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RES.15-002 | Summer 2016 | Graduate

# Mission & Metrics: Finance Training for Federal Credit Program Professionals

This introductory session provides an opportunity for participants to consider, more broadly, government involvement in the credit marketplace. Discussion centers on market failures that commonly lead to the creation of government credit programs and ways to identify and quantify mission objectives and program outcomes for the purpose of ensuring policy effectiveness.

### Overview

- Example of a misalignment of program objectives and outcomes
- Participants provide answers to pre-class assignments: Mission objectives and outcomes for their agencies (discussion)
- Instructors pose key justification questions based on participant examples (discussion)
- The notion of a “Return on Subsidy”
- The risks of reporting more relevant objectives and outcomes
- Balancing taxpayer risk and policy goals

### Mission

- What drives the creation or expansion of a federal credit program?
- The successful and the not-so-successful: examples from six federal agencies
- Setting program objectives
- Measuring/reporting program outcomes

### Metrics

- Data-driven decisionmaking: aligning objectives with outcomes
- For the economy
- For the specific consumer or commercial borrowing sector
- For the credit and lending sector
- For defining the credit product niche
- Developing a plan to measure broader economic and societal impact

### Interactive

1. Quantifying Mission. Discussion aimed at converting agency mission and programs into metrics that matter for demonstrating value and/or need for change
2. Using Metrics. Discussion focuses on using metrics in planning, budget development and execution.

### Lecture Slides

Session 1 Slides: Introduction and Program Objectives (PDF)

### Charts

Chart 1.1: Defining the Mission, the Market, Mission Success, and Agency Performance

Chart 1.2: How do we Know We’ve Suceeded?

Chart 1.3: How do we Minimize Risk and Costs While Maximizing Impact?

Chart 1.4: The Problem That Needs to be Solved

Chart 1.5: Examples of Products Created in Response

Chart 1.6: Map from TRF

Chart 1.7: The Relationship Between Objectives and Outcomes

Chart 1.8: Macro Indicators

Chart 1.9: Agency Specific (SBA Example)

Chart 1.10: Examples of Different Kinds of Lenders

Chart 1.11: Commercial Banks with Assets Greater than $3 Billion (EOY)

Chart 1.12: Metrics that Define the Asset

Chart Files: Charts for Session 1 (XLSX); Charts for Session 1 (PDF)

## Course Info

##### Instructors

- Deborah Lucas
- Douglas Criscitello
- Charles Tansey

##### Departments

- Sloan School of Management

##### As Taught In

Summer 2016

##### Level

Graduate

##### Topics

- Business
  - Accounting
  - Finance
  - Management
- Social Science
  - Economics
    - Public Economics
  - Public Administration
    - Public Policy

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