Overview

1. Results-based Planning in OntarioFinancial Management Institute - Ontario ChapterOctober 21, 2009Carlene Jackson, Director General Government, Planning and Resources Branch

2. 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

3. 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)

4. 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

5. 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 • Accountability for results is shared, horizontal – performance measurement the key tool Premier / Ministers Strategic Direction Leadership Priorities & Results Results-based Plans Implementation Plan Performance Plans Measures / Targets Service Agreements Memorandum of Understanding Contracts Service Providers / Agencies Ministries

6. 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 four-year multi-year period supporting the Government’s plan

7. 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 non-financial 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.

8. 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.

9. 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

10. SMART Rule To test the strength of a performance measure: • Specific: clearly and concisely state what will be measured • Measurable: Performance measures should be quantified – even if based on qualitative data • Achievable and Attributable: relate to things that the ministry can influence or achieve • Realistic: based on reliable, verifiable data that reflects the ministry’s contribution to achieving government priorities • Timely: data can be collected, processed and distributed within a useful timeframe and at a reasonable cost S M A R T

11. 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

12. 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.

13. 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

14. 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)

15. Support for Performance Measurement in Multi-year 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