Performance Budget
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COLLEGE OF MICRONESIA - FSM
PLANNING & RESOURCES COMMITTEE
SEPTEMBER 23, 2009
Performance budgeting - guiding principles
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• Be focused on outcomes
• Provide simple, accessible information
• Be understood and used by all
• Be flexible and responsive to the customer
• Support interdepartmental efforts
• Measure achievement
• Encourage continuous improvement
• Assist with strategic planning and demand
management
Performance budgeting - what it does
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 States desired core outcome to be achieved
 Measures the success in achieving results
 Helps focus on the high-level outcomes desired
 Makes the budget more understandable and
relevant to the community
 Empowers staff with flexibility
 Shows success more comprehensively and clearly
(Measures overall service effectiveness)
 Better alignment:
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organizational structure, processes, customerdriven, performance appraisal, training
Performance based budgeting and management
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 Links $$ with results
 Focuses government on key priorities
 Provides legislature with more information to set
budget
 Enables holding departments accountable
 Provides monitoring and reporting framework
 Provides managers information necessary to
improve
IPOLO
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Link
Input
Process/
Activity
Output
Outcome
What are outcomes?
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•They define the purpose of a service
•Why are we here?
•What results can we expect from our efforts?
•Programs are created around outcomes
•Only core outcomes are measured
Program outcomes statements
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 WHY? (outcome)
 A statement of the ultimate goal
 HOW? (services)
 A statement of the broad service areas
 HOW WELL? (measures)
 Specific measurements of success

Four standard measures: Customer Satisfaction, Cost Efficiency,
Budget/Cost Ratio, Individual Measures
Measures
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 How Well? Measurement of the Success in Achieving
the Core Outcome(s).
 Only high level measures should be used.
 The outcome measures should focus on quality, effectiveness
and efficiency.
 What results you need to determine whether the purpose has
been met.
 What performance targets (service standards) should be set?
 Is there at least one measure for each “by” or “through”
(strategies) statement?
Measures
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 Be based on program goals or objectives that tie to a
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statement of program mission or purpose
Measure program results or accomplishments
Provide for comparisons over time
Measure efficiency and effectiveness
Be reliable, verifiable and understandable
Be reported internally and externally
Be monitored and used in decision-making
Accreditation issues
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 Linking
 Planning
 Assessment (including program review)
 Resource allocation
 Commitment to continuous improvement
 Culture of evidence
 No “trust me”
 Data is presented to support statements
 Assumptions are recognized as assumptions and tests are
made to determine there validity
What is in place at COM-FSM? Strategic plan
(planning)
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 Sets mission, values and priority goals of the college
 Continuous improvement cycle
 Balanced scorecard – key results by strategic goal
(measures)
 Improvement plans (IAP worksheet #1)
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Links to institutional mission and goals (links to institutional
outcomes to be included in revision)
Links to program mission and goals
What is to be accomplished (results)
Strategies by which it will be accomplished
Criteria for success established
Linked to revised performance evaluation for supervisors
What is in place at COM-FSM? IAP
Assessment Process
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 Assessment plans (IAP worksheet #2)
Links to intuitional mission and goals
 Links to program mission and goals
 Evaluation questions for each improvement outcome/objective
 Criteria by which you determine success
 Data sources, sampling analysis identified
 Timelines and who is responsible
 Assessment reports (IAP worksheet #3)
 Were the Improvement outcomes/results achieved to the specified
criteria?
 Closing the Loop – linked to program and institutional mission and
goals

What is in place at COM-FSM? IAP
Assessment Process
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 IAP Handbook
 Background on quality instruction and services
 Definition of assessment
 Assessment techniques
 Worksheets & directions
Improvement plan - objectives/outcomes for performance budget
(worksheet #1)
 Assessment plan (worksheet #2)
 Assessment report – closing the loop (worksheet (#3)
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Assistance with student learning outcomes and services
objectives/outcomes
What is in place at COM-FSM?
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 Policy on continuous improvement cycle
 Links
Strategic plan
 IAP assessment
 President’s retreat (priority setting)
 Budget (performance)
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Processes and procedures to follow at each stage
Focuses the college on continuous improvement at all levels
What’s remaining? Performance budgeting
(putting in place)
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 Determines what is to be accomplished
 Based on IAP improvement plan (worksheet #1)
 Impacted by assessment report that determines if success criteria
was achieved for key results
 Closes the Loop on the improvement cycle (worksheet #3)
 Allocates resources based on results to be obtained
 Recognizes success and failure
 Drives line item budget
 Links budget items to what is to be accomplished
 Basis for monitoring and reporting
 Allocates time as well as dollars ($)
Key results/outcomes for COM-FSM
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 Institutional & campus levels
 Graduation rates
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Retention rates
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Based on meeting institutional, program and course student learning
outcomes
Progression
Persistence
Transfer rates (internal & external)
Course completion rates
Program completers
Job placement
Employer satisfaction
Others.
Quality, effectiveness and efficiency
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 Improvement of quality of services
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Instructional techniques that promote increased student learning (meeting
student learning outcomes at course, program and institutional level)
Satisfaction rates (surveys to be administered in mid October) for colleges
programs and services (instructional, student and administrative services)


Students
Faculty/staff
 Effectiveness and efficiency
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Increased productivity (even with reduced resources)
Increased accuracy
Increased satisfaction
 Rating on student services and administrative services program rubrics
 Assists with setting improvement needs (student services developed,
administrative services under development)
Roles & responsibilities
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 Vice President’s and Campus Directors
 Ensure that the sum of instructional, student and administrative
services result in improvement of key results at each campus and in
each service area.
 Ensure that key results/outcomes are meet
 Ensures focus on clients (students, community, leaders)
 IC, SSC, Office Directors
 Ensure that programs and offices support key results/outcomes of
the college
 Continually improving quality, effectiveness and efficiency of
instruction and program services
 Ensures focus on clients (students, community, leaders)
Changes
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 What gets measured gets done.
 If you don’t measure results, you can’t tell success from
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failure.
If you can’t see success you can’t reward it.
If you can’t reward success, you may be rewarding failure.
If you can’t recognize failure, you can’t correct it.
If you can demonstrate results, you can win public support.
Systems and culture must change
Push authority and flexibility to lowest levels
Aligning organizational infrastructure to support a
performance management environment
Evolutionary process -- not a quick fix
Implementation Issues
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 Determine results to be obtained (quantities, high
level)
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Measures & data sources
 Writing SMART Objectives/outcomes with by or
through strategies & activities
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Identify outputs for use with FSM BPS
 Link to results and SMART objectives
 Financial resources ($ allocation)
 Human resources (time allocation)
 Monitoring & reporting
 Reporting accomplishments against plans
Changes
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 Focus on results/outcomes
 Accountability defined at institution, campus,
program levels
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Success recognized
Failure recognized
Rewards and incentives for quality work
 Transparent in allocation and use of resources
 All programs and services addressed
 Monitoring & reporting
 Accomplishments/results against plans
 Measures
SMART goals and objectives
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 S = Specific
 M = Measurable
 A = Attainable
 R = Realistic
 T = Timebound
SMARTer, C-SMART & SMART - S
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 SMARTer
 SMART objectives that are


Extending
Reviewed
 C – SMART
 SMART Objectives that are also CHALLENGING
 SMART – S
 SMART objectives that are also stretching
Types of objectives
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 Process objectives
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lets you know what you are doing and how you will do it; describes
participants, interactions and activities
 Impact objectives
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lets you know what the long term implications of your program[me]/ activity
will be; describes the longer term impact on your target audience or
organization
 Outcome objectives
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lets you know how you will change attitudes, knowledge or behavior (short
term); describe the degree to which you expect this change
 Personal objectives
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SMARTer objectives are often written for project management or business
and performance management, however as individuals in our personal
development plans, SMARTer objectives are also a valuable formula within
which to set and individual measure performance.
Specific
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S
Specific
Stimulating
Simple
Stretching
Succinct
Straight
forward
Self owned
Self managed
Self
controlled
Significant
Strategic
Sensible
Measurable
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M
Measurable Motivating
Manageable
Meaningful
Magical
Magnetic
Maintainable
Mapped to
goals
Achievable
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A
Achievable
Appropriate
Actionable
Attainable
Ambitious
Aspirational
Accepted/
acceptable
Aligned
Accountable
Agreed
Adapted
Assignable
As-if-now
Adjustable
Adaptable
Realistic
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R
Realistic
Relevant
Results
Orientated
Resources are
adequate
Resourced
Rewarding
Recorded
Reviewable
Robust
Relevant to a
mission
Timebound
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T
Time-..
bound
limited
driven
constrained
related
phased
sensitive
specific
stamped
lined
Tangible-
Trackable
Traceable
Timed/ Timely
Toward what
you want
SMARTer Extending & Reviewed
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E
Extending
Exciting
Evaluated
Engaging
Energising
Ethical
Enjoyable
R
Reviewed
Rewarding
Recorded
Realistic
Relevant
Resourced
Research Based
Definitions
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Specific
Measurable
Achievable
Realistic
Time
Objectives
should specify
what they
need to
achieve
You should be
able to
measure
whether you
are meeting
the objectives
or not
Are the
objectives you
set, achievable
and
attainable?
Can you
realistically
achieve the
objectives
with the
resources you
have?
When do you
want to
achieve the set
objectives?
Detail Specific
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Acronym
element
Description
Diagnostic Questions
Specific
Specific means that the objective is concrete, detailed,
focused and well defined.

The objective must be straight forwards and emphasize 
action and the required outcome.
Specific also means that it’s results and actionorientated.
Objectives need to be straightforward and to
communicate what you would like to see happen. To
help set specific objectives it helps to ask:

WHAT am I going to do? This are best written using
strong, action verbs such as conduct, develop, build, plan,
execute, etc. This helps your objective to be actionorientated and focuses on what’s most important.
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WHY is this important for me to do?
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WHO is going to do what? Who else need to be involved?
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WHEN do I want this to be completed?
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HOW am I going to do this?
What exactly are we going to do, with
or for whom?
What strategies will be used?

Is the objective well understood?

Is the objective described with action
verbs?
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Is it clear who is involved?

Is it clear where this will happen?
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Is it clear what needs to happen?
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Is the outcome clear?

Will this objective lead to the desired
results?
Detail Measurable
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Measurable If the objective is measurable, it means that the
measurement source is identified and we are
able to track the actions as we progress towards
the objective. Measurement is the standard used
for comparison.
For example, what financially independence
means to one person, may be totally different
compared to what is means for another.
If you cannot measure it .. you cannot manage it
It’s important to have measures that will
encourage and motivate you on the way as you
see the change occurring, this may require
interim measures.
Measurements (and the visible progress) go
along way to help us to know when we have
achieved our objective.

How will I know that the
change has occurred?

Can these measurements be
obtained?
Achievable
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Achievable
Objectives need to be achievable, if the
objective is too far in the future, you’ll
find it difficult to keep motivated and to
strive to attain it.
Objectives, unlike your aspirations and
visions, need to be achievable to keep
you motivated.
Objectives need to stretch you, but not so
far that you become frustrated and lose
motivation.

Can we get it done in the
proposed timeframe?

Do I understand the
limitations and constraints?
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Can we do this with the
resources we have?
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Has anyone else done this
successfully?
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Is this possible?
Realistic
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Realistic
Objectives that are achievable, may not
be realistic….. however, realistic does
not mean easy. Realistic means that you
have the resources to get it done.
The achievement of an objective requires
resources, such as, skills, money,
equipment, etc. to the task required to
achieve the objective. Whilst keeping
objectives realistic, ensure that they
stretch you.
Most objectives are achievable but, may
require a change in your priorities to
make them happen.

Do you have the resources
available to achieve this
objective?

Do I need to revisit
priorities in my life to make
this happen?

Is it possible to achieve this
objective?
Timebound
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Time
Time-bound means setting a
deadlines for the achievement of the
objective. Deadlines need to be both
achievable and realistic.
If you don’t set a time you will
reduce the motivation and urgency
required to execute the tasks. Agreed
Time frames create the necessary
urgency and prompts action.

When will this objective
be accomplished?

Is there a stated
deadline?
Examples
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 Campus retention rate will increase to 60% from Fall
2009 to Fall 2010 by:
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Strategy 1
Strategy 2
 Campus graduation rate will increase to 10% for Fall
2007 cohort by:
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Strategy 1
Strategy 2
Examples
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 By the end of the asthma management classes, 75% of patients will be
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able to describe and demonstrate the correct use of a Peak-Flow Meter.
By May 10, 2009 the Health Education staff from the Stroke
Association will have planned and conducted 4 skills building
workshops for 50 carers of recently diagnosed Stroke patients at the
Chiswick training centre.
Profitability Objectives - To achieve a 25% return on capital employed
by August 2009.
Market Share Objectives - To gain 25% of the market for sports shoes
by September 2009
Promotional Objectives 

To increase awareness of the dangers of flowers in Wales from 12% to 25%
by June 2009.
To increase trail of X washing powder from 2% to 5% of our target group by
January 2009.
Exercise
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What are your priorities?
1.
1.
2.
3.
Review strategic plan
Review improvement plans
Review assessment reports
2. What measures are appropriate for your area?
1.
Review balanced scorecard
2.
Review assessment plan
3. Write SMART objectives plus strategies based on
your priorities and measures.
Exercise
40
 What resources are needed to accomplish your
improvement plan SMART objectives/outcomes?
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Human
Financial