Metamessages

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Meta-messages

• All NZ Depts enhanced outcome focus by 2003
• Outcomes ultimate goal (Holy Grail?)
• Pathfinder (collective action, individual
  solutions)
• Outcomes driving strategy and output mix
• Evidence-based approach to enhancing outcomes /
  achieving Millenium Development Goals (MDGs)
• Maximising outcomes from development proposals
  (prioritise, assess assist roles for
  development banks?)

An Incremental Approach to Capability Building
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Focus on Outcomes
Goal Build NZ Capability at Agency, Sector and
Joined Up Levels
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Why Pathfinder?

• After 10 yrs, output funding has delivered
• Quantum gains requires modified approach
• Keep what works (output mgmt), but
• Complete public sector management model
• Link inputs (through outputs) to outcomes
• Meet requirements of legislation, parliament, etc
• Ensure we deliver to stakeholders, taxpayers
• Start Limited capability management tools

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8 Agencies, Supported by Centre

• Building capability to enhance outcomes
• Goal Better results for NZ communities
• Assumes performance feedback (outcomes) is a key
  factor in further improving performance
• Define outcomes Prioritise Measure Manage
• Performance of whole agencies / business units
• Maximise outcomes from the output mix /
• Accentuate the positive eliminate the negative
• Outcomes / MDGs core to strategy, prioritising
  funding (macro) and proposals, assessing impact

Is the approach helpful in implementing Milennium
Development Goals?
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PATHFINDER

• Better Results, Stronger Communities

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Three Basic Approachesto Improving Results

• Top Down (Pathfinder emphasis / SOI / MDG focus?)
• Hierarchical (evolutionary direction for
  Pathfinder)
• Bottom Up, practitioner driven (opportunity)

SOI Statement of Intent a forward looking
strategic plan deriving outputs from outcomes,
and identifying capability needs
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Pathfinder Building Blocks

• Define measure mission critical outcomes
  (using state or situation outcome indicators)
• Map causal logic linking outcomes to outputs
• Assess impact of interventions
• Assess cost-effectiveness
• Management to maximise outcomes
• Benchmarking with outcomes (business units /
  nations)
• Focus strategic / annual plans on improving o/c
• Redesign planning operations to maximise o/c
  (incl. feedback continuous improvement)
• Improving outcomes across agencies / sectors

Building Blocks being documented on
io.ssc.govt.nz/pathfinder
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First Steps towards Real Results Mission,
Measures, Management (M3)

• From aspirational outcomes (safer communities)
• To the Vital Few focus on business actions
• Tight Outcome Definitions ( re-offending in 24
  months)
• Outcome Indicators (28 re-imprisonment rate for
  Maori)
• Impact Measures (12 reduction in reimprisonment
  rate)
• Outcomes as Inputs into Management Systems

Delivery-based measures can substitute for Impact
Measures where local factors can be managed (e.g.
drugs work, but delivery factors critical)
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Levers for Improving Outcomes
Measure
Applications
Outcome Type
Status quo outcome (client /service groups)
Situation Report Benchmarking Crude targeting
Risk, Need Likely Change (individuals / cases)
Priority setting Demand analysis Risk managemnt
Improvement in outcome (treated groups)
Continue? Modify? Grow? Kill?
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Screening for Risk ValidationSocial Costs
(Justice Community)
Top (Squares) Community-based Offenders
Societal Cost
Bottom (Diamonds) Prison Inmates
Risk of Imprisonment (decile)
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Results Chains (After OAG Canada)
Simple tools for reviewing funding proposals?
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MANAGEMENT SYSTEMS CAPABILITY
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Ex Ante
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Focus on Systems, Not Measures(lessons from the
NZ Experience)

• Build management, not o/c measurement, systems
• End game is outcomes but output results
  important
• Conceptual approaches give one-off gains
• Significant technical challenge to measure impact
  (management stuff is easy (?) with good measures)
• Ongoing gains in outcomes needs impact feedback?
• Risk-based targeting an important lever for gains
• Stretching the capability of first world
  nation(s)
• Capability development for 3rd world required?
• Outcome-based allocative tools for the funder

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Most advanced NZ agencies have several things in
common Committed senior management Long-term
focus Clear outcomes Strong analytical
capability MIS in support Incremental
development to vision rather than big bang
Will require cultural capability changes of all
managers Outcomes subversive managers will not
like all answers No quick fixes requires
effort over multiple years
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Robust Impact Measures Challenging
Output / quality measures good surrogates where
outcomes not strongly influenced by local factors
(e.g. Drugs Engineering)
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Accountability High Demands

• Management (SOI)
• Logical story of how outputs enhance outcomes
• Selective use of indicator and impact measures to
  tell story set priorities
• Some discretion on external reporting

• Accountability
• Robust model linking outputs to outcomes
• Precise, timely and comprehensive impact measures
  for each output
• Mandated external reporting of outcomes

In a perfect world managers would have all the
information required by an outcome-based
accountability regime
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Outputs and Outcomes
Value for Money
Outcome
Budget
Inputs
Output
Better health
More treatments
More nurses
More money
External influences
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Which Outcome?
Example
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Managing for Better Outcomes

• Broad focus (strategy, priorities, output mix,
  business systems)
• Decision making, better outcomes (evaluation just
  a tool)
• Measure outcomes (different outcome measures
  groups)
• Work with ( test) clear intervention logic
• Integrate with resource allocation systems
• Focus business strategy on improving outcomes
• Focus business processes on improving outcomes
• Improve outcomes over multiple business cycles,
  and across business units / agencies / sectors
• Goal maximise social benefit from finite
  resources