This document summarizes a webinar on performance alignment and linking resource management to organizational goals. The webinar is presented by Mike Haley from Landmark-Intersol and is moderated by Marcel Boulianne from the Treasury Board of Canada Secretariat. The webinar discusses using logic models and performance indicators to integrate planning, project management, risk management and resource management practices to improve organizational performance and ensure value for money.

1. Welcome to the fmi igf Webinar
Thursday, November 8, 2012
1:00 PM EST
Performance Alignment: Linking
Resource Management to
Organizational Goals

2. Webinar Operation
In the “Ask a question box”, please ask
the presenter a question or send your
question via twitter @fmi_igf
Technical sound/visual difficulties? Click
on “Technical” and send a message
Webinar will be archived under
www.fmi.ca

3. Speaker:
Mike Haley
Landmark – Intersol
Moderator:
Marcel Boulianne
Treasury Board of Canada Secretariat

4. Performance Alignment:
Linking Resource Management
to Organizational Goals
Presenter:
Mike Haley, Landmark–Intersol & Board Member FMI Halifax

5. Speaker Bio – Mike Haley
Mike Haley leads the Performance Alignment practice at Landmark-
Intersol, a strategic partnership between Landmark Decisions Inc.
of Halifax and The Intersol Group Ltd. of Ottawa. The firms' focus is
a methodology that brings sound concepts for integrated business
management together with enterprise-class performance and cost
modeling technologies all built on strong fundamentals of disciplined
data management. In doing so, Landmark-Intersol help’s clients
understand both their current performance environment and a means
to develop a blueprint for enhanced organizational performance.
Since the early 90’s, Mike has worked with clients worldwide in the training, technology
transfer and general application of performance and cost management concepts to the
telecommunication, manufacturing, pharmaceutical, food processing, distribution,
government and financial service industries. Public sector clients include a wide variety of
Federal, Provincial/State and Municipal Governments such as Fisheries & Oceans Canada,
the Public Health Agency of Canada, Health Canada, Transport Canada, Ontario Ministry of
Finance, City of Charleston, the US Navy and various departments in the New Zealand
Government.
Mike sits on the Board of PPX, the Performance & Planning Exchange, a Canadian non-profit
centre of excellence for learning, sharing and developing expertise in performance and
planning across the public sector. He has a M.Sc. from Dalhousie University and lives in
Halifax, NS where he also serves on the board of the local FMI chapter.

6. From Performance Measurement to Performance Alignment
...the use of performance management techniques
__for coordinating the activities and resources
___necessary to ensure all aspects of business
____management (i.e. planning, risk management
_____and project Alignment management) are integrated.
…the adoption of practices and tools by
_which an organization establishes
__strategic and operational plans and then
___executes and adjusts these plans using
____performance measurement data.
Management
…the definition & collection of data
_used by organizations to track
__progress against stated goals,
___objectives and intended results. Measurement
Organizational
Performance
Maturity

7. Why is Performance Alignment important?
• Senior Management & Employee Engagement
• Involvement in Development Process
• Clearly Defined Expectations
• Improved Change Capacity
• Enhanced Decision Making Capacity
• Results Against Expectations
• Resource Requirements (i.e. Value for Money or “Efficiency & Economy”)
• Support for Strategic Reviews
• Reduced Time & Effort on Planning, Reporting & Evaluation
• Departmental Reporting – RPP/DPR, PMF, Horizontal Initiatives
• Consistent Approach Across Department (“Economies of Scale”)
• Evaluations (“Built In” by design)
• Improved Compliance with Central Agency Requirements
• TBS Policies & Directives
• MAF Ratings & Action Plans
• OAG Findings / Recommendations / Action Plans
Drives an Organizational Performance Culture Shift!

8. Driving Forces for Improved Resource Management in GOC
Revisions to the Management Resources & Results Structure (MRRS)
• Introduction of Efficiency Indicators for lowest level programs in the PAA
• Development of standardized performance indicators for Internal Services
• New Results Management Component (RMC) System (~ technology enablement)
Continued Management Accountability Framework (MAF) Enhancements
• Proposal for new “Integrated Management for Results” AoM
• Focus on use of MRRS information for decision making (~ technology enablement)
Standing Committee on Government Operations & Estimate (OGGO)) –
Strengthening Parliamentary Scrutiny of Estimates and Supply (June ‘12)
• Move from O&M, Capital & G&C Votes to Program Based Appropriations
• Proposal to table Estimates and Report on Plans & Priorities on the same day
• RPP to contain 3 years of history, 3 years of forecast and variance analysis
• Development of a searchable online database (~ technology enablement)

9. Recent GoC Definitions on Linking Outcomes & Resources
Economy: minimizing the use of resources. Economy is achieved when the
cost of resources used approximates the minimum amount of resources needed to
achieve expected outcomes.
Efficiency: the extent to which resources are used such that a greater level
of output is produced with the same level of input or, a lower level of input is used
to produce the same level of output. The level of input and output could be
increases or decreases in quantity, quality, or both.
Effectiveness: the extent to which a program is achieving expected
outcomes.
Performance: the extent to which effectiveness, efficiency and economy are
achieved by a program
Source: TBS Policy on Evaluation (2009)
Core Issue #5:
Demonstration of Efficiency
and Economy
Assessment of resource utilization in relation to
the production of outputs and progress toward
expected outcomes
Directive on the Evaluation Function (April 2009)

10. The Logic Model
Visualizing the Linkages between Resources & Outcomes
Performance Indicators that populate the indicators of all dimensions of a measurement framework
Efficiency
Time, Quantity, Quality, Throughput,
Resource Utilization
Effectiveness
Satisfaction, Reach, Benefits, Impacts,
Achieving Expectations & Targets
Economy
Budget Variance,
Resource Capacity
RESOURCES
ACTIVITIES
Process
OUTPUTS
Efficiency & Cost
Direct
Outcomes
Final
Outcomes
EXTERNAL FACTORS
CLIENTS
Output and Client
Group Costs
Resource Utilization
& Cost Efficiency
Costing Indicators that explain how costs are consumed in the organization.

11. The Logic Model as a Performance Plan
A Foundation for Performance Alignment and Resource
Management
Output
Cause
(Outputs)
Performance
Indicators
Effect
(Outcomes) Line of Sight
Departmental,
Business, or
Program
Plan
Strategic
Outcome
Strategic
Outcome
Performance Plan
(Logic model)
Intermediate
Outcome
Intermediate
Outcome
Intermediate
Outcome
Immediate
Outcome
Immediate
Outcome
Immediate
Outcome
Output
Output
Accountability
Planning
(Business Structure)
Regions
Directorates
Cross Functional
Teams
Branches
Units
Departmental
Business or
Program
Structure
Performance
Indicators
Performance
Indicators
Performance
Indicators
Performance
Indicators
Performance
Indicators
Performance
Indicators
Performance
Indicators
Performance
Indicators
Performance
Indicators
Performance
Indicators

12. Aligning Project Management Practices
Departmental
Business or
Program
Plan
Strategic Projects
Strategic
Outcome
Strategic
Outcome
Performance Plan
(Logic Model)
Intermediate
Outcome
Intermediate
Outcome
Intermediate
Outcome
Immediate
Outcome
Immediate
Outcome
Immediate
Outcome
Output
Output
Output
Project Scope
Indicators
Operational Projects
Project Risk
Indicators
Project Schedule
Indicators
Project Resource
Indicators
Project
Management
Process
Establish Project
Resources
Define Project
Scope
Assess Project
Risks
Develop Project
Schedule

13. Aligning Risk Management Practices
Organizational
Business or
Program
Plan
Strategic
Outcome
Strategic
Outcome
Performance Plan
(Logic Model)
Intermediate
Outcome
Intermediate
Outcome
Intermediate
Outcome
Immediate
Outcome
Immediate
Outcome
Immediate
Outcome
Output
Output
Output
Risk Management
Process
Identify
Risk Factors
Risk Factor
Indicators
Develop
Risk Mitigation
Strategy
Risk Mitigation
Indicators
Assess &
Prioritize Risk
Risk Assessment
Indicators
Strategic Risks
Operational Risks

14. Aligning Resources with Business Management Practices
Resource
Management
Financial Management
Financial Indicators
Workforce Management
Workforce/HR Indicators
Asset Management
Asset Indicators
Departmental
Business or
Program
Plan
Strategic
Outcome
Strategic
Outcome
Risk Management Process
Intermediate
Outcome
Intermediate
Outcome
Intermediate
Outcome
Immediate
Outcome
Immediate
Outcome
Immediate
Outcome
Plan Management Process
Output
Output
Output
Establish Project
Resources
Project Management Process
Define Project
Scope
Assess Project
Risks
Develop Project
Schedule
What’s missing?
Activities!

15. Insightful References on Resource Management ….
“ Questions can only be
answered by analyzing the
activities that are needed to
attain objectives.” 1954 !
Doing Things Right - Operational Changes
•Reduced Costs
•Improved Efficiencies
•Resource Capacity Planning
•Resource Constraint Management
Doing the Right Things – Strategic Changes
• Program / Services Rationalization
• Business Process Design
• Impact on Outcomes
• Shared Service Opportunities
• “Value for Money”
1998

16. GoC’s 7 Step Approach to Costing
7. Sign off
6. Calculate & Validate Results
5. Select Cost Assignment Methodology
4. Define Cost Classifications (direct vs. indirect)
3. Establish the Cost Base (costs to be included)
2. Determine the Cost Objects (end result)
1. Define the Purpose of the Costing Exercise (scope)
Source: TBS-OCG Guide to Costing (2008)

17. Output Costing Model
Visualizing, Calculating and Validating Economy & Efficiency
Operational Cause
Resources
“What we pay for”
$$$ $$$ $$$
Activities
“What we do”
Outputs
“What we supply
& service”
Cost = $$$
Capacity Capacity Field
Personnel
Equipment Corporate
Site Visit Support Call
Visits Calls
Service 1 Service 2
Monthly
Update
Reports
Capacity
Labour Hrs Eq. Hrs
Personnel
Labour Hrs
Capacity = 4000
Building Actual = 3800
SqFt
Throughput =
Labour Hrs / Visit
Utilization = 95%
Financial Effect
Program Cost or
“Cost to Serve”

18. Benefits of Output Costing Models
Output
Costing
Models
OPERATIONS MANAGEMENT
Resource Allocations/Scheduling
Capacity Planning
Alternative Program Delivery
FINANCIAL MANAGEMENT
Planning & Budgeting
Transfer Pricing
Efficiency Indicators & “Value for Money”
CLIENT MANAGEMENT
Service Standards
User Fee Pricing Strategies
Cost to Serve
STRATEGIC MANAGEMENT
Program Rationalization
Business Scenarios
Shared Services

19. Limited resources dictate performance
achievement & often establish future funding
Output Costing Model
Resources
Departmental
Business or
Program
Plan
Performance
Indicators
Strategic
Outcome
Strategic
Outcome
Performance
Indicators
Performance
Indicators
Performance
Indicators
Intermediate
Outcome
Performance
Indicators
Performance
Indicators
Intermediate
Outcome
Performance
Indicators
$$$
Performance
Indicators
Performance
Indicators
Performance
Indicators Performance
Performance Intermediate
Indicators
Planning
Outcome
(Logic model)
Immediate
Outcome
Immediate
Outcome
Immediate
Outcome Output
Capacity
Activities
Output
Output
Linking Resources, Outcomes and Targets
Avoiding a Negative Performance Feedback Loop
Organizational goals & targets should drive
resourcing requirements
but…

20. Technology as a Performance Alignment “Enabler”
Performance
Understanding
Performance Information Enablement
Maturity
Aligned & Adaptive
A “Performance Culture”
Desired Path
Best Practice:
Phased Approach
Education &
Facilitation
IM/IT Software and/or
Infrastructure Investment Adapted from
“The Performance Management
Revolution”, Dresner, H. (2007)
Reactive but
Apprehensive
Compliant
but Lethargic
Evasive &
Apathetic

21. Technology for Output Costing Models
Operations Process Model
Resources $$$
Capacity
Activities
Performance
Indicators
Output
Performance
Indicators
Output

22. Value of Performance Technology Solutions
• Paper based studies/exercises are dated the moment they are
printed and are too easily “forgotten”
• Drives discussions & consensus on performance definitions &
terminology. Forces the standardization of meta-data and data
collection strategies
• Makes performance “Real & Engaging” for all levels of personnel
by putting planning & reporting into the hands on “the masses”
(particularly the more technology minded employees)
Advice: Embrace Performance Technology!
Don’t wait until the end of the content
development process to think about using or
implementing performance software.

23. Contact Information
Mike Haley | Performance Alignment Practice Lead
Landmark-Intersol | mhaley@landmark.ca
+1.613.230.6424 x221 (o) | +1.902.499.5425 (c)

24. QUESTIONS & ANSWERS
In the “Ask a question box”,
please ask the presenter a
question
or send your question via
twitter @fmi_igf

25. Next Webinar:
THURSDAY NOVEMBER 28, 2012 at 1:30 EST
(FRENCH LANGUAGE PRESENTATION)
Presenter: Daniel McMahon FCPA, FCA, President &
Chief Executive Officer, Chartered Professional
Accountants of Quebec
Topic: Mr. McMahon will describe the process that lead
to the unification of the three accounting bodies
(CA,CMA, CGA) in Quebec. He will also provide an
update on the unification discussions in the rest of
Canada.

26. Next English Webinar
WEDNESDAY DEC. 12, 2012 at 1:00 EST
Presenter: David McGuinty Member of Parliament
Topic: How parliamentarians use and view financial
information provided to them by government financial
communities.

27. In the “Ask a question box”, please
provide us with:
Feedback on this webinar?
Ideas for future webinars?
Next week this webinar will be archived on
the fmi*igf website www.fmi.ca.