Linking Budgeting and Performance Measurement

1
Linking Budgeting and Performance Measurement

• City of Phoenix, Arizona
• Lauri Wingenroth, Deputy Budget and Research
  Director

2
Overview

• Brief history of performance measurement
• Involving customers in defining measures
• Budget process and related uses of performance
  data
• Challenges and next steps

3
History of Performance Measurement

• Service levels, 1980s and earlier
• Inputs, outputs and cost per unit
• Strategic Plan, late 1980s
• Customer satisfaction measures added

4
History of Performance Measurement

• Total Quality, early 1990s
• Measurement emphasis moves to efficiency,
  effectiveness, customer satisfaction and results
  or outcomes
• Vision and Values, late 1990s
• Customer defined measures

5
Customer Defined Measures

• Led by City Auditor Department
• Identify customers/customer types
• Customer Focus Group(s)
• Educate on measurement
• Provide examples of good measures
• Groups identify measures
• Incorporate measures into budgeting and other
  areas

6
Current Budget Process-Technical Phase

• Base budget development
• Continue existing service levels
• Bottom-up by lowest org, fund and line item
• Administrative process
• Develop resource estimates
• Primarily use input and output measures

7
Current Budget Process-Program Phase

• Program budget recommendations
• Incremental review (adds/reductions)
• City Manager trial and recommended budget
• City Council and Community involvement

8
Current Budget Process-Program Phase

• Departments provide
• Mission, org structure, key measures
• Broader spectrum of measures used
• Program or service changes
• Costs, revenues, positions
• Relate each to key measures

9
Reporting Measures in the Budget

• Communicate plans and results
• Budget change related
• Department key measures
• Citywide
• Key statistics
• Long-term service trends
• Comparisons to others

10
Budget Process Works for Phoenix

• Same basic process for 20 years
• Changes to accommodate
• More public input/involvement
• Timing and form of City Council involvement
• Economic conditions
• New state laws
• Evolving performance measures

11
Challenges and Next Steps

• Renewing Phoenix
• Renewed emphasis on performance management
• Reinvent citywide reporting
• Loop into budget process