Stretching Budgets

1
Stretching Budgets

• Efficiency
• Quality management/self audit
• Continuous improvement processes
• Benchmarking/statistics
• Resource sharing

2

• Financial Responsibility
• Business case/business risk management
• Long term financial planning/asset management
• Activity based costing
• Zero-based budgeting
• Annual Budget Planning and Review

3

• Cost Cutting
• Developing a percentage hurt statement
• Priority setting to lowest level
• Staff planning to reduce staff strategically as
  other ways to managing emerge

4

• Strategic Outsourcing
• Focus on core competencies
• Evaluate all processes and shift those that are
  non-core to external providers

5

• Efficiency
• Self Audit
• Objectives
• Implementation
• Outcomes
• Improvement

6

• Objectives
• What is the intent for the activity, the thinking
  and planning it undertakes to design the
  strategies, and the processes and infrastructure
  to achieve the intent?
• What are we aiming to achieve?
• What are the goals and strategies we have
  established?
• What structures and processes have been
  established to achieve our intent? Why?
• How do we intend to measure performance?

7

• Implementation
• How is the process implemented? Was it done as we
  intended?
• How have strategies structures and processes been
  put into practice?
• To what extent have they been integrated into
  normal operations?

8

• Outcomes
• What are the achievements that have been made
  against the objective? What are the gaps?
• Were they what we set out to achieve?
• How is this demonstrated e.g. measures such as
  benchmarking internally and externally,
  statistics, performance indicators, best
  practice? What is the value of what we did?
• How do we know the results flow from the
  strategies and their implementation? How is the
  effectiveness monitored?
• How are the results communicated and used?

9

• Improvement
• What has been learned and have we used this
  information to change our approach?
• What activities or improvements are planned as a
  result of the assessment?
• How the process of quality improvement is being
  undertaken?
• How the effectiveness and appropriateness of the
  approach is monitored?
• What are the priorities for action?

10
Resource Sharing

• Locally, nationally and internationally
• Consortia agreements
• Collecting agreements
• Services agreements
• Cooperative arrangements
• Reciprocal services
• Best practice

11

• Developing a Business Plan
• Business Concept
• Customer
• Finances

12

• Activity Based Costing
• What work is done?
• Who does it?
• How long does it take?
• What outputs are produced?
• Who uses them?

13

• Annual Budget Process
• Planning priorities
• Existing and new proposals
• Priorities
• 5 year budget cycle
• Variations to budget
• Justification for new resources
• Quarterly review

14

• Strategic Outsourcing
• Benefits
• A clearer strategic focus
• Potential cost savings
• Better resource allocation
• Access to leading practices
• Access to expertise