a primer on performance based budgeting for state & local government agencies
DESCRIPTION
With the Obama Adminstration emphasizing accountability and performance associated with the economic stimulus package, here is a primer on the basics of government performance and results that can be applied to any level of government services and programs.TRANSCRIPT
Performance Measures that Matter
Nick Mandel
New Mexico Public Strategies Group
• A short history of Performance Measures to date
• Understand the basics of performance management and it’s application at your level of authority and responsibility
• A practical exercise using the Logic Model and performance measures
• References & Resources
Performance Measures that Matter
Federal Legislation
Government Performance Results Act (GPRA) 1993
New Mexico Accountability In
Government Act (AGA)
1999
Performance Measures that Matter
Performance Measures that Matter
Sunnyvale California Performance Based Budgeting Starting
Point
Oregon Shines (1989), Oregon Shines II (1997), &
Achieving the Oregon Shines Vision (1999).
State of Indiana- DOT City of Coral Springs,
Florida
Clinton- Gore AdministrationGovernment Performance Results Act (GPRA)1993Bush- Cheney Administration 2000President’s Management AgendaLink Budget Funding to:
Performance
E-GovernmentHuman Capital Management Competitive Sourcing
Financial Management Obama–Biden Administration
Federal Highway Administration – funding possibly tied to State DOT Performance Measures
Performance Measures that Matter
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Some Definitions (1of 3) Program- Set of activities undertaken in accordance with a plan
organized to realize identifiable goals and objectives
Strategic Planning- a tool to help organizations make decisions consistent with its approach to achieving the organizations/programs mission, goals and objectives
Strategies- The methods to achieve goals and objectives, Formulated from goals and objectives, a strategy is the means for transforming inputs and outcomes with the best use of resources.
Baseline Data- Current Level of a Program’s Performance
Measures as established by State Budget
Performance Measures that Matter
Some Definitions (2of 3)
Performance Measurements- Quantitative or Qualitative indicators used to assess a program
Inputs- Qualities of Resources Needed to Produce Goods or Services
Output- A Measure of Volume of Work Completed
Efficiency- Measures the Efficiency of a Program, often expressed as cost per unit
Quality – Measures the Quality of Work or Service Performed
Outcome-A Quantifiable Measure of the Impact of the Program that captures the program results
Explanatory Data- Used to explain or understand measures or other information related to performance measures.
Performance Measures that Matter
Some Definitions (3 of 3) Resources- those assets that might include equipment, special
contracts, employees, budgets, and other goods to produce work Key Results. One of three primary results that includes;
Customer Oriented – benefits or impacts the program from the clients point of view?
Strategic – the social, economic, culture or policy conditions the program seeks to influence?
Operational- the work processes undertaken in conducting business?
Agency Mission- The reason for the agency’s existence, what the agency does and why.
Assumptions & External Factors- an evaluation of key factors that influence the success of agency in achieving its mission and goals.
Performance Measures that Matter
Traditional Budget Performance Based Budget
Size of AgencyInfluence of Agency EfficiencyPolitical Considerations QualityNumber of Employees Outputs
Traditional Budgets Outcomes
Performance Measures that Matter
Logic Performance Based Budget Model
SITUATION
OUTCOMESINPUTS OUTPUTS
Performance Measures that Matter
HEADACHE
Feel betterGet pills Take pills
Everyday Model
Performance Measures that Matter
Possible Programs or Activities to Use:
Procurement BureauFinancial Management Constituent Services Human ResourcesPublic InformationCapital ManagementReprographic ServicesAdministrative Support Service
Performance Measures that Matter
Performance Based Budget Practical Exercise
Ask the questions: Who is the primary client or target group?Why does the program exist in the first
place?What business is the program in?
Performance Measures that Matter
Performance Based Budget Practical Exercise
Define the purpose of the program or activity:
“The Purpose of the ____ Program is to provide/produce ______ so they can _____________”
Performance Measures that Matter
Performance Based Budget Practical Exercise
“The Purpose of the Road Maintenance Program is to provide and produce clean uncluttered streets to enhance the quality and economic development of our city”
Performance Measures that Matter
Logic Model for: Road Maintenance Program
Inputs
Situation: The Purpose of the Road Maintenance Program is to provide and produce clean uncluttered streets to enhance the quality and economic development of our city”
Outputs
Activities /Participation/ OutputsShort Term Medium Term Long
Term
Assumptions
External Factors
INPUTS Budget
Personnel (FTE)
Contractual Services
Capital Outlay
Transfers
Other Resources
Performance Measures that Matter
What are the Inputs and Resources?
“Seventeen Full-time Employees(Personnel Services);Contractual Services of a local company(Operating Expenses);Purchase of Street Cleaners (Capital Outlay)Transfers (State, Federal Highway or other Resources)
Performance Measures that Matter
Logic Model for: Road Maintenance Program
Inputs
Situation: The Purpose of the Road Maintenance Program is to provide and produce clean uncluttered streets to enhance the quality and economic development of our city”
Activities /Participation/ Outputs Short Term Medium Term Long
Term
Assumptions
External Factors
What we invest:
Resources
FTE’s
Money
Special Equipment
Outside Contractors
Special Materials
Time
What are the activities, operational tasks and other daily events that comprise the next step?
What we do and who we are
Performance Measures that Matter
Logic Model for: Road Maintenance Program
Inputs
Situation: The Purpose of the Road Maintenance Program is to provide and produce clean uncluttered streets to enhance the quality and economic development of our city”
OutputsActivities /Participation/ Outputs
Short Term Medium Term Long Term
What we do:MeetingsData entryReportsCertification Inspections Who we reach: Internal StaffSelect members of the communityOther special interestsCity/State/Local/Gov.
Quality
Efficiency
Outputs
Outcomes
Assumptions
External Factors
What we invest:
Resources
FTE’s
Money
Special Equipment
Outside Contractors
Special Materials
Time
Performance Based Budget Practical Exercise
What are the Performance Measures?
Output
Quality
Efficiency
Outcomes
Performance Measures that Matter
PERFORMANCE MEASURES
Outputs– How Many?
Quality – How Well?
Efficiency- What’s the Cost?
Effective Outcome- Overall Result(s)
Performance Measures that Matter
Performance Based Budget Practical Exercise
What are the Performance Measures?
Each City Street will be cleaned and striped once every 6 months
Output Measure
Performance Measures that Matter
Outputs are Important, but..
Performance Based Budget Practical Exercise
What are the Performance Measures?
“City streets will be cleaned based on “City National Clean Safety Act Standards.”
Quality Measure
Performance Measures that Matter
IRS Call Center Efficiency
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But what about other standards of performance…..
% of Indiana Bridges Deficient
Performance Measures that Matter
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Performance Based Budget Practical Exercise
Street cleaning crew expenses will be comparable to private sector expenses.
Efficiency Measure
Performance Measures that Matter
Short, Intermediate and Long-Term Outcomes
What are the big-picture Outcomes?
What will be the results if the program and/or services are successful in the long term?
Performance Measures that Matter
Outcomes – Impact
Situation: Lead and assist the department in change.
OutputsActivities /Participation/ Outputs
Short Term Medium Term Long Term
What we invest:
ResourcesFTE’sMoneySpecial EquipmentOutside ContractorsSpecial Materials Time
What we do:MeetingsData entryReportsCertification Inspections Who we reach: Internal StaffSelect members of the communityOther special interestsCity/ State/Local Governments
Outputs:
How Many Quality:
What standard? Efficiency:
What cost ?
What are the short term results:
Look for increases in efficiency, cost, operations, and other short term indicators
For major policy and strategy: Usually 1-2 years
What the medium term results are: Longer 2, 3, 4 or even 5 years
Look for: Behavior, Practices, Decision Making, Policies, Outcomes
The ultimate results are:
Can be much longer
Look for:Social, Economic, Civic, Policy, Fiscal, Environmental, Outcomes
For operations & program management, Less than a year
What are the Assumptions
And
External Factors Present ?
Performance Measures that Matter
Outcomes – Impact
Situation: Lead and assist the department in change.
OutputsActivities /Participation/
Outputs Short Term Medium Term Long Term
What we invest:
ResourcesFTE’sMoneySpecial EquipmentOutside ContractorsSpecial Materials Time
What we do:MeetingsData entryReportsCertification Inspections Who we reach: Internal StaffSelect members of the communityOther special interestsCity/ State/Local Governments
Outputs:
How Many Quality:
What standard? Efficiency:
What cost ?
What the short term results are:
For major policy and strategy: Usually 1-2 years For operations and program management, Less time Look for:Awareness, Knowledge, Attitudes, Skills, Opinions, Aspirations, Motivations, Outcomes
What the medium term results are: Longer 2, 3, 4 or even 5 years
Look for: Behavior, Practices, Decision Making, Policies, Outcomes
That the ultimate results are:
Can be much longer up to 10 years
Look for:Social, Economic, Civic, Policy, Fiscal, Environmental, Outcomes-
Outstanding success with the public – Washington DOT,City of Coral Springs, Florida
Assumptions
Long- term effort. Employees. Middle management and executive leadership. Economic Projections
External Factors
No institutional history of quality. Lack of human resource expertise and other resources. Economic
Projections?
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Exercise Activities
• Defining program purpose, • Identify Inputs- Resources, FTEs, etc. • List key activities and work related duties, • Create quality, efficiency and/ or output measures, measures• Understand and identify potential short, intermediate and
long-term outcomes & performance measures• Consider the Assumptions & External Factors• Look for/ consider application within your work group
Performance Measures that Matter
Logic Model for: Your Bureau/ Program
Inputs
Outcomes – Impact
Situation:
OutputsActivities /Participation/ Outputs
Short Term Medium Term Long Term
Assumptions
External Factors
Performance Based Budgeting will help:Better Understanding of what programs are effectiveBetter Understanding of Program costsBetter Understanding of what programs are efficientBegin the connection of Budgeting for Results
Performance Measures that Matter
Performance Measures that Matter
Why Performance Based Budgeting & Management ?By measuring performance, government can be
transparent to the citizens, the executive and the legislature alike by measuring performance, reporting on success and failures and demonstrating a clear and compelling case to fund specific programs and responsibilities
Performance Measures that Matter
Lessons Learned for Local Governments
Start Small
Don’t Shoot for the Moon
What Gets Measured Gets Managed
Excellent Schools
Cost of Living
Quality of Life Affordable Housing
Low Crime Rate Ease of Commute
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Performance Measures that Matter
Questions and Dialogue
Thank You!
Nick Mandel
New Mexico Public Strategies Group