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Renewing the consideration of performance and results in government IPAC-IAPC 2011 National Conference: Public Service Capacity

Jim Copeland, National Managing Partner, Advisory Services Leah White, Partner, Governance, Risk & Compliance Services Paul Avender, Partner, Advisory Services Bill Reid, Director, Advisory Services


What do we hope to cover today?

Bill Reid, Director, Advisory Services • Integrating results-oriented practices – Seeking the linkages to enable broader use and benefit Paul Avender, Partner, Advisory Services • Revisiting zero-based budgeting – Learning from experience Leah White, Partner, Governance, Risk & Compliance Services • Understanding the value of performance auditing – Getting your money’s worth 2


Integrating results-oriented practices

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Integrating results-oriented practices continued

Provincial Crown Agency Case Study One • Embarked on a nine-year strategic planning process that is linked with three-year service delivery and business plans: o

Combined governance and assigned responsibilities

o

A shared portfolio of initiatives

• Renewed their approach to enterprise risk management with direct ties to business plans, in content and accountabilities • Project scoping, resourcing, budgeting, and measures are also integral parts of the divisional (branch) business plans 4


Integrating results-oriented practices continued

Provincial Crown Agency Case Study Two • Faced a mosaic of a public plan, corporate operating plans, divisional plans, and regional plans • Repositioned the strategic plan to serve as the foundation for the public plan • Created a corporate business plan, combining operating and divisional plans with budgeting and resource allocations • Looking now at the more explicit integration of the corporate risk inventory, mitigation strategies and risk indicators 5


Integrating results-oriented practices continued

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Integrating results-oriented practices continued

Provincial Ministry Case Study Three • Established a common framework of indicators: o

Categories of environment, functioning, and foundational

o

Initial executive governance orientation

o

Now reflected in public planning and reporting

• Created a SharePoint site and process to enable reporting • Formalizing a business intelligence function • Opportunities to advance the use of evaluations and reviews 7


Revisiting zero-based budgeting

The Promise • Improves allocation of resources, through bottom-up prioritization based on needs • Highlights obsolete legacy programs and activities • Provides the ability to make funding decisions as a portfolio o

“Comparable" funding packages cross department

• Assists in selecting specific levels of service

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Revisiting zero-based budgeting continued

The Pitfalls • Significant work effort involved • Focused on the current "what" and "how" • Very difficult to achieve comparable decision packages – eliminates the ability for cross department prioritization • Does not encourage innovation

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The Challenge

Shifting customer and stakeholder expectations


The tasty satisfying deli sandwich

Existing Offer / Expectations (level of service)

= Whole-wheat bread Lettuce and tomato Cheddar cheese Ham 11


The tasty satisfying deli sandwich continued

Shifting Customers Expectations

= Artesian organic wholegrain bread Locally grown organic lettuce and tomato Local produced cheddar Grain fed pork, naturally smoked 12

+


Making the leap

Engage Align Innovate

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Zero-based analysis

Engage:

Understand expectations, but also their cost and performance curve

Align:

Integrate planning – strategic to operational

Innovate:

Utilize zero-based budgeting decision packages to create a plan: o Assign resources and accountability for both operations and innovation investment

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Case study Municipal Internal Service Provider The Challenge: Rising costs, due to customer expectations Approach: • Confirmed division accountabilities • Interviewed 30 customers to validate cost and performance expectations • Reviewed current programs and services through development of zero-based budgeting like decision packages • Developed improvement portfolio and supporting implementation committee Expected Results: Improved service levels, maintain costs to inflation 15


Evolution of zero-based budgeting

Zero-Based Budgeting

Zero-Based Analysis

• Line item analysis

• Starting from zero, input from customers and stakeholder

• Reduction of spend and services

• Rigor toward assignment of resources and accountability

• Incremental improvement

• Provides vehicle for innovation to meeting shifting expectations 16


Understanding the value of performance auditing

Success… • Do you know what success looks like? • Do all stakeholders share the same definition of success? • How do you know if your program is successful? • Is your program as successful as it could be? • Is your program unsuccessful but the reasons aren't clear? 17


Understanding the value of performance auditing continued

What is a Performance Audit? An independent evaluation of the economy, efficiency, and effectiveness of an organization, department, program or process What Does That Really Mean? Helping you do more with less – figuring out whether money is being spent in the right areas to get to a shared vision of success 18


Understanding the value of performance auditing continued Public Agency Case Study One • Faced a project that was threatening to go off the rails – over budget and overdue • Met with various stakeholders to get a wide variety of perspectives regarding the current situation – including employees, management, contractors, and funding partners • Identified the current issues that were driving the major project problems, and provided a roadmap to move forward • Recently followed up to review progress – significant changes have given all stakeholders a new perspective and greatly improved the outlook for project success 19


Understanding the value of performance auditing continued

Government Agency Case Study Two • Recognized there were issues with program delivery, such as duplication of services, which hindered efficiency and effectiveness • Benchmarked the current state against best practices – gathering data through interviews and document review • Identified root causes of current issues, allowing the agency to deal with the source of the issues, rather than the symptoms 20


Chair reflections on the panel presentations

• Integrating results-oriented practices o Seeking the linkages to enable broader use and benefit • Revisiting zero-based budgeting o Learning from experience • Understanding the value of performance auditing o Getting your money’s worth • Considerations for the session theme o Public sector capacity 21


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IPAC-IAPC 2011 National Conference: Public Service Capacity Jim Copeland, National Managing Partner, Advisory Services Leah White, Partner,...