Performance Budget

1. Performance Budget College of Micronesia - FSM Planning & resources committee September 23, 2009

2. Performance budgeting - guiding principles • Be focused on outcomes • Provide simple, accessible information • Be understood and used by all • Be flexible and responsive to the customer • Support interdepartmental efforts • Measure achievement • Encourage continuous improvement • Assist with strategic planning and demand management

3. Performance budgeting - what it does • States desired core outcome to be achieved • Measures the success in achieving results • Helps focus on the high-level outcomes desired • Makes the budget more understandable and relevant to the community • Empowers staff with flexibility • Shows success more comprehensively and clearly (Measures overall service effectiveness) • Better alignment: • organizational structure, processes, customer-driven, performance appraisal, training

4. Performance based budgeting and management • Links $$ with results • Focuses government on key priorities • Provides legislature with more information to set budget • Enables holding departments accountable • Provides monitoring and reporting framework • Provides managers information necessary to improve

5. IPOLO Link Process/ Activity Input Output Outcome

6. What are outcomes? • They define the purpose of a service • Why are we here? • What results can we expect from our efforts? • Programs are created around outcomes • Only core outcomes are measured

7. Program outcomes statements • WHY? (outcome) • A statement of the ultimate goal • HOW? (services) • A statement of the broad service areas • HOW WELL? (measures) • Specific measurements of success • Four standard measures: Customer Satisfaction, Cost Efficiency, Budget/Cost Ratio, Individual Measures

8. Measures • How Well? Measurement of the Success in Achieving the Core Outcome(s). • Only high level measures should be used. • The outcome measures should focus on quality, effectiveness and efficiency. • What results you need to determine whether the purpose has been met. • What performance targets (service standards) should be set? • Is there at least one measure for each “by” or “through” (strategies) statement?

9. Measures • Be based on program goals or objectives that tie to a statement of program mission or purpose • Measure program results or accomplishments • Provide for comparisons over time • Measure efficiency and effectiveness • Be reliable, verifiable and understandable • Be reported internally and externally • Be monitored and used in decision-making

10. Accreditation issues • Linking • Planning • Assessment (including program review) • Resource allocation • Commitment to continuous improvement • Culture of evidence • No “trust me” • Data is presented to support statements • Assumptions are recognized as assumptions and tests are made to determine there validity

11. What is in place at COM-FSM? Strategic plan (planning) • Sets mission, values and priority goals of the college • Continuous improvement cycle • Balanced scorecard – key results by strategic goal (measures) • Improvement plans (IAP worksheet #1) • Links to institutional mission and goals (links to institutional outcomes to be included in revision) • Links to program mission and goals • What is to be accomplished (results) • Strategies by which it will be accomplished • Criteria for success established • Linked to revised performance evaluation for supervisors

12. What is in place at COM-FSM? IAP Assessment Process • Assessment plans (IAP worksheet #2) • Links to intuitional mission and goals • Links to program mission and goals • Evaluation questions for each improvement outcome/objective • Criteria by which you determine success • Data sources, sampling analysis identified • Timelines and who is responsible • Assessment reports (IAP worksheet #3) • Were the Improvement outcomes/results achieved to the specified criteria? • Closing the Loop – linked to program and institutional mission and goals

13. What is in place at COM-FSM? IAP Assessment Process • IAP Handbook • Background on quality instruction and services • Definition of assessment • Assessment techniques • Worksheets & directions • Improvement plan - objectives/outcomes for performance budget (worksheet #1) • Assessment plan (worksheet #2) • Assessment report – closing the loop (worksheet (#3) • Assistance with student learning outcomes and services objectives/outcomes

14. What is in place at COM-FSM? • Policy on continuous improvement cycle • Links • Strategic plan • IAP assessment • President’s retreat (priority setting) • Budget (performance) • Processes and procedures to follow at each stage • Focuses the college on continuous improvement at all levels

15. What’s remaining? Performance budgeting (putting in place) • Determines what is to be accomplished • Based on IAP improvement plan (worksheet #1) • Impacted by assessment report that determines if success criteria was achieved for key results • Closes the Loop on the improvement cycle (worksheet #3) • Allocates resources based on results to be obtained • Recognizes success and failure • Drives line item budget • Links budget items to what is to be accomplished • Basis for monitoring and reporting • Allocates time as well as dollars ($)

16. Key results/outcomes for COM-FSM • Institutional & campus levels • Graduation rates • Based on meeting institutional, program and course student learning outcomes • Retention rates • Progression • Persistence • Transfer rates (internal & external) • Course completion rates • Program completers • Job placement • Employer satisfaction • Others.

17. Quality, effectiveness and efficiency • Improvement of quality of services • Instructional techniques that promote increased student learning (meeting student learning outcomes at course, program and institutional level) • Satisfaction rates (surveys to be administered in mid October) for colleges programs and services (instructional, student and administrative services) • Students • Faculty/staff • Effectiveness and efficiency • Increased productivity (even with reduced resources) • Increased accuracy • Increased satisfaction • Rating on student services and administrative services program rubrics • Assists with setting improvement needs (student services developed, administrative services under development)

18. Roles & responsibilities • Vice President’s and Campus Directors • Ensure that the sum of instructional, student and administrative services result in improvement of key results at each campus and in each service area. • Ensure that key results/outcomes are meet • Ensures focus on clients (students, community, leaders) • IC, SSC, Office Directors • Ensure that programs and offices support key results/outcomes of the college • Continually improving quality, effectiveness and efficiency of instruction and program services • Ensures focus on clients (students, community, leaders)

19. Changes • What gets measured gets done. • If you don’t measure results, you can’t tell success from failure. • If you can’t see success you can’t reward it. • If you can’t reward success, you may be rewarding failure. • If you can’t recognize failure, you can’t correct it. • If you can demonstrate results, you can win public support. • Systems and culture must change • Push authority and flexibility to lowest levels • Aligning organizational infrastructure to support a performance management environment • Evolutionary process -- not a quick fix

20. Implementation Issues • Determine results to be obtained (quantities, high level) • Measures & data sources • Writing SMART Objectives/outcomes with by or through strategies & activities • Identify outputs for use with FSM BPS • Link to results and SMART objectives • Financial resources ($ allocation) • Human resources (time allocation) • Monitoring & reporting • Reporting accomplishments against plans

21. Changes • Focus on results/outcomes • Accountability defined at institution, campus, program levels • Success recognized • Failure recognized • Rewards and incentives for quality work • Transparent in allocation and use of resources • All programs and services addressed • Monitoring & reporting • Accomplishments/results against plans • Measures

22. SMART goals and objectives • S = Specific • M = Measurable • A = Attainable • R = Realistic • T = Timebound

23. SMARTer, C-SMART & SMART - S • SMARTer • SMART objectives that are • Extending • Reviewed • C – SMART • SMART Objectives that are also CHALLENGING • SMART – S • SMART objectives that are also stretching

24. Types of objectives • Process objectives • lets you know what you are doing and how you will do it; describes participants, interactions and activities • Impact objectives • lets you know what the long term implications of your program[me]/ activity will be; describes the longer term impact on your target audience or organization • Outcome objectives • lets you know how you will change attitudes, knowledge or behavior (short term); describe the degree to which you expect this change • Personal objectives • SMARTer objectives are often written for project management or business and performance management, however as individuals in our personal development plans, SMARTer objectives are also a valuable formula within which to set and individual measure performance.

25. Specific

26. Measurable

27. Achievable

28. Realistic

29. Timebound

30. SMARTer Extending & Reviewed

31. Definitions

32. Detail Specific

33. Detail Measurable

34. Achievable

35. Realistic

36. Timebound

37. Examples • Campus retention rate will increase to 60% from Fall 2009 to Fall 2010 by: • Strategy 1 • Strategy 2 • Campus graduation rate will increase to 10% for Fall 2007 cohort by: • Strategy 1 • Strategy 2

38. Examples • By the end of the asthma management classes, 75% of patients will be able to describe and demonstrate the correct use of a Peak-Flow Meter. • By May 10, 2009 the Health Education staff from the Stroke Association will have planned and conducted 4 skills building workshops for 50 carers of recently diagnosed Stroke patients at the Chiswick training centre. • Profitability Objectives - To achieve a 25% return on capital employed by August 2009. • Market Share Objectives - To gain 25% of the market for sports shoes by September 2009 • Promotional Objectives - • To increase awareness of the dangers of flowers in Wales from 12% to 25% by June 2009. • To increase trail of X washing powder from 2% to 5% of our target group by January 2009.

39. Exercise • What are your priorities? • Review strategic plan • Review improvement plans • Review assessment reports • What measures are appropriate for your area? • Review balanced scorecard • Review assessment plan • Write SMART objectives plus strategies based on your priorities and measures.

40. Exercise • What resources are needed to accomplish your improvement plan SMART objectives/outcomes? • Human • Financial