Provides step-by-step guidance on implementing and using a value-based management system within the government
Countless books on proposed management practices have been written and published over the past century. Some of these have focused on specific management practices for government. In more recent decades, the topics of strategic planning, performance management, cost management and risk management have been extensively covered. However, little has been offered as an approach to integrate these and numerous other management methods and practices in a manner that maximizes the delivery of value to the organization’s key stakeholders. A general management framework is presented in this book in a manner particularly applicable to government organizations.
Value-Based Management in Government introduces a new, integrating framework for management practices that optimizes the balancing of results sought; resources supplied and allocated; and risks accepted. These considerations are all balanced for the purpose of delivering maximum stakeholder value. The book offers guidance on how strategic planning, performance management, cost/resource management, and risk management must all be integrated as part of a portfolio management framework across the organization. The book also discusses the role of information technology (IT) in providing data for insights and decision-making, and the importance of organizational change management to implement the needed organizational and behavioral changes.
Beginning by explaining the concept of Value-Based Management for the public sector and government, the text goes on to explore topics such as the evolutionary stages of maturity of management accounting, the benefit of attributes (e.g., value-add versus nonvalue-add) in cost data, predictive planning with expense projections, risk management, and various performance measurements (e.g., key performance indicators [KPIs] ). This authoritative book:
- Discusses a framework for balancing and integrating cost, performance, and risk
- Explains IT systems integration issues related to activity-based cost management (ABC/M)
- Addresses why some ABC/M implementation projects fail to meet expectations
- Describes how quality management efforts can be measured in financial terms
- Explores the wider uses of predictive accounting (e.g., driver-based budgeting, what-if scenario analysis)
- Provides organizational change management insights and recommendations needed to achieve the required changes in management decision-making.
Value-Based Management in Government is an important source of information for leaders, executives, managers, and employee teams working within or with government organizations.
Table of contents
- About the Authors
PART ONE: Value-Based Management in Government Concepts and Components
- CHAPTER ONE: Challenges and Solutions to Address Dissatisfaction of Citizens and Taxpayers
CHAPTER TWO: Generating Value in a World of Uncertainty
- DEFINING VALUE
- MAXIMIZING VALUE
- BUILDING AN ORGANIZATIONAL STRATEGY TO DELIVER VALUE
- BUILDING UPON A STRATEGY
- SUPPORTING THE DECISION-MAKING PROCESS WITHIN APPROPRIATE LIMITATIONS
- PROVIDING REQUIRED DATA FOR APPROPRIATE DECISION-MAKING
- MANAGING THE ORGANIZATIONAL CHANGE
- GOVERNING THE VALUE-BASED MANAGEMENT FRAMEWORK
- PUTTING IT ALL TOGETHER
PART TWO: Strategy Management and Governance
- CHAPTER THREE: Strategy Setting and Execution
CHAPTER FOUR: The Strategy Map and Its Balanced Scorecard
- LACK OF CONSENSUS
- IMPLEMENTING TOO FAST AND SKIPPING KEY STEPS
- MEASUREMENTS ARE BOTH SOCIAL AND TECHNICAL
- SCORECARD OR REPORT CARD? THE IMPACT OF SENIOR MANAGEMENT'S ATTITUDE
- A DIFFERENCE BETWEEN VBM AND THE BALANCED SCORECARD
- WHY NOT AN AUTOMOBILE GPS NAVIGATOR FOR AN ORGANIZATION?
- FAILURES DUE TO ARROGANCE, IGNORANCE, OR INEXPERIENCE?
- HOW ARE BALANCED SCORECARDS AND DASHBOARDS DIFFERENT?
- VITAL FEW VERSUS THE TRIVIAL MANY
- SCORECARDS AND DASHBOARDS SERVE DIFFERENT PURPOSES
- SCORECARDS LINK THE EXECUTIVES' STRATEGY TO OPERATIONS AND TO THE BUDGET
- DASHBOARDS MOVE THE SCORECARD'S DIALS
- STRATEGY IS MORE THAN PERFORMING BETTER: IT INVOLVES DOING DIFFERENT THINGS
- GETTING PAST THE SPEED BUMPS
PART THREE: Enterprise Performance Management
- CHAPTER FIVE: Exceptional EPM Systems Are an Exception
PART FOUR: The Three Rs: Risk, Results, and Resources
- CHAPTER SIX: Risk Management
- CHAPTER SEVEN: Results Management
CHAPTER EIGHT: Resource and Cost Management
- COMPLIANCE WITH COSTING'S “CAUSALITY PRINCIPLE”
- PROJECT ACCOUNTING AND WORK ORDERS
- ACTIVITY-BASED COST MANAGEMENT (ABC/M)
- THE UTILITY AND BENEFITS FROM ABC/M IN GOVERNMENT
- POLITICAL PRESSURES TO HOLD DOWN COSTS
- AN EXCESSIVE FOCUS ON FUNCTIONS
- THE EVOLUTION OF ANNUAL BUDGETS
- REMOVING THE BLINDFOLD: OUTPUTS, NOT JUST RESOURCE EXPENSES
- BUT OUR DEPARTMENT DOES NOT HAVE OUTPUTS
- ABC/M USES (AND SOME PITFALLS)
- COST INFORMATION IS EMPOWERING
- DEALING WITH THE DARK SIDE: DOWNSIZING PUBLIC SECTOR EMPLOYEES
- WHY CHANGE NOW
PART FIVE: Management Accounting in Government
- CHAPTER NINE: Understanding ABC/M: A Few Basic Truths
- CHAPTER TEN: If ABC/M Is the Answer, What Is the Question?
- CHAPTER ELEVEN: Fundamentals: What Is ABC/M?
CHAPTER TWELVE: Using ABC/M Attributes to Assess Quality and Value-Add
- ATTRIBUTES ENERGIZE ABC/M COST DATA
- THE ANALYST'S DREAM
- A POPULAR ATTRIBUTE
- ABC/M REVEALS THE COST OF QUALITY (COQ)
- QUANTIFYING THE MAGNITUDE OF THE COSTS OF QUALITY
- COST OF QUALITY CLASSIFICATION SCHEME
- HOW DO YOU CATEGORIZE DIFFERENT QUALITY COSTS?
- DECOMPOSING COQ CATEGORIES
- COQ: BOTH GOOD AND POOR QUALITY
- GOALS AND USES FOR THE COQ INFORMATION
- COQ MEASUREMENT SYSTEM
CHAPTER THIRTEEN: Driver-Based Budgeting and Rolling Financial Forecasts
- BUDGETING: USER DISCONTENT AND REBELLION
- WHAT'S BROKEN ABOUT BUDGETING?
- THE FINANCIAL MANAGEMENT INTEGRATED INFORMATION DELIVERY PORTAL
- A RADICAL IDEA: STOP BUDGETING!
- PREDICTIVE ACCOUNTING AND BUDGETING WITH MARGINAL EXPENSE ANALYSIS
- WHAT IS THE PURPOSE OF MANAGEMENT ACCOUNTING?
- DESCRIPTIVE VERSUS PREDICTIVE ACCOUNTING
- WHAT TYPES OF DECISIONS ARE MADE WITH MANAGERIAL ACCOUNTING INFORMATION?
- ACTIVITY-BASED COST MANAGEMENT AS A FOUNDATION FOR PREDICTIVE ACCOUNTING
- MAJOR CLUE: CAPACITY ONLY EXISTS AS A RESOURCE
- PREDICTIVE ACCOUNTING INVOLVES MARGINAL EXPENSE CALCULATIONS
- PREDICTIVE COSTING IS MODELING
- PUT YOUR MONEY WHERE YOUR STRATEGY IS
- A SEA CHANGE IN ACCOUNTING AND FINANCE
- A PROBLEM WITH BUDGETING
- VALUE IS CREATED FROM PROJECTS AND INITIATIVES, NOT THE STRATEGIC OBJECTIVES
- DRIVER-BASED RESOURCE CAPACITY AND SPENDING PLANNING
- INCLUDING RISK MITIGATION WITH A RISK ASSESSMENT GRID
- FOUR TYPES OF BUDGET SPENDING: OPERATIONAL, CAPITAL, STRATEGIC, AND RISK
- FROM A STATIC ANNUAL BUDGET TO ROLLING FINANCIAL FORECASTS
- MANAGING STRATEGY IS LEARNABLE
CHAPTER FOURTEEN: Implementing ABC/M with Rapid Prototyping
- AFTER MODEL 0
- ABC/M IS PERFECTLY OBVIOUS – AFTER THE FACT!
- ITERATIVE ABC/M MODELING
- RAPID PROTOTYPING: EIGHTEEN HOLES OF GOLF ON A POLO HORSE
- BUILDING THE FIRST ABC/M MODEL 0: TAP DANCE NOW, WALTZ LATER
- COST OBJECT PROFILING: A KEY TO GETTING DESIRED RESULTS
- TEACH THEM TO FISH, AND THEY CAN FISH ON THEIR OWN
- CONSTRUCTING AND POPULATING ABC/M MODEL 0: THE STARTING POINT
- ANALYZING MODEL 0 TO GET BUY-IN
- SECURING AND PROPAGATING THE LEARNING: A COMMUNICATION PLAN
- TIME-PHASING ABC INTO ABM
- HOW ABOUT THE FUTURE OF ABC/M?
- PART SIX: How Information Technology Impacts VBM
PART SEVEN: Influencing Behavior for VBM
CHAPTER SIXTEEN: Organizational Change Management
- CULTURAL RESISTANCE TO CHANGE
- GREAT LEADERSHIP VERSUS GOOD MANAGEMENT
- HOW TO ACCELERATE THE ADOPTION RATE OF VBM
- THE QUEST TO GET BUY-IN FOR IDEAS
- WHAT ARE BARRIERS THAT SLOW THE ADOPTION OF NEW IDEAS LIKE VBM?
- REMOVAL OF THE BARRIERS
- EARLY ADOPTERS AND LAGGARDS
- WHERE TO BEGIN?
- HOW TO MOVE FORWARD?
- MOVING FORWARD
- CHAPTER SIXTEEN: Organizational Change Management
- PART EIGHT: The Future
- End User License Agreement
- Title: Value-Based Management in Government
- Release date: January 2020
- Publisher(s): Wiley
- ISBN: 9781119658672
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