Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Costing Centre of Expertise
Costing Benchmarking Framework
Planning & Performance Exchange Learning Event
Operational Cost...
2
Purpose
• Background
• High level findings
• Cost Factors Manual
3
CCE Major Activities
The CCE proactively supports:
• Deputy Head and CFO accountabilities
• Program Sectors as the prima...
4
Cost Factors Manual
• Is it possible to estimate incremental resource
requirements for new initiatives?
• Can the Treasu...
5
Work to Date
Approach:
• Attempt to establish standard cost factors for
comparable organizations
CCE went to work:
• Wha...
6
Open Data
Hypothesis being tested:
• Without adding to the reporting burden of
organizations, what can we find out from
...
7
Proof of Concept
Key Assumptions and Limitations:
• Expenditure was used as proxy for cost and capacity
• The IS Program...
8
Clustering of Organizations
Preliminary Analysis:
• Size on its own may not be sufficient to explain
fluctuations in IS ...
9
Hypothetical Clustering of Organizations
10
What to measure?
• Analyze the behaviour of expenditures in groups of “like”
organizations (or internally between progr...
11
Conceptual model
• Using cost factors and
a proxy measure for
capacity, is it possible
to estimate additional
resources...
12
Common Data and Clusters
• Our work to group organizations into appropriate clusters will enable:
o Reasonableness test...
13
Similar but different
• EMS could leverage and evaluate the work by the CCE to
consider the clustering and cost factors...
14
Contact Information
Greg Steele
A/Director Costing Policy
Office of the Controller General, Treasury Board of Canada Se...
Upcoming SlideShare
Loading in …5
×

Costing Centre of Expertise

251 views

Published on

Costing Benchmarking Framework
TBS

Published in: Career
  • Be the first to comment

  • Be the first to like this

Costing Centre of Expertise

  1. 1. Costing Centre of Expertise Costing Benchmarking Framework Planning & Performance Exchange Learning Event Operational Costing & Capacity Management: Their Links to Planning, Performance, and Efficiency January 26, 2016 1
  2. 2. 2 Purpose • Background • High level findings • Cost Factors Manual
  3. 3. 3 CCE Major Activities The CCE proactively supports: • Deputy Head and CFO accountabilities • Program Sectors as the primary performers of the TBS challenge function • The current roles and responsibilities of EMS Key activities of the CCE include: • Supporting an enhanced diligence function within TBS for consideration of funding requests • Supporting “deep dives” and “horizontal reviews” • Developing strategies for provision of training on cost containment and cost estimation for TBS program sector analysts • Developing policy and guidance on cost estimation, cost containment, and the management of user fees • Rolling out guidance on CFO attestation and provision of support to departments Developing a cost factors manual to inform and support resourcing decisions
  4. 4. 4 Cost Factors Manual • Is it possible to estimate incremental resource requirements for new initiatives? • Can the Treasury Board assess the reasonableness of funding requests? • Can we determine which metrics (cost factors) fairly represent efficiency in Internal Services?
  5. 5. 5 Work to Date Approach: • Attempt to establish standard cost factors for comparable organizations CCE went to work: • What are other jurisdictions doing with their “internal services”? • What are appropriate cost drivers for the different functions in internal services?
  6. 6. 6 Open Data Hypothesis being tested: • Without adding to the reporting burden of organizations, what can we find out from publically available data? Organizations have attested to this data and it has been tabled in Parliament: • RPP, Public Accounts and DPR
  7. 7. 7 Proof of Concept Key Assumptions and Limitations: • Expenditure was used as proxy for cost and capacity • The IS Program was analyzed in the aggregate, not by sub-category of internal services • IS Program effectiveness was not considered Scope: • Analysed the data for the following fiscal years: • 2010-11 • 2011-12 • 2012-13 • 2013-14 Ongoing evolution of approach
  8. 8. 8 Clustering of Organizations Preliminary Analysis: • Size on its own may not be sufficient to explain fluctuations in IS expenditures; other factors must be considered to measure the complexity • Type of activities performed (i.e. G&C and Capital) and the amount of resources dedicated to specific types of activities impact IS expenditures, as does the geographic reach (number of regions with employees) o However Capital expenditures have limited publically available data Organizational context is key to understanding the whole story!
  9. 9. 9 Hypothetical Clustering of Organizations
  10. 10. 10 What to measure? • Analyze the behaviour of expenditures in groups of “like” organizations (or internally between programs) based on Cost Estimating Relationships • One measure does not “tell the whole story”, multiple measures are needed to give a better understanding of an organization • Based on preliminary analysis of publicly available data, 3 cost factors are being tested to see how they “tell the story”: 1) IS Program FTEs/All Other Programs FTEs 2) IS Program Gross Voted Operating Expenditures/ All Other Programs Gross Voted Operating Expenditures 3) IS Program Gross Voted Operating Expenditures/ Total Organizational FTEs
  11. 11. 11 Conceptual model • Using cost factors and a proxy measure for capacity, is it possible to estimate additional resources required? • Analytical grids allow decision makers to gauge the reasonableness of funding requests by allowing the comparison of “like” organizations
  12. 12. 12 Common Data and Clusters • Our work to group organizations into appropriate clusters will enable: o Reasonableness testing for Internal Services by providing a range of existing expenditures for similar organizations o EMS can leverage these same cost factors and clustering methodology to measure performance Common Data Points Clustering (size and complexity) Performance Measures (Efficiency and Effectiveness): • Internal Services • Transfer Payment Programs • External Services Reasonableness Measures for expenditures and FTEs: • Internal Services Program • IS by function • Type of G&C or Program Collect data and analyse Standardize Treatment and Context Review Results Continuous Improvement
  13. 13. 13 Similar but different • EMS could leverage and evaluate the work by the CCE to consider the clustering and cost factors to look at efficiency metrics • CCE is leveraging the EMS work on efficiency metrics and program tagging. Thus far, common data can be leveraged by both and will not cause undue reporting burden to organizations.
  14. 14. 14 Contact Information Greg Steele A/Director Costing Policy Office of the Controller General, Treasury Board of Canada Secretariat Government of Canada greg.steele@tbs-sct.gc.ca Tel: 613-697-0863 / TTY: 613-957-9090 Directeur par intérim sur l’établissement des coûts, Bureau du contrôleur général, Secrétariat du Conseil du Trésor du Canada Gouvernement du Canada greg.steele@tbs-sct.gc.ca Tél. : 613-697-0863 / ATS : 613-957-9090

×