Value-Based Enterprise Management in Government

Author: Gary Cokins

Public sector organizations at all levels and of all types are facing intense pressure to do more with less. Federal, national, provincial, state, county, municipal, and local governments in almost all the countries in the world are feeling some sort of fiscal squeeze. Pressures on governments around the world are forcing them to adopt “performance management” – a focus on accountability for outputs and outcomes rather cries for higher inputs (i.e., more budget funding and employees).

Value-Based Management strongly leverages seamlessly integrated multiple enterprise performance management (EPM) methods such as balanced scorecards, strategy maps, budgets, activity-based cost management (ABC/M), forecasts, and resource capacity planning. Are these fashionable fads or relevant solutions? EPM methods have been hailed as the new salvation for aligning an organization’s resources with its strategy to drive individual action. How widely accepted is the concept in government or in business?

The message to government is: better, faster, cheaper – hold the line on taxes but don’t let service slip. The imperative on governments for improved cost and yield management, planning, and budgeting can be met by enhancing cost accounting information. Fact-based data, robust analytics, accurate forecasts, and trade-off (what-if scenarios) are essential for strategy formulation, privatization and outsourcing studies, fee-based cost recovery systems, and competitive bidding.

Publication Date: February 2022

Designed For
null

Topics Covered

• What is Enterprise Performance Management?
• Long-Term Trends in Government
• Pain in Government Management
• Confusion and Lack of Consensus about EPM
• What is Analytics-based Enterprise Performance Management?
• What is Advanced Analytics?
• The Analytical Continuum
• Work Backwards with the End in Mind
• Business Intelligence versus Advanced Analytics
• Advanced Analytics — Insights and Actions
• Eight Pressures That Have Caused Interest In EPM
• Vision and Mission Statements
• Generic Strategy Map
• Generic Strategy Map Architecture
• The Key to Scorecards
• Scorecard Lessons Being Painfully Learned
• What Is the Difference Between KPIs and PIs
• Strategy Map Rapid Prototyping Workshop
• EPM as a Value Multiplier through Integration
• International Federation of Accountants Report
• Costing Continuum / Levels of Maturity
• EPM is Circulatory and Simultaneous
• The Intelligence Hierarchy
• The Buy-in to Performance Management
• Typical Excuses Preventing Being Progressive

Learning Objectives

• Recognize how to view enterprise and corporate performance management (EPM/CPM) as the seamless integration of managerial methods rather than as a process
• Identify how business analytics is an advance over business intelligence and where Big Data fits in
• Identify and differentiate strategic KPIs in a balanced scorecard and operational performance indicators (PIs) in dashboards
• Recognize how to properly calculate product, service-line, channel, and citizen related costs for analysis, insights and actions
• Recognize how to perform "predictive accounting" for driver-based budgets / rolling financial forecasts, what-if analysis, and outsourcing decisions
• Identify how to overcome implementation barriers such as behavioral resistance to change and fear of being held accountable
• Identify the type of EPM that is the integration of multiple methods with each embedded with advanced analytics
• Identify the type of analytic at the front of the analytical continuum
• Identify an example of proactive analysis
• Recognize the type of prototyping with iterative remodeling that enhances the use of the ABC system
• Identify the type of process on the intelligence hierarchy that has the highest ROI

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Business Management & Organization (2 hours)

Program Prerequisites
None

Advance Preparation
None