Defining our terms, all government organizations, departments and agencies have “Functions” that perform “Processes” to produce “Products” that satisfy state “needs”. A “Function” is the name of a part of an organization that uses a unique set of processes to achieve a result or product that satisfies a specific “need“. “Processes” are the steps required to achieve the desired “product” and are best represented on a process flow chart. The “Product” (which may be also defined as a service) is the result of the work processes and is expressed for example in specific terms such as “miles of new highway” or “number of people served“. How well a function or a government organization accomplishes their task is addressed by the analysis of state “Needs“. For more information see Article 2. “How to Approach Budget Cuts”.

In doing the analysis of a particular “Need”, for example the care and protection of the states foster children. The “function- Foster Child Protection ” involves identifying children in danger, removing them from their current environment and placing them in foster homes. A detailed set of “processes” determined by guidelines, both practical and legal must be followed for the sake of the child’s welfare. In doing the analysis of the processes you will find that more than one department or agency is involved. Some endangered children are first identified at the emergency room of a hospital others are identified by school administrators and teachers. The legal authority of the state to remove a child from the abusive home brings in the states legal agency. For more information see Article 20. “Approaches for Different Types of Organizations”.

It isn’t possible or desirable to combine these agencies under one department. But a Work Improvement Team (WIT) with representatives from all the stake holders involved, even private hospitals could arrive at a consensus of the best set of “processes “ to be followed in doing the “function”. This set of processes documented by the WIT in a flow chart becomes the standard way of performing the function. This should cover 80% of the foster child cases leaving 20% of the cases requiring unique decisions to be made by the WIT. The flow chart containing relevant detail such as mileage is then costed out and becomes the basis for the state’s Performance Budgeting system leaving only the 20% exceptional case load to be estimated for budgeting from past years data. The “product” or desired goal is to achieve a safety record of “No abused children in the state”. The key is in the restructuring the budget by functions not departments or organizations.

Because Functions can precisely describe a task, breaking down the budget into Functions simplifies the budgeting process. This allows Functions to be easily excluded or included in the budget as a funded entity. To begin the process I would request all departments to to make a preliminary break down of their current budget into Functions. Each Function should include expected staffing and all expenses associated with the Function. This is done to prepare the way for organizing the Function’s Work Improvement Team (WIT) which I have identified elsewhere.

There is also a benefit when restructuring government. Functions identified as budgeted entities can easily be removed from one department and placed in another by moving the budget and the personnel performing the function.