1 Performance Management Challenges and Opportunities Harry P. Hatry The Urban Institute Washington DC

2 Agenda Performance measurement Transformation to Performance Management

3 The Foundation of Performance Management is Good Performance Measurement

4 Key Elements of Performance Measurement A basic mission statement focused on the end results being sought Specific outcomes and indicators Practical procedures for collecting the data Conversion of the data into the performance indicators

5 Sources for Identifying Performance Indicators Legislation wording Development of logic models (Outcome sequence charts) Focus groups, or other meetings with key stakeholders (such as public officials, program staffs, and customers/citizens)

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7 Data Sources Agency records/administrative data Customer/citizen surveys Trained observer ratings Special equipment (such as to track water and air pollution) Tests (e.g., to track learning progress)

8 Information From Customer/Citizen Surveys Satisfaction/dissatisfaction with services Household/customer condition (health, employment, housing, etc) Usage/non-usage of public services Reasons for dissatisfaction Suggestions for improving services Demographic information Type and amount of services received

9 Two categories of Surveys Householdto obtain information on a variety of public services at the same time Users of a particular service

10 Trained Observer Ratings Application Examples Cleanliness of streets Condition of streets Condition of housing Ability of disabled citizens to undertake normal activities of daily living

11 Sample Rating Scale: Garbage Collection Condition 1Condition 2 Condition 3Condition 4

12 Performance Management Step 1: Do basic analysis of the data Step 2: Require explanations for poor results Step 3: Provide clear, meaningful, reporting of the performance information to public officials Step 4: Use the information to improve

13 A Major Analysis Step: Disaggregate! For human services break out the outcome data by demographic characteristics, such as: (a)Age group (b)Gender (c)Income group (d)Race/ethnicity (e)Handicap status (f)Other customer difficulty characteristics

14 A Major Analysis Step Disaggregate the Data (continued) For other programs: Breakout by key characteristics of the workload By particular offices, facilities, regions, etc. By type and amount of service provided – to identify successful practices

15 Comparisons: The Name of the Game Compare to previous years performance Compare within, and among, breakout groups Compare to targets Compare to agencies in other countries Compare performance data to costs

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17 Using Performance Information for Improving Services Allocating resources Identifying what works Motivating employees Motivating contractors (Performance Contracting) Developing, and justifying, budgets Improving communications with citizens

18 Example of Use for Allocating Resources

19 Motivating Employees With Performance Data Monetary incentivesbut difficult to do well Recognition awards How Are We Doing? sessionssuch as the STAT approach

20 Final Points An agency just starting should plan for at least 3 years before full implementation. Operating agency managers need frequent feedback on results – probably at least quarterly. Training in performance management will be needed for public administrators.

21 Thank You! Harry Hatry