Should budget shortfalls mean you cancel that project you’ve been planning? Counter intuitively (and with a few conditions) we say no. In our experience lack of funds actually leads to more successful projects. Without money you:
Focus on simplicity – you’re not likely to look for the “Cadillac” solution, you can’t afford it. Simple solutions tend to be easier to implement.
Encourage staff participation – you won’t be able to afford, nor will you need, an army of consultants to implement your simple solution. Your staff will have to take on added project responsibility to get things done. There’s nothing like having skin in the game to make your staff fight for success.
Use the wisdom of your own people – you can’t buy your way out of the problem so your approach likely has to be home grown. You’ll be relying on the creativity that exists within your organization to complete this project. When solutions are home grown they are easier to sell internally and generally a better fit for your needs.
Better utilize the funds that do exist – when resources are scarce you pay greater attention to them. You are forced to track every dollar spent on the project which in turn means you are likely to spend your money where it will do the most good.
Of course lack of funds will limit the kinds/size of projects you take on. You’re not likely to re-engineer your entire Medicaid system. But…what about rewriting those out-of-date procedures manuals? How about revisiting your policies? What if you could re-engineer a few of those inefficient processes? Lack of funding, while not ideal, is the reality we all now face. It shouldn’t stop your projects and can even help them to be successful.
Last night’s New Hour show on PBS had an excellent segment on the budget issues facing a diverse range of states. This is worth the 10 minutes it will take to view: http://www.pbs.org/newshour/bb/business/jan-june10/budgets_01-12.html.
The video shows a few things: States ended up with budget shortfalls from similar causes and solutions involve draconian cuts to services.
Purchased goods and services account for over 50% of any State’s budget yet the management and provision of procurement services doesn’t get the priority or attention it deserves in public sector agencies. Procurement and supply chain management in private sector are given considerable weight because even a modest reduction in the costs of procurement itself or of procured goods and services can mean millions in savings. The same is true for government agencies. Making procurement more efficient and effective is a necessary tactic in dealing with current fiscal budget shortfalls and part of public sectors responsibility to be good stewards of public monies. As part of a recent engagement to re-engineer the procurement practices of a state procurement office, Public Knowledge examined best practices in procurement from national procurement organizations and States. We thought a summary of these best practices might be beneficial to you. Current best practices in procurement fall into five areas and include:
Professionalism. Cutting-edge public procurement agencies are raising the level of professionalism among their staff and supervisors through training, certification and the adoption of clearly defined standards.
Innovation. Progressive procurement agencies look for ways to improve their processes and to be more effective and efficient. Some best practices include:
- In the area of IT purchasing:
- Writing solicitations that describe a problem and ask for a solution, which allows suppliers to propose innovative ideas that could provide better value to the state.
- Making purchasing decisions based on overall value rather than price alone (best value).
- Forming long-term strategic partnerships with qualified suppliers.
- Sharing risks and benefits with suppliers.
- Creating a pool of qualified suppliers.
- Focusing on sustainable/green procurement.
- Directing state resources to strategic sourcing and cooperative purchasing to gain volume pricing from suppliers.
- Making use of reverse auctions, purchasing cards and multiple award contracts.
E-procurement. Successful procurement entities use electronic systems to run the procurement process from solicitation development to contract administration. The optimal systems include the following features:
- Supplier management, electronic notification of bids, reverse auctions and electronic catalogs.
- A system linked to government accounting systems with automated electronic invoicing, evaluated receipt settlement and accounts payable processes.
- Online supplier registration, electronic posting and distribution of solicitations, e-mail notification of solicitations, electronic bidding, posting of tabulations and awards, online auctions, and electronic purchase orders.
Productivity. Well-regarded procurement agencies have tools and policies designed to increase productivity and decrease strain on existing resources. Some of those tools are listed below.
- Web page with a “how to do business” guide.
- Formally established ethics policy with enforcement and training.
- End-user and supplier outreach and education.
- Master contracts to permit rapid low cost acquisition.
- Performance measures.
- Procurement manual that has been published or revised recently.
- Internal and external customer service and supplier surveys.
Leadership. Best practices indicate a preference for a center-led organizational structure, defined as: The central procurement authority focuses on training and education, performance measurement, dispute resolution, system oversight and supply-chain management. Agencies are empowered to conduct procurements over which they are subject matter experts while the central authority consults, provides support, and reviews compliance with state rules and policies.
The Office of the National Coordinator for Health Information Technology (ONC) announced that $220 million in grants will be awarded to 15 communities to advance health information technology (IT) infrastructure. The “Beacon Community Cooperative Agreement Program” awards will be made to non-profit organizations or government entities representing geographic health care communities. The grant may also be given to a consortium of stakeholder organizations and health care providers if the lead applicant is a U.S-based, non-profit organization or government entity in one of the five categories:
- State, local, tribal, or territorial government entity with a public health focus
- Integrated delivery network or health system with broad community partnerships
- Independent physician association or consortium of medical groups
- Public/Private partnership aimed at health system improvement and/or community health improvement
- ONC-funded regional extension center with the capacity to expand its services
Eligible applicants are expected to demonstrate an existing infrastructure for health IT and exchange, or previous success in either a community-level practice redesign and care coordination or community-level evaluation that advances health IT and exchange infrastructure. Applicants are required to provide a detailed approach describing how they plan to advance current health IT and exchange capabilities to achieve a more cost-effective and higher-quality patient care.
An additional $15 million will be provided for technical assistance to the communities to evaluate the success of the program.
An electronic Letter of Intent is required to be submitted by January 8, 2010. Final applications for the grants are due on February 1, 2010. Award decisions are anticipated in March 2010. The grants will last for a 36-months.
For more information, visit the HITECH website.
Public Knowledge (PK) is working with the Center on Budget and Policy Priorities (CBPP) and the Urban Institute on a new Ford Foundation initiative. PK is assisting CBPP by conducting site visits in four states to assess how low-income families with children access and retain public assistance benefits. The goal of the site visits is to gather input from state and county staff, community organizations, and clients on how to streamline and integrate eligibility practices in the Supplemental Nutritional Assistance Program (SNAP), Medicaid and other core public assistance programs like Temporary Assistance for Needy Families (TANF) and childcare.
The results of the site visits will culminate in a paper published by CBPP on eligibility integration best practices for a new Ford Foundation initiative. The paper will accompany a grant opportunity the Ford Foundation and Urban Institute will make available to states and counties in 2010. The grant will fund demonstration projects in 5 to 10 states interested in implementing the best practices in order to integrate access and retention in the core public assistance programs.
PK completed the first site visit in Cuyahoga County, Ohio in November. Site visits in Washington State and Oklahoma are planned for January. The location of the fourth site visit is still being finalized.
For more information on the Ford Foundation initiative, see this NY Times article or go directly to the Ford Foundation’s Press Release.
