Transcript Document
Results-based Planning in Ontario
Financial Management Institute - Ontario Chapter
October 21, 2009
Carlene Jackson, Director
General Government, Planning and Resources Branch
Overview
Ontario’s approach to business planning
What is results-based planning?
Key components of good plans
Performance measures in business planning
• What should measures do?
• What is needed to support effective results-based planning?
Results-based planning and the strategic fiscal cycle
1
Context: Results-based Planning in Ontario
New results-based planning framework introduced in 2003 to guide
public sector management in Ontario
Drivers for change included:
Ongoing fiscal challenges to do more with less
Rising public expectations for government relevance, effectiveness,
efficiency and transparency
Most service delivery by transfer payment recipients
Changing accountability relationships with other levels of government,
service delivery agents
Influenced by experience of other jurisdictions (the federal government,
UK, Australia, New Zealand, Washington State, Oregon, British Columbia
and Alberta)
2
What is Results-based Planning?
Comprehensive, government-wide approach to resource allocation and
accountability ensuring that government-funded activities are aligned with key
government priorities
Policy direction and key priorities are set by Cabinet
Completed annually on a multi-year basis
Supports the Budget and fiscal plan
Process designed to promote:
Results delivery
Value for money
Accountability and transparency
Quality service (internal and external)
Flexibility to respond to changing conditions
Treasury Board Office (TBO) provides guidance and direction to Ministries on
the annual RbP process
Ministry-submitted Results-based Plans (RbPs) are reviewed and presented to
Treasury Board/Management Board of Cabinet (TB/MBC) for decision-making
3
Managing for Results in Ontario
The current economic context requires hard choices and discipline
Integrate planning, budgeting and
measuring performance, aligned with
priorities, results
Responsibility for delivering on
priorities and commitments is shared,
horizontal
Between/among ministries
Between ministries & broader
public sector providers
Premier / Ministers
Strategic Direction
Leadership
Priorities
& Results
Accountability for results is shared,
horizontal – performance
measurement the key tool
4
Why Are Plans Needed?
A Ministry’s RbP articulates its plans for achieving government priorities and ministry
mandate commitments within its minuted multi-year allocation
The government articulated its priorities to Ontarians in the Speech from the Throne and its
five-point economic plan for growth and job creation.
As part of the government’s plan for implementation, a number of priority commitments have
been established for Ministries.
Resource requirements for new or changed funding commitments
Current and out-year risks to the fiscal plan
Ministry RbPs form the building blocks of a multi-year process designed to provide
decision-makers with enterprise-wide information to review government activities
related to Ministries’ minuted multi-year expense limits using a risk based approach
Facilitates government choices about ongoing implementation of priorities and areas
for potential trade-off
Ensure that service delivery is efficient and effective and all programs, services,
initiatives, policies, etc. are focused on implementation to ensure results for the fouryear multi-year period supporting the Government’s plan
5
Components of a Good Plan
Provides TB/MBC with a strategic over-arching outline of the ministry’s
multi-year plan to achieve priorities/results and mandate commitments
Risk Management - identifies any key issues facing the ministry and
demonstrates that it is managing new and updated financial and nonfinancial risks within its existing multi-year minuted allocation
Performance information – demonstrates progress towards achieving
targeted outcomes; value for money (efficiency and effectiveness); and as
evidence to support any change requests.
6
Performance Measure Requirements for RbP
Performance measurement information is integral to decision-making in the
Results-based Planning process.
Ministries are asked to support their RbP submissions with key performance
measures (public and internal)
Key performance measures should demonstrate progress towards achieving
government priorities/results, key mandate letter commitments/deliverables and
ministries’ strategic objectives, or track other large or high-risk programs of interest
to the Board.
Key measures should include numeric targets for 2010-11 and three out-years
To provide meaningful information for effective decision-making, key measures
should cover major expenditure areas including transfer payments
To demonstrate accountability, key measures should focus on value for money
Any requests for changes in funding should be supported by meaningful
program-level performance measures (i,e., that relate to program objectives)
to support business cases in activity notes.
7
What Should Performance Measures Do?
Provide good information:
Are we doing the right thing? (effectiveness)
Are we doing things right? (efficiency)
Are our clients satisfied? (customer satisfaction – internal & external)
Aid in good decision making, to:
Manage programs and services to inform results based planning
Determine whether program, service and strategy objectives are being met
Ensure accountability
Drive continuous improvement
Signal the need for action
8
SMART Rule
To test the strength of a performance measure:
S
Specific: clearly and concisely state what will be measured
M
Measurable: Performance measures should be quantified – even if based
on qualitative data
A
Achievable and Attributable: relate to things that the ministry can
influence or achieve
R
Realistic: based on reliable, verifiable data that reflects the ministry’s
contribution to achieving government priorities
T
Timely: data can be collected, processed and distributed within a useful
timeframe and at a reasonable cost
9
Results-based Planning - Strategic Fiscal Cycle
Ontario’s strategic fiscal cycle facilitates government decision-making
processes including resource planning, management and risk reporting, to
deliver priorities and results within the context of the fiscal plan.
The Results-based Planning (RbP) process provides integrated and strategic
decision-making that ensures the government is positioned to meet its key
objectives while delivering balanced budgets
Government committed to delivering on priorities of Ontarians while ensuring value
for money and restoring fiscal balance by 2015-16
The RbP process is a key element of the co-ordinated strategic fiscal/
resource planning and reporting cycle.
The annual RbP process is influenced by a variety of factors:
key policy objectives/commitments the government set out in its election document;
the evolving status of the fiscal plan and state of the economy; and
feedback on the previous year's process
10
Ontario’s Strategic Fiscal Cycle
Other activities include:
- Monitoring of FTE caps
- Corporate Overviews/Expenditure Updates for
TB/MBC
- In-year Investments can occur through the Fall
Economic Outlook and Fiscal Review and Ontario
Budget processes
During the current fiscal year there are
concurrent activities/processes relating
to the prior and the next fiscal year.
Q1 Q2
2010-11
2009-10
2008-09
Apr | May | Jun
Jul | Aug | Sep
Jan | Feb | Mar
Oct | Nov | Dec
Q4 Q3
11
Integrating Performance Measurement
Throughout the Fiscal Cycle
Internal Management
Support Treasury Board/Management Board of Cabinet (TB/MBC) in-year
requests
Year-end report to TB/MBC on Key Performance Measure (PM) results
achieved ensures ministry accountability for key results
PMs are required in agreements with all transfer payment (TP) recipients
to ensure value for money for Transfer Payments (> 80% of government
spending)
PMs are integrated in quarterly reporting for early monitoring and
mitigation of performance risk
Support for PM and continuous improvement of the quality of PM
information increasing in ministries (e.g., dashboards, etc.)
Support program evaluation to improve efficiency and effectiveness of
program management and service delivery
12
Integrating Performance Measurement
Throughout the Fiscal Cycle continued....
External Reporting
PMs support government transparency and accountability
Annually through the Premier’s Progress Report
All ministries publish on-line results-based plans and annual reports
that include reporting of performance progress and achievements
Performance results are integrated into materials provided to
Standing Committee on Estimates
Results-based performance reporting included in Public Accounts
(Annual Report)
13
Support for Performance Measurement in Multiyear Planning
Tools
Performance Measurement Guide
Pocket Guide to Performance Measurement
Measurement and Progress System (MAPS) & Guide
Program Evaluation Reference and Resource Guide
Vendor of Record for Program Evaluation and Performance Measurement Services
RbP Briefing Book Guideline and Style Guide
Guidelines for annual multi-year planning, quarterly reporting
Learning and Development
Encourage and support ministries in their capacity building:
Performance Measurement/Program Evaluation (PM/PE) Network
PM Community of Practice
PM e-learning initiative
Transfer Payment Forum and relevant resources
14