Frequently Asked Questions About Public Works Performance Reviews

Why should we spend money when we are trying to save money?

A performance review is an investment that always more-than-pays for itself - offering states, municipalities and other public entities the opportunity to generate long-term, sustainable savings by rethinking what government does and how it does it. Public Works performance reviews have a track record of identifying hundreds of millions in potential costs savings. Our review of Iowa state government, for example, generated $340 million in savings, while our Colorado performance review identified $205 million in savings.

How much will a performance review require of us?

It varies. Some states dedicate a staff person, usually within the Governor's Policy office, to serve as the state's project manager. Other states have created dedicated teams of staff from different agencies. For example, In Iowa the Public Works team worked closely with the Iowa Department of Management, but no state staff was dedicated to the performance review effort. In contrast Colorado formed a 20-member Government Efficiency and Management (GEM) Review Team representing all of its departments to work directly with Public Works. Regardless of how the review is staffed, a team of Public Works consultants are on hand every step of the way - managing the performance review process, including research, analysis and report preparation.

Why shouldn't we just conduct a performance reviews ourselves?

Sometimes state and local governments are tempted to conduct performance reviews themselves. While this is not impossible, it is extremely difficult to look at yourself objectively. Public Works offers a fresh, outside perspective and a full-time, dedicated team of consultants that is committed to giving your state, city, agency, or program the level of investigation and analysis it deserves.

Leading a successful performance review also takes practice and Public Works has been doing this type of work for more than a decade. In fact, several members of our staff participated in the nation's very first performance review in Texas. For entities that want to do the performance review themselves, Public Works offers coaching services, mentoring and technical assistance.

How is a performance review different from an audit?

An audit checks to ensure money is spent according to acceptable accounting practices; a performance review examines how services are provided, how business is conducted, what emerging demands are being placed on government agencies and departments, and how effectively and efficiently are the processes, procedures, policies, technology, and organizations responsible for the services. A performance review is designed to challenge assumptions about why a program or service exists, as well as how business is conducted. Unlike an audit, the end result of a performance review is a set of workable recommendations to reduce inefficiency in government, improve the delivery of public services and save money. Our recommendations have ranged from improving the energy efficiency of state office buildings, to increasing the use of electronic signatures, to recalibrating the salt-spreading machines on state snow plows to save millions in unnecessary road salt.

Does Public Works follow an established methodology?

The methodology used by Public Works to conduct a performance review is based on years of experience and the proven model used by the Texas Performance Review and the National Performance Review. We use an array of techniques to identify issues, research problems and possible solutions, determine best practices, and develop recommendations. These standard research and analysis techniques are, in our model, combined with a focused, highly interactive process. Key stakeholders are involved at critical decision points and employees assist in the research and analysis in order to learn the techniques. Although all of our performance reviews involve certain steps, we do modify the methodology to accommodate specific needs, concerns or budget issues.

All of our reviews have included surveys of agency employees to solicit new ideas and identify potential waste and savings. Our approach is collaborative and inclusive. We partner and mentor - involving key stakeholders in the performance review process from start to finish. At the same time, our consultants are not afraid to point out the unpopular and propose bold changes in the way things are done.

The techniques used in a Public Works Performance Review are not new. What is new is how the tools are used in a defined process and timeframe and how the tasks are managed to gather data, analyze information, and identify recommendations for improvement.

How do municipalities and other local governments benefit from performance reviews?

Local governments experience the same benefits as state governments from our performance reviews - improved delivery of services and real cost-savings. Public Works applies the same principals to municipal and other local government performance reviews that we do to our larger state reviews.

How long does the performance review process take?

It depends on the scope and complexity of the performance review. Public Works recognizes the unique policy parameters and budget calendars of each of its clients. Therefore, we have developed a scalable model for our Performance Reviews that are sensitive to budget cycles and are adaptable so that we work with clients to meet defined deadlines. We have conducted statewide Performance Reviews in as little as three months while others have extended over the course of nine months to one year. We have also successfully reviewed individual government agencies or functions within two to three months.

What do we get in the end? How big are the savings?

We know that the final product must be understandable both to the people and agencies affected by the recommendations - and to the public. Our reports contain important background information followed by detailed recommendations and fiscal estimates of potential savings.

In general, we project that we will produce annual recurring savings - not one-time hits and gimmicks - equal to 2-3% of an entity's general fund or operating budget. In our most recent statewide review, for the State of Iowa, our recommendations totaled 5% of General Fund.

What happens after the report is published?

This is where the rubber hits the road. By including state employees, legislators, and other key stakeholders in all phases of the performance review, virtually all of Public Works recommendations have been successfully implemented through administrative or legislative action. And we'll work with you to make sure that stays true.

For example, Public Works was hired by the State of West Virginia in 2006 to conduct the State's first-ever performance review; the State realized $77 million in documented savings in the first year alone - $10 million more than we projected! And, in our most recent review in Iowa, we worked with the state Department of Management to craft an Executive Order directing implementation of most of our recommendations at the departmental level, identified legislation needed to implement others, and developed a reporting and tracking system to monitor implementation to ensure that all were on track.

As former high-level government managers, we pride ourselves on producing real solutions, not reports that collect dust on a shelf.

What does it cost?

We work with our clients to determine a fixed price for each Performance Review based on the scope of the project (i.e., number of agencies, functions to be evaluated) and the level of work to be completed. Our fee always reflects a very small percentage of identified savings. For example, our fee for our most recent Review for the State of Iowa equaled less than one-tenth of one percent of first year identified savings (one-hundredth of one percent of the total identified savings). Understanding the importance of efficient operations, our Performance Reviews are always designed to pay for themselves with the savings recognized by our clients.