social Services Department is rather large organizational entity <productivity measurement was based on output/input index Reference: Jääskeläinen, A. 2009 <limited view when information to the unit level is ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department The matrix method From aggregate to disaggregate • Social Service System is a approach Complexity of the system City of Helsinki Social Services Social Service System as a whole Part of the service system (eg. elderly services) Unit level (eg. Service housing) Weak Awareness Productivity view of of is system productivity understood productivi phenomenon and known ty Productivityconsciousn ess large organizational entity, state of productivity is difficult to realize and manage, offer little information to unit level • Productivity is realized, but the underlying factors needs to be better understood, measured and managed by objectives • At the unit level productivity and factors involved in the phenomenon should be understood, measured and managed by objectives ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department The matrix method From aggregate to disaggregate approach Bottom-up City of Helsinki Social Services § the results from different Productivity of City of Helsinki Productivity of Social Service Department … unit are aggregated to the next Productivity of Child care Elderly level … … Services services § focus is to examine a Productivity of change Productivity of Child Care regions … Service house… Nursing home … 1 1 in total score not the score Productivity of as Child Day care … center 1 such Reference: Jääskeläinen, A. 2009 § every unit is taken into ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department The matrix method Map of different factors affecting productivity Productivity City of Helsinki Social Services Bedfast Functional loss residents % of client % Service quality Atmosphere In Service provision Workers turnover Employee competence Working atmosphere Cost efficiency Utilization of employee resources Output quantity Output magnitude Resources used References: Jääskeläinen, A. 2009 Jääskeläinen, A. & Lönnqvist, A. 2009 ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department The matrix method The illustration of the measures City of Helsinki Social Services Reference: Jääskeläinen, A. 2009 ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department The matrix method The illustration of the service housing matrix City of Helsinki Social Services Reference: Jääskeläinen, A. 2009 ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department The matrix method Productivity measurements in service housing City of Helsinki Social Services <top level 900 - 1000 pontis <extraordinary level 700 - 800 points <good level 500 – 600 points <average level 400 points ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department The matrix method Productivity index in service housing City of Helsinki Social Services ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department Conclusion The matrix method provides: <tool for managerial purposes City of Helsinki Social Services <one index calculated from several productivity- related indicators <easy to understand what factors have influenced the index <the matrix is not very complex: <the measurement method is transparent to every employee <shows what a good result is <Jääskeläinen, benchmarking to other units using similar matrix Reference: A. 2009 <potential tool for supporting payment by results ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department City of Helsinki Social Services Thank you for your attention and interest. ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department References: Jääskeläinen A. 2009. ”Identifying a Suitable Approach for Measuring and Managing Public Service Productivity”, Electronic Journal of Knowledge Management, Vol 7, No. 4 pp. 447 -458. < Jääskeläinen, A. & Lönnqvist, A. 2009. ”Designing Operative Productivity Measures in Public Services”, VINE – Journal of Information and Knowledge Management Systems, Vol. 39, No. 1, pp. 55 -67. www. interrai. org < City of Helsinki Social Services ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department Productivity in the elderly services Converting values <Current costs (nominal) were converted to real costs (constant) by City of Helsinki Social Services the PIPE index (Price index of public expenditure) § PIPE Producer: Statistics Finland, Homepage: http: //tilastokeskus. fi/til/jmhi/index_en. html Weighting of the output <Service housing <Client payment grouping (grouping is based on given service hours per month) <Groups 1 -6 where one elderly client in group six equate six elderly client in group one <Nursing homes <RUG-III/34 grouping (hierarchical structure) <Cost weigh of client structure (based on clinical status) Reference: Jääskeläinen, A. 2009 <average client has weight 1; weight 1, 3 means that client need 30% more resources ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting

City of Helsinki Social Services Department The matrix method Constructing a productivity matrix <prioritize the measures <the experience and context specific knowledge important City of Helsinki Social Services <statistical study to support the decision of the weights <to finalize matrix <collect a measurement data from each measure (previous 3 years) <scaling the matrix 0 – 10 <average result got a score of 4 <Scores 0 and 10 defined in a way that only single units had such scores <current values of measurements was necessary Reference: Jääskeläinen, A. 2009 information ENSA, Madrid 2. 6. 2010 Kari Laakoli, Management accounting