Performance Based Management and Budgeting

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Performance Based Management and
Budgeting Shawano County Management Team
Mini-Workshop July 26, 2007
Jay Moynihan CRD Shawano County
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Budgeting on the county level may be what is
called, A Wicked Problem
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Some problems are so complex that you have to be
highly intelligent and well informed just to be
undecided about them. --Laurence J. Peter
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The concept of "wicked problems was proposed by
Horst Rittel University of California, Berkeley
Rittel, H., and M. Webber "Dilemmas in a General
Theory of Planning Policy Sciences, Vol. 4, pp
155-169 (1973)
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• When is a problem Wicked ?
• The problem is not understood until after
  formulation of a solution.
• Stakeholders have radically different world views
  and different frames for understanding the
  problem.
• Constraints and resources to solve the problem
  change over time.
• The problem is never solved.

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Performance based management and performance
based budgeting is an increasingly popular method
to attempt to tame the wicked problems in county
budgeting.

• Performance budgets use statements of missions,
  goals and objectives to explain why the money is
  being spent. It is a way to allocate resources to
  achieve specific objectives based on program
  goals and measured results. The key to
  understanding performance-based budgeting lies
  beneath the word result.
• Richard D. Young, Performance-Based Budget
  Systems, Public Policy Practice, p. 12 ,
  January 2003
• PBB revolves around
• The results (outcomes)
• The strategy (different ways to achieve the
  outcomes)
• Activity/outputs (what is actually done to
  achieve an outcome)

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Outcomes We start and finish with outcomes.
Results matter. In many respects, outcomes drive
the performance measurement system. In order to
clearly define your outcomes or desired results,
first determine why you do what you do, and next
determine how your particular agency program or
service benefits your customers and what value it
provides them? End outcomes are predicated
on two vital components 1) Outcome goals
(benefits) 2) Outcome performance measures From
Fairfax county Virginia training manual
Outcomes the direct results or benefits for
citizens.
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• Eau Claire County, among others
• Fairfax County, Virginia-----most advanced model
• UW-Extension Local Government Center is a
  resource for our county on this
• Shawano County Extension office is ready to
  assist in county application of PBM/PBB

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http//www.fairfaxcounty.gov/dmb/perf_measure.htm
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Next http//lgc.uwex.edu//Finance/FM7PerformMe
as.ppt