Memorandum

City of Lawrence

City Manager’s Office

To:	Dave Corliss Interim City Manager
From:	Debbie Van Saun Asst. City Manager
cc:	Casey Liebst, Budget Manager Management Team
Date:	March 29, 2006
Re:	Proposal for Performance Measurement and Balanced Scorecard Development

Please place the following item on the City Commission consent agenda for their April 4, 2006 meeting:  Performance Measurement and Balanced Scorecard Project.

Project Background

At their March 7^th meeting, the City Commission authorized the City Manager to proceed with the negotiation of a contract with Management Partners, Inc. to provide consulting services for the development of performance measures and a balanced scorecard.  This project is part of the 2006 work plan established by the City Commission at their goal retreat in January, 2006.

Proposed Scope of Services

Management Partners, Inc. included in their proposal (as submitted at the March 7^th meeting), a scope of services that includes development of a scorecard that integrates the City’s strategic planning objectives and Commission goals around the four basic elements of Norton and Kaplan’s Balanced Scorecard: the customer focus, the operational focus, the financial focus, and the employee focus.  Training will be provided as well as consultation on the implementation of a comprehensive performance measures effort.  Training of the City staff allows for understanding and commitment to this system of accountability.  The performance measures will emphasize effectiveness and efficiency measures of the various program goals.  Methods of tracking and reporting measures to the City Manager on a regular basis will be established and the system will be integrated with the City’s planning process and budget process.  The final product for this project will be presented to the City Commission by Management Partners, Inc. 

Project Status

Management Partners, Inc. submitted information regarding the level of effort required to complete the various tasks in this project, as well as their fee schedule.  Staff has reviewed the submitted information and finds the estimated 702 hours of management consulting assistance ($112,600) as well as expenses ($13,150) to be reasonable as a not to exceed cost for this project

Commission Action

Staff is requesting the City Commission to authorize the Interim City Manager to enter into a contract with Management Partners, Inc. for a not to exceed amount of $125,750 for consulting services and expenses to complete the development of performance measures and a balanced scorecard.   Please let me know if you have any questions.