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4 Performance Reference Model

4.9 Demonstrating the Outcome Process Model

4.9.1 Example 1: OPM used in activity planning

Operation of the Outcome Process Model (OPM) in reverse provides a powerful outcome-focused business planning framework capable of supporting strategic and tactical business planning, project planning, workforce planning, business case development and investment management.

Figure 4-35 shows an example of the operation of the Outcome Process Model (OPM) in reverse; by starting from the outcome sought and working backwards to the effects necessary, to the usage needed, to the outputs to be delivered, to the inputs required. Further discussion on this example can be found in the surrounding text.

Figure 4-35: The OPM and business planning

OPM Business Planning task
Step 1
Define the outcome(s) sought		 Desired outcomes are defined at the beginning of any tactical or strategic planning exercise. They take the form of a statement of the objectives that are sought to be realised through a planned body of work and can be social, economic or environmental.
Step 2
Identify the necessary effects		 Once an understanding of the outcome is reached, it is possible to identify the group of effects that need to be realised and in what timeframes, in order for the outcome to be deemed to be secured.
Steps 3 and 4
Specify the outputs and determine the levels of usage needed

Following the identification of effects necessary to secure the outcome, it is possible to determine any outputs and the levels of usage required to generate the effects we are seeking to realise. Note that 'usage' is the OPM term that encapsulates, for example:

  • the consumption of a product
  • the utilisation of a service
  • the discharge of an enforcement action
  • the operation of a military campaign
  • the completion of an advertising campaign.
Step 5
Determine the work to be completed		 Once a government agency knows what types and volumes of outputs it must create, it is able to determine the work (business processes and activities) and rate of production required to produce them.
Step 6
Specify the inputs required		 By knowing what types of outputs must be produced and the
work processes that are required to produce them, agencies
are able to determine the volume and mix of inputs that are
required to sustain work processes and output production
levels.

4.9.2 Example 2: OPM used in operations management

The following scenarios demonstrate the concepts of the OPM in the management (execution) context of various government organisations:

Note that these examples are provided to illustrate the operational concepts of this model and are simplified versions of very complex scenarios.

Figure 4-36 illustrates the operational concepts of the Outcome Process Model (OPM). Inputs consumed become work that is done, which becomes outputs that are created, which lead to usage of those outputs, which then provides an achieved effect, which in turn leads to an outcome that is realised. Further discussion on this example can be found in the surrounding text.

Figure 4-36: OPM and business operations

OPM Business Operation task
Inputs

The necessary composition and quantity of resources are allocated to an initiative in accordance with endorsed plans, and provided as inputs to the processes and activities (work) that will be executed by the organisation:

  • money
  • construction materials and equipment
  • construction personnel
  • legislative staffers, constitutional lawyers, ministers
  • public affairs professionals, media professionals
  • legislative framework information
  • police personnel
  • military intelligence information
  • military personnel.
Work

Work consumes physical and technological labour by applying it to the execution of business processes and activities that convert the input resources into the specified outputs.

The sustained effort necessitated by the provision of a service for the public is also considered to be work:

  • design and planning for infrastructure
  • construction of transport infrastructure
  • formation and ratification of legislation
  • development of a publicity campaign
  • planning operations for policing action
  • planning operations and logistics for a military action.
Outputs

Produced outputs are consistent with the definitions of the business processes that were executed in order to create them.

The outputs of work could include:

  • a roadway constructed and ready for use
  • public information campaigns on the risks of smoking approved for implementation
  • legislation prohibiting the operation of a motor vehicle while under the influence of alcohol, and police officers trained in undertaking the policing action
  • military operation plans, such as the INTERFET plan, approved and ready for execution, and soldiers trained and ready to be deployed for the operation.
Usage

The outputs that have been produced do not in themselves realise an outcome unless the output of an activity was the removal of an obstruction to what would otherwise be normal 'state of the world'. Outputs must be utilised in order to create an effect or realise an outcome.

Usage includes activities such as:

  • using a new roadway as a means of travelling to work or transporting goods
  • adjusting personal behaviour as a result of public information campaigns run by government, such as anti-smoking campaigns
  • executing of policing action targeting drink-driving with random breath tests
  • executing a military action, such as the INTERFET military operation in East Timor.
Effects

The usage of outputs causes effects that are observable and measurable:

  • Traffic congestion in a particular locale is eased and transit times are reduced—because people are using the new roadway
  • The number of deaths resulting from smoking-related illness declines— because people are aware of the dangers of smoking and are getting help to quit
  • The number of people arrested for drink-driving declines—because people are aware of the consequences of drink-driving (arrest or possible death).
  • The number of alcohol-related road accidents declines—because police are conducting random breath tests and arresting drink-drivers.
  • Free and democratic elections are held in East Timor—because of the actions and ongoing presence of Australian and international troops.
Outcomes

The outcome realised by the program can be inferred through the observed and measured effect. Based upon the examples provided above, it could be argued that:

  • the construction of new infrastructure has facilitated socioeconomic benefits, as was intended
  • the anti-smoking campaign was successful in reducing the incidence of smoking-related fatalities
  • legislating against driving under the influence of alcohol successfully reduced the number of road accidents involving alcohol
  • the INTERFET military action succeeded in securing the independence of East Timor.

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Last Modified: 18 November, 2011