Budgeting by PrioritiesResults Team Kickoff

January 3, 2014

Aligning to the Strategic Plan

What does it mean? Ability to identify how much money you spend by

strategic plan priority.

Ability to show that the funds spent on those priorities are making a difference

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What is Budgeting for Outcomes?

Innovative process that engages stakeholders in transforming the budgeting process

Changes budget from a list of accounts to a map for the future

Focus is on the results as opposed to the dollars

Evidences transparency

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Why is this right for Tacoma?

Board request for alignment of the budget to the strategic plan

Innovation is our thing

Program managers are part of the process

Incorporates value-added spending

Decisions are based on priorities, strategy, data and funding

The right thing to do for kids

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What could this look like for Tacoma?

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Budgeting for Priorities Annual Process

Identify Funding

Determine Priorities

Allocate Resources

Identify ResultsProposals

Ranking Proposals

Buying

Communicate

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Step 1: Identify how much money we have?

Long-term financial planning (currently 6-year review updated annually)

Determine anticipated revenues for 2-year cycle (no change to our current revenue projection process)

Determine use of fund balance Spend down plan

Identify Funding

Determine Priorities

Allocate Resources

Identify ResultsProposals

Ranking Proposals

Buying

Communicate

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Step 2: Determine priorities

What are the results or outcomes that matter most to the district?

Academic Excellence

Early Learning

Partnerships

Safety

Identify Funding

Determine Priorities

Allocate Resources

Identify ResultsProposals

Ranking Proposals

Buying

Communicate

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Step 3: Allocate resources among priorities (optional)

Define how much each strategic goal is worth relative to the whole Based on judgment not science

Ask stakeholders: Surveys or focus groups

Input only

Not determinative

Academic Excellence

Early Learning

Safety

Partnerships

%%

%%

Identify Funding

Determine Priorities

Allocate Resources

Identify ResultsProposals

Ranking Proposals

Buying

Communicate

TPS will determine this later9

Step 4: Identify results

Develop results teams to evaluate the proposals Team of approximately 5 brilliant people for

each priority – 4-5 teams plus community team

Include those that will promote innovation

Develop district “request for proposal” Teams will evaluate proposals and develop the

results criteria for each priorityIdentify Funding

Determine Priorities

Allocate Resources

Identify Results

Proposals

Ranking Proposals

Buying

Communicate

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Step 5: Proposals

Departments work independently or with other departments to offer services to achieve the results

Proposals are focused and specific Data to be included in proposals:

Start with data collection forms and feedback forms

New program categorizations (handout)

District benchmarks

Qualitative benchmarks when no data available-rubrics

Identify Funding

Determine Priorities

Allocate Resources

Identify ResultsProposals

Ranking Proposals

Buying

Communicate

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Step 6: Ranking Proposals

Results Teams rank the proposals based on their results criteria Prioritization templates will be provided

Results team review Return proposals back to “sellers” after round

one

Encourage proposals to more closely tie services to goals

Encourage cooperation between departmentsIdentify Funding

Determine Priorities

Allocate Resources

Identify ResultsProposals

Ranking Proposals

Buying

Communicate

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Step 7: Buying

Ranked proposals from results teams are lined up with available funding Start buying from the top and draw a line when

money is spent down for each priority

Decide what to buy or fund – Executive team evaluates results team rankings and makes final recommendations

Ultimate decisions rest with Superintendent

Identify Funding

Determine Priorities

Allocate Resources

Identify ResultsProposals

Ranking Proposals

Buying

Communicate

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Superintendent

Results TeamAcademic Excellence

Results TeamEarly Learning

Results TeamSafety

Results TeamPartnerships

Results TeamSupport Services

Cabinet

Steering Committee

Process Team

CitizensReview Team

Budget Proposal Approval Structure

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Step 8: Communicate Results

Communicate out the performance results to both internal and external stakeholders in a clear and understandable format. Board communication

Budget presentations

Formal Book

Graphs

Website InformationIdentify Funding

Determine

Priorities

Allocate Resource

s

Identify ResultsProposals

Ranking Proposals

Buying

Communicate

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TRADITIONAL BUDGETING COMPARED WITH BUDGETING PRIORITIES

TRADITIONAL APPROACH

PROPOSED APPROACH(BP)

FOCUS Starts with a “base budget” and adds to or deletes from the base

No base. “Buy” proposals and programs that support theStrategic Plan and it’s goals

BUDGET REQUESTS

Departments ask for an amount that can be justified based on needs and costs

Propose programs that evidence says are likely to produce desired results

ORGANIZED BY

Department Priority

DEBATE What can we cut How do we get better results with available resources?

DIRECTOR’S ROLE

Decreasing services or increasing debt amounts

Buy services that will maximize student benefit while adhering to current resources and promote innovations and improvements16

Next Steps,

Options,

Questions

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Your Role as a Results Team Member

Develop the ‘Request for Proposal’

Review and “grade” proposals within your priority

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Developing Requests for Proposals (RFP)

A Request for Proposal (RFP) that includes cause & effect maps, benchmarks and purchasing strategies Use cause and effect maps to develop a strategy

map in order to understand the outcomes that make the most impact on student learning

Incorporate benchmark measures (where available)

Review & provide feedback on prior Data Collection Forms/cause and effect maps to develop purchasing strategies

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Questions or Concerns

How do you feel about change?

How can this process help the district?

Can you think of recent changes we have made in the district?

Are you excited or nervous about this change?

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Today’s Task

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Learning Target and Success Criteria

Target I understand what BP is and what we are doing

with it

I understand how to complete a cause and effect map

Success Criteria A fishbone diagram is completed (may not be

accomplished entirely today)

To determine the next group meeting to finish the cause and effect map

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TEAM NORMS and

EXPECTATIONS

We are going to be doing hard work today

Critical conversations will be held and professional dialogue is expected

Prevent dominating conversations Timekeeping and focus

Remember the task at hand

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Cause & Effect Maps

You will complete ONE group cause and effect map for your assigned priority.

The map is a big picture look at the factors that contribute to the priority

Helps viewers understand the relationships between causal factors and the priority

Factors and details should be backed by evidence (rigor, research, professional experience and sound logic)

Communicates what we know about what it takes to deliver a priority

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Cause & Effect Maps (continued)

Steps in Cause and Effect Mapping Brainstorm what you believe are the major factors that

lead to or produce your priority

As a team, draft a cause and effect map that positively represents The factors that will most likely lead to your assigned priority

The factors that prevent us from achieving the priority

Finally, prioritize the factors to determine which factors are more critical than others to identify where we should focus to best deliver the priority assigned (once the cause and effect map is complete)

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Tips Don’t let it turn into a chart of Tacoma’s current

activities or programs

There is no set format for the finished product and each team’s map will be different.

Follow the evidence where it leads – even if contrary to business as usual. If research-based evidence does not exist, use professional judgment and sound logic.

Don’t be concerned about overlap with another team. One factor may contribute to more than one priority.

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Cause & Effect Maps (continued)

NEXT STEPS

Meet with your team to finish your cause and effect map

When completed call Walter Buford (x1206) to schedule your next meeting with us

The next meeting will be to develop purchasing strategies and we will personally guide you through it

You will also be asked to vote on the most important criteria and we will mock up your strategy map for Cabinet review

Your team will meet with Cabinet to review and present your cause and effect maps and purchasing strategies

Deadline for your meeting with Cabinet is January 28

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Purchasing Strategies

Determining how the District can best spend their resources on achieving the strategic plan goals

Purchasing strategies can be accomplished through a three step process

Review cause and effect and the previous Data Collection Form submissions

Select your recommended strategies based on the kinds of proposals you want to see from departments

Articulate the strategies so they are easily understood by departments

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Step 1

Think about the following questions: Do these strategies capture the activities that

contribute most to the priority? Where are the most significant opportunities to

improve results? Where are the most significant performance gaps? Consider other players (outside of Tacoma) who

contribute to a similar priority. What are they doing/not doing that may contribute to the priority?

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Step 2

Select your recommended strategies based on what kinds of proposals you want to see from the departments

STEP 3

Articulate or choose 3-6 purchasing strategies What to spend money on

How to spend the money

Specific things the team wants to see in department proposals

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Purchasing StrategiesTIPS

To quickly assess what choices team members would make, ask each person to pick the three factors that they would choose to address if that was all they could do.

Be clear and succinct.

Consider a mix of strategies that offer immediate benefits as well as those that may be more long term.

Don’t name current programs, departments or activities in your strategies.

Be clear. Remember that departments will be using these to create their proposals, so they need to be understandable to District staff.33