Transcript Results-based Mgt

Results-Based Management
The Singapore MOF Perspective
Ravi Menon
Deputy Secretary
Ministry of Finance
The “animal school”
Do the Right Things
Do Things Right
Measure the Right Things;
Measure Things Right
Do the Right Things
The trilemma in
public policy
Striking a balance
Do Things Right
Measure the Right Things;
Measure Things Right
A tightening fiscal
position
WOG Balanced
Scorecard
The world is
changing
Thinking Blue Ocean
The trilemma in public policy
“The political problem of mankind is
to combine three things:
Economic Efficiency, Social Justice,
and Individual Liberty.”
John Maynard Keynes
Essays in Persuasion, 1931
Striking a balance
Opportunity
Globalised economy
Open to talent
Free competition
Stable environment
Strong families
Safe streets
National Identity
Social Equity
Inclusive Society
Security
Community
A tightening fiscal position
25
Total Revenue
20
15
Total Expenditure
% GDP
10
Budget Balance
5
0
-5
-10
FY86
FY88
FY90
FY92
FY94
FY96
FY98
FY00
FY02
FY04
FY06 (Bud)
Whole-of-Government Balanced Score-Card
The world is changing
Factor
Driven
Economy
Productivity
Driven
Economy
Knowledge
Driven
Economy
Creativity
Driven
Economy
(1960-1970)
(1970-1990)
(1990-2000)
(2000 onwards)
Resources
Efficiency
Information
Innovation
Thinking Blue Ocean
Compete in existing
market space
Create new market
space
Compete for customers
Seek “non-customers”
Compete on cost
Compete on value
Do the Right Things
Evolution of
Budgeting System
Budget Management
Framework
Do Things Right
Establish limits
Maximize discretion
Measure the Right Things;
Measure Things Right
Measure costs
Manage for
excellence
Public Service 21
Evolution of Singapore’s Budgeting System
• Line-item
budgeting
(until 1978)
• Block vote
budgeting
(1990 onwards)
• Budget Management
Framework
(2000)
• Programme
budgeting
(1978 onwards)
• Budgeting for
Results
(1996 onwards)
• Resource
Management
(2003)
1970s/1980s
1990s
2000
Control & Discipline Performance & Results Flexibility & Economy
Budget Management Framework
Desired
Outcomes
Secure Singapore
Responsible Government
•Long-term fiscal
sustainability
•Efficient & effective
public service
Principles,
Policies & Processes
Establish
limits
Block Budget Caps
Reinvestment Fund
Budget Utilisation
Framework
Maximise
discretion
3-yr Development
Block Vote system
Net Budgeting
Framework
Monitoring &
Evaluation
Budget Flexibility
Frameworks
Manage for
excellence
Best Sourcing
Resource Accounting
Resource Budgeting
DPC process
Cost norms for
government buildings
Measure
costs
Net Economic
Value
Interdepartmental
charging framework
PPP
Demand Aggregation/
Reverse Auctions
Economy Drive
Manpower Management
Debt-equity & capital
restructuring for SBs
Annual Strategic
Reviews
Sectoral Budget
Meetings
Budget Review
Meetings
(Are we doing the
right things?)
(Are we collaborating
across ministries?)
(Are we doing
things right?)
Establish limits
Block Budget Caps
Ministry budget set as a percentage of ‘smoothened’
GDP on multi-year basis
Reinvestment Fund
Reinvestment ‘dividends’ extracted from Ministries
and pooled, from which Ministries can bid for new,
innovative, and worthy programmes
Budget Utilisation Framework
Budget adjusted downwards to reflect real needs if
utilisation is less than 95% of allocated budget
Maximize discretion
Total Block System
Ministries free to spend and prioritize within their pre-determined
block budgets
Budget Flexibilities
Ministries can
●take Advances from future years’ budget
●make Rollover of savings in current year to following year
●accumulate and Carry-Forward unused funds for up to 3 years
Net Budgeting
Ministries given extra funding for new services if they can recover
extra costs through fees and charges
Measure costs
Resource
Accounts
To assign
resources
based on
full cost
of services
Resource
Budget
Efficient
management
of resources
Application of
accrual accounting
concepts to reflect the
full cost of operations
Measures how well
resources are utilised by
the organisation
NEV
Manage for excellence
Best-Sourcing
Market-test all non-core Government functions to select the
service provider who offers best value for money
Public-Private Partnerships
Enter long-term partnership arrangement with private sector to
provide services, moving away from directly owning and
operating assets
Economy Drive
Encourage and reward agencies to look for savings in day-to-day
operations
Public Service 21
Execute Change
Anticipate Change
Welcome Change
Be in Time for the Future
“Continuous Change”
Do the Right Things
Do Things Right
Einstein on KPIs
Ministry Report Cards
Measure the Right Things;
Measure Things Right
KPIs and Benchmarks
From BSC to
Workplans
Everything that can be
counted does not count;
everything that counts
cannot be counted.
Ministry Report Card
Key Performance Indicators
From BSC to Workplan
Example of how strategies
& targets are deployed at
the Directorate level
Balanced Budget
Questions?