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The State of Washington Business Impact Analysis (BIA)
Instruction Guide
For a Vital Service / Essential Function
Version 2.2
State of Washington Department of Information Services
Judy Sweet [email protected]
(360-902-3560)
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Revision History
Date Section Change3/7/2006 All Advance from draft to final Version 2.03/15/2007 All DIS identity3/21/2007 BIA Worksheet Correct Criticality Rating Chart for Summary Worksheet
& two minor edits on page 14.7/31/2007 All Changed program referenced page 1,5,79/19/2007 All Changes to support agency Transition
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Table of Contents:
Introduction.................................................................................................................................4Approach to completing the BIA..........................................................................................4Identify Vital Services/Essential Functions......................................................................4Frequently Asked Questions (FAQs)..................................................................................6Step 1 - Business Function Pre-screening Workbook..................................................8Step 2 - The BIA Workbook....................................................................................................9
Business Driver Impact Analysis Over Time [Business Driver] Worksheets...........................11Identification..........................................................................................................................11Quantitative Analysis – Impact Over Time...........................................................................12Business Impact Over Time graph........................................................................................12Qualitative Analysis – Explanation of Impact.......................................................................12Impact Summary....................................................................................................................13
Business Impact Analysis [Vital Service] Summary Worksheet..............................................14Identification..........................................................................................................................14Quantitative Analysis – Impact Rating Over Time...............................................................15Qualitative Analysis – Explanation of Impact.......................................................................15Overall BIA Summary...........................................................................................................15
Appendix A - BIA Criteria Descriptions and Scoring Matrix.....................................17Appendix B – State of Washington Priorities of Government.................................24Appendix C – BIA Business Function Pre-screening Workbook Illustration.......25Appendix D – BIA Workbook Illustration.........................................................................26
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Introduction
This document provides guidelines and instructions for agencies, boards and commissions to identify Vital Services and complete the state government Business Impact Analysis.
The Business Impact Analysis (BIA) is a tool to help evaluate potential risk, reveal vulnerabilities and identify the most critical services within the agency.
The State of Washington BIA is a process designed to help an agency to prioritize business Vital Services / Essential Functions by assessing the potential quantitative (financial) and qualitative (non-financial) impacts that result from a potential loss or disruption of the service. The BIA is an exploratory component for gathering business intelligence about Vital Services / Essential Functions. The information captured in the BIA workbooks during this process may be used for further business continuity analysis, planning, reporting, and decision-making. The BIA Instruction Guide is designed to step you through the process and answer commonly asked questions to advance the BIA process within state government.
Approach to completing the BIA
The State of Washington BIA process addressed in this guide includes the following activities:
1. Each agency completes the BIA Business Function Pre-screening Workbook.2. Agencies complete a BIA Workbook for each Vital Service / Essential Function
identified as impacting a core business driver on the BIA Business Function Pre-screening workbook.
This guide provides directions for completing each step. All agencies begin by completing Step 1. Completing Step 1 results in a list of all Vital Services / Essential Functions and reveals those functions with significant potential impact on State of Washington business drivers supporting the Priorities of Government. Based on the results revealed by completing Step 1, some agencies will be asked to complete Step 2. Completing Step 2 reveals a Criticality Rating of the Vital Services that significantly impact priority business drivers in the first 72 hours after an interruption of service. The results and information gathered will guide further information technology disaster planning, mitigation, and assessment.
Identify Vital Services/Essential Functions
A Vital Service is defined as a core business process or essential function which may cause serious or lasting damages if disrupted. Such a disruption in service delivery could directly and immediately affect the health, safety and welfare of citizens and the ability of government to operate.
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The BIA Business Function Prescreen Workbook contains an Agency Vital Service Template worksheet for agencies to list vital services performed by the agency. Agencies add vital services in the Agency Vital Service Template worksheet to accurately reflect all Vital Services / Essential Functions, thus representing the people tasks within the agency. The items added may be a meaningful short phrase describing the service or logical unit of work performed by the agency.
The workbook also contains two additional reference worksheets to assist each agency compile your vital services. The Consolidated Activity Inventory worksheet reflects services from all agencies listed in the Office of Financial Management (OFM) Budget 2005-07 Agency Activity Inventory. The Services A-Z worksheet reflects the outward facing services listed by agencies on Access Washington Services A-Z . The services in the two reference worksheets are offered as a “starting point” for consideration. Agencies may consider other resources to complete the Agency Vital Services Template worksheet in the pre-screening workbook (e.g., agency organization charts, existing agency plans or documents, etc.).
An IT system or application by itself would not necessarily qualify as a vital service. For example, HRMS would not be a Vital Service, however “Support agency payroll” or “Provide system support for payroll” would best describe the Vital Service or exact business function within the agency. Another source of information that may help an agency list Vital Services is through natural divisions on an organization chart or cost centers. For some agencies this categorization will be too broad and further break down will be necessary.
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Frequently Asked Questions (FAQs)
Why is the state enterprise performing a BIA?To identify the most Vital Services that the state should address in the COOP planning process.
How will the BIA help with future Business Continuity planning?Ranking of Vital Services is necessary and forms a foundation for agency and enterprise development of Business Continuity and Continuity of Operations Plans (COOP). The most vital services mark the priorities for planning resources.
Has a BIA ever been performed within the state enterprise before?
No, an objective assessment of impact to services across the state enterprise has never been done. Some agencies that were part of a Business Continuity Initiative in 2006 completed an earlier version of the BIA on a selected group of services. As a result the BIA process was enhanced and now ready to prioritize Vital Services within an agency and among other state agencies. The BIA process is iterative and will need to be re-validated from time to time using consistent criteria across state government.
What state agencies are completing a BIA at this time?
Target organizations include select agencies, boards and commissions from the executive branch, however any agencies recommended or any organizations that request a BIA will also be included.
What will be asked of state agencies?
Agencies will be asked to: Identify Vital Services within their agency. Conduct a quick assessment of impact to priorities of government using the
pre-screen worksheet. (See Step 1 ) Appoint a Business Continuity Contact to facilitate completion of the BIA with
program managers. Complete a BIA Workbook for high impact services within the agency. (See
Step 2) Approve results by the director.
How long will it take to complete the BIA?
Time commitments will vary for each agency based on: Number of Vital Services identified Size of the agency Amount of work previously completed in this area Availability of agency subject matter experts
What is the BIA Business Function Pre-screening Workbook?
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The Business Function Pre-screening Workbook is designed to help agencies make a quick assessment of Vital Services within the agency that, in the event of a loss or interruption of the services, will have the most impact to state enterprise in the categories of health, safety and welfare of the citizens or staff; legal or compliance impacts to state operations; support the State Emergency Plan; or financial impacts to state operations. (Also see Priorities of Government in Appendix B.)
What is the BIA Workbook?
The BIA workbook is a tool used to help agencies “self assess” the impact to its Vital Services based on the loss or disruption of that service, in relation to time. As a result of completing the BIA Workbook, agency Vital Services will be stratified into “time criticality tiers” against 14 business drivers. (See Step 2)
Where can I get copies of the BIA workbooks, instructions, etc.?
Blank copies of the workbooks are available as Shared Documents at http://inside.wa.gov/coopresources.htm.
When and how should the workbooks be returned?
Return completed workbooks via email as Attachments addressed mailto:[email protected].
Whom should I contact with questions?
Questions regarding the materials can be directed to Dave Kirk at 360-902-3561.
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Step 1 - Business Function Pre-screening Workbook
Initially, each Executive Branch agency, board, commission, and Elected Office will be asked to complete a BIA Business Function Pre-screening Workbook. The workbook addresses two objectives. First, completion of the Pre-screening Workbook produces a comprehensive list of Vital Services / Essential Functions as provided by each agency. Second, the Pre-screening Workbook provides an initial “yes/no” analysis of impact, if any, caused by an interuption of the listed Vital Services / Essential Functions on four generalized government priority categories.
The pre-screening presumes that every Vital Service / Essential Function may not impact one of the general priority categories of the enterprise and some services may impact government priorities only after an extended service interruption of more than 30 days. Agencies may list all services then only categorize some services in the four “Generalized Government Priorities Categories” columns. To focus the BIA process on the most urgent Vital Services, agencies may decide to identify generalized priority categories for the vital services that impact operations within 30 days after an interruption. Appendix C contains an illustration of a completed workbook.
Figure 1 - Required input fields on the BIA Pre-screening Workbook
The BIA Business Function Prescreen Workbook contains an Agency Vital Service Template worksheet for agencies to list vital services performed by the agency. Agencies add vital services in the Agency Vital Service Template worksheet to accurately reflect all Vital Services / Essential Functions, thus representing the people tasks within the agency. The items added may be a meaningful short phrase describing the service or logical unit of work performed by the agency.
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21
The workbook also contains two additional reference worksheets to assist each agency compile your vital services. The Consolidated Activity Inventory worksheet reflects services from all agencies listed in the Office of Financial Management (OFM) Budget 2005-07 Agency Activity Inventory. The Services A-Z worksheet reflects the outward facing services listed by agencies on Access Washington Services A-Z . The services in the two reference worksheets are offered as a “starting point” for consideration. Agencies may consider other resources to complete the Agency Vital Services Template worksheet in the pre-screening workbook (e.g., agency organization charts, existing agency plans or documents, etc.).
Figure 2 BIA Pre-screening Workbook worksheets.
Agencies then add, delete, &/or modify the listed Topic Area or Potential
Services to accurately reflect all Vital Services / Essential Functions for their agency. Finally, with a “1” indication in one or more of the impact columns, agencies
designate an impact caused by an interuption of the Vital Services / Essential Functions on four generalized categories of government priorities. Each Vital Service / Essential Function identified with a “1” as impacting a core business driver also requires the agency to complete a BIA Workbook for the service/function as described in Step 2.
Save the Pre-screening Workbook file in a secure and appropriate agency network location using a descriptive file name. Only the completed Agency Vital Services Template worksheet needs to be saved by the agency (i.e. agencies may delete the two reference worksheets from the Pre-screening workbook). Consider using a recognizable standard file name that includes the agency acronym and a cryptic descriptor for the Pre-screening workbook (e.g. “DIS_BIA PreScreenWorkbook.). Email completed workbooks to [email protected].
Step 2 - The BIA Workbook
An agency completes a BIA Workbook for each Vital Service / Essential Function identified as impacting a core business driver on the BIA Business Function Pre-screening. The BIA Workbook contains a series of worksheets, one worksheet for each business driver/impact analysis criteria. The business impact analysis data is entered into each business driver worksheet. Once the impact rating data is entered on the individual Business driver Impact worksheets, the Analysis Over Time data is automatically summarized into the Business Impact Analysis - Summary worksheet for the Vital Service/Essential Function. The Vital Service Summary worksheet collectively reflects the Quantitative Analysis – Impact Rating Over Time for all affected business drivers. The Summary Qualitative Analysis comments reflect important factors relative to the overall Vital Service/Essential Function. The Vital Service Summary worksheet Qualitative Analysis and Summary Explaination of
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1
2
Impacts text data is entered into the summary worksheet. The worksheet explaination text is not automatically carried forward to the summay worksheet from the individual business driver worksheets. Appendix D contains an illustration of a completed workbook.
Figure 3 – BIA Workbook worksheets.
The BIA Workbook file contains valid, safe, and virus-free macros that can be trusted. Microsoft Excel displays a Security Warning alerting users to the presence of macros. Enable the macros when opening the workbook to assist in efficiently propagating data as designed into the workbook. The Security Warning appears every time the file is opened.
Figure 4 - BIA Workbook Security Warning.
The BIA workbook includes a Business driver Impact Analysis - Summary worksheet and 14 Business Impact Analysis over Time worksheets; one worksheet for each Business driver. The 14 business drivers for each Vital Service/Essential Function are:
1. Public Safety2. Public Health3. Public Welfare4. Federal Regulatory5. State Regulatory6. Federal Funding7. State Funding8. Natural Resources9. Revenue/Economy10. Legal Liability11. Compliance Gap12. Financial Reporting13. Customer Service14. Public Image/Confidence
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Business Driver Impact Analysis Over Time [Business Driver] Worksheets
The BIA Workbook contains one worksheet for each business driver/impact analysis criteria. The agency completes the BIA by entering Impact Ratings over time (Quantitative Analysis) and explainative comments (Qualitaive Analysis) based on the degree of impact on each business driver caused by an interuption of the Vital Service.
Figure 5 – Required input fields on the Business Driver Impact Analysis Over Time worksheet.
Each Business driver Impact Analysis Over Time worksheet includes several sections:
Identification
The Organization and Vital Service name is entered only once and automatically placed into each business driver worksheet from the Vital Service Summary worksheet.
Provide the Date and the person Completed by. The Date and Completed
by information may vary on each Business driver worksheet.
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1 & 2
1 2
34
5
Quantitative Analysis – Impact Over Time The Quantitative Analysis for each Business driver is conveyed by assigning an
Impact Rating that reflects the degree of impact from a service interuption in each timeframe. Using the Appendix A BIA Criteria Descriptions and Scoring Matrix as a guide, assign an appropriate Impact Rating (0-20) to each timeframe. After entering an Impact Rating in a cell, use the <Tab> key to navigate to the next cell.
The assigned Impact Ratings vary from 0 to 20 with the cells of the chart being highlighted in the appropriate color.
IMPACT RATING
CRITICALITY RATING
18-20 Tier 114-17 Tier 28-13 Tier 31-7 Tier 40 No Impact
The points in time range from 12 hours (or less) up to 30 days (or more). The worksheet calculates an Average rating based on the Impact Ratings assigned for each timeframe.
Business Impact Over Time graphThe Business Impact Over Time graph below the Quantitative Analysis – Impact Over Time assignments displays the keyed Quantitative Analysis – Impact Over Time data, although it shows it graphically.
Qualitative Analysis – Explanation of Impact Include a brief comment on the overall impact ratings assigned for each
business driver. The comments should provide rational for an impact rating change, particularly as the rating moves from one relative assessment tier to the next (e.g. from Tier 3 to Tier 2).
Impact SummaryThe business driver impact ratings are summarized with the Average and Adjusted Impact Rating. The worksheet automatically assigns a BIA Criticality Rating for the business driver based on the Adj. Impact Rating.
The Average is the average of the impact ratings over time.
The Adj. Impact Rating for each individual business driver reflects the highest Impact Over Time rating applied in the first 3-days/72 hours.
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3
4
The BIA Criticality Rating for the Vital Service is based on the Adj. Impact Rating (reference Impact Rating / Criticality Rating chart above).
In the Explanation of Impacts Summary, summarize key factors and
reasons for the overall business driver ratings for the Business driver as they relate to the overall Vital Service / Essential Function.
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5
Business Impact Analysis [Vital Service] Summary Worksheet
The Business Impact Analysis – [Vital Service] Summary displays the BIA as a chart showing the impact rating over time for each business driver/impact type.
Figure 6 - Required input fields on the Business Impact Analysis – Summary
IdentificationIdentify the agency and Vital Service / Essential Function described by the
BIA. Provide the Agency, Vital Service, Date, and the primary contact person responsible for completing the BIA Summary. The Agency and Vital Service are entered once on the Vital Service Summary worksheet and automatically added to all the business driver worksheets.
The Agency name and Vital Service are required on the Vital Service Summary worksheet (worksheet Cell B2 and B3, respectively). The reminders in the Figure below appear when you Save the workbook without entering the Agency and/or Vital Service.
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1 - 4
12
5
6
34
Figure 7 - Agency &/or Vital Service reminder display.
Quantitative Analysis – Impact Rating Over TimeThe Analysis Over Time data is automatically summarized from the business driver worksheets into the Vital Service Summary worksheet for the Vital Service/Essential Function.
Qualitative Analysis – Explanation of ImpactTo the right of the business driver Impact Ratings is a text column (“Qualitative
Analysis – Explanation”) for entering comments or explanations of the overall business driver analysis.
Overall BIA SummaryAt the foot of the chart is the Overall BIA Summary. Summarize key factors and
reasons for the overall ratings to the right as they relate to the overall Vital Service / Essential Function in the Summary Explanation of Impacts. Note any function that requires continuous operation (i.e. zero tolerance for interruption) in the explanation.
To the right are four automatically assigned figures that quantify the business impact for the Vital Service / Essential Function:
The Average is the average of the 14 Business driver Average impact ratings.
The Adjusted Impact Rating is an overall rating for the Vital Service. The Adjusted Impact Rating for the Vital Service reflects the highest Impact Over Time rating applied in the first 3-days/72 hours in the priority business functions (as noted by an *).
The RTO in Hours (Recovery Time Objective) is determined by the earliest point in time (e.g. 12, 24, 48, and 72) that the failure of this process becomes critical as indicated by applying an Impact Rating of 18-20. The RTO is the maximum acceptable length of time that can elapse before the lack of a business vital service severely impacts the business entity.
The BIA Criticality Rating for the Vital Service is based on the Adj. Impact Rating:
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5
6
IMPACT RATING
CRITICALITY RATING
18-20 Tier 114-17 Tier 28-13 Tier 31-7 Tier 40 No Impact
Save the BIA Workbook file in a secure and appropriate agency network location using a descriptive file name. Consider using a recognizable standard file name that includes the agency acronym and a cryptic descriptor for the vital service (e.g. “DIS_Bus Continuity”, ECY_Spills, DOL_Firearms, etc.). Email completed workbooks to [email protected] .
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Appendix A - BIA Criteria Descriptions and Scoring MatrixVersion 4.4
NOTE: Anything below “Minor” (a score of 5) is considered normal operation “zero” (0).
If your agency’s service is disrupted, to what degree . . .
Criteria Minor5
Moderate10
Major15
Catastrophic20
Public SafetyWill anyone’s life be put in jeopardy?
POG #4,7
Requires medical treatment, few fatalities
Affects <10% of customers & or state population
4-50 fatalities Semi-permanent injury Hospital admission Affects 10-25% of
customers & or state population
51-100 fatalities Permanent disability Affects 25-50% of
customers & or state population
Mass fatalities Multiple permanent
disabilities Affects >50% of
customers & or state population
Public HealthWill anyone’s health be put in jeopardy?
POG #3
Requires medical treatment
Increased impact to public
Stress on local medical facilities
Minimal long-term consequences
(2-12 months)
Serious injury or illness Localize impact and
potential to escalate Auxiliary medical
facilities required Short term
consequences likely (13-24 months)
Cost to implement response and recovery exceeds entity budget
Multiple fatalities Regional impact Alternate medical care
required Long-term
consequences (25-48 months)
Cost to implement response and recovery requires emergency funding
Mass fatalities Statewide Impact Medical system failure Extensive long-term
effects (>48 months) Cost to implement
response and recovery requires federal funding
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Criteria Minor5
Moderate10
Major15
Catastrophic20
Public WelfareWill anyone’s life sustaining abilities (emotional, food, housing, transportation) physical or financial well-being be put in jeopardy?
POG #3,5,6,7
Moderate inconvenience resulting in increased complaints via phone
Some immediate and mid-term effect to financial well-being (fairly short recovery time)
<10% of Public Schools closed or on restricted schedule
Limited closure of financial institutions
Limited closure of regions food supply
Limited disruption of transportation services on Interstate Highways
Local dissatisfactionresulting in onsite visits to file complaint
Medium Impacts, mid-term & some long-term effect to financial well-being (ability to recover but over time)
10-25% of Public Schools closed or on restricted schedule
1-3 days closure of financial institutions
Contamination of regions food supply requiring supply outages for 1-3 days
Transportation on Interstate Highways disrupted for hours
Regional unrest Potential for civil
disruption Major immediate, mid-
term & some long-term effect to financial well-being (ability to recover but over time)
Major personal property damage
26-50% of Public Schools closed or on restricted schedule
Financial institutions closed for 4-10 days
Contamination of regions food supply requiring supply outages for 4-10 days
Transportation on Interstate Highways disrupted for 1-4 days
Widespread panic Loss of order likely Significant immediate,
mid-term & long-term affect to financial well-being (ability to recover would be a challenge)
Extensive personal property damage
>50% of Public Schools closed or on restricted schedule
Financial institutions closed for >10 days
Contamination of regions food supply requiring supply outages for > 10 days
Transportation on Interstate Highways disrupted for >5 days
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Criteria Minor5
Moderate10
Major15
Catastrophic20
Federal Regulatory Obligations
Will your agency be out of compliance with Federal statutes or other regulatory obligations resulting in fines or penalties?
POG #1,10
Minor consequences Leniency is a given No likelihood of a fine or
other penalty Very minor explanations
and overhead necessary
Some consequences Some chance of
leniency Some likelihood of a fine
or other penalty with minimal adverse impact on the agency
Little harm to relationship with the Federal Government
Major consequences or impacts
There’s a remote chance of leniency
Fines or other penalties are imminent (will adversely impact the agency)
May jeopardize relationship with the Federal Government
Significant consequences or impacts
No leniency for being out of compliance
Fines or other penalties will adversely impact the state
Would jeopardize relationship with the Federal Government
State Regulatory Obligations
Will your agency be out of compliance with State Statutes or other regulatory obligations resulting in fines or penalties?
POG #10
Minor consequences Leniency is a given No likelihood of a fine or
penalty Very minor explanations
and overhead necessary
Some consequences Some leniency is
expected -- requires an increased level of effort to obtain
Being out of compliance will affect some limited stakeholders / groups
Financial consequences requires supplemental funding from Legislature or Congress
Major consequence or affect
Some leniency is expected -- requires a significant level of effort to obtain
Regional effects on stakeholders
Financial consequences requires significant re-allocation of existing budgets
Significant consequence or affect
No leniency for being out of compliance
Widespread effects on stakeholders
Financial consequences requires significant re-allocation of budget priorities for several future years
Federal FundingWill your agency lose federal funding?POG #10
Little or no risk of losing Federal funding
Or, affect <5% of your program budget
There is a risk yet it’s unlikely it would happen
Or, affect 5-25% of your program budget
The probability of loss of Federal funding is real
Or, affect 26-50% of your program budget
Loss of Federal funding would be imminent
Or, affect >50% of your program budget
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Criteria Minor5
Moderate10
Major15
Catastrophic20
State FundingWill your agency lose state or local funding?POG #10
Little or no risk of losing state funding
Or, affect<5% of your program budget
There is a risk yet it’s unlikely it would happen
Or, affect 5-25% of your program budget
The probability of loss of state funding is real
Or, affect 26-50% of your program budget
Loss of state funding would be imminent
Or, affect >50% of your program budget
Natural ResourcesWill the environment (air, water, wildlife, land, resources, etc.) be negatively affected?
POG #1,2,3,5,8,9
Localized minimal impact
Can be contained Low recovery impact Short term loss of use
(2-12 months)
Impact likely to escalate Highly recoverable Medium recovery impact Loss of use (13-24
months)
Regional impact Major Compromise to
environment Long-term impact &
consequences Major recovery impacts Potential loss of
resource (26-50%)
Statewide impacts Major impact on the
economy Long-term loss of use Legal breach Extensive long-term
impacts & consequences
Potential loss of a resource (> 50%)
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Criteria Minor5
Moderate10
Major15
Catastrophic20
Revenue /EconomyWill your Agency’s or State financial well being be negatively affected or impact the state economy including property damages? Delayed collections? Increased Costs? Lost revenue? Loss of investments? Interest earned lost?
POG #5,9,10
Minor disruption to cash flow / operations
Some loss of revenue Some loss of interest Recovery not an issue –
nearly fully recoverable Or, financial impact up
to $100K Projected cost and
staffing can be assumed within agency current budget
Noticeable disruption to cash flow / operations
Moderate loss of revenue exists
Moderate loss of interest
Recovery of lost revenue is likely over a period of time
Medium consequences that can be overcome
Increased expenses Or, financial impact
$100K to $500K to the state
Cost and staffing to implement response and recovery exceeds entity biennial budget
Major disruption to cash flow / operations
Recovery of lost revenue is prolonged or unlikely
Major “near-term” consequences
Or, financial impact is $500K to $5M to the state
Projected cost and staffing exceeds Governor’s emergency funds and required legislative appropriation
Significant impact to state cash flow / operations
Long-term consequences
Would impact State investments & bonds
Or, financial impact is more than $5M to the state
Projected cost and staffing requires federal assistance
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Criteria Minor5
Moderate10
Major15
Catastrophic20
Legal LiabilityCould failure to provide this service subject your agency (or State) to legal action? Will you not fulfill a contractual obligation (union or vendor) and be subject to legal action?
POG #10
Legal challenge raised Unnoticeable impact to
third-party agreements Projected cost can be
assumed within agency current budget
Legal challenge imminent
Out-of-court settlement Civil action Noticeable impact to
third-party agreement Increases state’s
outstanding legal liability by over 20%.
Requires additional funding (10%) for state’s legal defense system
Numerous complaints are imminent
Third party agreements are significantly disrupted
No defense Increase to state’s
outstanding legal liability exceeds available reserve funds by over 100% and requires supplemental funding
Requires additional funding (50%) for state’s legal defense system
Potential for class action litigation
Third party agreements are violated
No defense Increase to state’s
outstanding legal liability exceeds available reserve funds by over 300%
Costs for states legal defense system exceeds funds provided by the legislature
Compliance GapWill another entity be out of legal or regulatory compliance?
POG #10
Single failure to meet internal legal or regulatory standards or follow protocol
Repeated failures to meet internal legal or regulatory standards or follow protocols
Minimal impact to another entity
Gap results in potential financial impact which can be taken care of by existing budgets
Failure to meet State or National legal or regulatory standards
One or more entity’s face legal or regulatory issues
Gap results in potential financial impact which requires supplemental funding
Gross failure to meet State or National legal or regulatory standards
Significant impact to more than 1 entity’s legal or regulatory compliance
Gap results in potential financial impact which impacts budgets for over three biennium
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Criteria Minor5
Moderate10
Major15
Catastrophic20
Financial ReportingWill your agency incur any fines or penalties for not completing financial reporting?POG #10
Letter of reprimand Potential financial impact can be absorbed within existing budgets
Potential financial impact requires supplemental funding
Potential financial impact requires re-allocation of budget priorities
Customer ServiceWill citizens or customers (internal as well as external) be negatively affected?
POG #3,4,5,6,7,8,9,10
Affects <10% of customers & or select groups of people
Single failure to meet internal baseline measures
Affects 10-25% of customers & or groups of people
Repeated failures to meet internal baseline standards
Affects 26-50% of customers & or broader groups of people
Failure to meet established state or national baseline
Affects >50% of customers & or larger groups of people
Gross failure to meet established state or national baseline
Public ImageWill your agency’s public image be negatively affected?
POG #2,5,9,10
Local press coverage Local public / political
concern Very temporary effect
Limited damage to reputation
Some local press coverage / regional press coverage
Regional public / political concern
Mid-term effect
Loss of credibility & confidence in agency
Extended local / regional press coverage
State public / political concern
More serious and lingering effect
Significant loss of trust National press coverage Public outrage Significant State public /
political concern Independent enquiry
likely Prolonged significant
effect
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Appendix B – State of Washington Priorities of Government
The Priorities of Government (POG) approach creates a strategic framework for investment decisions. The approach starts with
several basic questions:
• What are the results citizens expect from government?
• What strategies are most effective in achieving those results?
• How should we prioritize spending to buy the activities that are most critical to implementing these strategies?
• How will we measure progress?
This prioritization of activities is used to guide the Governor's budget proposal to the legislature, and to communicate that
budget to the public. This innovative approach was honored as a finalist in the 2005 Innovations in American Government
Awards sponsored by the John F. Kennedy School of Government at Harvard University.
Overview of the POG Process
Key Benefits of the POG Approach
• Helps keep the focus on contribution to priority results - lets us escape agency "silos" and consider statewide strategies.
• Makes performance information more relevant to budget choices.
• Helps frame the question, "Are we sure we're buying things at the best possible price?"
• Helps us describe the activities and results the entire budget will buy.
Statewide Results List
1. Improve student achievement in elementary, middle and high schools
2. Improve the value of postsecondary learning
3. Improve the health of Washingtonians
4. Improve the security of Washington's vulnerable children and adults
5. Improve the economic vitality of business and individuals
6. Improve statewide mobility of people, goods, and services
7. Improve the safety of people and property
8. Improve the quality of Washington's natural resources
9. Improve cultural and recreational opportunities throughout the state
10. Strengthen government's ability to achieve results efficiently and effectively
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Appendix C – BIA Business Function Pre-screening Workbook Illustration
Appendix C - BIA Pre-screening Worksheet Illustration
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Appendix D – BIA Workbook Illustration
Appendix D - Vital Service Summary Worksheet Illustration
Appendix D - Public Safety Worksheet Illustration
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Appendix D - Public Image Worksheet Illustration
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