Evans School of Public Affairs Public Management

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Evans School of Public Affairs Public Management
BudgetingPbAf 511-522-512Course Sequence
Overview
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Overview Outline

• Why study public management and budgeting?
• How did we learn?
• What did we learn?

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Why Study Public Management and Budgeting?

• Management and budgeting are intertwined with
  policies and politics.
• Management and budgeting skills are key to
  developing/implementing policies or programs.
• Management and budgeting skills are essential to
  improving performance and avoiding potholes.

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Assumptions

• Public service (government or nonprofit) is
  complex
• Missions are often ambiguous.
• We compete with and rely on others for many of
  our resources and much of our authority.
• Good policies and programs cant happen without
  good leadership and management
• Leadership is key to define missions mobilize
  resources.
• Management is key to implement missions
  programs.
• Distributed leadership
• With vision and skills, everyone in an agency can
  lead and manage.

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Keys to Good Management

• Understand the different roles leaders and
  managers can play, and adopt them strategically.
• Scan and assess your external environment and
  your internal capacity.
• Develop skills, tools, and frameworks to analyze
  manage diverse, ambiguous situations.
• Apply skills, tools, and frameworks flexibly
• Learn from experience
• Adapt lessons to new situations.
• Develop the capacity for wise judgement.

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How did we learn?

• Learning methods
• Case Studies
• Integrated readings
• Participatory Discussion
• Exercises
• Memos
• All Education is Self-Education

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What did we learn?

• Strategic Frameworks
• Different frameworks can be effective.
• A good framework is
• Comprehensive
• Analytic
• Integrated and iterative

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The Context
Leadership and Management Strategy
Zone of Influence
/\ lt gt \/
Zone of Control
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The Strategic Triangle
Mark Moore
PUBLIC VALUE
OPERATIONAL CAPACITY
AUTHORIZING ENVIRONMENT
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What did we learn?
Responsibilities of Leadership
Budgeting (Winter) How do I tell the financial
story of an organization from the financial
statements? What does it cost and why do I want
to know? How do I plan my programs with scarce
resources?
Pub Mgt II (Spring) Evaluation and
Accountability Managing People Labor
Relations Providing Effective Service Integrated
Strategic Leadership
Pub Mgt I (Fall) Assembling Influence Developing
and Enacting Policies Building Relationships,
Power, Performance Developing Organizational
Strategy
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The American Management Associations
definition of leadershipGetting things
donethrough people.
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Responsibilities of Leadership

• Purpose
• Set a direction (mission).
• Align people and tasks.
• MotivateInspireEmpower.

• Principles
• Everyone can lead.
• Different challenges require different leadership
  styles.
• Understand the field of action.
• Action requires working with and through others
• Build relationships power
• ListenUnderstand... Communicate.

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Building Relationships,Power, and Performance

• Purpose
• Clarify organizational mission, goals, values.
• Map official unofficial power structures.
• Improve understanding communication among
  diverse stake holders.
• Design manage change to achieve key goals.

• Principles
• Missions and goals must add public value.
• Communication power are both formal informal.
• Organizations and their environments consist of
  people and interests with agendas and feelings.
• Effective change requires involving and rewarding
  affected interests.

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Assembling Influence

• Purpose
• Map understandthe environment.
• Assess the forces power centers.
• Clarify objectives.
• Develop options criteria Elements of a stable
  solution.
• Design processes to achieve the objectives.

• Principles
• All issues affect a variety of stake holders.
• Interests have negative positive powers.
• No outcome is neutral, but good, inclusive
  processes can achieve legitimate outcomes.
• Diverse stake holders must be involved in the
  process, for
• legitimacy
• better information ideas.

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Advancing a Policy Agenda

• Purpose
• Create broad interest in new solutions.
• Design and debate alternatives.
• Identify and promote sustainable outcomes.
• Choose processes venues strategically (for
  power legitimacy).

• Principles
• Analysis is important.
• Including a diverse range of stake holders is
  critical for effective deliberation.
• Legitimacy and sustainability are essential.
• Different institutional venues favor different
  interests and outcomes.

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Creating Public Value

• Purpose
• Understand the roles and purposes of
  organizational strategy
• - Add value - Fulfill mission
• - Inspire staff - Build support
• Assess bases for strategy
• - Mission - Opportunity
• - Authority - Capacity
• Map and mobilize the forces that affect strategy.

• Principles
• What must the organization achieve? What
  strategy(s) will get the job done?
• Strategies are affected by internal external
  forces.
• Strategies must
• - capitalize on opportunities
• - address constraints risks
• - be sustainable amidst complexity ambiguity
• - support learning adaptation.

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How do I tell the financial story of this
organization from reading the financial
statements?

• Purpose
• Interpret and use financial statements.
• Distinguish between accounting and financial
  management issues.
• Develop ability to serve in positions of
  governance.

• Principles
• Financial statements are accrual based.
• Cash inflows and outflows are different from
  revenues, expenditures and expenses.
• Financial management issues are critical to
  understanding the organization
• Profitability
• Liquidity
• Asset Management
• Solvency
• Critical Success Factors

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What does it cost and why do I want to know?

• Purpose
• Recognize and distinguish among costs so they may
  be used for decision making.
• Distinguish between resource allocation and cost
  allocation.
• Make capital budgeting decision for the
  organization.

• Principles
• Pricing decisions are based on full cost
  information and market forces.
• Revenue sources and resource allocation are
  critical to enhanced performance.
• Operations budgeting and capital budget are not
  the same.

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How do I plan my programswith scarce resources?

• Purpose
• Resolve how programs compete with other programs
  for resources.
• Understand the set of management control
  processes and their interrelationships.
• Appreciate connections among the external
  environment, the organization, and performance
  results.

• Principles
• Programming budgeting, measurement and reporting
  are iterative managerial cycles.
• An organization is a set of interlocking systems.
• Performance management and measurement must be
  understood and used in a context of demand for
  accountability.

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Evaluation and Accountability

• Purpose
• Set performance targets Where does the
  organization need to go?
• Assess progress toward the targets.
• Identify reward strong performance.
• Identify areas for improvement, analysis, and
  problem solving.

• Principles
• Targets assessments must be tied to mission
  purpose.
• You get what you measure.
• Evaluation is political There are winners and
  losers.
• Numbers are not value-free.
• Evaluate to learn, not to control.
• Celebrate success!

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Managing People Labor Relations

• Purpose
• Motivate and inspire staff and colleagues.
• Improve performance.
• Improve the work environment.
• Build short- and long-term capacity
• individual
• organizational.

• Principles
• Participation is motivating.
• Every manager staff member is a human being, w/
  different abilities, interests, needs.
• Peoples skills need to fit their positions.
• Most performance problems derive from
  organizational issues, not individuals.
• Changing systems requires working through others.

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Providing Effective Service

• Purpose
• Do more with less Improve customer service
  performance by making work processes systems
  more efficient.
• Align organizational capacity with customer
  demand.
• Redesign products and services to achievethe
  mission.

• Principles
• Comparative advantage flows from core
  competencies.
• Customers are citizens.
• Eliminate processes products that dont add
  value streamline the rest.
• Clarify make / buy criteria.
• Use technology to serve your mission, not to
  drive it.
• Contract for performance, not compliance.

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Integrated Strategic Leadership

• Purpose
• Develop organizations, programs, projects to
  create public value.
• Assemble influence to support them.
• Build capacity for performance
• people
• resources
• systems
• relationships

• Principles
• Public service requires strategic leaders who
• Integrate policy, budget, and management to
  achieve their goals.
• Understand and use personal power judiciously.
• Are flexible, creative,and wise.

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How did we learn this material?

• The Work Our Learning Methods
• Attributes of an Effective Public Manager

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Attributes of an Effective Public Manager

• Analytical
• Visionary
• Inclusive
• Ethical

• Articulate
• Courageous
• Balanced
• Wise

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How our course sequence organizes and covers this
materialClock Diagram
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Building Partnerships Consensus

• Purpose
• Build relationships strategic alliances with
  others who can help you create public value.
• Expand organizational capacity and external
  support.
• Improve mutual understanding.

• Principles
• Partners lack formal authority.
• Respect diplomacy are critical communication
  transparency are essential.
• Cultures and styles of communication differ.
• Each partner adds value - comparative advantage.
• Collaboration is a means, not an end.