Value-Based Management in Government - Hardcover

Webster, Douglas W.; Cokins, Gary

Hardcover

ISBN 10: 1119658675 ISBN 13: 9781119658672

Publisher: Wiley, 2020

Synopsis

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.

About this title

About the Author

DR. DOUGLAS W. WEBSTER is a past chief financial officer (CFO) of both the US Department of Education and US Department of Labor, overseeing financial management of budgets exceeding $60 billion. As a management consultant, he has led consulting engagements at over two dozen federal agencies in strategic planning, risk management, cost management, and organizational change management.

GARY COKINS is an internationally recognized expert on advanced cost management and performance improvement. His career was in consulting with Deloitte, KPMG, EDS, and SAS. He is the founder of Analytics-Based Performance Management, an advisory firm, and he has written numerous books on activity-based costing and management, including Performance Management and Predictive Business Analytics.

From the Back Cover

A new paradigm for generating public sector stakeholder value

Government entities have a value problem. Competing demands from taxpayers, oversight committees, legislators, and other stakeholders create tension. That tension often results in chronically underfunded programs that, in the end, fail to meet anyone's needs. Value-Based Management in Government provides a way out of this quagmire. By focusing on the multifaceted value of each management decision, organizations can better prioritize spending and guide the needed balance between available budgets, desired products and services, and acceptable levels of risk.

Drawing on their decades of experience consulting for federal, state, and local agencies, the authors present a new public-sector management framework. Inside, readers will discover:

• The "what," the "why," and the "how" of value-based management (VBM)
• Methodology for assessing what disparate stakeholders consider valuable
• Concrete performance management, risk management, and management accounting practices that enable a quick shift to VBM
• Instructions for successfully implementing activity-based costing/management
• Software and database IT tools that can inform and operationalize VBM
• Step-by-step change to manage behavior change and generate buy-in

When organizations adopt the VBM mindset, they can improve outcomes for all stakeholders simultaneously and lead the way in the evolution of management in government.

From the Inside Flap

Until now, value-based management (VBM) has been narrowly understood as a method of calculating financial value in private-sector corporations. This is a shame, because the broader concept of "value" has enormous potential to transform the way operations and strategy should be managed in the public sector. In their new book, Value-Based Management in Government, Douglas W. Webster and Gary Cokins uncover that potential. They propose a new framework for making and accounting for all decisions from daily operations to sweeping strategy in government and beyond.

What is value, and how can it optimize efficiency in government? Public-sector employees are under pressure to deliver "value" to stakeholders who often explicitly disagree about what they want. What taxpayers value differs from what legislators value, and service beneficiaries may have yet another point of view. Government financial professionals will appreciate this book for its guidance on how to untangle these conflicts to articulate an overall value based on available Resources, potential Risks, and achievable Results. The "Three Rs" approach to VBM finally provides a way to balance competing stakeholder demands and identify the most valuable way forward for organizations.

Unlike private entities, public-sector organizations don't have the luxury of re-engineering their accounting systems around the latest fads. Strategic shifts require sometimes-herculean efforts to generate buy-in, manage organizational change, and align with Federal directives. Happily, value-based management conforms to FASB Federal Financial Accounting Standards. In Value-Based Management in Government, readers will learn how to implement activity-based costing (ABC) and other progressive management accounting practices as part of a concrete VBM strategy. The authors also provide guidance on leading behavioral change throughout the organization.

Taxpayers, citizens, and other stakeholders have grown weary of waste and are demanding more bang for each buck the government spends. With VBM, the public sector can serve stakeholders more effectively and economically. This book provides comprehensive guidance on adopting a promising strategy.

Edition details

• Publisher: Wiley
• Publication date: 2020
• Language: English
• ISBN 10: 1119658675
• ISBN 13: 9781119658672
• Binding: Hardcover
• Edition number: 1
• Number of pages: 288