1. Advances in Aligning Performance Data and Budget Information:
Moving Beyond Simple Metric Tracking and Position Management
Malena Brookshire, MPA, CGFM, PMP
Presented November 4th, 2014

2. Introduction GPRA Modernization Act Overview
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Introduction
GPRA Modernization Act Overview
The Trend Toward Evidence-based Budget Requests
Traditional Performance Management
Integrated Performance Management
Applying Integrated Performance Management

3. GPRA Modernization Act: Overview
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GPRA Modernization Act: Overview
In January 2011, President Obama signed into law the Government Efficiency, Effectiveness, and Performance Improvement Act of 2010 (GPRA Modernization Act of 2010) updating the nearly 20-year-old Government Performance and Results Act of 1993 (GPRA)
The Act creates a more defined performance framework by establishing a governance structure and by better connecting agency strategic plans, programs, and performance information 
The Act requires more frequent agency performance reporting and reviews intended to increase the use of performance information in program and resource decision-making
The Act encourages the use of explicit performance data to implement programs, and encourages agencies to be more results oriented

4. GPRA Modernization Act: Overview
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GPRA Modernization Act: Overview
Specific elements of the Act include:
Codification of existing governance framework, creating (1) agency Chief Operating Officers and Performance Improvement Officers, (2) a government-wide Performance Improvement Council, and (3) a government-wide performance website
Revised agency strategic planning requirements
Revised agency performance planning and quarterly reporting requirements
New requirements to designate cross-cutting federal priority goals and agency-level priority goals
New requirements for quarterly reviews and reporting of governmentwide and agency-level priority goals.

5. GPRA Modernization Act: Overview
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GPRA Modernization Act: Overview
The Act aims to achieve four main objectives:
Effective government achieves what it sets out to accomplish
Efficient and productive government finds the most cost-effective ways to achieve outcomes
Open and transparent government engages the public
Fair, equitable, and honest government

6. Evidence-based Budgeting
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Evidence-based Budgeting
Traditional approaches:
Using rigorous evaluations of programs' performance as part of the budget-setting process.
Pay for success" model, where federal funding is provided to a program only after the program shows results.

7. Evidence-based Budgeting
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Evidence-based Budgeting
Current best practices:
Less about the use of evidence in backing up budget requests than it is about agencies using resources, even in tight budget times, to gather evidence about programs
New and less expensive methods for gathering evidence have been developed in recent years, and in many cases, agencies are already gathering some of the needed data for their internal performance improvement initiatives

8. Traditional Performance Management Process
Strategic Planning
Performance Measurement
Organizations identify mission and vision
Organizations identify strategic objectives and priorities
Organizations design performance metrics and indicators to measure progress in achieving objectives
Performance Data Analysis and Reporting
Metrics are used to analyze performance
Performance Data Reporting
Translate analysis into reports and dashboards
Strategic Review meetings take place to discuss opportunities for improvements
Aligning Resources and performance improvement
Close performance gaps by properly allocating resources
The SEC’s annual budget formulation process begins with the preparation of the Authorization Request to Congress, which is due each year by May 15th
This is unique to SEC. Most agencies at this time are analyzing their bureau and offices budget requests through what some term “Spring Call”.
This Request often explains the overall funding and staffing levels sought, as well as narrative description of the agency’s priorities for using the resources requested. The Authorization Request submission also can contain legislative proposals, incorporated in consultation with the Office of Legislative and Intergovernmental Affairs (OLIA). The authorization requires approval from all Commissioners of the SEC, usually obtained through seriatim consideration.
After final approval by the Commission, the Authorization Request is then submitted to the Chair for signature and submitted to Congress. The Authorization Request is due to the House Financial Services Committee (FSC) and the Senate Banking, Housing, and Urban Affairs Committee by May 15.
The Authorization request sets the stage for developing subsequent, more detailed, budget requests to OMB and Congress.
I am passing around the FY 2016 Authorization Request now for your reference.
This process is fluid. For example, this year we did not issue a call in the Spring for your resource (staffing) requirements. This year we are doing this in preparation for the OMB submission.

9. Traditional Performance Management Process
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Traditional Performance Management Process
Pitfalls
Narrowly focused on collecting and reporting performance data
Using data only to justify increases/decreases in resource allocation
Define strategies then move on to measuring performance
Linear

10. Integrated Performance Management Process
Program
Management
Risk
Management
Financial Planning
Performance Reporting
Program project deliverables need to be aligned with priorities
Projects identified should be aligned with available resources
Assess risk in relation to all performance drivers
Not focused solely on financial and budgetary risks
Continuous inflow of financial and budget data to ensure resource are properly allocated
Resources should be spent on those priorities that matter the most
Program project deliverables need to be aligned with priorities
Reporting is available to both internal and external stakeholders
Program management
The SEC’s annual budget formulation process begins with the preparation of the Authorization Request to Congress, which is due each year by May 15th
This is unique to SEC. Most agencies at this time are analyzing their bureau and offices budget requests through what some term “Spring Call”.
This Request often explains the overall funding and staffing levels sought, as well as narrative description of the agency’s priorities for using the resources requested. The Authorization Request submission also can contain legislative proposals, incorporated in consultation with the Office of Legislative and Intergovernmental Affairs (OLIA). The authorization requires approval from all Commissioners of the SEC, usually obtained through seriatim consideration.
After final approval by the Commission, the Authorization Request is then submitted to the Chair for signature and submitted to Congress. The Authorization Request is due to the House Financial Services Committee (FSC) and the Senate Banking, Housing, and Urban Affairs Committee by May 15.
The Authorization request sets the stage for developing subsequent, more detailed, budget requests to OMB and Congress.
I am passing around the FY 2016 Authorization Request now for your reference.
This process is fluid. For example, this year we did not issue a call in the Spring for your resource (staffing) requirements. This year we are doing this in preparation for the OMB submission.
Continuous review of the above management processes

11. Integrated Performance Management Process
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Integrated Performance Management Process
Benefits
Project deliverables can be prioritized based on strategic need
Monitoring risk in relation to all performance and management drivers allows better identification of key performance drivers
More immediate updates to budgets and forecasts
Performance successes and challenges are more easily identified when taking a continuous assessment of all drivers

12. Applying Integrated Performance Management
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Applying Integrated Performance Management
Budget Analysts and Program & Management Analysts
The SEC’s Office of Financial Management Planning, Performance, and Budget Formulation Branch (PPBF) specializes in agency-wide strategic planning; reporting, analyzing, and monitoring agency- wide performance goals; evaluating the effectiveness of SEC programs; and resource allocation through budget formulation.
PPBF analysts help the agency and the Commission establish strategic goals and outcomes used to, among other things, develop agency-wide strategic plans, make budget decisions, and set targets for program performance.
PPBF analysts also collaborate with other government agencies through various inter-agency groups and organizations, and communicate performance improvements to the Chairman, Commissioners, executive management and the public.

13. Applying Integrated Performance Management
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Applying Integrated Performance Management
Planning, Performance, and Budget Formulation Governance Structure
The SEC’s Office of Financial Management Planning, Performance, and Budget Formulation Branch (PPBF) is part of the Chief Financial Officer’s Organization, which reports to the Chief Operating Officer
PPBF analysts work closely with Budget Execution staff to share budget information

14. Applying Integrated Performance Management
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Applying Integrated Performance Management
Performance Planning & Management and Budget Formulation at the SEC
Through various program initiatives, the SEC strives to achieve its mission by meeting performance targets and properly allocating resources
62 strategic initiatives, 35 performance goals, and 22 performance indicators are identified in the FY Strategic Plan
For each performance measure, analysts review actual performance level achieved, analyze performance results, and, when applicable, assist program offices with developing plans for improving performance data collection
For each program, analysts review FTE levels and funding in relation to various output and operational metrics

15. Applying Integrated Performance Management: Examples
Program
Management
Risk
Management
Financial Planning
Performance Reporting
Annual Budget Meetings with each agency organization
Projects identified at the strategic initiative level by subject matter experts during the strategic planning process
Close coordination and regular meetings help with the Office of Risk Management team
Formal process followed by agency executives to report the procedures by which performance data is collected and calculated
Close review of internal and external environment during the strategic planning process and again every two years
Quarterly review of financial inputs and spending of major programs
Most current data is used when doing budget formulation forecasting
Quarterly strategic reviews conducted at the Chair-level of the agency
Regular monitoring of progress toward achieving strategic objectives
Program management
The SEC’s annual budget formulation process begins with the preparation of the Authorization Request to Congress, which is due each year by May 15th
This is unique to SEC. Most agencies at this time are analyzing their bureau and offices budget requests through what some term “Spring Call”.
This Request often explains the overall funding and staffing levels sought, as well as narrative description of the agency’s priorities for using the resources requested. The Authorization Request submission also can contain legislative proposals, incorporated in consultation with the Office of Legislative and Intergovernmental Affairs (OLIA). The authorization requires approval from all Commissioners of the SEC, usually obtained through seriatim consideration.
After final approval by the Commission, the Authorization Request is then submitted to the Chair for signature and submitted to Congress. The Authorization Request is due to the House Financial Services Committee (FSC) and the Senate Banking, Housing, and Urban Affairs Committee by May 15.
The Authorization request sets the stage for developing subsequent, more detailed, budget requests to OMB and Congress.
I am passing around the FY 2016 Authorization Request now for your reference.
This process is fluid. For example, this year we did not issue a call in the Spring for your resource (staffing) requirements. This year we are doing this in preparation for the OMB submission.
Information is continuously shared between
Budget Analysts and Program & Management Analysts

16. Applying Integrated Performance Management
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Applying Integrated Performance Management
Success Factors and Lessons Learned
Budget formulation is the iterative process by which all these resources are identified, prioritized, requested and allocated
Political influences and environment
Make resource tradeoffs between competing needs

17. 9/16/2018
Questions?