The latest Atlantic Monthly poses an idea, not unfamiliar to
local government leaders: "Government
Should Be Run Like a Business (But Not the Way You Think)"
For many of us who have heard this argument before, and who
have reasoned tirelessly either for it, or against it, we must still be able to
ponder the implications – what are the best and most applicable concepts of the
business world that might actually help us in local government management? Of
most interest to us is the author’s concept of the “intended use” of resources,
or what we would call “alignment of resources with results” in Priority Based
Budgeting.
In April 2010, as we were implementing Priority Based
Budgeting in the City
of Boulder,
As breakfast events go, we were excited to be there with
City staff, and at the same time curious as to the reasoning of this group’s
interest. Were they, too, going to raise the issue of how to run a City like a
business? Were these business owners and leaders going to push the conversation
of privatization?
Well, the time came for us to be introduced for our
presentation, and it was during these welcoming remarks that they likened
Priority Based Budgeting to the closest approach possible to running a
business. Knowing how this would endear us to the audience, you can imagine how
pleased we were to have this kind of introduction. But we were also so curious
– for what reasons did the speaker make this bold statement? He said, “Priority
Based Budgeting is the closest version of the concept of Return on Investment
(ROI) that a public sector entity can achieve.”
As
we wrote about in 2012 for PM Magazine, Priority Based Budgeting has unveiled
a way for local governments to spend within their means by continuously
focusing on the results most relevant to their communities and the programs
that influence those results to the highest possible degree. The concept
involves leveraging each tax dollar so programs with the greatest impact on
results are distinguished from programs with a lesser influence.
In fact, communities that have embraced it have redefined
the notion of return on investment—it’s a “return on results,” a societal
return, where each dollar is evaluated in terms of its influence on the
community. One dollar spent on a program achieving multiple results is a
leveraged dollar – it’s as if it is being spent again and again to achieve the
results that the community is in business to achieve.
(For more on the City of Boulder's
Resource Re-allocation Breakthrough we offer this graphic depiction on
ICMA’s Center for Management Strategies blog.)
Is this the answer to the question of how to run government
more like a business? We don’t know, but we are especially intrigued with
alignment of resources with results, and with return on investment.
The 2013 "Summit of Leading Practices" is the ONLY conference where ICMA's Leading Practices for Local Government Management (and more) come together under one roof.
To learn more about Local Government Partnerships and Priority Based Budgeting from CPBB and the nation's leading local government practitioners, be sure to attend the upcoming...
Center for Priority Based Budgeting 2013 Annual Conference
"A Summit of Leading Practices"
July 9 & 10, 2013 Arlington, Virginia Hilton Crystal City Hotel
REGISTER NOW!
Brought to you by the Center for Priority Based Budgeting (CPBB) and the International City/County Management Association (ICMA), in partnership with the Alliance for Innovation (AFI).
The 2013 CPBB "Summit of Leading Practices" Annual Conference is strongly supported by
Quartile 1 sponsor SAFEbuilt, Supporting Sponsor Beehive Industries and Exhibitors Delphi and Revelstone Labs. Thank you sponsors!
