I concur that the use of data has resulted in incremental changes in schools and districts, but what we need is systemic change. The use of data and programs like SchoolStat are certainly interesting steps forward, but they miss the point. Few school systems have defined their strategy for success. In fact, the performance metrics that many school systems are using were initiated by outside organizations or programs (e.g. NCLB). Identifying and following through with a strategy is a necessary condition to being successful with performance metrics. School systems cannot simply have a strategy of doing better on external accountability, it just won't work.

All of that said, I have a question. What process, methodology, approach do you recommend for government organizations to use in aligning their budget to their balanced scorecard?

Aligning Budget with the Strategy in Government

A few government agencies have taken the step to closely align the budgeting process with the strategy. they have done so by apportioning funds to the major components of hte strategy - often called themes. The FBI, for instance, clearly aligns expenditures with the major components of the strategy map. The US Army used a similar if less rigorous approach. The key point is to begin with the strategy and move dollars accordingly.


On January 7, 2009 the American Council for Technology - Industry Advisory Council(Transition Study Group)-Just released a white paper entitled "New Strategic Performance Integrated Process Needed". This white paper outlines the method of integrating budgeting and strategy in some detail based upon the principles outlined in "Execution Premium: Linking Strategy to Operations for Completetive Advantage" It takes the budgeting process and places the strategy or performance improvement plan in the center of the planning process to ensure decisions are made throughout the process based on the strategy.

Please consult IAC's web site.