I have chosen a more complicated example of a horizontal Function “Family Welfare” rather than a vertical function such as “Elementary Education”. I found that separating the welfare of children from family welfare was not viable because of the close ties to the family in other words the family’s problems were also the children’s problems.

Background
The “function family Welfare” involves many things among them domestic violence and identifying children in danger. This may involve breaking up the family by removing the abused spouse as well as removing children 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 spouse and children’s welfare. In doing the analysis of the processes you will find that more than one department or agency is involved. Some endangered family members are first identified at the emergency room of a hospital others are identified by school councilors and teachers. The legal authority of the state to remove children from the abusive home brings in the states legal agency.

Family welfare function Organization
At the state level for this example the function is a part of the Department of Public Welfare (DOPW) this department will have other functions both vertical and horizontal. The function will have its own state office with staff and a conference room where the meetings of the Family Welfare Cabinet (as some states call this organization) takes place. The state Cabinet on Family welfare has representatives from the following vertical state organizations: “elementary education”, “secondary education”, “juvenile justice”, “public health” and its managing organization “public welfare”. The duties of the Cabinet are to manage all family welfare issues in the state. Note that the Cabinet is a kind of high level Work Improvement Team (WIT) with cross discipline stakeholders. One of the obligations of the state level Cabinet is to review the process flow charts developed by each county level WIT and to recommend the implementation of the best process flow charts. The Cabinet also has input to the development of the budget for the horizontal function.

The function’s organization at the county level is similar to that at the state level it has a weekly meeting of WIT members. Besides county family welfare caseworkers there are representatives from local vertical functions such as ”foster parents” (this is usually a vertical function and a part of DOPW), “elementary education”, “secondary education”, “juvenile justice”, “public health” and its managing organization “public welfare”. The duties of the WIT are to manage and protect children and families who are in their local caseload and to document the best way to do the function’s processes in a detailed flow chart. They also document the number of visits to various agencies made by caseworkers along with the mileage between destinations. The flow chart is sent to DOPW and the state Cabinet for review and approval. The flow chart is then turned over to an analyst from the function’s state office for costing out of the function’s processes. Followed by the development of the function’s performance measurements and its funding formula for input to the state’s Performance Budgeting system. The WIT’s process flow charts provide the basis for calculating the number of caseworkers needed at the county level. Caseworkers may have to be moved to counties where caseloads have increased. For more information on how to install WITs see Article 11. “Adaptation of Manufacturing Quality Improvement Techniques to Achieve Efficient Government”.

1. Development of Productivity performance measure
Lets review what the state really needs to know in order to measure the function’s activities in the development of a budget. How “effective” and “efficient or productive” are caseworkers in doing their job.

Development of a productivity performance measure at the county level.
The Function Family Welfare in this example has four Flow Process Charts the standard hours for each was determined at the state level by reviewing flow charts from the counties and standardizing the method and issuing a state wide standard Flow chart with standard hours. Mileage driven by caseworkers is specific to each county because of the size of the county.

Standard hours for different types of cases: aver. Cole county mi.
1. Abused children 36 std. hours 28
2. Neglected children 29 std. hours 48
3. Battered spouse 47 std. hours 62
4. Child support 15 std. hours 22

At the county level the actual mileage incurred and man hours expended are entered into a weekly report with productivity to the county supervisor. A monthly summary with productivity measures is sent to DOPW to be reviewed by the state Cabinet.

Weekly Productivity report example Cole County:
weeks total case load standard hrs. actual hrs. mileage
1. Abused children 2 cases x 36 std. hours= 72 97 58
2. Neglected children 5 cases x 29 std. hours= 145 176 78
3. Battered spouse 1 case x 47 std. hours = 47 58 82
4. Child support 2 cases x15 std. hours = 30 47 42
Totals 10 294 360 260
(weeks total std hours )/(weeks actual hours, 9 caseworkers) x 100 = productivity
294/360 x 100 = 81.6% Cole county productivity
Note that the number of caseworkers directly affects the productivity.
If there were 10 caseworkers instead of 9 the productivity is 73.5%.
294/400 x 100 = 73.5% Cole county productivity

Monthly Productivity Report to DOPW.
The monthly report to DOPW must be more than a summation of a counties cases and hours expended because the of the size variation of the counties
The more time spent driving the less time available for casework. An adjustment must be made to be able to compare productivity on a county to county basis.

Continuing our example, Cole county’s average mileage per case of 26 miles exceeds the state average of 20 miles per case by 6 miles.
From the weekly Cole county data above note that there were 10 cases and 160 miles driven. Converting the 6 miles per case x 10 cases = 60 extra miles driven this week and at the average 35 miles per hour we can now add 1.7 hours to Cole county’s 294 standard hours or 295.7adjusted standard hrs.
Weekly reports are summated using adjusted standard hours to get the monthly report to DOPW. (monthly adjusted standard hrs)/ (monthly actual hrs) x 100= % productivity

The weekly standard produced hours, actual expended hours and actual mileage driven is summed each week for the month and the county adjustment for mileage is applied before calculating the monthly productivity.
DOPW calculates the mileage adjustment for each county from the total average statewide miles per case. This method provides a uniform base for comparing productivity in all of the counties. It combines the mileage variable in each county with each week’s standard in units. The monthly county productivity reports become inputs the Performance Budgeting process for the Family Welfare function.

2.Development of Effectiveness performance measure
Besides productivity the state should also measure how well or how “effective” caseworkers are in performing their jobs. Are there are enough caseworkers available to respond and have they been adequately trained to do their jobs. The following indicator focuses on prevention and is useful in determining effectiveness:
1. Number of dangerous developments prevented through intervention per caseload is nearly impossible to measure but the following can be measured:
a. Community awareness initiatives number implemented (Points 50 each)
b. School awareness initiatives number implemented (Points 50 each)
c. Law enforcement awareness initiatives number implemented (Points 30 each)
d. Hospitals awareness initiatives number implemented (Points 30 each)
2. Caseworker training easily measured
a. Special classroom training and number trained (Points 20 each)
3. Absence or reduction of reports related to the following:
a. Foster child abuse number 5 levels of seriousness (Points 10 x level of seriousness)
b. Child abandonment number 5 levels of seriousness (Points 10 x level of seriousness)
c. Child abuse number 5 levels of seriousness (Points 10 x level of seriousness)
d. Domestic violence number 5 levels of seriousness (Points 10 x level of seriousness)

Effectiveness calculation
(prevention initiative points per caseload)/ (number of serious report points per case load) x 100 = effectiveness
Example of County family welfare effectiveness:
(prevention 250 points/ 150 cases) / (300 serious report points/ 150) x 100 = (1.67/2) x100 = 83.3 % effectiveness
What we are doing is comparing the initiatives, good things being done, against the number of bad things happening and how serious they are.

3. Performance measurement of Caseload Effectiveness
Performance measurement of Caseload Effectiveness at the state level summated from monthly county reports:
(total statewide caseload) / (statewide caseload reduction goal) x100 =
Caseload Effectiveness

Funding formula development
The Funding Formula for the function Family Welfare is used by DOPW to easily calculate the county budgets and summarize them to obtain the overall budget for the state. Note that this is the reverse of most state budgeting practices that estimate the overall budget then splits the budget up among the counties.
At the county level the number of caseworkers required is developed by the variables caseload and mileage. The data to justify case workers is found in the DOPW monthly productivity reports which has incorporated the adjustment for mileage in the standard produced hours.
Calculation of the funding formula
1. County caseworker costs is summed at the state level.
2. County mileage is summed at the state level.
3. County overhead is summed at the state level.
4. County training costs is summed at the state level.
5. County special initiative costs (from effectiveness report) are summed at the state level.
6. County WIT vertical function support members hours and mileage costs are summed at the state level.
7. State Cabinet vertical function support members hours and mileage costs are summed.
8. DOPW overhead charged to family Welfare function.
9. State office staff and travel for family Welfare function.
All of the above is summed and divided by the total statewide number of cases for a cost per case result. This number is multiplied by the projected number of cases to arrive at the new Budget.

Proposed Performance Budgeting Method Work Improvement Teams.
Function- “Family welfare”
1. Performance measurement of Productivity at the state level summated from monthly county reports: (adjusted standard hrs.) / (actual hrs) x 100= productivity
(31200 adj. std. hrs.) / 43200 actual hrs. x 100 = 72.2% productivity
2. Performance measurement of Prevention Effectiveness at the state level summated from monthly county reports:
(prevention 1900 points/ 1560 cases) / (2800 serious report points/ 1560) x 100 = (1.28/1.79) x 100 = 71.5% effectiveness
3. Performance measurement of Caseload Effectiveness at the state level summated from monthly county reports:
(total statewide caseload) / statewide caseload reduction goal x100 =
Caseload Effectiveness
(1400 caseload goal) /(total cases 1560) x 100 = 89.7%.
4. Actual cases handled in the 2004 season: “1560 from the sum of the monthly county performance reports“.
5. Overall Goal: “identify opportunities for early intervention”
6. Specific Goal: “to decrease the number of cases from 1560 to 1300 by increasing early intervention initiatives.”

Performance Budgeting Process
Review of state wide performance measures by DOPW.
Productivity 72.2%
Effectiveness 71.5%
Caseload effectiveness 89.7%
The Family welfare state manager needs to have an answer for the short fall in productivity and in effectiveness for the performance budgeting process. He should look at the monthly reports from each county to find the reason why a county’s goals were not met. The actual cause of the short fall in the delinquent counties should be easy to determine and corrective action taken if required. The action taken is documented and presented during the Performance budgeting process. Note that in the present performance budgeting process there is no way of determining which counties are delinquent.

The executive and legislative branches review performance measures and goals for the Family Welfare function. They also review the corrective action taken to meet the goals with in each county. They agree on a new goal of 1400 cases calling for the same reduced caseload and set the new budget at the same funding level. The Family Welfare’s budget is the total of all of the counties’ funding formula calculations, with adjustments for mileage in each county.