The Essence of

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The Essence of Managing for Outcomes Planning
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The Big Picture

• Review of the Centre and other reviews have
  identified
• Real strengths in New Zealands public sector
  management
• And recommended a second generation of reform -
  evolutionary

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In Sum

• Review of the Centre and other reviews have
  recommended
• Keep what works
• Transparency, outputs, freedom to manage,
  financial management
• Shift the balance
• More on outcomes capability, whole of
  government, more central leadership

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Managing for Outcomes

• Managing for outcomes is a significant change in
  the way departments manage their business
• It means an outcome focussed approach to
  planning, management, and reporting

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Results are the Focus

• Intention is to improve the performance of
  departments
• Expected to strengthen link between public
  management and results Government wants to
  achieve Managing the results chain

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Leadership

• Ministerial involvement in, and commitment to the
  devopment of the outcomes is encouraged
• CEs leadership crucial to the success of the new
  management approach

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Accountability

• Departmental accountability for outputs is
  retained
• Departments also to be held accountable for
  managing for outcomes

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We are All Involved

• Central agencies and TPK are involved in this
  change
• To contribute to its success , we have made a
  commitment to open and collaborative
  relationships with departments providing
  support and adding value

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We are All Involved

• This will include
• Support for collaboration on sector or whole of
  government outcomes and services
• Brokerage, helping to share best practice

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What Our Involvement Will Mean

• Being able to give good advice to departments on
  the concepts behind managing for outcomes
• Collaborating with each other to ensure well
  integrated, challenging advice to departments

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A Learning Curve

• A learning curve is involved for everyone
• Start early, dont overreach
• Dont miss the good in the pursuit of excellence

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Generic Planning Process and Agency Models
Bryan Dunne
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Improving PerformanceA generic 10 step cycle
Identify Vital Few Outcomes
Define in Precise Terms
Measure as State Indicators
Identify Areas for Change in State
Strategy Formulation
Define / Refine Intervention Logic
Cost Effectiveness Analysis
Optimising Performance
Ex Ante
Agree Impact Measurement Framework
Design Deliver Interventions
Review Impact Evaluation Results
ID Prioritise Intervention Options
Capability
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Agency Function Focus Some Work In Progress
Domain Outcome
O/C1 O/C2 O/C3 O/C4 O/C5 O/C6
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Operational Agency(primary focus own clients)
Domain Outcome
O/C1 O/C2 O/C3 O/C4 O/C5 O/C6
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Sector Focused Agency(primary focus community
sector Intervention Logic)
Domain Outcome
O/C1 O/C2 O/C3 O/C4 O/C5 O/C6
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Population Agency (primary focus population
group of interest the vital few)
Domain Outcome
O/C1 O/C2 O/C3 O/C4 O/C5 O/C6
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Whole of Government Approach
Domain Outcome
O/C1 O/C2 O/C3 O/C4 O/C5 O/C6
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Administrative Functions
Domain Outcome
O/C1 O/C2 O/C3 O/C4 O/C5 O/C6
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Improving Performance
Identify Vital Few Outcomes
Define in Precise Terms
Measure as State Indicators
Identify Areas for Change in State
Strategy Formulation
Define / Refine Intervention Logic
Cost Effectiveness Analysis
Optimising Performance
Ex Ante
Agree Impact Measurement Framework
Design Deliver Interventions
Review Impact Evaluation Results
ID Prioritise Intervention Options
Capability
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Cannot Measure Impact?
Identify Vital Few Outcomes
Define in Precise Terms
Measure as State Indicators
Identify Areas for Change in State
Limited Evidence of Impact
Strong Ex Ante Planning
Define / Refine Intervention Logic
Cost Effectiveness Analysis
Design Deliver Interventions
Review Impact Evaluation Results
Agree Impact Measurement Framework
ID Prioritise Intervention Options
Capability
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Cannot Measure State Either?
Identify Vital Few Outcomes
Define in Precise Terms
Measure as State Indicators
Identify Areas for Change in State
Limited Evidence of Impact
Conceptual Ex Ante Approach
Define / Refine Intervention Logic
Cost Effectiveness Analysis
Design Deliver Interventions
Review Impact Evaluation Results
Agree Impact Measurement Framework
ID Prioritise Intervention Options
Capability
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Remember

• Build management, not outcome measurement,
  systems
• Focus on what matters most the vital few can
  help here
• Defining the vital few in precise terms,
  measurable if possible, gives greatest gains
• But conceptual (non-measurable) approaches will
  give one-off gains so pursue all the vital
  few

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Remember

• Different types / uses of outcome measures
• State Indicators identify where problems
  persist, monitor trends and identify where change
  is desirable (ie priorities)
• Impact Measures - significant technical challenge
  to measure impact but ongoing gains in outcomes
  needs impact feedback
• Takes time perseverance you may not get it
  right first attempt

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Outcome Definitions
Greg Claridge Roger Waite
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The purpose Performance management

• Outcome measures - a vital management tool for
  identifying problem areas and gauging the
  effectiveness of an organisations activities,
  services, and outputs.
• They indicate performance against ex ante targets
  or goals. Without this feedback information
  management can only guess the success (or
  failure) of their decisions.

Evidence trumps opinion every time
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Types of Outcome Measures

• State Indicator is the condition experienced by
  the community (or a specific group, entity or
  geographic area) at a given point of time. It is
  the result of all influences and actions - the
  impact and consequences of government action and
  the impact and consequences of actions and
  activities beyond the control of government.

Impact Measure the impact of one or more
Government interventions in improving a state
indicator.
- see Pathfinder BB1 and Glossary - aligned to
PFA definition of Outcome
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Improving PerformanceA generic 10 step cycle
1. Identify Vital Few Outcomes
2. Define in Precise Terms
3. Measure as State Indicators
4. Identify Areas for Change in State
Strategy Formulation
Optimising Performance
Ex Ante
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1. Identify Vital Few Outcomes

• Remember outcomes are most useful to management
  if they are measurable, attributable to core
  activities, and timely.

• The vital few outcomes should
• be well aligned with the agencys or business
  units mission or purpose
• be linked to services, outputs and inputs (the
  things agencies manage)
• collectively measure major outcomes from or
  across all dominant output classes
• measure the benefits experienced by clients or
  entities the agency manages
• be timely and
• support critical business decisions, including
  resource decisions.

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2a. Define Outcomes in Precise Terms

• Precise, unambiguous, written definition of
  changes partially attributable to the activities
  of one or more agencies which
• Is limited to the vital few defines, not
  measures, outcomes
• Clearly relates to the consequence of the
  agencys outputs or activities for the community
• Supported by knowledge of the influences driving
  outcomes
• Is focused on target groups for services
• Is linked to accessible source data and
• Aligned to the departments mission
• .but, do not exclude unmeasureable outcomes

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2b. Corrections Outcome Definitions
1. Contribute to Safer Communities
2. Reducing Reoffending of offenders over a 12
month period following their release from a
custodial sentence or from the begining of a
community based sentence. (p19 Corrections
Statement of Intent 2002/03)
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2b. Corrections Outcome Definitions
1. Contribute to Safer Communities
2. Reducing Reoffending of offenders over a 12
month period following their release from a
custodial sentence or from the begining of a
community based sentence. (p19 Corrections
Statement of Intent 2002/03)
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2b. Corrections Outcome Definitions
3. Supported by international research on
reducing offender recidivism.
1. Contribute to Safer Communities
2. Reducing Reoffending of offenders over a 12
month period following their release from a
custodial sentence or from the begining of a
community based sentence. (p19 Corrections
Statement of Intent 2002/03)
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2b. Corrections Outcome Definitions
1. Contribute to Safer Communities
2. Reducing Reoffending of offenders over a 12
month period following their release from a
custodial sentence or from the begining of a
community based sentence. (p19 Corrections
Statement of Intent 2002/03)
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2b. Corrections Outcome Definitions
5. Accessible data source
1. Contribute to Safer Communities
2. Reducing Reoffending of offenders over a 12
month period following their release from a
custodial sentence or from the begining of a
community based sentence. (p19 Corrections
Statement of Intent 2002/03)
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2b. Corrections Outcome Definitions
1. Contribute to Safer Communities
2. Reducing Reoffending of offenders over a 12
month period following their release from a
custodial sentence or from the begining of a
community based sentence. (p19 Corrections
Statement of Intent 2002/03)
6. Aligned to the departments mission The
Department of Corrections contributes to
community safety by reducing re-offending.
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2c. Ministry of Health Outcome Definitions

• Interested in DALY to minimise the numbers of
  years of life lost.
• DALY years lost from premature mortality plus
  equivalent years lost to severe disability.

1. The vital few.
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2c. Ministry of Health Outcome Definitions

• Interested in DALY to minimise the numbers of
  years of life lost.
• DALY years lost from premature mortality plus
  equivalent years lost to severe disability.

2. Clearly relates to the consequences of the
Ministrys activities.
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2c. Ministry of Health Outcome Definitions

• Interested in DALY to minimise the numbers of
  years of life lost.
• DALY years lost from premature mortality plus
  equivalent years lost to severe disability.

3. Supported by knowledge of drivers.
Evidence-based Health Objectives 2001
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2c. Ministry of Health Outcome Definitions

• Interested in DALY to minimise the numbers of
  years of life lost.
• DALY years lost from premature mortality plus
  equivalent years lost to severe disability.

4. Target group for services All New Zealanders
throughout their lives
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2c. Ministry of Health Outcome Definitions

• Interested in DALY to minimise the numbers of
  years of life lost.
• DALY years lost from premature mortality plus
  equivalent years lost to severe disability.

5. Linked to accessible source data.NZ and other
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2c. Ministry of Health Outcome Definitions

• Interested in DALY to minimise the numbers of
  years of life lost.
• DALY years lost from premature mortality plus
  equivalent years lost to severe disability.

6. Aligned to mission Good health and wellbeing
for all New Zealanders throughout their lives.
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State Indicators
Greg Claridge Roger Waite
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Improving PerformanceA generic 10 step cycle
1. Identify Vital Few Outcomes
2. Define in Precise Terms
3. Measure as State Indicators
4. Identify Areas for Change in State
Strategy Formulation
Optimising Performance
Ex Ante
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3a. Measure as State Indicator

• Quantitative measure of prevailing situation that
  is
• Clearly linked to agency services, and groups or
  entities receiving (or candidates for) services
• Reported in aggregate terms, and separately for
  population groups, regions, business units, etc
• Inform management decision-making,
• Measured in absolute terms and
• Statistically robust

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3b. Outcome Measures the FABRIC attributes
Focused Appropriate Balanced Robust Integrated
Cost effective

• On the agencys missions, aims objectives
• To, and useful for the stakeholders who are
  likely to use it
• Giving a picture of what the agency is doing
  covering all significant areas of work
• Measure outcomes that have a strong linkage to
  core activities, based on accurate observations
  and calculations
• Into the agency, part of the business planning
  and management processes
• Balancing the benefits of the informatioin
  against the costs of measurement and management
  responses

(UK National Audit Office)
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3c. Corrections Recidivism Index (State
Indicator)

• Reconviction based on a single event
• Time to Reconviction 12 and 24 months
• Seriousness reconviction to a Department
  Managed Sentence and Imprisonment
• For Offences committed post release
• Aggregated into Services, age, ethnic, gender,
  offence and sentence length groups

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3c. Corrections Recidivism Index (State
Indicator)

• Reconviction based on a single event
• Time to Reconviction 12 and 24 months
• Seriousness reconviction to a Department
  Managed Sentence and Imprisonment
• For Offences committed post release
• Aggregated into Services, age, ethnic, gender,
  offence and sentence length groups

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3c. Corrections Recidivism Index (State
Indicator)
3. An absolute (not relative) measure.

• Reconviction based on a single event
• Time to Reconviction 12 and 24 months
• Seriousness reconviction to a Department
  Managed Sentence and Imprisonment
• For Offences committed post release
• Aggregated into Services, age, ethnic, gender,
  offence and sentence length groups

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3c. Corrections Recidivism Index (State
Indicator)
4. Statistically robust

• Reconviction based on a single event
• Time to Reconviction 12 and 24 months
• Seriousness reconviction to a Department
  Managed Sentence and Imprisonment
• For Offences committed post release
• Aggregated into Services, age, ethnic, gender,
  offence and sentence length groups

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3d. More Justice Sector State Indicators
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3e. Ministry of Health State Indicator

• DALY YLL YLD
• Modifiability The modifiability multipliers were
  then applied to the DALY estimates extracted from
  the New Zealand Burden of Disease Study to rank
  conditions.
• Distribution Used to incorporate distributional
  concerns (Mäori compared to non-Mäori), or
  equity, into the burden of disease analysis.
  
• Equity adjustor 1 p (RR 1) / p(RR 1)
  1

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4a. Identify areas for change in State Health
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4b. 13 Health Objectives

• The 13 population health objectives (not ranked)
  are to
• reduce smoking
• improve nutrition
• reduce obesity
• increase the level of physical activity
• reduce the rate of suicides and suicide attempts
• minimise harm caused by alcohol and illicit and
  other drug use to both individuals and the
  community
• reduce the incidence and impact of cancer
• reduce the incidence and impact of cardiovascular
  disease
• reduce the incidence and impact of diabetes
• improve oral health
• reduce violence in interpersonal relationships,
  families, schools and communities
• improve the health status of people with severe
  mental illness
• ensure access to appropriate child health care
  services including well child and family health
  care and immunisation.

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4c. Identify areas for change in State LTSA
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5. Steps to developing good State Indicators

• Identify the outcome information and
  decision-making needs of the Minister, external
  stakeholders, and decision-makers and staff
  within the agency Involve stakeholders early.
• Identify the crucial outcomes sought from the
  agencys (or business units) mission
• Identify good practice via literature sources and
  knowledge of other agencies
• Specify how dominant activities (outputs) are
  intended to influence outcomes
• Specify indicators in measurable terms against
  each outcome
• Specify the groups for which indicators will be
  reported
• Specify data collection and verification systems
  and
• Get Ministerial endorsement of the outcomes and
  measurement system, and senior management
  approval to access the resources needed to
  measure indicators.

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Wrap

• Key attributes or FABRIC
• Time and patience this is not an easy process
• Limitations of outcome based management
• Next steps
• Outcome definitions and state indicators are the
  necessary precursor to IMPACT MEASURES
• Development of evidence based, demonstrated
  performance management systems