ACC4221_GA1 by Christy Chia Yee Yan

Outcome-based budgeting (OBB) in Canada

christychia1023 — 2024-07-09 11:25:54 UTC

Canada primarily uses a combination of traditional budgeting models, including incremental budgeting, zero-based budgeting, and program-based budgeting, with an increasing emphasis on results-based and outcome-based budgeting.

OVERVIEW

christychia1023 — 2024-07-09 11:31:09 UTC

SUCCESS FACTORS

christychia1023 — 2024-07-09 11:31:56 UTC

(4) Centralized Coordinating Body Organization

christychia1023 — 2024-07-09 11:32:50 UTC

New administrative and financial processes are imperative, and knowledge-sharing on best practices can expedite the learning curve for newcomers while fostering the creation of additional Outcomes-Based mechanisms.

(1) Data collection and Management

christychia1023 — 2024-07-09 11:35:46 UTC

Strong data infrastructure that supports accurate and timely data collection, management, and analysis is essential to measure performance and outcomes effectively. Ensuring relevant data is shared across departments and agencies enhances collaboration and provides a more comprehensive view of performance.

(2) Stakeholder Collaboration

christychia1023 — 2024-07-09 11:36:47 UTC

Establishing mechanisms to obtain regular feedback from these stakeholders helps refine goals, improve processes, and ensure accountability. This collaborative approach helps build consensus and fosters a shared commitment to achieving desired outcomes.

(3) Multi-level, Sustained Government Support

christychia1023 — 2024-07-09 11:38:47 UTC

The involvement of government leaders ensures that the practical aspects of OBB are managed effectively and that the transition to this new budget approach is smooth.

christychia1023 — 2024-07-09 11:41:06 UTC

Overall Effectiveness of OBB

2024-07-09 11:42:47 UTC

CHALLENGES FACES

christychia1023 — 2024-07-09 11:46:14 UTC

1)Alignment with Government Priorities

2024-07-09 11:48:45 UTC

Crime Reduction
Unemployment Reduction
Improved Access to Education and Healthcare

2)Enhanced Financial Standing and Reduced Debt

2024-07-09 11:50:16 UTC

Promotes efficient and effective resource use
Leads to better financial health

3)Expenditure Management System

2024-07-09 11:51:54 UTC

Management, Resources and Results Structures (MRRS)
Program Activity Architecture (PAA)
Performance Measurement Framework (PMF)

4)Management Accountability Framework (MAF)

2024-07-09 11:53:20 UTC

Assess deputies' ability to:
- Deliver outcomes
- Manage morale
- Reduce employee turnover
- Improve quality of management skills

5)Incremental and Steady Transformation

2024-07-09 11:54:17 UTC

Gradual implementation
Minimized disruption
Continuous improvement

6)Cross-Agency Planning and Collaboration

2024-07-09 11:56:11 UTC

Breaks down departmental silos
Facilitates shared outcomes

(5) Holistic Approach and Clear Mandate

christychia1023 — 2024-07-09 12:08:42 UTC

Canada’s adoption of OBB reflects a recognition that various outcomes, such as citizen satisfaction, environmental impact, and alignment with values measure government success. The public sector operates with a clear mandate to deliver tangible outcomes, ensuring that government activities and budget allocations are directed toward achieving specific, measurable results.

(6) Adaptability

christychia1023 — 2024-07-09 12:11:02 UTC

Canada’s approach to OBB is characterized by its adaptability, acknowledging that implementation varies across different areas of public spending. This flexibility allows for tailored budgeting strategies that address the unique needs and challenges of different sectors.

(7) Evidence-Based Decision-Making

christychia1023 — 2024-07-09 12:11:58 UTC

This evidence-based approach ensures that decisions are grounded in objective information, leading to more effective and efficient use of public funds.

(8) Performance Metrics

christychia1023 — 2024-07-09 12:13:14 UTC

Canada looks at various indicators to measure success, not just financial ones. For instance, transportation projects are judged by how well they reduce traffic, improve air quality, and satisfy the public, not just by how much they cost. This helps ensure that public spending is effective in many ways.

(9) Emphasis on Transparency and Accountability:

christychia1023 — 2024-07-09 12:14:20 UTC

This approach ensures that government spending is aligned with national priorities and provides clear metrics for evaluating the effectiveness of policies and programs.

1. ) Essential System of Implementation

2024-07-11 05:01:53 UTC

Service providers implementing Outcomes-Based models need effective governance, solid data infrastructure, adaptability. Strict measurement processes can limit providers' ability to adjust, hindering desired outcomes. Sharing data is challenging due to legal, regulatory restrictions.

Case study : Canada's Homelessness Management Information System (HMIS)

2024-07-11 05:02:45 UTC

2.) Measures without Owners

2024-07-11 05:04:48 UTC

An Outcome Owner is crucial for ensuring outcome realization, holding responsibility for taking necessary actions. The ownership is tied to a position to ensure continuity, rather than a person, and must have authority to act. Active accountability through refined position descriptions and job performance metrics is essential for successful Outcome Management.

3.) Lack of Performance Management System in Place

2024-07-11 05:09:38 UTC

Performance management is essential for monitoring, evaluating, and achieving desired outcomes. It aligns budget allocations with strategic goals and helps in making informed decisions about resource allocation. Challenges for organizations without a performance management system include :

a.) organizational resistance

b.) lack of tracking mechanisms

c.) distrust of systems

d.) technological impediments

e.) debates over appropriate measures.

Outcome-Based Budgeting (OBB):

i21020793 — 2024-07-13 14:50:10 UTC

Outcome-Based Budgeting (OBB):

Focus: Achieving specific, measurable outcomes
Approach: Strategic and goal-oriented
Data Use: Robust data collection; comprehensive performance metrics
Accountability: High transparency; regular progress reporting
Flexibility: Adapts to changing needs and priorities
Resource Allocation: Based on effectiveness and results
Example: Aligns spending with national priorities and SDGs

Traditional Budgeting:

i21020793 — 2024-07-13 14:52:23 UTC

Focus: Cost control and budgetary limits
Approach: Process and input-oriented
Data Use: Historical spending patterns; less performance focus
Accountability: Ensures departments stay within budgets
Flexibility: Limited; less adaptive to change
Resource Allocation: Based on past expenditures
Example: Incremental adjustments without thorough outcome evaluation

Outcome-Based Budgeting (OBB) vs. Traditional Budgeting

i21020793 — 2024-07-13 14:54:17 UTC

(10) Performance Measurement and Evaluation

i21020793 — 2024-07-14 08:52:26 UTC

Canada has a strong system for measuring and evaluating performance. Federal departments report yearly on their progress towards meeting their goals. This ongoing evaluation helps make sure that public spending stays aligned with national priorities and can be adjusted as needed.

4.) Lack of Understanding and Awareness

tinyanni2411_ — 2024-07-14 14:24:29 UTC

the main among them being an information vacuum that affects the public and government.
incorrect information and inaccurate assumptions that Outcomes Based-Finncing supports the closure of social services are partially accountable for this shortage.

5.) Data Systems and Performance Measurement

tinyanni2411_ — 2024-07-14 14:31:23 UTC

to monitor and assess results, these data-related challenges must be addressed by investing in
1. robust data systems
2. improving technical capacity
3. ensuring data quality and consistency
integrating fragmented data system collection and analysis.