Workshop: Development and Use of Outcome-based Measures in Government Planning & Reporting

1. Workshop:Development and Use of Outcome-based Measures in Government Planning & Reporting May 24th, 2006, Union Centre, Winnipeg, Manitoba Presented by: Manitoba Treasury Board Secretariat , Office of the Provincial Comptroller of Manitoba, and The International Institute for Sustainable Development (IISD)

2. Agenda • The Context in Manitoba [30 minutes] • Introductions and overview • Performance Measurement in Manitoba • Role of performance measures in annual reporting • Trends in Planning, Reporting and Performance measures [45 minutes] • Why are outcome-based measures important? • Innovative examples and trends in reporting • Sharing of Manitoba Examples [45 minutes] • Plenary discussions based on Pre-work assignment • Developing and Using Outcome-based Measures [105 minutes] • Key steps in development, use and analysis of outcome-based measures • Group work on key steps • Reporting Outcome-based Measures [75 minutes] • Completing a narrative table for performance indicators Closing Remarks

3. Objectives of Workshop • Intro to developing performance measures linked to organizational goals • Overview of current practice elsewhere • Understanding/discussion of issues related to government performance measurement reporting • Context for new Annual Report requirements (looking back) and new PSO requirements (looking ahead)

4. Part I. The Big Picture • Performance Measurement in Manitoba • Drew Perry (Treasury Board Secretariat) • Role of performance measures in annual reporting • Betty-Anne Pratt (Provincial Comptroller) I. The Big Picture

5. Trends and context Trend toward reporting on changes in socio-economic and environmental conditions that matter to Manitobans I. The Big Picture

6. 2005 Discussion Document examples: Economy I. The Big Picture

7. 2005 Discussion Document examples: People I. The Big Picture

8. 2005 Discussion Document examples: Community I. The Big Picture

9. 2005 Discussion Document examples: Environment I. The Big Picture

10. The Planning and Reporting context • Performance Measurement is not done in isolation • Identified as part of Priorities & Strategies Overview (PSO) • reported upon in Annual reports • Performance Measures show whether our plans are working I. The Big Picture

11. Spring Yr1 Fall Yr1 Spring Yr2 Spring Yr3 Fall Yr3 PSO (plan) for following fiscal New initiatives for following fiscal Estimates for following fiscal Budget announced Estimatessupplement Execution of plans during fiscal year Annual Report Full cycle view I. The Big Picture

12. Spring Yr1 Fall Yr1 Spring Yr2 Spring Yr3 Fall Yr3 PSO (plan) for following fiscal New initiatives for following fiscal Estimates for following fiscal Budget announced Estimatessupplement Execution of plans during fiscal year Annual Report Full cycle view I. The Big Picture

13. Spring 04 Fall 04 Spring 05 Fall 05 Spring 06 Fall 06 Annual Report Budget Estimates supplement PSO (plan) Annual Report Budget New initiatives Estimatessupplement Estimates Budget PSO (plan) New initiatives Estimatessupplement Estimates PSO (plan) New initiatives Estimates Multiple cycles in play 04/05 05/06 06/07 07/08 I. The Big Picture

14. Issues/Opportunities re Annual Reports • Previous guidelines did not request measures of progress or performance • No specific requirement to link annual reports to larger process (Estimates Supplement or plans) • No specific requirement for Department annual reports to be placed online • New direction set in 2005 through Reporting to Manitobans on Performance I. The Big Picture

15. Trends andissuesin government annual reporting • Accountability • Who uses annual reports? (internet) • Public expectations (of results, of reporting) • Limited resources, demographic trends (retirements)… • …governments need to do “more with less” • Trend to shared, horizontal efforts • Important to agree on how to assess, report and use results

16. Spring Yr1 Fall Yr1 Spring Yr2 Spring Yr3 Fall Yr3 PSO (plan) for following fiscal New initiatives for following fiscal Estimates for following fiscal Budget announced Estimatessupplement Execution of plans during fiscal year Annual Report Recap: Full cycle view Annual Reports, including measures, are connected back to plans… I. The Big Picture

17. Part II. Trends in Government Planning and Reporting • What are outcome measures and why are they important • Concepts and vocabulary • Who is doing this really well? • Oregon: Results-oriented Strategic Planning • What are Alberta and Saskatchewan doing? • Alberta: Goal-based Budgeting • Sask. Government Accountability Framework II. Trends in Reporting

18. A. What are outcome measures and why are they important? Our Environment de•vel•op (di•vel′əp) v.t. 1. To expand or bring out the potentialities, capabilities, etc. Our People Our Economy II. Trends in Reporting

19. A. What are outcome measures and why are they important? Our Environment Experience has shown that a pathway to sustainability cannot be charted in advance. Rather, the pathway must be navigated through processes of learning and adaptation. National Academy of Science 1999. Our Common Journey: A Transition Toward Sustainability. de•vel•op (di•vel′əp) v.t. 1. To expand or bring out the potentialities, capabilities, etc. Our People Our Economy II. Trends in Reporting

20. IISD International and National-Level Perspective • Nations starting to develop information systems to gauge societal wellbeing and sustainability The UK • “Securing the Future” Strategy • UK National Framework Indicators • Departmental strategies • Independent review by sustainable development commission • Norway • National strategy and indicators • Led by Prime Minister’s office and chaired by Finance Ministry II. Trends in Reporting

21. Provinces and states using societal goal and outcome-based planning and budgeting systems Oregon • Oregon Shines state-wide vision • Oregon Benchmarks to gauge progress • State departments to link performance measures to Oregon Benchmarks • Independent review • Alberta • 12 provincial goals and 60+ indicators • Departmental business plans and annual reporting linking to provincial indicators IISD Provincial and State Level Perspective II. Trends in Reporting

22. Communities creating new forms of social infrastructure to navigate quality of life and sustainability Orlando • Healthy Community Indicators Initiativeof Greater Orlando • Winnipeg • Quality of Life Indicators System concept being proposed by range of community stakeholders IISD Community-level Perspective II. Trends in Reporting

23. Logic Model Key Priority Areas Contributing to society’s wellbeing and sustainability objectives Change in wellbeing conditions (economic, social and environmental) High-level Outcome High-level Objectives Feedback Short to medium-term consequence of an output Intermediate Outcome External influences Output The result of an activity accountability Activity Processes and Inputs of a policy, program, or project Actions Hybrid from three different logic models (Canadian International Development Agency, Province of Alberta, State of Oregon)

24. Example Measures Understanding Linkages Economic Social Environmental Healthy, sustainable surroundings Key Priority Areas Quality Jobs Prosperous Economy Children entering school ready to learn Change in well-being conditions (economic, social and environmental) High-level Objectives Stream water quality (turbidity) Gross Domestic Product Share of GDP in manufacturing, business and commercial services % children enrolled in Pre-K program Intermediate Outcome Short to medium-term consequence of an output Rate of soil erosion by water Economic Development and Innovation Initiative completed Demographic surveys for Head-start program completed Output Kilometers of river bank with vegetation The result of an activity Implement Economic Development and Innovation Initiative and participate in other cross-ministry initiatives that influence the province's prosperity Processes and Inputs of a policy, program or project Actions % of re-vegetation programs completed Head-start program implemented

25. What are the benefits? • What are the benefits? • What are the risks? • What are the constraints? II. Trends in Reporting

26. Climbing the Steps toward Performance Management Analysis for Continuous Improvement Performance Measures Many agencies compare this month’s or this year’s performance measures to those of the past. Some are beginning to make comparisons with other agencies and to begin the process of benchmarking. Objectives Performance measures indicate how much or how well the agency is doing. Ideally, they track the agency’s progress toward achieving its objectives. Mission/Goals Objectives are unambiguous statements of the agency’s performance intentions, expressed in measurable terms, usually with an implied or explicit timeframe. Mission statements declare the agency’s long-range intent; its purpose. Although the goals expressed in a mission statement may help shape the agency’s values and its organizational culture, they often are imprecise and sometimes even a bit vague. (From Gov. of Alberta 1996) II. Trends in Reporting

27. Who does this really well?The Oregon Shines Case Study Oregon Shines Case Study

28. Vision – “Oregon Shines II” Economy: Quality jobs for all Oregonians People: Safe, caring and engaged communities Environment: Healthy, sustainable surroundings Oregon Shines Case Study From Conrad (2005)

29. Oregon Shines Oregon's Strategic Plan- Oregon Shines (1989) - Updated every eight years - Encompasses the entire state Oregon Progress Board- independent agency created to be the steward of Oregon Shines - law mandates Board to report biennially - chaired by governor Oregon Shines Case Study From Conrad (2005)

30. Oregon BenchmarksMeasures for how Oregon as a whole is doing. Key Priority Areas • Quality Jobs for All Oregonians • Economy (#1-17) • Education (#18-29) • Engaged, Safe & Caring Communities • Civic Engagement (#29-38) • Social Support (#39-60) • Public Safety (#60-67) • Healthy, Sustainable Surroundings • Community Development (#68-74) • Environment (#75-90) High-level Objectives Oregon Shines Case Study From Conrad (2005)

31. Quality JobsEconomy Benchmarks Indicator Data Target Source Comparison Oregon Shines Case Study From Conrad (2005)

32. Engaged, Safe and Caring CommunitiesSocial Support Benchmarks Oregon Shines Case Study From Conrad (2005)

33. Healthy, Sustainable SurroundingsEnvironment Benchmarks Oregon Shines Case Study From Conrad (2005)

34. Linking Government to the Benchmarks Is society benefiting? High Level Outcomes (Benchmarks) Intermediate Outcomes Are strategies working? Is work happening? Outputs Oregon Shines Case Study From Conrad (2005)

35. External Influences Linking Government to the Benchmarks Oregon’s Progress Benchmarks Organization’s Progress Performance Measures Oregon Shines Case Study From Conrad (2005)

36. Healthy, Sustainable Surroundings Key Priority Areas High-level Objectives ODA addresses soil erosion from agriculture through a partnership that includes the USDA Natural Resources Conservation Service, USDA Farm Service Agency, OSU Extension Service, and Soil and Water Conservation Districts (SWCDs). ODA coordinates with these agencies and is specifically responsible for implementing a regulatory program for nonpoint source Intermediate Outcome Output Oregon Shines Case Study

37. Aligning Departmental Performance Measures with Oregon Benchmarks Oregon Shines Case Study

38. Saskatchewan Government Sask. Case Study I. The Big Picture

39. Key Priority Area Which of these are outcome based? Which are more output based? High-level Objectives Example – Sask. Dept. of Highways and Transportation

40. Example Indicator Source: http://www.highways.gov.sk.ca/docs/reports_manuals/reports/annual_05.pdf Sask. Case Study

41. Towards Goal-based Budgeting in Alberta Alberta Case Study

44. Alberta Case Study

45. Alberta Case Study

47. Alberta’s 20-year Strategic Plan: Today's Opportunities, Tomorrow's Promise: A Strategic Plan for the Government of Alberta Government Goal 7: Alberta will have a prosperous economy Core Government Measures (Measuring Up): • Tourism industry revenues • Barriers to trade • Business connectiveness • Sponsored research at University of Alberta • Industrial disposition planning • Biodiversity monitoring system • Oil Sands production • * Gross Domestic Product (GDP) • Job growth • Labour force participation rate • Labour productivity • Personal disposable income • Value-added industries • Export trade Goal 7 Budget and Actuals (2004-05) $3,206 million $2,519 million • Goal 7 Government Strategies/Actions • Securing Tomorrow’s Prosperity value-added strategy • Agri-Food Discovery Place (AFDP) construction • Agrivalue Processing Business Incubator • Cottage Winery Policy • Promoting tourism • Ministry of Economic Development • 3-year Business plan • goals and performance measures Alberta Case Study

48. Ministry of Economic Development Goal(s) (that supports Government Goal 7): Goal 1: Economic growth and diversification through collaborative strategic planning and policy development • Opportunities and Challenges • importance of innovation • skilled labour shortage • benchmarking Alberta’s performance • Ministry Measures • Share of GDP in manufacturing, business and commercial services Goal 7 Budget and Actuals (2004-05) Ministry Strategies/Actions 1.1. Lead the implementation of the Economic Development and Innovation Initiative and participate in other cross-ministry initiatives that influence the province's prosperity. 1.2 Lead the implementation of Securing Tomorrow's Prosperity with other participating ministries to support the development of competitive value-added goods and services industries. 1.3 Provide longer-term strategic input to the development of policy to support a sustainable and diversified economy in Alberta. 1.4 Collaborate with the Alberta Economic Development Authority to set out the key directions where targeted actions and strategies can produce the best return for Albertans. 1.5 Provide the skills, processes, and technology to enhance information collection and analysis, management and sharing of knowledge within the Ministry, and to support strategic consultation with our clients. Alberta Case Study

49. Alberta Goal-based Budgeting: Recent advances and lessons • Business planning and performance measurement system in place since 1990s • Early focus on a few core indicators (23 in Measuring Up) • The Government Accountability Act to ensure ministries maintained their business planning and performance reporting system over time. • Several improvements in Alberta’s accountability system has occurred in the past 3 years including: • 20-year Government Strategic Business Plan • Goal-based budgeting and performance reporting • Strategic priorities and cross-ministerial initiatives (involving more than one ministry) budgeting and performance reporting. • High-level Societal Indicators reintroduced

50. Part III. Manitoba Examples • Sharing of Manitoba examples in the use of outcome-based measures III. Manitoba Examples