Value-Based Management in Government

Overview:

Public sector organizations at all levels and of all types are facing intense pressure to do more with less. Federal, national, provincial, state, county, municipal, and local governments in almost all the countries in the world are feeling some sort of fiscal squeeze. Pressures on governments around the world are forcing them to adopt “performance management” - a focus on accountability for outputs and outcomes rather cries for higher inputs (i.e., more budget funding and employees).

Value-Based Management strongly leverages seamlessly integrated multiple enterprise performance management (EPM) methods such as balanced scorecards, strategy maps, budgets, activity-based cost management (ABC/M), forecasts, and resource capacity planning.  Are these fashionable fads or relevant solutions? EPM methods have been hailed as the new salvation for aligning an organization’s resources with its strategy to drive individual action. How widely accepted is the concept in government or in business?

The message to government is: better, faster, cheaper - hold the line on taxes but don’t let service slip. The imperative on governments for improved cost and yield management, planning, and budgeting can be met by enhancing cost accounting information. Fact-based data, robust analytics, accurate forecasts, and trade-off (what-if scenarios) are essential for strategy formulation, privatization and outsourcing studies, fee-based cost recovery systems, and competitive bidding.

Why you should Attend:

How to view enterprise and corporate performance management (EPM/CPM) as the seamless integration of managerial methods rather than as a process.

Understand how business analytics is an advance over business intelligence and where Big Data fits in.

How to identify and differentiate strategic KPIs in a balanced scorecard and operational performance indicators (PIs) in dashboards.

How to properly calculate product, service-line, channel, and citizen related costs for analysis, insights and actions.

How to perform “predictive accounting” for driver-based budgets / rolling financial forecasts, what-if analysis, and outsourcing decisions 

How to overcome implementation barriers such as behavioral resistance to change and fear of being held accountable.

Areas Covered in the Session:

How strategy maps and their companion balanced scorecards communicate strategic objectives with target-setting to help cross-functional employee teams align their behavior to the strategy and better collaborate.

Why measures of citizen value are shifting from products and services to citizen-focused organizations. 

How activity-based cost management (ABC/M) provides not only accurately traced calculated costs (relative to arbitrary broad-averaged cost allocations), but more importantly provides cost transparency back to the work processes and consumed resources, and to what drivers cause work activities.

Reforming the broken annual budgeting process with performance based budgeting that links strategy to operations and is process volume sensitive rather than simply incremental at each cost center.

Why business analytics, with emphasis on predictive analytics and pro-active decision making, is becoming a competitive advantage differentiator and an enabler for trade-off analysis. 

How all levels of management can quickly see and assess how they are doing on what is important - typically with only a maximum of three key performance indicators (KPIs).

How to integrate performance measurement scorecards and ABC/M data with:

• Strategy formulation
• Process-based thinking and operational productivity improvement
• Channel/customer profitability and value analysis and CRM
• Supply chain management
• Quality and lean management (Six Sigma, cost of quality)

Who Will Benefit:

• CxOs
• CFOs
• Financial officers and controllers
• Managerial and cost accountants
• Financial and business analysts
• Budget Managers
• Strategic planners
• Marketing and sales managers
• Supply chain analysts
• Risk managers
• CIO and Information technology staff
• Board of Directors