Resource Allocation in Local Government with Facilitated Portfolio Decision Analysis

Abstract

Resource allocation in local government imposes several challenges for public managers, such as substantial pressures for more efficiency in public spending, frequent changes in levels of income for public organisations, steadily growing demand for public services, and higher public expectations and increased scrutiny. In order to tackle these challenges effectively public managers and policy makers are focusing on changing old ways of working, with a view to creating and delivering public value in an ever increasingly “wicked” context. One area of concern relates to improving decision-making processes and the accountability of decisions, particularly within the context of resource allocation in local government. In this chapter, we review our experience of using facilitated portfolio decision analysis to help local government teams assess the value of a range of public services or projects. Our discussion is focused primarily on the British local government context, and illustrated with several case studies drawn from our own research and practical interventions. The approach and experience discussed here, however, can be easily translated to similar contexts in other countries.