Committed to Connecting the World
Towards Results Based Approach
Preparatory Process of the World Telecommunication
Development Conference
CEPT Meeting
16-18 April 2013
Prague, Czech Republic
Jaroslaw K. PONDER
Coordinator for Europe
International Telecommunication Union
CEPT Meeting, Prague, Czech Republic, 16-18 April 2013
International
Telecommunication
Union
Result Based Budget
MISSION
Linking Strategic, Financial and
Operational planning
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
GOAL
OBJECTIVE
OUTPUT
OUTPUT
OUTPUT
OBJECTIVE
OUTPUT
OUTPUT
OUTPUT
OUTPUT
OUTPUT
OUTPUT
ACTIVITIES
ACTIVITIES
ACTIVITIES
resources
resources
resources
resources
resources
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
OBJECTIVE
resources
resources
resources
resources
2
Result Based Budget
MISSION
Linking Strategic, Financial and
Operational planning
GOAL
OBJECTIVE
OUTPUT
The strategic, financial
and operational planning
are built/based using the
same structure/architecture
From Mission to
objectives/outputs
Four year timeframe
OUTPUT
OUTPUT
OBJECTIVE
OUTPUT
OUTPUT
OUTPUT
OUTPUT
OUTPUT
OUTPUT
ACTIVITIES
ACTIVITIES
ACTIVITIES
resources
resources
resources
resources
resources
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
OBJECTIVE
resources
resources
resources
resources
3
Result Based Budget
MISSION
Linking Strategic, Financial and
Operational planning
GOAL
OBJECTIVE
The strategic, financial
and operational planning
are built/based using the
same structure/architecture
OUTPUT
OUTPUT
OUTPUT
OBJECTIVE
OBJECTIVE
OUTPUT
OUTPUT
OUTPUT
OUTPUT
OUTPUT
OUTPUT
Focuses on objectives and
outputs
ACTIVITIES
ACTIVITIES
ACTIVITIES
Different timeframes: 4
years for the financial plan,
2 years for the budget
resources
resources
resources
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
resources
resources
resources
resources
resources
resources
4
Result Based Budget
MISSION
Linking Strategic, Financial and
Operational planning
GOAL
OBJECTIVE
The strategic, financial and
operational planning are
built/based using the same
structure/architecture
OUTPUT
OUTPUT
OUTPUT
OBJECTIVE
OBJECTIVE
OUTPUT
OUTPUT
OUTPUT
OUTPUT
OUTPUT
OUTPUT
Includes /addresses all
features
ACTIVITIES
ACTIVITIES
ACTIVITIES
Four year rolling plan with
greater emphasis on the
first year
resources
resources
resources
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
resources
resources
resources
resources
resources
resources
5
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
A results-based budget is a
budget that allows readers to
see the links between
resource allocation and the
output of the organization,
i.e. what the organization
produces with the capital and
labor that is invested in it.
It can be used as a
management tool to make
prioritization and other
management decisions.
6
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
In a results-based budget :
The objectives and outputs are clearly
defined and understood by all
stakeholders (Membership and
management)
For each output there is a set of predefined expected results as well as
performance indicators for measuring
actual performance against those
expected results
Resource allocations are linked to those
outputs;
Planning, budgeting and results
measurement are consistent across the
organization, allowing comparison and
prioritization
7
Result Based Budget
Linking Strategic, Financial and
Operational planning
Objectives
Overall framework
What is the RBB
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
Outputs
Activities
Resources
A clear linkage between strategic and financial planning8
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
From strategy to execution
Strategy
Execution
Direct…
… ITU-wide
focuses and
priorities
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
Align...
… Resources in
support of goals
and objectives
Control...
… Processes for
sustainable and
repeatable results
9
Result Based Budget
Linking Strategic, Financial and
Operational planning
Output
Overall framework
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
Objective
Expected
result
Activity
KPIs
10
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
Objectives refer to the specific
purposes and aims of individual
Sectors and of the ITU General
Secretariat.
Example - Objective 1 of the ITU-D:
“To foster international cooperation,
among ITU-D members and other
stakeholders, on
telecommunication/ICT
development issues, by providing
the pre-eminent forum for
discussion, information-sharing and
consensus-building on
telecommunication/ICT technical
and policy issues.”
11
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
Outputs refer to the final products
or services delivered by the ITU.
Example:
The World Telecommunications
Development Conference 2014
(WTDC-14)
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
12
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
Expected results are desired
outcomes involving benefits to endusers/clients, expressed as a
quantitative standard, value or rate.
Results are the direct consequence
or effect of the generation of
outputs, leading to the fulfillment of
a certain output or objective.
Example for the WTDC-14:
Preparation, provision of secretariat
support (delegate registration,
document preparation and
distribution, logistics, etc)
13
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
Key Performance Indicators, also
known as KPIs define and measure
progress toward delivery of
expected results
Key Performance Indicators are
quantifiable measurements, agreed
to beforehand, that reflect the
critical success factors of an
organization. They will differ
depending on the type of result
measured and the Sector
Example for the WTDC-14:
Timely preparation and actions
before and during the conference;
satisfaction of delegations.
14
Result Based Budget
Linking Strategic, Financial and
Operational planning
Criteria for Key Performance
Indicators:
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
S
M
A
R
T
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
E
R
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
Specific
Measurable
Attainable
Relevant
Time-bound
…
Evaluate
Reevaluate
15
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The 2012-2013 draft budget
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
Resources are: Inputs,
such as staff costs,
equipment, materials, etc.
that are used to produce
outputs.
Resources are typically
defined as object of
expenditure by cost
center level, eg:
Salaries
Materials, supplies
Subcontract
etc..
16
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
Example: The 2012-2013 draft
budget
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
Costs are allocated to the
different objectives and
outputs.
The cost structure is as
follows:
Primary costs = expenditure
(Example: salaries, …)
Direct costs
Secondary costs = SLAs
(Example: translation)
A cost that is common or
shared by more than one
cost object.
(Example: ITU buildings,
heating, supervisor’s salary
when dedicated to several
outputs,…)
indirect costs
17
Objective 1 ITU-D
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
EXPECTED RESULTS

Enhanced
cooperation,
including
new
partnerships,
on
telecommunication/ICT
development issues

Number of events planned and delivered on time
(in accordance with the Constitution and relevant
resolutions)

High-level discussion of telecommunication/ ICT
development issues

Number, diversity and seniority of participants at
Events

Decisions made on the creation, termination,
work plans and objectives of study groups and
the work plan of BDT

Feedback from event participants

Number of new partnerships/MoUs signed

Availability of work plans for study groups and
BDT
Resources
2012
Staff (No of Posts)
Operational (CHF thousands)
The processing changes
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
KEY PERFORMANCE INDICATORS
Capital (CHF thousands)
Total (CHF thousands)
2013
2012-2013
16
8
12
4’982
2’093
7’075
26
12
38
5’008
2’105
7’113
18
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The future developments
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
1. Suppression of fund request
2. Greater delegation of
authority to line/action
manager for implementation
and budget management
3. Increased level of
accountability in relation
with delegation in 2.
4. HAP will become a planning
tool for action/line managers
for budget simulation and
implementation
management
5. Simplification
(harmonization of
administrative processes)
19
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
Q/A
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
20
Result Based Budget
Linking Strategic, Financial and
Operational planning
Overall framework
What is the RBB
A consistent planning
hierarchy
Bridging the strategy gap
The terminology
The objectives
The outputs
The expected results
The performance indicators
Let us be S.M.A.R.T.
The resources and the cost
allocation
The 2012-2013 draft budget
The processing changes
The future developments
16-18 April 2013 / CEPT
Meeting, Prague, Czech
Republic
Any questions ?
(coffee is waiting
for you outside of
the room….)
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Committed to Connecting the World
www.itu.int/ITU-D
CEPT Meeting, Prague, Czech Republic, 16-18 April 2013
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