Public Sector Performance Management

We here at The Performance Guys like to tackle a variety of BI and performance management topics (with an occasional BPM post thrown in just to keep Pat happy--I kid, I kid...). But it's not very often that we talk public sector, and this story from the Chicago Tribune highlights the fact that county government (in this case, the black hole that is Cook County government, in which Chicago is located) has its own performance management challenges as well, and that the issues that we try to attack and address with business intelligence are not limited to for-profit companies--they affect organizations of all types and sizes.

The issue confronting the County is not a new one--they lack critical visibility into where the budget is being spent, and whether or not a proposed tax increase will actually have the intended impact. Now, speaking as a Chicagoland resident for over 25 years, I can tell you first hand that in the past, passing a tax hike was as easy as finding Lake Michigan. With the government fully aligned with the City and Mayor Daley, there's never been a huge debate when fares, fees, or levy's have been instituted.

But take a look at this passage from the article, which could be a transcript from any for-profit company around the world:

At public hearings the county has hosted on its current $3.2 billion budget plan, its leaders sometimes sounded like CEOs reassuring shareholders their investments would pay off: "We don't waste anything," Cook County Chief Judge Timothy Evans said in November: "The money that we're asking for is money we will put to good use."In seeking $890 million a year in new tax revenues, Stroger said he has achieved "enormous operational efficiencies" during his year-long tenure, and has adopted "modern business practices."

Stroger also points out that he has introduced "performance-based budgeting" using productivity benchmarks.Seigle's idea for a Cook County bankruptcy filing would not solve its "revenue problem," Stroger spokeswoman Ibis Antongiorgi said in a statement Friday (see box above). "When any business, public or private, refuses to raise revenue while expenses continue to outpace income, then it is time for all stakeholders to consider drastic expenditure reductions. Cook County government needs additional revenue to pay its employees."

What's missing from Stroger's budget plan is specific-enough objectives, said Gidwitz, a director of Rush University Medical Center, which works closely with the four county-run hospitals. "Where you can cut is the second question," he said. "The first question is, 'What do we need? What are the priorities and strategies?'"

What's interesting about this budget squabble is how leaders from the private sector are being asked to get involved and help the County address its issues and raising critical questions that you hear project teams talk about in most EPM projects--how do we institue processes that solve our problems and help us be more accountable? And when you read the quotes from the former CEO's and executives, what becomes apparent is that like most organizations and performance management, they know they have a problem, but aren't sure how to fix it. Enter a great performance management opportunity!

Many times, especially in Cook County and Chicago, the government isn't too high on public accountability and disclosure; but in this case, we get to see some interesting insights into the challenges that government has with accountability, budgeting, and performance, and how the principles we advocate and write about here can be applied to the public sector as well.

Can't wait to get back for Christmas!