GSA’s Public Buildings Service (PBS) has instituted a unique program that links its budget to performance measurement goals in each of its eleven regional offices. This process allows PBS to focus on providing the best service for its customers while achieving the maximum return on investment, and indicates how PBS is performing and the areas where improvement can be made.
In 1997, PBS established a group to develop the linking budget to performance initiative. The mission of the team was to “devise a means of allocating a portion of the budget to regions that rewards success in meeting performance measures.” The Performance Management Oversight Committee, with representation from several PBS business units and regional offices, made recommendations for defining outcomes, identifying performance measures, establishing budget allocation levels, developing performance targets, monitoring actual performance and rewarding success. The measures, known as the “Big 9” are:
- Funds from Operations
- Customer Satisfaction
- Impact of non-revenue Producing Space
- Lease Costs
- Maintenance Costs
- Cleaning Costs
- Construction Costs within Budget
- Construction Costs within Schedule
- Indirect Costs as a Percent of Revenue
In September 1998, the PBS Office of Business Performance sent the targets for the nine performances measures to the regional offices. For each of the 9 measurement categories, a target was set for the regional office to achieve based on PBS national goals and the regional baseline measurement from historical data.
Each regional office received budgetary allocation in each of the categories based on its ability to exceed or meet the targets previously set. In addition, a bonus pool of money was established for those regional offices that exceeded the national performance goal for each of the measures. In the latest performance period, PBS distributed $69 million in budget apportionments and bonus awards as a result of Regional achievement.
PBS still maintained a focus on serving the needs of its customers. While operating costs were reduced as much as six percent, the national customer satisfaction level increased over the same period.
The linking budget to performance initiative has demonstrated PBS’s commitment to the Government Performance and Results Act. The initiative has also shown how organizational goals can be met in an efficient, cost-effective manner while providing optimal service to its customers.
For more information, contact Mr. Eric Dunham at (202) 501-1240 or via e-mail at eric.dunham@gsa.gov
