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Unformatted text preview: Mitigation or resolution of a problem? 81 Performancebased Budgeting (PBB) – “PBB is budgeting for results with an eye on the price tag” – PBB emphasizes program effectiveness and bases decision making (whether for continuation or enhancement of a program) on outcomes.
– However, the costs of achieving those outcomes must be scrutinized to ensure efficient service delivery and maximize allocation of scarce resources. 82 Goal Setting
A SMART goal is defined as such:
Specific – Is the goal clear and to the point? Measurable – Can you tell if it is accomplished? Attainable – Is it a realistic goal? Relevant – Is it a priority of the organization? Trackable – Results are compared over time? 83 SMART Examples Yes:
To respond to all fire calls within the city within 7 minutes of dispatch
To protect all property within the city to a high level of safety
To process all building permit requests within 48 hours of application
To process all building permit requests in the shortest time possible
84 Rudimentary PBB A rudimentary form of PBB to be implemented until a formal system can be produced could include the following in each department’s budget request:
– An explanation of the department’s overall goals
– An explanation of what the department has accomplished in the past year
– An explanation of what the department intends to accomplish in the coming year
– An explanation as to what is different from last year in the proposed budget and why
85 Performancebased Budgeting (PBB) Program Structure
Strategic plans, operational plans, and performance based budgets are geared to program structures
Funds are appropriated to departments/programs
A program is a grouping of activities directed toward the accomplishment of a clearly defined objective or set of objectives
Program structure is an orderly, logical array of programs and activities that indicates the relationship between each
86 TOP TEN REASONS WHY PERFORMANCE-BASED
BUDGETING WON’T WORK IN MY DEPARTMENT
10. It doesn’t matter what we do because we have federal/state funding. 9. We just reorganized and we don’t know what we’re doing yet. 8. Everything is just fine as it is; we’ve always done it this way. 7. We’re too busy getting REAL work done to bother with this. 6. We need more staff, more money, more time, more ( fill in the blank ) to do this. 5. We can’t target outcomes; they’re too specific. 4. We can’t measure what we do. 3. You’ll misinterpret any information we give you. 2. We can’t be accountable because we have no control over anything . 1. We’re different. This shouldn’t apply to us. We need an exemption. 87 INSTITUTIONALIZING PERFORMANCE MEASUREMENT:
Make performance an integral part of your management processes.
– Use metrics to understand and measure how a process works and the results it generates.
– Develop an internal performance accountability process.
– Integrate performance into policy and budget decision making and everyday program management. 88 INSTITUTIONALIZING PERFORMANCE MEASUREMENT:
POINTER: When you break down a policy, program, or process into
its component parts, you use "systems logic" to develop a model of
how it should work INPUT OUTPUT & OUTCOME
Managers should use metrics to gauge and assess program and
processes, diagnose problems, and formulate solutions.
89 Example Service Area Fire Suppression Objective Input Output Efficiency Service Quality To maintain fire loss at 0.02% or less of Total Property Valuation $249,000 77 incidents responded to $3,234 cost per response 7.3 minutes Average response time 90 Outcome 0.027% fire loss average fire lo...
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- Winter '12