Process-based management (PBM) integrates existing financial, operations and other data into actionable facts for enlightened decisions. It is able to consistently track cost and performance over time and improve predictive ability. PBM's foundation is multidimensional reporting, which is important because questions about government performance are best answered with integrated information-finance, performance, budget, strategy, demand, work processes, internal controls, workload and other factors. Most current forms of reporting on these factors are one-dimensional and not integrated.

 

In 2008, seven federal government entities piloted the development of PBM reports to take a fresh look at financial and management data. Pilot participants found that PBM delivers the following benefits:

Participants also pointed out that PBM uses statistical analysis to red- flag areas in need of low- or no-cost improvements that increase productivity. It facilitates "rolling up" or "drilling down" to different levels of cost and performance for root-cause analysis leading to successful change.

 

PBM's fresh insights can inspire creative approaches to organizing and operating programs, help implement them, and document their progress and success. It is the ideal tool for achieving higher levels of performance, particularly in government.

 

Performance-Based Management is the product of a multi-year collaboration of many organizations and individuals. This report covers the second phase of that effort, which was led by Clifton A. Williams, a partner at Grant Thornton. Principal participants in the research include Jon Lemon and John Stultz of SAS, Steven Feller and Sunil Datt of IBM, and James St. Clair of Grant Thornton. James A. Brimson, author of the Handbook of Process- Based Accounting (AICPA, 2002), advised and assisted in the second phase and was the principal researcher and author of the first phase, which was reported in Process-Based Financial Reporting, CPAG Report No. 10, April 2007.