Outcomes theory

Last updated

Outcomes theory provides the conceptual basis for thinking about, and working with outcomes systems of any type. An outcomes system is any system that: identifies; prioritizes; measures; attributes; or hold parties to account for outcomes of any type in any area.

Contents

Outcomes systems go under various names such as: strategic plans; management by results; results-based management systems; outcomes-focused management systems; accountability systems; evidence-based practice systems; and best-practice systems. In addition, outcomes issues are dealt with in traditional areas such as: strategic planning; business planning and risk management.

Outcomes theory theorizes a sub-set of topics covered in diverse ways in other disciplines such as: performance management, organizational development, program evaluation, policy analysis, economics and the other social sciences. The different treatment of outcomes issues in different technical languages in these different disciplines means that it is hard for those building outcomes systems to gain quick access to a generic body of principles about how to set up outcomes systems and fix issues with existing outcomes systems.

History

Outcomes theory was developed by Paul Duignan. [1] [2] [3]

Overview

Outcomes theory is made up of several key conceptual frameworks and a set of principles. The most important framework is Duignan's Outcomes System Diagram. [1] This diagram identifies seven different building-blocks of outcomes systems. These building-blocks are analogous to the building-blocks that make up accounting systems (e.g. general ledger, assets register). In the case of an outcomes system they are a different set of building-blocks which are necessary for outcomes systems to function properly. The building blocks are:

  1. A model of the high-level outcomes being sought within the outcomes system, the steps which it is believed are necessary to get to these outcomes, previous evidence linking such steps to such outcomes, current priorities and whether current activity is focused on these priorities. Within outcomes theory these models are, for convenience, conceived of as visual models. They are used, for example, in visual strategic planning.
  2. 'Controllable' indicators – measures of at least some of the boxes within the model. Controllable indicators have the feature that their mere measurement is proof that they have been caused by the project, organization or intervention that they are controlled by. This means that they are ideal for use as accountability measures (e.g. Key Performance Indicators KPIs).
  3. 'Not-necessarily controllable indicators – indicators that are influenced by factors in addition to the intervention. These have the feature that their mere measurement does not say anything about what has caused them.
  4. Non-impact evaluation – while 2 and 3 above are usually routinely collected information, outcomes systems can also utilize more one-off studies (referred to as types of 'evaluation'). Non-impact evaluation focuses on improving the 'lower-level' steps within the outcomes model (it is often included within aspects of: developmental, formative, process and implementation evaluation)
  5. Impact evaluation – evaluation that makes a claim about what has caused high-level outcomes to have occurred (i.e. whether or not the intervention has improved them).
  6. Comparative and economic evaluation – evaluation that compares different interventions or translates their benefits into dollar terms so that different interventions focusing on different issues can be compared.
  7. Contracting, accountability and performance management arrangements – the arrangements that are in place (e.g. in the form of a contract between a funder and provider) as to what information will be collected regarding 1-6 and what parties will be held to account for, and rewarded and punished for.

Example of a principle

An example of a principle within outcomes theory is the Impact evaluation only option for high-level outcome attribution if no controllable indicators at top of outcomes model principle.[ clarification needed ] This is the principle that in an instance where building-block two (controllable indicators) does not connect to building block one of the outcomes model, then building-block five (impact evaluation) offers the only way to obtain more information about whether changes in high-level indicators can be attributed to an intervention.

Uses

Williams and Hummelbrunner (2009) summarize some of the uses of outcomes theory: "Outcomes theory intends to improve outcomes system architecture, that is, related systems that deal in one way or another with outcomes, by providing a clear common technical language, thus helping to avoid unnecessary duplication and identify gaps to be filled. Outcomes theory also specifies the structural features and the key principles of well-constructed outcomes systems. ... This helps people without significant background in outcomes thinking to construct sound and sustainable outcomes systems." [4]

Practical application

Duignan's Outcomes-Focused Visual Strategic Planning is an applied implementation of outcomes theory. It is based on building a visual strategic plan and then using it for: prioritization; performance management; and assessing organizational impact.

See also

Related Research Articles

Project management is the process of leading the work of a team to achieve all project goals within the given constraints. This information is usually described in project documentation, created at the beginning of the development process. The primary constraints are scope, time, and budget. The secondary challenge is to optimize the allocation of necessary inputs and apply them to meet pre-defined objectives.

In common usage, evaluation is a systematic determination and assessment of a subject's merit, worth and significance, using criteria governed by a set of standards. It can assist an organization, program, design, project or any other intervention or initiative to assess any aim, realisable concept/proposal, or any alternative, to help in decision-making; or to ascertain the degree of achievement or value in regard to the aim and objectives and results of any such action that has been completed.

<span class="mw-page-title-main">Business performance management</span> Processes to bring output into alignment with goals

Business performance management (BPM), also known as corporate performance management (CPM) enterprise performance management (EPM), organizational performance management, or simply performance management are a set of management and analytic processes that ensure activities and outputs meet an organization's goals in an effective and efficient manner. Business performance management is contained within approaches to business process management.

Program evaluation is a systematic method for collecting, analyzing, and using information to answer questions about projects, policies and programs, particularly about their effectiveness and efficiency.

Governance is the process of making and enforcing decisions within an organization or society. It is the process of interactions through the laws, social norms, power or language as structured in communication of an organized society over a social system. It is done by the government of a state, by a market, or by a network. It is the process of choosing the right course among the actors involved in a collective problem that leads to the creation, reinforcement, or reproduction of acceptable conduct and social order". In lay terms, it could be described as the political processes that exist in and between formal institutions.

Information technology (IT)governance is a subset discipline of corporate governance, focused on information technology (IT) and its performance and risk management. The interest in IT governance is due to the ongoing need within organizations to focus value creation efforts on an organization's strategic objectives and to better manage the performance of those responsible for creating this value in the best interest of all stakeholders. It has evolved from The Principles of Scientific Management, Total Quality Management and ISO 9001 Quality management system.

A business case captures the reasoning for initiating a project or task. Many projects, but not all, are initiated by using a business case. It is often presented in a well-structured written document, but may also come in the form of a short verbal agreement or presentation. The logic of the business case is that, whenever resources such as money or effort are consumed, they should be in support of a specific business need. An example could be that a software upgrade might improve system performance, but the "business case" is that better performance would improve customer satisfaction, require less task processing time, or reduce system maintenance costs. A compelling business case adequately captures both the quantifiable and non-quantifiable characteristics of a proposed project. According to the Project Management Institute, a business case is a "value proposition for a proposed project that may include financial and nonfinancial benefit."

Social return on investment (SROI) is a principles-based method for measuring extra-financial value. It can be used by any entity to evaluate impact on stakeholders, identify ways to improve performance, and enhance the performance of investments.

<span class="mw-page-title-main">Capacity building</span> Process by which individuals or organizations improve their capability to produce, perform or deploy

Capacity building is the improvement in an individual's or organization's facility "to produce, perform or deploy". The terms capacity building and capacity development have often been used interchangeably, although a publication by OECD-DAC stated in 2006 that capacity development was the preferable term. Since the 1950s, international organizations, governments, non-governmental organizations (NGOs) and communities use the concept of capacity building as part of "social and economic development" in national and subnational plans. The United Nations Development Programme defines itself by "capacity development" in the sense of "'how UNDP works" to fulfill its mission. The UN system applies it in almost every sector, including several of the Sustainable Development Goals to be achieved by 2030. For example, the Sustainable Development Goal 17 advocates for enhanced international support for capacity building in developing countries to support national plans to implement the 2030 Agenda. 

Organizational effectiveness is a concept organizations use to gauge how effective they are at reaching intended outcomes. Organizational effectiveness is both a powerful and problematic term. The strength of it is that it may be used to critically evaluate and improve organisational activities. It's problematic since it means various things to different individuals. And there are other alternative methods for measuring organizational performance. Organizational effectiveness embodies the degree to which firms achieve the goals they have decided upon, a question that draws on several different factors. Among those are talent management, leadership development, organization design and structure, design of measurements and scorecards, implementation of change and transformation, deploying smart processes and smart technology to manage the firms' human capital and the formulation of the broader Human Resources agenda.

<span class="mw-page-title-main">Internal audit</span> Independent, objective assurance and consulting activity

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. Internal auditing might achieve this goal by providing insight and recommendations based on analyses and assessments of data and business processes. With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice. Professionals called internal auditors are employed by organizations to perform the internal auditing activity.

<span class="mw-page-title-main">Logic model</span> Method of depicting causal relationships

Logic models are hypothesized descriptions of the chain of causes and effects leading to an outcome of interest. While they can be in a narrative form, logic model usually take form in a graphical depiction of the "if-then" (causal) relationships between the various elements leading to the outcome. However, the logic model is more than the graphical depiction: it is also the theories, scientific evidences, assumptions and beliefs that support it and the various processes behind it.

<span class="mw-page-title-main">Sustainability accounting</span>

Sustainability accounting was originated about 20 years ago and is considered a subcategory of financial accounting that focuses on the disclosure of non-financial information about a firm's performance to external stakeholders, such as capital holders, creditors, and other authorities. Sustainability accounting represents the activities that have a direct impact on society, environment, and economic performance of an organisation. Sustainability accounting in managerial accounting contrasts with financial accounting in that managerial accounting is used for internal decision making and the creation of new policies that will have an effect on the organisation's performance at economic, ecological, and social level. Sustainability accounting is often used to generate value creation within an organisation.

<span class="mw-page-title-main">Enterprise life cycle</span> Process of changing an enterprise over time

Enterprise life cycle (ELC) in enterprise architecture is the dynamic, iterative process of changing the enterprise over time by incorporating new business processes, new technology, and new capabilities, as well as maintenance, disposition and disposal of existing elements of the enterprise.

Capability management is the approach to the management of an organization, typically a business organization or firm, based on the "theory of the firm" as a collection of capabilities that may be exercised to earn revenues in the marketplace and compete with other firms in the industry. Capability management seeks to manage the stock of capabilities within the firm to ensure its position in the industry and its ongoing profitability and survival.

<span class="mw-page-title-main">Theory of Change</span> Methodology for social impact

Theory of Change (ToC) is a methodology or a criterion for planning, participation, adaptive management, and evaluation that is used in companies, philanthropy, not-for-profit, international development, research, and government sectors to promote social change. Theory of Change defines long-term goals and then maps backward to identify necessary preconditions.

In organizational theory, organizational analysis or industrial analysis is the process of reviewing the development, work environment, personnel, and operation of a business or another type of association. This review is often performed in response to crisis, but may also be carried out as part of a demonstration project, in the process of taking a program to scale, or in the course of regular operations. Conducting a periodic detailed organizational analysis can be a useful way for management to identify problems or inefficiencies that have arisen in the organization but have yet to be addressed, and develop strategies for resolving them.

<span class="mw-page-title-main">Management accounting principles</span> Management accounting case

Management accounting principles (MAP) were developed to serve the core needs of internal management to improve decision support objectives, internal business processes, resource application, customer value, and capacity utilization needed to achieve corporate goals in an optimal manner. Another term often used for management accounting principles for these purposes is managerial costing principles. The two management accounting principles are:

  1. Principle of Causality and,
  2. Principle of Analogy.

The Donabedian model is a conceptual model that provides a framework for examining health services and evaluating quality of health care. According to the model, information about quality of care can be drawn from three categories: “structure,” “process,” and “outcomes." Structure describes the context in which care is delivered, including hospital buildings, staff, financing, and equipment. Process denotes the transactions between patients and providers throughout the delivery of healthcare. Finally, outcomes refer to the effects of healthcare on the health status of patients and populations. Avedis Donabedian, a physician and health services researcher at the University of Michigan, developed the original model in 1966. While there are other quality of care frameworks, including the World Health Organization (WHO)-Recommended Quality of Care Framework and the Bamako Initiative, the Donabedian Model continues to be the dominant paradigm for assessing the quality of health care.

Information culture is closely linked with information technology, information systems, and the digital world. It is difficult to give one definition of information culture, and many approaches exist.

References

  1. 1 2 Duignan, P. "Using outcomes theory to solve important conceptual and practical problems in evaluation, monitoring and performance management systems." American Evaluation Association Conference , Orlando, Florida, 11–14 November 2009.
  2. Duignan, P. "A concise framework for thinking about the types of evidence provided by monitoring and evaluation." Australian Evaluation Society International Conference , Canberra, Australia, 31 August - 4 September 2009.
  3. Duignan, P. "What added value can evaluators bring to governance, development and progress through policy-making? The role of large visualized outcomes models in policy making." 8th European Evaluation Society Conference , Lisbon, 1–3 October 2008.
  4. Williams, B and Hummelbrunner, R. "Systems concepts in action." Stanford University Press , 2009.