Value-Based Management in Government

Until now, value-based management (VBM) has been narrowly understood as a method of calculating financial value in private-sector corporations. This is a shame, because the broader concept of value has enormous potential to transform the way operations and strategy should be managed in the public sector. In their new book, Value-Based Management in Government, Douglas W. Webster and Gary Cokins uncover that potential. They propose a new framework for making and accounting for all decisions-from daily operations to sweeping strategy-in government and beyond. What is value, and how can it optimize efficiency in government? Public-sector employees are under pressure to deliver value to stakeholders who often explicitly disagree about what they want. What taxpayers value differs from what legislators value, and service beneficiaries may have yet another point of view. Government financial professionals will appreciate this book for its guidance on how to untangle these conflicts to articulate an overall value based on available Resources, potential Risks, and achievable Results. The Three Rs approach to VBM finally provides a way to balance competing stakeholder demands and identify the most valuable way forward for organizations. Unlike private entities, public-sector organizations don't have the luxury of re-engineering their accounting systems around the latest fads. Strategic shifts require sometimes-herculean efforts to generate buy-in, manage organizational change, and align with Federal directives. Happily, value-based management conforms to FASB Federal Financial Accounting Standards. In Value-Based Management in Government, readers will learn how to implement activity-based costing (ABC) and other progressive management accounting practices as part of a concrete VBM strategy. The authors also provide guidance on leading behavioral change throughout the organization. Taxpayers, citizens, and other stakeholders have grown weary of waste and are demanding more bang for each buck the government spends. With VBM, the public sector can serve stakeholders more effectively and economically. This book provides comprehensive guidance on adopting a promising strategy.