Introduction to Results-based Management

Concepts

Material of the Technical Assistance Unit (TAU)

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The Essentials of Results Based Management (RBM)

• This presentation sets out the essential concepts of RBM

• The intention is to provide a brief history and overview of this approach that is the foundational concept behind governments approach to the performance and delivery agreements

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International experience

The adoption of RBM is not unique to South

Africa it is widely used internationally

RBM is recognised as a useful approach in

developed countries as well as developing

countries

RBM thinking underpins the approaches of

multilateral organisations such as the World

Bank, development agencies and the

international donor community

Relevance of RBM

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Delivery Reform HistoryBudget Reform

(PFMA & MFMA)

RDP

GEAR

Government-wide Monitoring and Evaluation

Framework

Framework for Managing

Programme Performance Information

South African Statistics Quality

Assurance Framework

12 Priority Outcomes of government

Performance and Delivery Agreements

Framework for Strategic and

Annual Performance

Plans

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The Links Between

Delivery Reform

Results Based Management

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In RBM the question shifts from What are we doing?

What are we achieving?

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In RBM the question shifts from What are we doing?

What are we achieving?

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This presentation covers…

What is Results Based Management?

The basic elements of RBM

The Logic Model: its structure and elements

Performance Indicators and measurement

The Logframe

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Facets of Results Based Management

Framework to track progress and

demonstrate the impact of a given

project, programme, or policy

Moves beyond an emphasis on

inputs and outputs to a greater focus on outcomes and

impacts

A key methodology used in the

public service

Extends the focus to the

measurement of intended

results

Can be effectively used in the

strategic planning process

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Activities, Outputs and Outcomes are the building blocks of Results Based Management

Activitieswhat we do

Describes a collection of functions (actions, jobs, tasks) that consume inputs/resources required to produce outputs

Outputswhat we produce

The direct products and services generated through processes or activities.

Outcomeswhat we wish to achieve

The effects, benefits or consequences that occur (either in the short, intermediate, or long-term) due to the produced outputs

Every programme undertakes activities that produce outputs that contribute to the achievement of outcomes.

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Activities are “what we do”

• Conduct research• Publish documents• Provide advice• Contract for services• Respond to enquiries• Draft the business plan• Organize Committee meetings• Organize Committee travel

A collection of functions (actions, jobs, tasks) that consume inputs/ resources required to produce outputs.

Activities contain verbs

Examples of Activities

• Build houses• Produce passports• Teach learners• Develop curricula• Design management information

system

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Outputs are “what we produce or deliver”

• New housing estate• Inner-city CCTV security system• A staffed and operating rural clinic• A training programme for matric mathematics teachers• New community stadium• Corporate Performance Measurement System• Victim empowerment policy• New power station• Child support grant• Vehicle licensing and registration service

The direct products and services generated through processes or activities

Outputs contain nouns

Examples of Outputs:

Outcomes are “what we wish to achieve”

• A secure work environment • Electronic accessibility and equality • Sound management practices (accountability and reporting framework,

people management, internal communications, technology support)• Reduced crime levels in the inner city• Representative workforce • Healthy industrial activity• Healthy community

The effects, benefits or consequences that occur (either in the short, intermediate, or long-term) due to the delivery of outputs

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Outcomes refer to a changed state of being and are stated in the present tense

Examples of Outcomes

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How do activities, outputs and outcomes link?

Single Results Chain Results Hierarchy

Outcome

Output

Activity

Input

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OUTCOMES

OUTPUTS

INPUTS

ACTIVITIES

In RBM, the focus shifts to include the outcomes

Previousfocus

Newfocus

What we use to do the work

What we do

What we produce or deliver

What we wish to achieve

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ULTIMATE OUTCOME

INTERMEDIATE OUTCOMES

OUTPUTS

ACTIVITIES

There can be up to three levels of outcome, each leading to the next

INPUTS

IMMEDIATE OUTCOMES

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FINAL OUTCOME

INTERMEDIATE OUTCOMES

OUTPUTS

ACTIVITIES

The Logic is dependent on assumptions being met

INPUTS

IMMEDIATE OUTCOMES

assumptions hold

assumptions hold

assumptions hold

assumptions hold

If

If

If

If

are provided and

are carried out and

are produced and

are achieved and

are achieved and

then

then

then

then

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FINAL OUTCOME

INTERMEDIATE OUTCOMES

OUTPUTS

ACTIVITIES

Plan, budget, implement and monitor

Manage towards achieving these results

It is possible to budget for outputs, but not for outcomes

INPUTS

IMMEDIATE OUTCOMES

Contribution towards outcomes

Responsibility for execution

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The line of sight indicates how a lower level element contributes to the Final Outcome

Inputs

Activities

Outputs

Intermediate outcomes

Immediate outcomes

Final outcome

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Install CCTV system in crime hot spots with link to a control room and action response units

Final Outcome

Intermediate Outcome

Immediate Outcome

Outputs

Activities

Inputs

CCTV Crime monitoring system in city hot spot areas that records criminal activity & allows response units to be dispatched when criminal events are observed

Muggers stop illegal activities in hot spot areas covered by cameras

Crime in the identified hot spots is reduced

Community feels safe in the city centre and normal business and social activity returns to these areas

Control room

Radio networks

FundsResponse Units

Monitoring staff

Control system Cameras

An Inner-city CCTV system as an example

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A departmental level logic Model – Correctional Services

There is enhanced public safety and reduced reoffending

There are safe conditions for the public

Offenders are reintegrated into their communities

Offenders are rehabilitated in Correctional Centres

Inmates are held in safe, secure and humane custody

Staff and service providers have safe and healthy conditions

Offenders enjoy well-being and are able to function socially

Offenders are healthy

Offenders enjoy spiritual and moral development

Offending behaviour is corrected

Offenders are literate, educated, skilled and have competencies

Offenders enjoy balanced lifestyles through sport, recreation, arts and culture

Persons under community corrections (including those on parole) are accepted back into communities

Offenders are prepared for productive, law-abiding lives in their communities

Final Outcome

Intermediate Outcomes

Immediate Outcomes

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Offenders are literate, educated, skilled and have competencies Pre-ABET/

Literacy tuition

ABET programmes

Job opportunities and training

Entrepreneurial skills training

Occupational skills training

Vocational trainingAgricultural

skills programmes

Computer based training programmes

Higher Education and Training programmes

FET programmes

Day to day maintenance

projects

Facilities projects involving

DCS resources

Equipment repair

projects

The outputs and the expected immediate outcome

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The Logic Model as a framework to understand

Performance

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ULTIMATE OUTCOME

INTERMEDIATE OUTCOMES

OUTPUTS

ACTIVITIES

All levels of the Logic Model should be measured

INPUTS

IMMEDIATE OUTCOMES

Indicators

Indicators

Indicators

Indicators

Indicators

Indicators

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Single event binary indicators: when the output is produced or outcome achieved or not, and the answer is either “yes” or “no”

There are three major kinds of indicators in RBM

Trend indicators: when the indicator – usually a quantity - should be measured repeatedly every month, quarter or year, and achievement trends can easily be seen

Process indicators: when the expected output is produced through a series of different smaller steps, and each step is either achieved or not

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Indicators• What should be measured• Over what time period• In what units, By who, How frequentlyIndicator definition

• The first or historical measurement of an indicator• Used for setting performance targetIndicator

Baselines• The score we would like to achieve• Time bound• AchievableIndicator Targets

• Actual score• Measured periodically• Trends

Indicator Measures

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Baselines, Targets and Measures are all expressed in the same units

INDICATOR Baseline(date)

2009 Target

2009 Measure

Number of subsidies paid for solar water heaters per annum

5640 (in 2008)

12 000 12 345

Mortality rate of children under 5 years of age

565 per 10 000 births (in 2005)

400 per 10 000 births

385 per 10 000 births

Percentage of learners passing mathematics in Matric

43% (in 2002)

72% 65%

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The RBM elements can all be expressed in tabular form in a Logical FrameworkDescription Type Indicator Basel

ine in (year)

2008Target

2008 Measure

2009 Target

2009 Measure

Learners’ maths skills are improved

Out-come

Percentage of learners passing mathematics in Matric

43% (2002)

68% 62% 72% 65%

Maths Training Programme for secondary school maths teachers

Out-put

No of matric maths teachers in qunitile 4 and 5 schools completing programme

1243 (2007)

1500 1151 1700 1629

Delivery of learning materials to training centres

Activity Percentage of training centres receiving learning materials by start of programme

85%(2006)

95% 92% 100% 98%

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• RBM focuses on the consequences of delivering services and products;– Answers the ‘so what?’ question.

• The Logic Model;– Sets out the theory of change.– A way to visualize the hierarchy of endeavour.

• The Logic Model;– Provides a framework for measurements that are

required to assess performance and achievement of results.

• Evidence must be used to test the logic.

Summary

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• RBM focuses on the consequences of delivering services and products;– Answers the ‘so what?’ question.

• The Logic Model;– Sets out the theory of change.– A way to visualize the hierarchy of endeavour.

• The Logic Model;– Provides a framework for measurements that are

required to assess performance and achievement of results.

• Evidence must be used to test the logic.

Summary