Results-Based Accountability (AKA: Outcome-Based Accountability or OBA) The Fiscal Policy Studies Institute Santa Fe, New Mexico Websites raguide.org resultsaccountability.com Book - DVD Orders amazon.com resultsleadership.org

SIMPLE COMMON SENSE PLAIN LANGUAGE MINIMUM PAPER USEFUL

Results-Based Accountability is made up of two parts: Performance Accountability is about the well-being of CUSTOMER POPULATIONS for Programs – Agencies – Service Systems Population Accountability is about the well-being of WHOLE POPULATIONS for Communities – Cities – Counties – States - Nations

POPULATION ACCOUNTABILITY Fiscal Policy Studies Institute For Whole Populations in a Geographic Area

Community Outcomes for Christchurch, NZ 1. A Safe City 2. A City of Inclusive and Diverse Communities 3. A City of People who Value and Protect the Natural Environment 4. A Well-Governed City 5. A Prosperous City 6. A Healthy City 7. A City for Recreation, Fun and Creativity 8. City of Lifelong Learning 9. An Attractive and Well-Designed City

UK National Outcomes A working list based on the 2007 National Indicators Proposal 1. Strong Communities 2. Safe Communities 3. Healthy and Successful Children and Young People a. Be Healthy b. Stay Safe c. Enjoy and Achieve d. Make a Positive Contribution e. Economic Well-being 4. Healthy and Successful Adults and Elders 5. Communities that Achieve Inclusion and Equality 6. Communities with a Thriving Local Economy 7. Communities with a Sustainable Environment

A Stable, Secure, Inclusive INTERNET that supports the world economy and the world community ICANN Population Result (Healthy Internet)

INTERNET REPORT CARD What measures do you use? What do the data baselines look like? What is the story behind the baselines? STRATEGIC ROLE OF ICANN GLOBAL STRATEGIC THINKING HEALTHY INTERNET (per prior page definition) What Would It Take?

New Zealand Kruidenbuurt Tilburg, Netherlands Coventry, UK Country Neighborhood Local Council

Every time you present your program, Use a two-part approach. Result: to which you contribute to most directly. Indicators: Story: Partners: What would it take?: Your Role: as part of a larger strategy. Population Accountability Performance Accountability Your Role

Performance Accountability For Programs, Agencies and Service Systems Fiscal Policy Studies Institute

“All performance measures that have ever existed for any program in the history of the universe involve answering two sets of interlocking questions.”

How Much did we do? ( # ) How Well did we do it? ( % ) Quantity Quality Performance Measures

Effort How hard did we try? Effect Is anyone better off? Performance Measures

Effort Effect How Much How Well Performance Measures

How much service did we deliver? Performance Measures How well did we deliver it? How much change / effect did we produce? What quality of change / effect did we produce? Quantity Quality Effect Effort Output Input

How much did we do? Performance Measures How well did we do it? Is anyone better off? Quantity Quality Effect Effort # %

How much did we do? Education How well did we do it? Is anyone better off? Quantity Quality Effect Effort Number of students Student-teacher ratio Number of high school graduates Percent of high school graduates

How much did we do? Education How well did we do it? Is anyone better off? Quantity Quality Effect Effort Number of students Student-teacher ratio Percent of 9 th graders who graduate on time and enter college or employment after graduation Number of 9 th graders who graduate on time and enter college or employment after graduation

How much did we do? Drug/Alcohol Treatment Program How well did we do it? Is anyone better off? Number of persons treated Percent of staff with training/ certification Number of clients off of alcohol & drugs - at exit - 12 months after exit Percent of clients off of alcohol & drugs - at exit - 12 months after exit Quantity Quality Effect Effort

How much did we do? Fire Department How well did we do it? Is anyone better off? Number of responses Response Time Quantity Quality Effect Effort # of fires kept to room of origin % of fires kept to room of origin

How much did we do? General Motors How well did we do it? Is anyone better off? # of production hrs # tons of steel Employees per vehicle produced # of cars sold $ Amount of Profit $ Car value after 2 years Quantity Quality Effect Effort Source: USA Today 9/28/98 % Market share Profit per share % Car value after 2 years

How much did we do? Personnel Department How well did we do it? Is anyone better off? Quantity Quality Effect Effort Number of Applicants Processed Average Recruitment Period Workforce New Hires Workforce Turnover Rate (non-promotions) Customer Satisfaction

How much did we do? Information Technology (MIS) How well did we do it? Is anyone better off? Quantity Quality Effect Effort Number of IT projects Average Response time to Svc requests Amount of Unscheduled Downtime Rate of Unscheduled Downtime Customer Satisfaction

How much did we do? Policy Development How well did we do it? Is anyone better off? Quantity Quality Effect Effort Number of policy projects Percent of projects on track Percent of comments fully addressed Number of comments fully addressed

How much did we do? Volunteering How well did we do it? Is anyone better off? Quantity Quality Effect Effort Number of volunteers Percent involved 1 year or more Number who say their participation made a difference Percent who say their participation made a difference

How much did we do? Performance Accountability Types of Measures found in each Quadrant How well did we do it? Is anyone better off? # Clients/customers served # Activities (by type of activity) % Common measures e.g. client staff ratio, workload ratio, staff turnover rate, staff morale, % staff fully trained, % clients seen in their own language, worker safety, unit cost % Skills / Knowledge (e.g. parenting skills) # % Attitude / Opinion (e.g. toward drugs) # % Behavior (e.g.school attendance) # % Circumstance (e.g. working, in stable housing) # % Activity-specific measures e.g. % timely, % clients completing activity, % correct and complete, % meeting standard Point in Time vs. 2 Point Comparison # %

How much did we do? Choosing Headline Measures and the Data Development Agenda How well did we do it? Is anyone better off? Quantity Quality Effect Effort # Measure # Measure # Measure # Measure # Measure # Measure # Measure #1 Headline #2 Headline #3 Headline #1 DDA #2 DDA #3 DDA % Measure % Measure % Measure % Measure % Measure % Measure % Measure # Measure # Measure # Measure # Measure # Measure # Measure # Measure % Measure % Measure % Measure % Measure % Measure % Measure % Measure

LR UR Primary v. Secondary Direct v. Indirect Internal v. External Baseline & Story

How Population & Performance Accountability FIT TOGETHER

Every time you present your program, Use a two-part approach. Result: to which you contribute to most directly. Indicators: Story: Partners: What would it take?: Your Role: as part of a larger strategy. Population Accountability Program: Performance measures: Story: Partners: Action plan to get better: Performance Accountability Your Role

Result: to which you contribute to most directly. Indicators: Story: Partners: What would it take?: Your Role: within the larger strategy. Population Accountability Program: Performance measures: Story: Partners: Action plan to get better: Performance Accountability Your Role Every time you present your program, Use a two-part approach.

Every time you present your program, Use a two-part approach. Result: to which you contribute to most directly. Indicators: Story: Partners: What would it take?: Your Role: as part of a larger strategy. Population Accountability Program: Performance measures: Story: Partners: Action plan to get better: Performance Accountability Your Role Shortcut

IN CLOSING

Well-Known Alternatives to Results-Based Budgeting ● Line Item Budgeting ● Program Budgeting ● Zero-based Budgeting ● Needs-Based Budgeting ● Program Planning and Budgeting ● Bottom Line Budgeting ● Management by Objectives Budgeting

LESS Well-Known Alternatives to Results-Based Budgeting ● Fear-Based Budgeting ● Fantasy-Based Budgeting ● Power-Based Budgeting ● Guess-Based Budgeting ● Guilt-Based Budgeting ● Caffeine-Based Budgeting ● Carbon-Based Budgeting ● Bouillabaissed Budgeting

“If you do what you always did, you will get what you always got.” Kenneth W. Jenkins President, Yonkers NY NAACP

“We will succeed together… or fail separately.” - Winston Churchill or - Sonny and Cher

Book - DVD Orders amazon.com resultsleadership.org THANK YOU ! Websites raguide.org resultsaccountability.com

“Data is the unblinking eye of reform.” Barbary Curley, Area Director, Hyde Park Office, Boston

A Stable, Secure, Inclusive INTERNET that supports the world economy and the world community ICANN Population Result Version 2

INTERNET REPORT CARD What measures do you use? What do the data baselines look like? What is the story behind the baselines? STRATEGIC ROLE OF ICANN GLOBAL STRATEGIC THINKING HEALTHY INTERNET (per prior page definition)

Stable: Rate of IPv6 adoption: 2008 less than 1% in any country Secure: Rate of significant viruses and security breeches Inclusive: Percent of world population with internet access Supports world economy: Percent of world GDP related to internet commerce Supports world community: Per capita rate of internet traffic Results and Possible Indicators

Results-Based Accountability COMMON LANGUAGE COMMON SENSE COMMON GROUND

THE LANGUAGE TRAP Too many terms. Too few definitions. Too little discipline Benchmark Target IndicatorGoal Result Objective Outcome Measure Modifiers Measurable Core Urgent Qualitative Priority Programmatic Targeted Performance Incremental Strategic Systemic Lewis Carroll Center for Language Disorders

DEFINITIONS Children born healthy, Children ready for school, Safe communities, Clean Environment, Prosperous Economy Rate of low-birthweight babies, Percent ready at K entry, crime rate, air quality index, unemployment rate 1. How much did we do? 2. How well did we do it? 3. Is anyone better off? RESULT or OUTCOME INDICATOR or BENCHMARK PERFORMANCE MEASURE A condition of well-being for children, adults, families or communities. A measure which helps quantify the achievement of a result. A measure of how well a program, agency or service system is working. Three types: Population Performance Children born healthy Rate of low-birthweight babiesPercent ready at K entry Children ready for school crime rate Safe communities air quality index Clean Environment unemployment rate Prosperous Economy INDICATOR RESULT PERFORMANCE MEASURE Population Performance = Customer Results

From Ends to Means ENDS MEANS From Talk to Action Population Performance RESULT INDICATOR PERFORMANCE MEASURE Customer result = Ends Service delivery = Means From Talk to Action

Results – Indicators – Performance Measures in Amharic, Cambodian, Laotian, Somali, Spanish, Tigrigna, Vietnamese

The Three L’s of Success in any serious change effort 1. Leadership 2. Language Searching for the 3 rd L Leverage Latitude Levity Lithium Luggage

Criteria for Choosing Indicators as Primary vs. Secondary Measures Communication Power Proxy Power Data Power Does the indicator communicate to a broad range of audiences? Does the indicator say something of central importance about the result? Does the indicator bring along the data HERD ? Quality data available on a timely basis.

Choosing Indicators Worksheet Outcome or Result_______________________ Candidate Indicators Communication Power Proxy Power Data Power H M L H Measure 1 Measure 2 Measure 3 Measure 4 Measure 5 Measure 6 Measure 7 Measure 8 H D ata D evelopment A genda Safe Community H M L H M L H H H L

Three Part Indicator List for each Result Part 1: Primary Indicators Part 2: Secondary Indicators Part 3: Data Development Agenda ● 3 to 5 “Headline” Indicators ● What this result “means” to the community ● Meets the Public Square Test ● Everything else that’s any good (Nothing is wasted.) ● Used later in the Story behind the Curve ● New data ● Data in need of repair (quality,timeliness etc.)

Leaking Roof (Results thinking in everyday life) Experience Measure Story behind the baseline (causes) Partners What Works Action Plan Inches of Water BASELINE ? Fixed Not OK Turning the Curve Action Plan # 2

The Matter of Baselines Baselines have two parts: history and forecast H M L History Forecast Turning the Curve Point to Point OK?

MADD

Rebound

Source: Connexions Tyne and Wear, UK Newcastle, UK Revised 9 Nov 2007 Nov 08 – Jan

- Rosell “If I include you, you will be my partner. If I exclude you, you will be my judge.”

RBA Categories Account for All Performance Measures (in the history of the universe) Quantity Quality Efficiency, Admin overhead, Unit cost Staffing ratios, Staff turnover Staff morale, Access, Waiting time, Waiting lists, Worker safety Customer Satisfaction (quality service delivery & customer benefit) Cost / Benefit ratio Return on investment Client results or client outcomes Effectiveness Value added Productivity Benefit value Product Output Impact Process Input Effect Effort Cost Total Quality Mgmt (TQM) Effectiveness Efficiency Admin overhead, Unit cost

Quantity Quality Efficiency, Admin overhead, Unit cost Staffing ratios, Staff turnover Staff morale, Access, Waiting time, Waiting lists, Worker safety Customer Satisfaction (quality service delivery & customer benefit) Cost / Benefit ratio Return on investment Client results or client outcomes Effectiveness Value added Productivity Benefit value Process Input Effect Effort Cost Product Output Impact RBA Categories Account for All Performance Measures (in the history of the universe) Total Quality Mgmt (TQM)

Quantity Quality Efficiency, Admin overhead, Unit cost Staffing ratios, Staff turnover Staff morale, Access, Waiting time, Waiting lists, Worker safety Customer Satisfaction (quality service delivery & customer benefit) Cost / Benefit ratio Return on investment Client results or client outcomes Effectiveness Value added Productivity Benefit value Process Input Effect Effort Cost 1. Did we treat you well? 2. Did we help you with your problems? * Product Output Impact RBA Categories Account for All Performance Measures (in the history of the universe) * World’s simplest complete customer satisfaction survey Total Quality Mgmt (TQM)

Quantity Quality Efficiency, Admin overhead, Unit cost Staffing ratios, Staff turnover Staff morale, Access, Waiting time, Waiting lists, Worker safety Customer Satisfaction (quality service delivery & customer benefit) Cost / Benefit ratio Return on investment Client results or client outcomes Effectiveness Value added Productivity Benefit value Process Input Effect Effort Cost Product Output Impact OBA Categories Account for All Performance Measures (in the history of the universe) Total Quality Mgmt (TQM)

How much did we do? The Matter of Control How well did we do it? Is anyone better off? Quantity Quality Effect Effort Least Control PARTNERSHIPS Most Control

The Matter of Use 1.The first purpose of performance measurement is to IMPROVE PERFORMANCE. 2. Avoid the performance measurement equals punishment trap. ● Create a healthy organizational environment. ● Start small. ● Build bottom-up and top-down simultaneously.

1. To Ourselves Can we do better than our own history? 2. To Others When it is a fair apples/apples comparison. 3. To Standards When we know what good performance is. Comparing Performance

2. To Others When it is a fair apples/apples comparison. 3. To Standards When we know what good performance is. Comparing Performance 1. To Ourselves First Can we do better than our own history? Using a Baseline CHART ON THE WALL

CHARTS on the WALL

CHARTS ON THE WALL

Comparing Performance 1. To Ourselves First Can we do better than our own history? 2. To Others When it is a fair apples/apples comparison. Reward?Punish? 3. To Standards When we know what good performance is.

1. To Ourselves First Can we do better than our own history? 2. To Others When it is a fair apples/apples comparison. Comparing Performance 3. To Standards When we know what good performance is.

The Matter of Standards Quantity Effect Effort 1. Quality of Effort Standards are sometimes WELL ESTABLISHED ● Child care staffing ratios ● Application processing time ● Handicap accessibility ● Child abuse response time 2. Quality of Effect Standards are almost always EXPERIMENTAL ● Hospital recovery rates ● Employment placement and retention rates ● Recidivism rates ● School reading scores 3. Both require a LEVEL PLAYING FIELD and an ESTABLISHED RECORD of what good performance is. BUT AND

Advanced Baseline Display Your Baseline Comparison Baseline Goal (line) Target or Standard Instead: Count anything better than baseline as progress. Avoid publicly declaring targets by year if possible. ● Create targets only when they are: FAIR & USEFUL x

How much did we do? Not All Performance Measures Are Created Equal How well did we do it? Is anyone better off? Least Important Quantity Quality Effect Effort Most Important Least Most Also Very Important Quality

© The Farside 1989 " Bummer of a Birthmark Hal "

Next Generation Contracting Quantity Effect Effort 3. What we purchase in the lower quadrants are not deliverables, but rather a RELATIONSHIP where funder and grantees work together to maximize customer results. WHICH MEANS BUT 2. They break down in the Is anyone better off? quadrants (because of case mix differences and perverse incentives). 1. Traditional purchasing methods work fine in the upper quadrants. Quality

How much did we do? Program Performance Measures How well did we do it? Is anyone better off? Quantity Quality Effect Effort # %

Lay Definition All Data have two Incarnations Technical Definition HS Graduation Rate % enrolled June 1 who graduate June 15 % enrolled Sept 30 who graduate June 15 % enrolled 9 th grade who graduate in 12th grade

Select 3 to 5 Performance Measures at each level of the organization – 5 most important or composites “Get over it!” Be disciplined about what’s most important. Don’t get distracted. ?..

Contribution relationship Alignment of measures Appropriate responsibility THE LINKAGE Between POPULATION and PERFORMANCE POPULATION ACCOUNTABILITY Healthy Births Rate of low birth-weight babies Children Ready for School Percent fully ready per K-entry assessment World-class workforce Percent of adults with higher education degrees CUSTOMER RESULTS # students Student / teacher ratio # with 5 A-C GCSE’s % with 5 A-C GCSE’s PERFORMANCE ACCOUNTABILITY POPULATION RESULTS Local Education Agency

Performance measure Population Indicator

Division #1 Program #1

Different Kinds of Progress 1. Data a. Population indicators Actual turned curves: movement for the better away from the baseline. b. Program performance measures: customer progress and better service: How much did we do? How well did we do it? Is anyone better off? 2. Accomplishments: Positive activities, not included above. 3. Stories behind the statistics that show how individuals are better off.

Board of Directors Meeting AGENDA 1. New data 2. New story behind the curves 3. New partners 4. New information on what works. 5. New information on financing 6. Changes to action plan and budget 7. Adjourn 1. New data 2. New story behind the curves 3. New partners 4. New information on what works. 5. New information on financing 6. Changes to action plan and budget 7. Adjourn

3 - kinds of performance measures. How much did we do? How well did we do it? Is anyone better off? RBA in a Nutshell 2 – kinds of accountability Population accountability Performance accountability 7 - questions from ends to means in less than an hour. plus language discipline Results & Indicators Performance measures