Principles for Implementation

Implementing performance-based budgeting is a process that requires clearly defined city priorities and goals, an understanding of performance measurement, and dedicated staff and city resources. Most importantly, implementation takes time, and cities should expect to spend at least one budget cycle preparing for the implementation of performance-based budgeting. Executive leadership commitment is critical; as with many city projects, performance-based budgeting will not succeed without it. Having an executive leader involved in the process signals to the rest of the organization that performance-based budgeting is the way the city is approaching budgeting, frequently alleviating buy-in and culture change concerns and unifying elected officials, senior leadership, and city staff around budget goals.

The principles listed below are designed to help cities think through key issues as they launch performance-based budgeting initiatives. Each principle includes an example from a city that is currently doing performance-based budgeting. These examples are simple ways to conceptualize the principles, but the practical application may differ across cities due to any number of factors, including form of government, organizational structure, and staff capacity and involvement.