Operational Budget Reviews for Administrative ServicesCorporate Planning & Performance Reporting Office

Operational Budget Reviews for Administrative ServicesCorporate Planning & Performance Reporting Office

7 March 2008

2

Overall MandateOverall Mandate

● Promote performance measurement and reporting at all levels and lead the preparation of corporate performance reports

● Lead corporate strategic planning and implement strategic planning frameworks at the branch level

● The Office generally establishes and coordinates corporate frameworks which are implemented by departments

Office has been in existence since mid-2005. Branch Process Review Program joined office in 2006.

3

Objectives from Council’s Strategic Plan that Branch Supports

Objectives from Council’s Strategic Plan that Branch Supports● Governance

● Enhance the ability of Council to set the strategic direction of the City, including working through Standing Committees to set Term of Council priorities for departmental initiatives and on-going activities

● Commit to and develop a democratic, engaging and visible process to maximize input from residents in the work of Council and in policy development while ensuring that seniors, new Canadians, women and the economically disadvantaged are included

● Service Delivery● Integrate outcome-based performance measurement into a flexible

and evolving service delivery model that respects triple bottom line approaches, to respond to community and environmental demands.

● Establish an agreed-upon set of flexible and appropriate service standards (one-size does not fit all) across the corporation.

● Deliver agreed to level of service at the lowest possible cost.

4

Functions in BranchFunctions in Branch

● policy development for frameworks● data reporting● corporate coordination● management consulting

● strategic planning● performance measurement● cost efficiency

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Program AreasProgram Areas

Corporate Planning3 FTEs

Performance Reporting5 FTEs

1 Temporary FTE

Branch Program Review1 FTE

Corporate Planning and Performance Reporting Office2 FTEs

CPPRO budget is $2.1M gross, incl. 11 FTEsCPPRO budget is $2.1M gross, incl. 11 FTEs

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2008 Budget as Provisionally Approved2008 Budget as Provisionally ApprovedActual Budget

Unaudited Actual Budget

Actual vs. Budget

Provisionally Approved

Approved vs. Budget

By Program $000 $000 $000 $000 $000 $000 $000

Corp. Planning & Performance Reporting 1,092 1,269 1,321 1,309 (12) 1,349 40 Business Process Review Program 323 900 452 759 307 763 4 - - - - -

Total Expenditures 1,415 2,169 1,773 2,068 295 2,112 44 Client Recoveries (173) (750) (503) (750) (247) (750) - Productivity Improvements - - - - - (20) (20)

Net Expenditures 1,242 1,419 1,270 1,318 48 1,342 24

RevenuesFederal / Provincial - - - - - City Reserves (150) (150) - - - - - General/Fees/Charges - - - - -

Total Revenues (150) (150) - - - - -

Net Requirement 1,092 1,269 1,270 1,318 48 1,342 24

By Expenditure TypeCompensation and Benefits 1,062 1,325 1,356 1,424 68 1,468 44 Materials and Services 286 837 310 637 327 637 - Transfers/Grants/Financial Charges - - - - - Fleet Costs - - - - - Program Facility Costs - - - - - Other Internal Costs 67 7 107 7 (100) 7 -

Total Expenditures 1,415 2,169 1,773 2,068 295 2,112 44

FTEs 10.00 10.00 11.00 11.00 11.00

2006 2007 2008

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Corporate Planning & Performance Reporting Staffing & SpendingCorporate Planning & Performance Reporting Staffing & Spending

10

9

10

6

7

8

9

10

11

12

13

2005 2006 2007

Year

Bud

geted

FTEs

9191,118

1,322

400

900

1,400

2005 2006 2007

$000

(200

7 $)

FTEs have generally remained constantFTEs have generally remained constant

2006 was first full year for branch.2006 was first full year for branch.

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Corporate Planning Performance MeasuresCorporate Planning Performance Measures

1.7¢

Other Major Cdn. Cities Average with Corp. Plan

1.8¢41st percentile

Cost of Strategic Planning per $100 of Operating Budget

OttawaInput Measures

3.0$434,325Lead corporate strategic planning and implement strategic planning frameworks at the branch level; provide status reports on the implementation of strategic plans; provide data to help organization decide on strategies to adopt

FTEsBudgetServices

9

Corporate Planning ProductsCorporate Planning Products

as neededprovides operating philosophies including empowerment strategiesspecifies the roles of senior management levels

Corporate Guidance

every 10 yearsnext refresh in 2013

establish broad vision and strategic directions for the City

Ottawa 20/20

various

document branch strategy map, including “back-office” objectivesdetermine specific, branch-level, actions to achieve objectives

clarify branch outcomes, establish targets for outcomes, confirm branch services and determine service standards

provides a status report on the promised actions in the Strategic Plan

provides a five to fifteen year forecast of the strategic operating context for the City

establish the priority areas of focus for Council during its term in officecontains priorities, objectives, and specific actions

Role / Scope

variousOther internal strategic planning documents

whole corporation every term; approx. 9 branches a year

Branch Plans (planned)

FrequencyMain Outputs

whole corporation every term; approx. 9 branches a year

Strategic Branch Reviews(2008 and on)

yearly to Counciltwice yearly to Executive

Status Reports (excluding Annual Report)

new scan every termrefreshed every two years and as needed

Environmental Scan

new plan every termrefreshed every two years, minor update every year

City Strategic Plan

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Future Corporate Planning Performance MeasuresFuture Corporate Planning Performance Measures● Council’s satisfaction with strategic

planning process● Rating of extent to which Council

decisions are in alignment with Council’s strategic directions

● % of actions in strategic plan completed on time

● Amount of efficiency savings achieved beyond assigned productivity targets

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Third Party Comments for Corporate PlanningThird Party Comments for Corporate PlanningThird Party Reviewers:

● Thomas Plant, author of "Strategic Planning for Municipalities -A User's Guide" and Rob Rose, Chief Strategy Officer, Cognos

● current and proposed performance measures make sense:

● some nervousness around measuring alignment of Council decisions to strategic objectives

● could also measure product to staff ratio, or overall improvement in outcome measures for strategic plan

● should use longitudinal data wherever possible● approaches are generally appropriate

● environmental scanning is leading edge for municipalities● need to spend more time promoting the strategic plan and

integrating it into the daily life of the corporation

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Corporate Performance Measurement and Reporting OfficeCorporate Performance Measurement and Reporting Office

● Mandate is to enhance corporate accountability & transparency by developing, implementing and improving performance measurement and reporting

● Goal is implementation of the 2006 Council approved Corporate Performance Measurement and Reporting Framework

5 + 1 Temporary admin

$701,000Produce the City of Ottawa reports on performance measures in response to OMBI measures, creating and producing Corporate performance reporting documentsManage the City’s performance data for the Ontario Municipal CAO’sBenchmarking Initiative (OMBI) by coordinating data collection and expert panelsProvide internal consultation services and advice, and facilitate development of corporate performance measuresEnsure City participation in various external reporting initiatives with external partners.

FTEsBudgetServices

1322Branch Managers

Departmental Managers

Executive Management Committee

Audiences:Mayor and Councillors

Advisory Committees & Community Stakeholders

Community

Corporate Performance Measurement & Reporting Framework - Vision

Corporate Performance Measurement & Reporting Framework - Vision

Community Impact Report

OMBI, MPMP/FIRAnd Other Initiatives

Operating Performance Report Card

EMC Scorecard Reporting

Action Tracking & Managerial Reporting

Annual Report

Quarterly Council

Performance Report

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Integrated Outcome Performance Measurement MapIntegrated Outcome Performance Measurement Map

“Counts” Measures

Management Information Indicators – Inputs(Human Resources, Time, Budget, Systems, etc.)

Efficiency Measures

Process Indicators(Projects / Activities / Actions / Service Level)

Client Impact Measures

Attributable OutcomesStatutory & Corporate Indicators

(Satisfaction, Quality, Service Levels)

CommunityBenefit

MeasuresEffectiveness OutcomesQuality of Life Indicators

Varie

d A

udie

nces

Team Performance PlansIndividual Performance Plans

Division Operational PlansWork Unit Operational Plans

Departmental PlansBranch Plans

Vision/Mission Ottawa 20/20

CSP (objectives/priorities)

FCM ReportsVital Signs

Annual Report …

FinancialsICA Results …

OMBI ReportsCouncil Quarterly Report

EMC Scorecard …

Council Quarterly ReportAction Status Report

Annual Report …

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Corporate Performance Reporting ObjectivesCorporate Performance Reporting Objectives

• Identify, implement and report meaningful performance measures for key services

• Coordinate and support data collection strategies for performance reporting products

• Provide reports to Council, Management and Citizens

• Communicate performance to external stakeholders such as the public and community groups

• Partner with OMBI, FCM and others such as Community Foundation, in performance reporting initiatives

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ProductsProducts

• Corporate lead for City submission of data/analysis to FCM, Conference Board of Canada,

• Data submission and quality assurance for community reporting initiatives

• Coordinate the performance measures for the accomplishments in conjunction with Corporate Communications

• Collect, coordinate and produce report for Executive Management Committee

• Coordinate data collection and analysis on various service areas and produce report

• Creator of Ottawa Report / Interpretation of Ottawa OMBI data

• Municipal Champion/Corporate Lead• Expert Panel leaders• Data submission and quality assurance

Role of Corporate Performance Reporting

• As requested

• Annually

• Monthly

• Every 3 months

• Annually

• Annually

Frequency

Annual Report

Community Reporting

Ottawa OMBI Report / 2006 City of Ottawa OMBI Results Dashboard

Main Outputs

OMBI (Ontario Municipal Benchmarking Initiative) Report

Quarterly Performance Reports

EMC Scorecard

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External Partners in Performance Reporting Initiatives

External Partners in Performance Reporting Initiatives

• OMBI (Ontario Municipal Benchmarking Initiative)• Creation and release of:

• "Where we Stand" Ottawa's 2005 OMBI Performance Results Report

• 2006 OMBI City of Ottawa Results Dashboard Report• Coordination of and Lead for 4 OMBI Expert Panels

(City participation in all 38 Expert Panels)• Coordinated activities and participated in the 2007 OMBI

Fall Forum in Ottawa

• Coordination of City measures for Federation of Canadian Municipalities FCM Quality of Life Indicators, Community Foundations Vital Signs and Conference Board of Canada's Census Metropolitan Area Economic Forecast

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Timely Reporting to Council, Management and Citizens

Timely Reporting to Council, Management and Citizens

Quarterly Performance Report to Council• Council reviews the City’s performance progress in a

number of key service areas through Quarterly Performance Reports

Senior Management Reports• Timely and informative decisions are made by senior

management using performance reports such as EMC Scorecard

City’s Annual Report• Coordination of performance data and analysis activities

lead to production of the 2006 City Annual Report

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Performance Measures for Corporate Performance ReportingPerformance Measures for Corporate Performance Reporting

● # of corporate level performance reports produced annually and # of performance measures reported

● For the past 3 years: coordinated submission of 800+ performancemeasures for 38 business lines to OMBI annually

● For the past 2.5 years: produced 7 Quarterly Performance Reportscovering 13+ Corporate business lines with 50+ performance measures

● For the past 3 years: contributed data and analysis on 100+ measures for the Annual Report

● For the past 2 years produced 2 comprehensive performance reports interpreting Ottawa’s OMBI results

Measures under development:● % of total reports to Council which include performance metrics ● % of Departmental clients that report being satisfied with services● % of inquiries responded to within target timeframe ● % of corporate level reports that have been completed on time, and

within budget (Annual, Quarterly, OMBI, EMC scorecard)

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Third Party Comments for Corporate Performance ReportingThird Party Comments for Corporate Performance Reporting

Third Party Reviewer:● Ron Gibson, Project Director, OMBI

• Most municipalities are recognizing the need for enhanced government performance measurement and reporting

• The approach the City of Ottawa is taking is in line with like municipalities based on comparisons with Canadian and American counterparts

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Branch Process Review Program Branch Process Review Program

● Mandate of the BPRP● Identify potential savings to contribute to the longer term, annual efficiency

dividend targets for the City● Ensure that programs and services provided by the City are run efficiently and

effectively and demonstrate this to Council and the public● BPRP launched in Q2 2006, Multi-Year (6 year) BPR Plan approved in October 2006● Projects undertaken from 2006-2008

● Real Property Asset Management● By-Law Services● Traffic and Parking Operations● Long Term Care● Financial Services (in process)● Fleet Services (start-up)

1.0$762,000cost-

recovered

Manage the overall Business Process Review Program, Provide training and methodology, Provide advice and assistance to teams, Provide advice to management, Manage budget to resource reviews

FTEsBudgetServices

Annual Benefits Identified From Branches Reviewed

$2,718,000

•Benefits identified during the reviews are estimates and may vary during the implementation of an initiative.

•Benefits are savings realized against the Branch Operating Budgets when initiatives are implemented.

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BPRP SpendingBPRP Spending

452

331

0

100

200

300

400

500

2006 2007

$000

(200

7 $

exce

pt 2

008

budg

et)

BPRP began in 2006.BPRP expenses are cost-recovered.BPRP began in 2006.BPRP expenses are cost-recovered.

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Branch Process Review Program Branch Process Review Program ● The BPR office is responsible for the overall management of the program and the

associated budget. The departmental SIBP offices and the review Branch provide staff to execute the projects.

● In 2008, the Branch Process Review Program was scheduled to assist 4 Branches to undergo reviews. The program will be restructured to provide ALL Branches with tools and funding to achieve their productivity targets over the next 3 years. This will be part of a broader Business Transformation initiative.

Funding for the program is provided as a charge-back to “Corporate Efficiency Savings” and incorporated in overall efficiency targets.

One-time Development cost 200Project Deployment & Support 575Total BPR expenditures 775

Total Expenditures 2006-2007 ($000)

$4.72

1.20%

3.42 months

Return on InvestmentMaximum annual benefits identified per 1$ spent on direct project deployment & support

Maximum annual benefits as % of operating budget in branches reporting results (RPAM, By-law Services, LTC, TPO)

Payback on total program cost

Ottawa2006-2007

Outcome Performance Measures

24

Q&ALRFP Discussion

AppendicesAppendices

26

Savings opportunitiesSavings opportunities

520Target

2009$000

2008$000

Savings targets will be achieved through staff reorganization and reduction of professional services.

Savings targets will be achieved through staff reorganization and reduction of professional services.

Operational Budget Reviews for Administrative ServicesCorporate Planning & Performance Reporting Office

Operational Budget Reviews for Administrative ServicesCorporate Planning & Performance Reporting Office

7 March 2008