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PUBAFRS 7554

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What is Performance

Management ?

Performance Management involves collecting data in a systematic and objective manner to determine the efficiency and effectiveness of service delivery and program objectives. Performance management is the application of such data into an integrated management system that informs resource allocation and decision making to move an organization toward the achievement of strategic objectives.

Source:

ICMA “Performance Management: When Results Matter”: <http://www.icma.org/documents/PerfMeas_small.pdf

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Performance Management

has been around for a while…

PPBS (Planning Programming-Budgeting System) –Lyndon Johnson

MBO (Management by Objectives) – Richard Nixon

ZBB (Zero-based Budgeting) – Jimmy Carter

NPR (National Performance Review) – Bill Clinton

GPRA (Government Performance and Results Act)

PMA (President’s Management Agenda) – George W. Bush

Accountable Government Initiative – Barack Obama

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What is GPM ?

Evaluating

&

Improving

Planning

&

Budgeting

Measuring

&

Monitoring

Integrated processes and systems focused on achieving measurable results…

… where managers communicate plans, respond to issues and learn from experience.

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GPM is…

Planning & Budgeting establishes resource and performance targets.

Measuring & Monitoring reveals deviations between targets and results.

Evaluating & Improving realigns targets and results.

Performance Data fuels the process

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Osborne-Gaebler in “Reinventing Government”

1. What gets measured, gets done.

2. If you don’t measure results, you can’t tell success from failure.

3. If you can’t see success, you can’t reward it.

4. If you can’t reward success, you’re probably rewarding failure.

5. If you can’t recognize failure, you can’t learn from it.

6. If you can demonstrate results, you can win public support.

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Is Implementing a Performance

Management System easy?

NO!!!!!

Can it be done?

YES!

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Case Study: Franklin County, Ohio

Includes the State Capital, Columbus

30th Largest County

30 County Agencies

42 Elected Officials

7,000 Employees

$1.2 Billion Budget

AAA Bond Rating by Moody’s and S & P

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How did we do it in Franklin

County?

Started Managing for Results Initiative with the agencies that

reported directly to the county administrator.

Hired resources to assist departments with developing five year

strategic plans and annual strategic business plans for our thirteen

agencies.

Developed vision and mission.

Created a portfolio of services.

Developed Performance Measures for each service.

Determined how to collect data.

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Next Step Get the rest of the county elected officials to buy in to the Managing

Results Initiative

Met with all 42 Elected officials and requested their participation

Was there resistance? Absolutely

Carrot and stick approach was used to win over support

Provided the resources – Outside consultants

Power of the budget

Asked the media to follow our progress

Internal and External Competition

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Communication is critical

Elected Officials

Department Heads

Middle Management

Human Resource Staff

Finance Staff

Union Leadership

Front Line Staff

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RESULTS

Inventory of services 2100.

Grouped them into 218 programs.

Created Performance Measures for each

program.

Agencies began collecting Performance

measures monthly.

Created infrastructure to begin performance

based budgeting.

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Line Item Budget Example

Expenditure Type 2001 2002 2003

Personal Services $2,097,694 $2,556,927 $3,292,939

Services & Charges $11,048,666 $14,611,386 $15,662,564

Materials & Supplies $31,891 $70,795 $106,701

Grants $1,190,174 $1,660,609 $1,724,446

Capital Outlays $53,930 $80,635 $18,250

TOTAL $14,422,355 $18,980,352 $20,804,900

Office on Aging

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Performance-Based Budget Example

Measure Program 2001 2002 2003

Total Expenditures $11,048,666 $11,874,038 $12,700,438

Demand # of seniors need service 6,103 6,045 6,725

Output # of seniors served 5,361 5,845 6,475

Result # of seniors served

avoiding nursing home

98% 96% 96%

Efficiency Cost per senior served

avoiding nursing home

$2,102.99 $2,116.13 $2,043.19

Office on Aging Home and Community Based CareThe purpose of this program, which is one of nine, is to provide needed services to

older adult Franklin County residents and their families, so they can preserve their

independence and experience an improved quality of life.

Cost Savings: Nursing Homes $40,000 annually vs. Office on Aging program $2,100 annually.

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Performance Based Budget

- Strategic Business plan for their operation

- Program performance and cost data for the past year.

- Performance goals for the upcoming year.

- Funding necessary to achieve the results presented in

the business plan.

Each department/elected official was required to

present annually:

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RESULTS

More information to make investment decisions.

30 line item budgets

Increase efficiency- 18 of the 30 agencies

received less money than the prior year.

Enabled operations to continue without major

loss of services and reduction in workforce.

Better informed public, leadership and staff.

217 Program budgets