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

Evaluation
Of the strategy
and the
performance
information
system
Monitoring
Comparing performance
overtime or with other
organisation

Strategy
Aim & Objective
To Improve
higher education

Verification
Was the
information
accurate?

Measures
Number going to
university

Targets
Percentage
increase each
year

Results
Was the target
hit?

Glossary
Measures can serve as dials to indicate
perfomance, as in a speedometer
Performance Measures = Direct Information
For example : the number of service calls made
by health and safety inspectors.
Performance Indicator = Proxies for measures
For 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.

Glossary
Performance 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