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Chapter 12 : Performance Measurement – Clarity or Confusion
In the UK, the Fultron Report of 1968 catalogued many of the failures that, in their view, could be attributed to a civil service operating in bureaucratic style.
-Low GDP Growth-The failure of technological project in which large sums had been invested by the government.-The failure to use to the full extent the skill of middle level and junior civil servant
Management By Objective And Performance Measurement
Instead of believing the bureaucratic mantra that if the right staff were recruited, their duties specified and co-ordinated in successive hierarchical layers then results would automatically be achieved, it came to be argued that the right way forward would be to set specific objectives for organisations as a whole, disaggregated for the various lower levels of the organisation, and cascaded down to objectives for each member of staff to achive in a specified period of time.
Performance Measurement Methodologies
StrategyAim & Objective To
Improve higher education
MeasuresNumber going to
university
TargetsPercentage increase
each year
ResultsWas the target hit?
VerificationWas the information
accurate?
MonitoringComparing performance overtime or with other
organisation
EvaluationOf the strategy and the
performance information system
GlossaryMeasures can serve as dials – to indicate perfomance, as
in a speedometer
Performance Measures = Direct InformationFor example : the number of service calls made by health
and safety inspectors.
Performance Indicator = Proxies for measuresFor example : if the objective of a programme is a
reduction in alcoholism, its performance may be indicated by the proxy measure of the number people going to alcoholics anonymous.
GlossaryPerformance targets – a level of measured
performance to be achieved in a specified period of time
Outputs e.g. The number of operation s a hospital performs in a specific period
Outcomes e.g the number of patients restored to health by the operations
Other Purposes of Performance Measurement Include
• To Clarify Objective• As Input to Managerial Incentives• To Help Consumer and Citizens Make Inform
Choises• To Indicate The Effectiveness of Service
Activities to Different Stakeholders
International Experience
• New Zealand was the country most widely quoted as leading change in the measurement of goverment
• Change to the structure of public services which included an eplicit focus on key performance measures
• Other change included a programe of privatisation and commercialisation
Experience In The United Kingdom• Financial Management Initiative• Next Steps Agencies UK• Private Finance Initiative• ...
Other Difficulties Concerning The Specification and Measurement of Outcome Measures
• Difficulty in determining what interventions secure the desired outcome
• The influence of external factor• Link between the public, staff and delivery
agents• Accountability• Data quality and reporting
Organising The Audit
There are key points to organise successfully a public sector audit office:• Auditors should work with colleagues,in teams
where sensible, sharing ideas and thoughts with others and with auditee before making recommendations
Organising The Audit
• Working in teams where appropriate,with teams consisting of insiders and outsiders, and such audits managed as projects;
• Audit staff drawn from a wide range of backgrounds and experinces, with secondments in and out of the office, from and to the public, private and voluntary sectors, and in international assignments.
What results do we achieve?
• Financial and other resource savings actually achieved through economies and efficiencies suggested and put into effect;
• Improvements in the effectiveness of public services as experinced by those who receive them or otherwise benefit from them;
What results do we achieve?
• Reductions in theft, fraud, corruption and other crimes;and
• Assurances to legislatures,executives and the public at large that public services are open to full inspection by independent external auditors and that the accountability of public servants can be demonstrated
