COLLEGE OF MICRONESIA - FSMPLANNING & RESOURCES COMMITTEE

SEPTEMBER 23, 2009

Performance Budget1

Performance budgeting - guiding principles

• Be focused on outcomes• Provide simple, accessible information• Be understood and used by all• Be flexible and responsive to the customer• Support interdepartmental efforts• Measure achievement• Encourage continuous improvement• Assist with strategic planning and demand

management

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Performance budgeting - what it does

States desired core outcome to be achieved Measures the success in achieving results Helps focus on the high-level outcomes desired Makes the budget more understandable and

relevant to the community Empowers staff with flexibility Shows success more comprehensively and

clearly (Measures overall service effectiveness) Better alignment:

• organizational structure, processes, customer-driven, performance appraisal, training

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Performance based budgeting and management

Links $$ with resultsFocuses government on key prioritiesProvides legislature with more information

to set budgetEnables holding departments accountableProvides monitoring and reporting

frameworkProvides managers information necessary

to improve

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IPOLO

InputProcess/Activity Output Outcome

Link

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What are outcomes?

•They define the purpose of a service•Why are we here?•What results can we expect from

our efforts?•Programs are created around

outcomes•Only core outcomes are measured

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Program outcomes statements

WHY? (outcome) A statement of the ultimate goal

HOW? (services) A statement of the broad service areas

HOW WELL? (measures) Specific measurements of success

Four standard measures: Customer Satisfaction, Cost Efficiency, Budget/Cost Ratio, Individual Measures

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Measures

How Well? Measurement of the Success in Achieving the Core Outcome(s).

Only high level measures should be used.

The outcome measures should focus on quality,

effectiveness and efficiency.

What results you need to determine whether the purpose

has been met.

What performance targets (service standards) should be

set?

Is there at least one measure for each “by” or “through”

(strategies) statement?

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Measures

Be based on program goals or objectives that tie to a statement of program mission or purpose

Measure program results or accomplishments

Provide for comparisons over time Measure efficiency and effectiveness Be reliable, verifiable and understandable Be reported internally and externally Be monitored and used in decision-making

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Accreditation issues

Linking Planning Assessment (including program review) Resource allocation

Commitment to continuous improvementCulture of evidence

No “trust me” Data is presented to support statements Assumptions are recognized as assumptions and

tests are made to determine there validity

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What is in place at COM-FSM? Strategic plan (planning)

Sets mission, values and priority goals of the college

Continuous improvement cycleBalanced scorecard – key results by strategic goal

(measures)Improvement plans (IAP worksheet #1)

Links to institutional mission and goals (links to institutional outcomes to be included in revision)

Links to program mission and goals What is to be accomplished (results) Strategies by which it will be accomplished Criteria for success established Linked to revised performance evaluation for supervisors

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What is in place at COM-FSM? IAP Assessment Process

Assessment plans (IAP worksheet #2) Links to intuitional mission and goals Links to program mission and goals Evaluation questions for each improvement

outcome/objective Criteria by which you determine success Data sources, sampling analysis identified Timelines and who is responsible

Assessment reports (IAP worksheet #3) Were the Improvement outcomes/results achieved to the

specified criteria? Closing the Loop – linked to program and institutional

mission and goals

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What is in place at COM-FSM? IAP Assessment Process

IAP Handbook Background on quality instruction and services Definition of assessment Assessment techniques Worksheets & directions

Improvement plan - objectives/outcomes for performance budget (worksheet #1)

Assessment plan (worksheet #2) Assessment report – closing the loop (worksheet (#3)

Assistance with student learning outcomes and services objectives/outcomes

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What is in place at COM-FSM?

Policy on continuous improvement cycle Links

Strategic plan IAP assessment President’s retreat (priority setting) Budget (performance)

Processes and procedures to follow at each stage Focuses the college on continuous improvement at all

levels

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What’s remaining? Performance budgeting (putting in place)

Determines what is to be accomplished Based on IAP improvement plan (worksheet #1) Impacted by assessment report that determines if success

criteria was achieved for key results Closes the Loop on the improvement cycle (worksheet #3)

Allocates resources based on results to be obtainedRecognizes success and failureDrives line item budgetLinks budget items to what is to be accomplishedBasis for monitoring and reportingAllocates time as well as dollars ($)

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Key results/outcomes for COM-FSM

Institutional & campus levels Graduation rates

Based on meeting institutional, program and course student learning outcomes

Retention rates Progression Persistence

Transfer rates (internal & external) Course completion rates Program completers Job placement Employer satisfaction Others.

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Quality, effectiveness and efficiency

Improvement of quality of services Instructional techniques that promote increased student learning (meeting

student learning outcomes at course, program and institutional level) Satisfaction rates (surveys to be administered in mid October) for colleges

programs and services (instructional, student and administrative services) Students Faculty/staff

Effectiveness and efficiency Increased productivity (even with reduced resources) Increased accuracy Increased satisfaction

Rating on student services and administrative services program rubrics Assists with setting improvement needs (student services developed,

administrative services under development)

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Roles & responsibilities

Vice President’s and Campus Directors Ensure that the sum of instructional, student and

administrative services result in improvement of key results at each campus and in each service area.

Ensure that key results/outcomes are meet Ensures focus on clients (students, community, leaders)

IC, SSC, Office Directors Ensure that programs and offices support key

results/outcomes of the college Continually improving quality, effectiveness and efficiency

of instruction and program services Ensures focus on clients (students, community, leaders)

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Changes

What gets measured gets done. If you don’t measure results, you can’t tell success from

failure. If you can’t see success you can’t reward it. If you can’t reward success, you may be rewarding failure. If you can’t recognize failure, you can’t correct it. If you can demonstrate results, you can win public support. Systems and culture must change Push authority and flexibility to lowest levels Aligning organizational infrastructure to support a

performance management environment Evolutionary process -- not a quick fix

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Implementation Issues

Determine results to be obtained (quantities, high level) Measures & data sources

Writing SMART Objectives/outcomes with by or through strategies & activities Identify outputs for use with FSM BPS

Link to results and SMART objectives Financial resources ($ allocation) Human resources (time allocation)

Monitoring & reporting Reporting accomplishments against plans

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Changes

Focus on results/outcomesAccountability defined at institution, campus,

program levels Success recognized Failure recognized Rewards and incentives for quality work

Transparent in allocation and use of resourcesAll programs and services addressedMonitoring & reporting

Accomplishments/results against plans Measures

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SMART goals and objectives

S = SpecificM = MeasurableA = AttainableR = RealisticT = Timebound

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SMARTer, C-SMART & SMART - S

SMARTer SMART objectives that are

Extending Reviewed

C – SMART SMART Objectives that are also CHALLENGING

SMART – S SMART objectives that are also stretching

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Types of objectives

Process objectives lets you know what you are doing and how you will do it; describes

participants, interactions and activities Impact objectives

lets you know what the long term implications of your program[me]/ activity will be; describes the longer term impact on your target audience or organization

Outcome objectives lets you know how you will change attitudes, knowledge or

behavior (short term); describe the degree to which you expect this change

Personal objectives SMARTer objectives are often written for project management or

business and performance management, however as individuals in our personal development plans, SMARTer objectives are also a valuable formula within which to set and individual measure performance.

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Specific

S Specific Stimulating SimpleStretchingSuccinctStraight forwardSelf owned Self managed Self controlled SignificantStrategicSensible

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Measurable

M Measurable Motivating ManageableMeaningfulMagicalMagneticMaintainableMapped to goals

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Achievable

A Achievable Appropriate ActionableAttainableAmbitiousAspirational Accepted/ acceptableAlignedAccountableAgreedAdaptedAssignableAs-if-nowAdjustableAdaptable

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Realistic

R Realistic Relevant Results OrientatedResources are adequateResourcedRewardingRecordedReviewableRobustRelevant to a mission

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Timebound

T Time-..boundlimiteddrivenconstrainedrelatedphasedsensitivespecificstampedlined

Tangible- TrackableTraceableTimed/ TimelyToward what you want

 

 

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SMARTer Extending & Reviewed

E Extending Exciting EvaluatedEngagingEnergisingEthicalEnjoyable

R Reviewed Rewarding RecordedRealisticRelevantResourcedResearch Based

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Definitions

Specific Measurable Achievable Realistic Time

Objectives should specify what they need to achieve

You should be able to measure whether you are meeting the objectives or not

Are the objectives you set, achievable and attainable?

Can you realistically achieve the objectives with the resources you have?

When do you want to achieve the set objectives?

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Detail Specific

Acronym element

Description Diagnostic Questions

Specific Specific means that the objective is concrete, detailed, focused and well defined.

The objective must be straight forwards and emphasize action and the required outcome.

Specific also means that it’s results and action-orientated.

Objectives need to be straightforward and to communicate what you would like to see happen. To help set specific objectives it helps to ask:

WHAT am I going to do? This are best written using strong, action verbs such as conduct, develop, build, plan, execute, etc. This helps your objective to be action-orientated and focuses on what’s most important.

WHY is this important for me to do?

WHO is going to do what? Who else need to be involved?

WHEN do I want this to be completed?

HOW am I going to do this?

 

What exactly are we going to do, with or for whom?

What strategies will be used?

Is the objective well understood?

Is the objective described with action verbs?

Is it clear who is involved?

Is it clear where this will happen?

Is it clear what needs to happen?

Is the outcome clear?

Will this objective lead to the desired results?

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Detail Measurable

Measurable If the objective is measurable, it means that the measurement source is identified and we are able to track the actions as we progress towards the objective. Measurement is the standard used for comparison.

For example, what financially independence means to one person, may be totally different compared to what is means for another.

If you cannot measure it .. you cannot manage it

It’s important to have measures that will encourage and motivate you on the way as you see the change occurring, this may require interim measures.

Measurements (and the visible progress) go along way to help us to know when we have achieved our objective.

How will I know that the change has occurred?

Can these measurements be obtained?

 

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Achievable

Achievable Objectives need to be achievable, if the objective is too far in the future, you’ll find it difficult to keep motivated and to strive to attain it.

Objectives, unlike your aspirations and visions, need to be achievable to keep you motivated.

Objectives need to stretch you, but not so far that you become frustrated and lose motivation.

Can we get it done in the proposed timeframe?

Do I understand the limitations and constraints?

Can we do this with the resources we have?

Has anyone else done this successfully?

Is this possible?

 

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Realistic

Realistic Objectives that are achievable, may not be realistic….. however, realistic does not mean easy. Realistic means that you have the resources to get it done.

The achievement of an objective requires resources, such as, skills, money, equipment, etc. to the task required to achieve the objective. Whilst keeping objectives realistic, ensure that they stretch you.

Most objectives are achievable but, may require a change in your priorities to make them happen.

Do you have the resources available to achieve this objective?

Do I need to revisit priorities in my life to make this happen?

Is it possible to achieve this objective?

 

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Timebound

Time Time-bound means setting a deadlines for the achievement of the objective. Deadlines need to be both achievable and realistic.

If you don’t set a time you will reduce the motivation and urgency required to execute the tasks. Agreed Time frames create the necessary urgency and prompts action.

When will this objective be accomplished?

Is there a stated deadline?

 

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Examples

Campus retention rate will increase to 60% from Fall 2009 to Fall 2010 by: Strategy 1 Strategy 2

Campus graduation rate will increase to 10% for Fall 2007 cohort by: Strategy 1 Strategy 2

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Examples

By the end of the asthma management classes, 75% of patients will be able to describe and demonstrate the correct use of a Peak-Flow Meter.

By May 10, 2009 the Health Education staff from the Stroke Association will have planned and conducted 4 skills building workshops for 50 carers of recently diagnosed Stroke patients at the Chiswick training centre.

Profitability Objectives - To achieve a 25% return on capital employed by August 2009.

Market Share Objectives - To gain 25% of the market for sports shoes by September 2009

Promotional Objectives - To increase awareness of the dangers of flowers in Wales from

12% to 25% by June 2009. To increase trail of X washing powder from 2% to 5% of our target

group by January 2009.

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Exercise

1. What are your priorities? 1. Review strategic plan2. Review improvement plans3. Review assessment reports

2. What measures are appropriate for your area?

1. Review balanced scorecard2. Review assessment plan

3. Write SMART objectives plus strategies based on your priorities and measures.

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Exercise

What resources are needed to accomplish your improvement plan SMART objectives/outcomes? Human Financial

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