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2/19/2015
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Effective Supervisory Practices
Session Two:
Sharpening Your Focus: Strategic Planning,
Managing Workflow and Budgeting
Michelle Poché Flaherty City on a Hill Consulting
Jon Johnson Center for Priority
Based Budgeting
Chris Fabian Center for Priority
Based Budgeting
Organizing Work and Time
Time Management
Getting Organized
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Poll:
What is your biggest time waster?
A. E-mail
B. Chit-chat
C. Too many meetings
D. Personnel issues
E. Inadequate tools/equipment
F. Burdensome bureaucratic
requirements
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Time Management:
Eisenhower Matrix
Urgent Not Urgent
Important Putting out fires
• Crises
• Deadlines
Planning
Evaluation (Checking)
Relationship Building
Not Important Many interruptions
• Phone calls
• Drop-ins
• E-mails
Time wasters
• Rabbit trails
• Idle chit-chat
• Web-surfing X
Work
above
the
line
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Time Management:
Prioritize Your Tasks
Focus on what is most important first.
First, schedule the “Important, Not Urgent” items, then
build the rest of your schedule around
them.
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Time Management:
Prioritize Your Tasks
Prioritize your “To Do” List. Use “ABC,123” method.
To Do
____Meet w/boss
____Meet w/team
____Plan budget
____Order supplies
____Return calls
____Research info
____File papers
____Walk around
A = Very Important
B = Average Importance
C = Low Importance
Complete all the A’s in order,
then all the B’s in order, then all the C’s in order.
A.1
A.2
B.2
C.2
B.1
C.1
C.3
B.3
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Time Management:
Schedule Your Tasks
Start by scheduling
time for “Important,
Not Urgent” things first.
Then enter tasks into
your calendar in the
time that remains.
Do the same thing
when planning for the
team that you do for
yourself.
Mon., Oct. 13, 2015
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Important,
Not Urgent
Important,
Not Urgent
Tasks A.2, A.3
Tasks B.1, B.2
Task A.1.
Lunch Break (call Mom)
Wrap-Up Time
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Get Organized with PDCA:
Plan, Do, Check, Act
Planning
• What are the priorities?
• Who will do what by when?
• Does everyone know who, what, how, where, when
and why?
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Get Organized with PDCA:
Plan, Do, Check, Act
Doing
• Most of this is their job, not yours.
• Be willing to pitch in when there’s a
need.
• Model best behaviors.
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Get Organized with PDCA:
Plan, Do, Check, Act
Checking
Quality: Is it as good as it should be?
Progress: Are we on time and on budget?
Safety: Are we taking care?
Materials/Equipment: Adequate?
Purpose: Are we heading in the right direction?
People: Does everyone have what they need to perform well? How are they feeling about it?
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Get Organized with PDCA:
Plan, Do, Check, Act
Acting
• Take the initiative to correct anything that is off track.
Thinking and Acting Strategically
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Leading Strategically:
Setting – and Managing by – Goals
Goal: a target that defines an
outcome to be achieved.
Visualized
Inspirational
Specific
Time Bound
Assessable
What tasks and activities will help your
team achieve its goals?
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Thinking Strategically
• Where are we going?
• When we get there, what will success look like?
• What are the priorities?
• Why are they the priorities?
• What difference will our work make to the community we serve?
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Acting Strategically: Start with Heart
• Have a plan before taking action Anticipate obstacles and how you will remove them
or overcome them
• Align your plan with established priorities
• Obtain the necessary approvals
• Create the buy-in to succeed
• Communicate the plan
• Prepare everyone involved: Who will do what by when and where
How to do it well
Why it matters
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Acting Strategically: Finish Strong
• Celebrate small wins along the way
• Correct mistakes along the way Learn from mistakes and prevent repeating them
Hold people accountable when appropriate
Take responsibility when reporting up the chain of
command
• Communicate victories Congratulate, celebrate and thank your team
members, privately and publicly
Give your team credit to those up the chain of command
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Leaders articulate the “WHY”
Don’t just tell them when and how to do it. Tell them why it matters. This is the difference between managing and leading.
Employees who understand what to do and when to do it are efficient.
Employees who also understand how to do it best are effective.
Employees who understand why it’s worth doing are committed.
The Budget: What is it and why is it
important to me?
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A Brief Introduction
JON JOHNSON
CHRIS FABIAN
©
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GOVERNING
"Failure to understand financial outcomes is
more dangerous to states and localities
than ever, and there’s a big gap between what public leaders know about finance and what they need
to know.”
http://www.governing.com/finance101/gov-financial-illiteracy-feature.html
©
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“For generations, we held the view that the feds and states are the adults in the system, setting direction; the cities and the metropolitan areas are the children, waiting for their allowance. The metropolitan revolution is exploding this tired construct. Cities and metropolitan areas are becoming the leaders in the nation: experimenting, taking risks, making hard choices. We are seeing “the inversion of the hierarchy of power in the United States.”
- The Metropolitan Revolution, by Bruce
Katz and Jennifer Bradley ©
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What is a budget?
an accounting exercise to satisfy the needs of the Finance/Budget Office?
a necessary evil to meet the mandates of state legislation and city code?
a waste of time (and paper) since once its adopted, no one pays attention to it?
©
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What is a budget?
A statement of priorities
for the community that:
Communicates to stakeholders what services
they can expect and how their tax dollars are
being spent
Defines how the local government allocates its resources to achieve what is important to the community
Translates policies into action
©
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What is a budget?
A critical control tool that:
Provides the legal authority to conduct day-to-day operations
Sets clear boundaries related to spending and fiscal oversight
Ensures accountability, trust and transparency in managing “someone else’s money”
Offers a monitoring device to ensure compliance with “the plan”
©
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What is a budget?
A management tool that:
Establishes a spending plan for the upcoming fiscal year
Demonstrates how services are being delivered in the most effective and efficient way possible
Identifies and articulates how much it costs to provide services
Offers staff a “line of sight”, connecting “what” they do with “why” they do it to benefit the community
©
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What is a budget?
A planning tool that:
Establishes a link between strategic objectives
and how resources are allocated
Offers a “roadmap” for carrying out elected
official’s policy objectives
Helps decision-makers make the best use of limited resources
Provides for long-term financial sustainability
©
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I DON’T KNOW ANYTHING ABOUT
ACCOUNTING …
so what is my role in the budget process?
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Budgeting Basics “How much does the organization have available to
spend?”
(Not “How much do I need?”)
“Spend Within Our Means”
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Budgeting Principle No.1:
Spend Within Your Means
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DO YOU…
– Understand the organization’s overall financial situation?
– Understand where revenues come from?
– Distinguish one-time from ongoing sources and uses? • Operating Budget – recurring expenditures for day-to-day needs
• Capital Budget – non-recurring “one-time” expenditures
– Differentiate general government revenues from program revenues? • Revenue Diversification • Cost Recovery
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Looks like a financially “healthy” organization – right?
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Let’s look through a different lens!
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Let’s look through a different lens!
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Let’s look through a different lens!
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Let’s look through a different lens!
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Let’s look through a different lens!
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Budgeting Basics
“Why do we need to keep “money in
the bank?”
Establish and Maintain Reserves
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Budgeting Principle No. 2:
Establish and Maintain Reserves DO YOU…
– Understand what makes up “Fund Balance” and why the organization has reserves?
– Set aside funding for long-range plans, major maintenance and asset/equipment replacement?
– Maintain contingency “reserves” within your own operating budget?
– Know if there are any statutory restrictions on how much your organization can spend?
©
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Budgeting Basics
“What’s the “difference?”
Understand Variances (Budget to Actual)
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Budgeting Principle No. 3:
Understand Variances
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DO YOU…
– Monitor the budget regularly to ensure you “won’t run out of money”?
– Analyze variances between “budget” and “actual” revenues and expenditures? • Do you adjust budgets to eliminate recurring variances?
– Count on “savings” resulting from budget to actual variances?
– Have large capital project “carry-forwards” at year-end?
– Spend your entire budget whether you need it or not?
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Budgeting Basics
“What exactly do we do and how much
does it cost?”
Identify programs and services and what they cost
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Budgeting Principle No. 4:
Identify Programs and What they Cost
DO YOU…
– Have a “program inventory” that lists all the programs your department provides?
– Understand what it costs to provide each individual program you offer (both direct and indirect costs)?
– Establish fees for service that recover the cost to offer that service?
– Promote enhancement of cost recovery for programs where appropriate?
– Manage and maintain the resources utilized in providing your programs?
• Human
• Financial
• Physical
• Technology ©
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Budgeting Basics
“What’s the plan and what could cause it to
change?”
Economic Analysis and Long-Term Planning
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Budgeting Principle No. 5:
Economic Analysis and Long-Term Planning
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DO YOU…
– Pay close attention to what is going on around you in the
community, at the state or federal level or in the economy
that might impact your organization’s fiscal health?
– Prepare a comprehensive, multi-year Capital
Improvement Plan (CIP), and clearly identify associated
ongoing operating costs?
– Incorporate ALL long-term plans developed within the
organization into your financial forecasts?
– Rely on the budget as a planning guide and refer to it
frequently throughout the fiscal year?
©
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Budgeting Basics
“What are we as an organization
in business to do?” Identify Results
©
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Budgeting Principle No. 6:
Identify Results DO YOU…
– Have a shared vision of what your organization is expected to
accomplish by the community?
– Ensure that your individual department’s objectives are clearly
aligned (and in sync) with entity-wide objectives?
– Create a “line of sight” for your employees between the jobs they
perform and the results being accomplished?
– Clearly link requests for budget dollars to the results the community
expects?
– Use the budget to “tell you story” in terms of how resources are
being used to accomplish what is important in the eyes of the
community?
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Start with “Why”
What Every organization on the planet knows
WHAT they do. These are products they
sell or the services they offer.
How Some organizations know HOW they do
it. These are things that make them
special or set them apart from their
competition.
Why Very few organizations know WHY they
do what they do. WHY is not about
making money. That’s a result. It’s a purpose, cause or belief. It’s the very
reason your organization exists.
© 2013 Simon Sinek, Inc.
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Budgeting Basics
“How well are we doing”
Sufficient Delivery of Effective and Efficient Services
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Budgeting Principle No. 7: Sufficient Delivery
of Effective and Efficient Services
DO YOU…
– Develop, maintain and analyze key indicators,
measures and metrics that gauge how well department’s programs are achieving results?
– Assess level of services being provided to determine if they are “too little”; “too much” or “just right”?
– Regularly review processes to evaluate if they could be done more efficiently?
– Routinely question how the program could be delivered more
cost effectively, utilizing fewer or “different” resources to
accomplish the same outcomes? ©
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Types of Budget Methods Line-item Based
Most traditional – builds the budget by types of expense
Focuses on what the organization “buys”
Zero-Based Builds budget “from scratch” each year
Focuses on what the organization “buys”
Program-Based Builds the budget by ‘how” money is spent
Focuses on what the organization “does”
Performance-Based Builds the budget by “how much” is done
Focuses on inputs, outputs, level of service
Results-Based Builds the budget by linking resources to outcomes
Focuses on “why” the organization does what it does
©
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Types of Budget Methods
PRIORITY BASED BUDGETING Provides framework for allocating resources to the priorities of your
community
Combines principles of “Zero-Based”; “Program-Based”;
“Performance-Based” and “Results-Based”
Avoids “Across-the-Board” mentality
©
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Recommended Resources:
Budgeting: • “A Budgeting Guide for Local Government” Robert Bland, ICMA
Press
• Government Finance Officers Assn: www.gfoa.org
Time Management: • “Eat That Frog!” by Brian Tracy
• “Death by Meeting” by Patrick Lencioni
Strategic Planning: • Books and workbooks by John M. Bryson on
strategic planning for public/nonprofit organizations
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Questions:
• Michelle Poché Flaherty
• Jon Johnson
• Chris Fabian
