1. 2001 Lenhardt & Colton, LLC Slide 1 Mn/DOT ABC Modeling Linking Program Support with District Models Prepared by Steve Colton, Lenhardt & Colton, LLC January 26, 2001

2. 2001 Lenhardt & Colton, LLC Slide 2 What is Linking? A means of communicating between Program Support Office models and District models that n Allows demands to flow “up,” from the District models to Program Support, and n Allows dollars to flow “down,” from the Program Support models to the Districts. Answers the following questions: n What are the demands placed on Program Support resources by the Districts? n What are the costs of the Program Support services provided to the Districts?

3. 2001 Lenhardt & Colton, LLC Slide 3 The Districts In Visual Terms Program Support Demands Outputs & Costs

4. 2001 Lenhardt & Colton, LLC Slide 4 The Districts The Issue is Translation (Factoring) How and in Which Model Program Support Demands Outputs & Costs How many Program Support Outputs EQUAL the District Demands?

5. 2001 Lenhardt & Colton, LLC Slide 5 The Textbook Solution Every PSG Demand is a District Supply Land Mgmt Model n Activity output provided to the Districts is a normalized Acquired Parcel n Unit of measure is the number of (n) Acquired Parcels District Model n Demand placed on OLM Activity is XXX n Unit of measure is YYY Factor* = # of (n) Acquired Parcels # of XXX measured in YYY *At some level in the District Model

6. 2001 Lenhardt & Colton, LLC Slide 6 The Textbook Breaks Down There are two different situations n Program Support & District have similar capability— Therefore Program Support does only some of District work n Program Support has unique capability Therefore Program Support does all of District work District Models designed to manage all work by hours not by outputs (External resources are considered labor resources) Program Support effort by activity is relatively small compared to other district costs

7. 2001 Lenhardt & Colton, LLC Slide 7 The Districts The Answer is Service Agreements Program Support Demands Outputs & Costs Service Agreements

8. 2001 Lenhardt & Colton, LLC Slide 8 The Service Agreement Calculation Office of Land Management Example