Category: Finance Accounting and Budgeting (FAB)

MLD-412 MBTA student site visit

FAB in MLD: Finance, Accounting, and Budgeting are Central to Organizational Success

Greg Dorchak

Budgeting, accounting, and financial management are central to the successful operation of government, nonprofit, and for-profit organizations.  MLD offers a sequence of three courses for students seeking to boost their understanding how “FAB” concepts and techniques can be powerful management tools.

 

MLD-401M: Financial Analysis of Public and Nonprofit Organizations taught by Bran Shim is an introductory, general-audience course intended for students with no background in accounting or financial analysis. By the end of the course, students will be able to: 1) Understand commonly-used accounting and financial analysis terminology, concepts, tools and processes; 2) Evaluate financial statements in order to ask probing questions, identify risks and/or opportunities, and think critically about financial performance; and 3) Recommend and justify courses of action based on analyses of accounting and other financial data. Specific topics covered include an overview of the financial reporting landscape and governance; accounting principles and concepts; a detailed review of the major financial statements; and the analysis of major financial topics such as organizational liquidity, solvency, operations, funding, and benchmarking.  Main focus will be on features of public and nonprofit accounting, but many of the topics covered are applicable to all types of organizations. Students completing MLD-401M will be well prepared to take the the following course.

 

MLD-411M: Introduction to Budgeting and Financial Management  by Senior Lecturer Linda Bilmes is a rigorous introductory course aims to demystify FAB topics for a general audience of students, even those lacking any related background. Bilmes will, step-by-step, help students understand the entire budgeting process, including budget formulation and execution, variance analysis, budget strategies such as activity-based costing, revenue forecasting, and capital budgeting. Accounting topics include an overview of the financial reporting and governance landscape, accounting principles and concepts, and a detailed review of the major financial statements.Linda Bilmes, Daniel Patrick Moynihan Senior Lecturer in Public Policy The course will build on these budgeting and accounting principles to progress to financial management techniques such as the Balanced Scorecard, financial benchmarking, and the analysis of organizational liquidity, solvency, operations and funding.

 

Students successfully completing MLD-411M may apply for Linda Bilmes’ spring course MLD-412: The Greater Boston Applied Field Lab, an advanced, field-based, experiential learning course in which students work on challenging urban management and financial projects. A comprehensive video about the course is available here.

Of MLD-412 , Mid-Career MPA (’20) and recent program fellow Will Eden says, “No course at the Kennedy School I’ve taken has been as thoughtfully composed, incorporated as much feedback, or offered such a valuable hands-on learning experience.” Real world course projects in the past included a detailed estimate on the financial viability of plans for building a performing arts center in Gloucester, MA; an analysis for the town of Hingham, MA about funding federally mandated storm water runoff infrastructure; rethinking energy supply and demand options related to the Massachusetts Bay Transportation Authority‘s (MBTA) the South Boston Power Station; and, for the Massachusetts Port Authority (MassPort), an assessment of threats/opportunities for the Boston seafood cluster in the global supply chain.  Past projects have included a number of meaningful collaborations with the City of Somerville, MA, documented on video here. For more details, read the AY21 Report on the Applied Field Lab.  In 2023, students in the course investigated inclusionary zoning as a tool to increase affordable housing in two Massachusetts communities.
Students from the course often continue their work in fellowships with the Rappaport Institute for Greater Boston.

MLD-401M and MLD-411M will be offered at the Harvard Kennedy School in Fall semester. MLD-412 will be offered in the spring semester. For questions about these courses, or any other in the MLD curriculum, email Greg Dorchak, MLD Area Administrator.

A male government official and three female student fellows from the HKS Government Performance Lab meeting in a conference room around a table in front of a whiteboard.

MLD-630: Government Turnarounds with Jeffrey Liebman

Greg Dorchak

For the past ten years, Robert W. Scrivner Professor of Social Policy Jeffrey Liebman has led the HKS Government Performance Lab which provides technical assistance to state and local governments interested in improving the results they achieve for their citizens. During that time Liebman and his team of experts, many HKS students and alumni fellows, have become experts at using analytics, outcomes-focused contracts, and cross-sector collaborations to help improve social service programs at the city and state levels. The GPL helps governments address thorny questions, like how to use data to find individuals who had fallen through the cracks, or how to restructure contracts to incentivize providers to serve the most difficult clients. Originally founded as a platform to explore the efficacy of Pay for Success (PFS) projects like Social Impact Bonds, where the governments agrees to pay for services only if they are shown to be successful, and allowing them to test promising new interventions and collaborative stakeholder models, the GPL evolved in response to a need Liebman and his team discovered across the agencies in which they worked. “Our government partners began to ask whether the same models we developed in PFS could be applied to help government social service agencies run their core operations better,” says Liebman.

Portrait photo of Harvard Professor Jeffrey Liebman in tan suit and tie in front of an HKS building
Jeffrey Liebman

Government leaders were seeking data-driven, boots-on-the-ground technical assistance, so Liebman rapidly expanded the GPL, placing students and HKS alumni with backgrounds in data analysis, public policy, and implementation in the field with a variety governments and agencies selected through national competitions. Projects began with programs aimed at reducing prison recidivism and reintegration for young people exiting the juvenile justice system, then expanded to include initiatives in maternal and infant health, high-quality pre-K, and addressing homelessness. Working across jurisdictions allowed Liebman and his team to discover and refine a set of approaches that responds to the recurring, problematic issues governments face.  For example, one of the key insights Liebman’s team uncovered during its PFS work was that procurement and contracting were too often seen as back-office compliance functions instead of used as powerful levers for systems change. GPL developed a signature framework for Results-Driven Contracting to help governments achieve high-priority strategic goals and drive improvements in service delivery.

This and other lessons are now taught at HKS each Fall in MLD-630: Government Turnarounds.  The course delivers proven strategies that government leaders have used to turn around troubled agencies and improve government performance. In teaching, Liebman draws on a mixture of lectures, case studies (often with guest visits by the case protagonists and other experts), and student presentations. Topics covered include:

1. Setting strategic goals and getting your organization to follow through on them.
2. Data-driven leadership strategies for improving agency performance, such as performance stat and delivery units.
3. Using results-driven contracting strategies to improve procurement.
4. Techniques for recruiting, training, re-energizing, and retaining talent.
5. Strategies for overcoming inertia.
6. Strategies for sustaining reforms.

MLD-630: Government Turnarounds is good complement to other MLD Courses in Government and Urban Innovation such as MLD-102 Getting Things Done: Management in a Development Context (Andrews); MLD-601 Operations Management (Fagan); MLD-605 Systems Thinking and Supply Chain Management (Fagan); MLD-618 Leadership, Social Change, and its Challenges: Boston as a Case Study (Winship & Jackson); and especially, MLD-412 Greater Boston Applied Field Lab: Advanced Budgeting, Financial Management and Operations (Bilmes) and  MLD-620M The Data Smart City: Driving Innovation with Technology (Goldsmith)

If you have any questions about this course, or any other in the MLD curriculum, email Greg Dorchak, MLD Area Administrator.

MLD-420 Federal Budget Policy with Howell E. Jackson

Greg Dorchak

The goal of MLD-420  Federal Budget Policy is to introduce students to the law and practice of budgeting in the United States. Taught by Howell Jackson, James S. Reid, Jr. Professor of Law at Harvard Law School, students in this course will explore the basic structure of the federal budget process, including the President’s budget and congressional budgeting procedures that are supposed to govern federal spending. Over the course of the semester, students examine in greater detail the roles of all three branches of federal government in setting budget policy in the United States, discussing government shut-downs, debt ceiling crises, and ongoing debates over budget reforms and fiscal challenges. The course will also take up the budgeting of entitlements and coordination of fiscal policies within a federal system. Of special interest, students will also explore several budgeting topics that received considerable attention in recent years: funding issues related to military spending/national security, entitlement reform, appropriate fiscal targets in a post-COVID-19 world, and the Biden Administration’s efforts to establish budget priorities over the past two years.

Full Topic list includes:

  • Introduction to Federal Budget Process and Policy
  • The Role of Congress & the President in Federal Budgeting
  • Modern Federal Budgeting & Scoring Baselines
  • Budgetary Aggregates
  • Modern Federal Budgeting and Normative Frameworks
  • Presidential Budgeting and its Boundaries
  • Government Shutdowns and Budgeting in the Trump Administration
  • Accounting for the Federal Government and Student Loans
  • Executive Powers and Defense Budgeting
  • Fiscal Federalism
  • Entitlements
  • Comparative Budget Policy and Reform Proposals

MLD-420 is jointly listed at Harvard Law School (Link here). It will be taught Tuesdays, 8:00 am to 10:00 am on Harvard Law School Campus. For additional information about this course contact Prof. Jackson or Vincenza Rico at HLS.