Quarterly Report

May 9, 2025

Item Name: Enterprise Performance Reporting – Third Quarter

Program: Enterprise

Item Type: Information

Executive Summary

This report provides the third quarter report (January 1 – March 31, 2025) for the Enterprise Performance Management (EPM) framework, which is comprised of Strategic Measures (measures), Business Plan Initiatives (initiatives), and Key Performance Indicators (KPIs). The measures and initiatives are part of the CalPERS 2022-27 Strategic Plan (Strategic Plan) and allow us to measure progress in achieving our strategic goals and objectives. The KPIs measure the effectiveness of our routine work at the operational level. EPM focuses on the ongoing monitoring and reporting of all three components and provides information about progress toward strategic goals and objectives, and operational targets. This report focuses on At-Risk and Off-Target measures and initiatives.

Strategic Plan

This report specifically aligns with our strategic goals and objectives, as we measure our strategic and operational progress throughout our 2022-27 Strategic Plan.

Background

We began developing the 2022-27 Strategic Plan in late 2019. This Plan is the result of a two-year process that yielded valuable information and feedback from a variety of external and internal stakeholders, including the Board. This input, along with rigorous analysis, showed that a refresh and expansion of the previous Plan was called for, instead of a complete overhaul. Our vision, mission, and core values were left unchanged, while the strategic goals and objectives were updated. The Board approved the updated Strategic Plan in April 2022.

The EPM framework provides a comprehensive view of strategic and operational performance through quarterly reports that reflect status indicators of On-Target (green), At-Risk (yellow), and Off-Target (red). The reporting focus is on At-Risk and Off-Target measures and initiatives and includes explanations of root causes and potential constraints and mitigation strategies. The intent of the EPM framework is to reinforce CalPERS’ desire to be transparent and accountable in support of our strategic goals and objectives, and our operational targets.

The following status designations appear for several measures and KPIs:

• Pending refresh – baseline, target, and thresholds have been established and the metric is awaiting completion of a data refresh cycle.
• Under development – efforts to solidify methodology are underway.

Analysis

This report focuses on two items: 1) Summary of metrics that refreshed during the third quarter; and 2) At-Risk and Off-Target measures and initiatives.

Strategic Measures

The Strategic Plan encompasses 53 measures. In review of third quarter data: seven are On-Target; one is Off-Target; 43 are pending refresh; and two are under development.

At-Risk

• Participation and Results of Exit Survey

Under Development

• Risk Management Effectiveness
• Organizational Compliance Effectiveness

Business Plan Initiatives

The Business Plan encompasses 34 initiatives. In review of third quarter data: 29 are currently On-Target; four are At-Risk; and one will be reported in closed session.

At-Risk

• Human Capital Management Cloud Migration
• Total Fund People
• Generative Artificial Intelligence Advancement
• Mature Targeted Information Technology (IT) Capabilities

Key Performance Indicators

The operational model encompasses 51 KPIs. In review of third quarter data: 17 KPIs are currently On-Target; one is At-Risk; one is Off-Target; one is informational that report out this quarter; 27 are pending refresh; and four are reported in closed session.

At-Risk

• Project Portfolio Health

Off-Target

• Public Agency Recruitment

Budget and Fiscal Impacts

Resources for our strategic and operational needs were funded by existing internal resources, and by funding requested through the annual CalPERS budget planning process.

Benefits and Risks

The alignment of the Measures, Initiatives, and KPIs with our long-term strategic goals provides focus and clarity that prioritize and guide our work as we keep the Strategic Plan at the forefront of our planning process. EPM is specifically designed to address the most significant risks and opportunities facing CalPERS and will be regularly reviewed to respond to a changing environment.

For More Information

Details of each measure, initiative, and KPI can be found in Insight under the Strategic Goals and Operational Outcome Measures on the navigation bar to the left of this report.