Presentation on implementing a performance management system at the Barcelona City Hall using IBM Cognos BI (specifically Metrics Studio).

1. Powering Performance Management at the City Hall of Barcelona JordiVilalta, Director of Management & Control (Office of Strategy Management) Maria del Mar Gimenez-Salinas iBotella, Deputy Manager of Urban Planning Glyn Heatley, PM & Analytics Practice Leader (The Palladium Group, EMEA)

2. Agenda Introduction Barcelona 2.0 Transformation Model Model for Management by Objectives Enablement through a Performance Management Solution Conclusions

5. GDP growth rate: 3.8% (2007)

6. PIB per Capita –PPP-: 25,651 € (9.4% ahead of EU27’s PPP)Number of companies: 477.942 Foreign investment in Catalonia: 2,555 M € Fourth-best city in Europe for business* Airport passengers: 32,898,249 Port Goods: 51.39 M tonnes Visitors: 7,108,398 Conferences and conventions 1,775 Barcelona economic triangle: 10,810,700 m2 1000 Km 1hr 40min flight 1800 Km 2hr 30min flight *Source: European Cities Monitor 2006

8. General Services

9. Social Services

10. Environment

11. Prevention, Security and Mobility

12. Urbanism

13. Economic Development

14. Finances

15. HumanResources

16. Education and Culture10 SECTORS 13.000  workers 2.700 M€  budget 10 DISTRICTS MUNICIPAL HOLDING 4

18. Virtual networks

19. New relationships between institutions and individuals

21. Greater mobility

23. Infrastructure to compete in the global economy

24. InnovationIntroduction: The Global Environment

26. Agenda Introduction Barcelona 2.0 Transformation Model Model for Management by Objectives Enablement through a Performance Management Solution Conclusions

28. Human Resources Plan Relationship with the citizens Management by Objectives e-Administration Territorialization Model Service Catalog IT Plan Transformation Model: Key Projects

29. Agenda Introduction Barcelona 2.0 Transformation Model Model for Management by Objectives Enablement through a Performance Management Solution Conclusions

31. Management Strategy: Plan Barcelona 2.0

32. OperatonalServices (external and internal)Tobeableto link corporate strategy with municipal budgets and its execution Clearly assign management responsibilities to managers and directors of the municipal structure

35. Activities for each program defined

36. Money allocated for each activity

37. Budget activities aligned with the objectives in the mapSpending Goals Investment Model for Budgeting by Programs

39. Allocate a budget for eachactivity

40. Alignbudgetedprogramswithmap’s objectivesBI Solution: Dashboards of KPIs in IBM COGNOS for each map. Monitoring of defined KPIs. Program Activity $ Management by Objectives as a Continuous Improvement Cycle

43. Agenda Introduction Barcelona 2.0 Transformation Model Model for Management by Objectives Enablement through a Performance Management Solution Conclusions

45. Consolidated informationManagement Report KPI performance against target What KPIs and action plans will achieve our targets? Objectives details # of buildings restored Strategy Map Sectors & Districts Managers Improve conditions of urban buildings Where should we allocate our budget in order to reach the targets stablished at our plan? FGBDFHDFVBVBXGHGHXGBNVNV Budget assigned to a given Objective FGBDFHDFVBVBXGHGHXGBNVNV Budgetary Programs Status of objectives linked to a given budgetary program Are we allocating resources to the correct actions and initiatives? Are they bringing the expected results? FGBDFHDFVBVBXGHGHXGBNVNV Finance Department FGBDFHDFVBVBXGHGHXGBNVNV FGBDFHDFVBVBXGHGHXGBNVNV FGBDFHDFVBVBXGHGHXGBNVNV FGBDFHDFVBVBXGHGHXGBNVNV FGBDFHDFVBVBXGHGHXGBNVNV MbO: A new way of managing the city

46. 1 2 3 Strategy Map Balanced scorecard - BSC Objective details 4 Programs - Activities and Budget KPI’s details Management by Objectives Solution Sample

47. Management by Objectives Solution Sample Strategy Map 1 Illustrative example

48. Management by Objectives Solution Sample Balanced Scorecard 2 Illustrative example

50. Management by Objectives Solution Sample KPI Detail 4 Illustrative example

51. Programs– Activities and Budgets 4 Management by Objectives Solution Sample Illustrative example

52. Solution Architecture & Technologies

54. Security: Admin, Data and Usage

55. Status Calculations: Objetive and KPI status calculation for Monthy and Year To Date views

58. Financial Reporting of Actuals vs Budget for Activities/projects providing transparancy and accountablity

59. Management Comments to be maintained and reported on for Maps, Objective, KPIs and Special Projects

61. Advanced Status Calculations for Objectives and KPIs including Year to Date

62. Integrated, Historical Data Platform for Global Performance Management Reporting and Analysis (i.e across Sectors & Districts)

63. Data Sourcing of Financial Budget & Actuals for Program Activities

65. 500+ Objectives

66. 2000+ KPIs

67. 700+ Users

68. Integration with SAP

69. Integration with +20 Source Systems for data automation

70. Initial Framework and Solution Implementation 8 Months

72. Budget allocation to each activity

73. Links between strategic objectives and activitiesPrograma Actividad € Metrics, Query & Report Studio,Go! Office

74. UpcomingMbOSolutionChallanges

75. Real case of Success UrbanPlanning Sector Maria del Mar Gimenez-Salinas i Botella, Deputy Manager of Urban Planning

76. Real case of Success

77. Real case of Success “ The implementation process of the Management by Objectives has facilitated the alignment between the Urbanism Sector and different municipal companies and institutes with whom we coordinate to achieve common goals ” Maria del Mar Gimenez-Salinas i Botella, Deputy Manager of Urban Planning

78. Real case of Success “The new model of Management by Objectives is giving us the possibility to work in a different methodology in which we can plan we can plan our strategy at the beginning of the year and then we can analyze the results by monitoring the development of our objectives status ” Maria del Mar Gimenez-Salinas i Botella, Deputy Manager of Urban Planning

79. Real case of Success “So, we believe it is a huge positive change for the Sector being able to make decisions by comparing and analyzing what we planned at the beginning of the year and the results we have had monthly “ Maria del Mar Gimenez-Salinas i Botella, Deputy Manager of Urban Planning

80. Agenda Introduction Barcelona 2.0 Transformation Model Model for Management by Objectives Enablement through a Performance Management Solution Conclusions

81. Development of a new city management model:link the strategic objectives of the term of office (PAM) to the tactical objectives specific to each Sector/District (maps) Definition of balanced scorecards according to KPIs for tracking key objectives Identification of the actions needed to meet objectives and aligning them to the city budget Establish a common framework of relationships, understanding, and evaluation among allstakeholders Promote verticalization within the City Council: between the service coordinator (Sector), the regional coordinator (District), and the service provider (Institute) High level of commitment and consensusamong everyone involved, thanks to the participatory nature of the project Very important cultural changethroughout the organization Improvefocusedof senior management Conclusions: Results Obtained

82. The Management by Objectives and methodology (XPP) havemadeit possible tosuccessfullyclosethe GAP between politics and management. Politicians - Managers Change management has been the key element for the success of the project. Change Management To ensure the success of Management by Objectives (and Barcelona 2.0), it is crucial to have an office that centralizes strategic management and key project management. Management Office Diverse information, several processes and multiple variables, makeKPI extraction highly complex. Difficulty to measure Lessons Learned