Results-based Planning in Ontario

Financial Management Institute - Ontario Chapter October 21, 2009

Carlene Jackson, Director General Government, Planning and Resources Branch

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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

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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)

Context: Results-based Planning in Ontario

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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

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Managing for Results in Ontario

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

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The current economic context requires hard choices and discipline

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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

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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.

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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.

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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

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SMART Rule

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

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To test the strength of a performance measure:

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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

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Ontario’s Strategic Fiscal CycleOther 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.

2010-11

Q1 Apr | May | Jun

Q2Jul | Aug | Sep

Oct | Nov | Dec

Q3Jan | Feb | Mar

Q4

2009-10 2008-092010-11

Q1 Apr | May | Jun

Q2Jul | Aug | Sep

Oct | Nov | Dec

Q3Jan | Feb | Mar

Q4

2009-10 2008-09

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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

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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)

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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