Performance Management Measuring Performance Using Information to Improve Performance

Performance Management: Collecting and using information to improve performance in furtherance of the mission Performance Measurement: Designing and collecting performance-relevant information Performance Indicators: Specific numerical measures of each aspect of performance Performance Standards: Goals or expectations for performance on each indicator

Uses of Performance Information: To do a better job for the public Evaluate Control employees and contractors Budget Motivate employees and contractors Promote to overseers stakeholders and public Celebrate successes Learn Improve

Types of Performance Measures/Indicators Impact assessments Outcome indicators – Policy outcomes – Program or strategy outcomes Output indicators (quantity and quality) Inputs: – Measures of process quality – Measures of financial responsibility – Measures of organizational learning and growth

Production Process Inputs Activities Outputs Outcomes Processes Financial Impacts Human Unit Cost Learning Efficiency Growth

Inputs: Resources (e.g., expenditures, employee time, physical capital) used to produce outputs and outcomes. Outputs: Products and services delivered. Output refers to the completed products of the work done by the organization, their number and qualities. Outcomes: Events or conditions that are broader than the activity or program itself and that are of direct importance to customers and the public generally. Outcomes may be final (policy) or intermediate (program or strategy). Impacts: Improvements in outcomes that can be reliably attributed to program activities.

Good Performance Indicators Have a clear use in the organization Measure what’s important, usually (but not always) outcomes Measure outputs and inputs that are logically (and empirically) related to outcomes Are appropriate to their use Are clear and straightforward to interpret Are clear about which way is up Are not overly difficult to collect Can be reported in a timely way Are not too many, not too few

Impact Evaluation Effect of work training program on placements, compared with no program, or with alternative program Effect of changed police practices on crime compared with previous practices Effect of higher salaries for civil servants on corruption, compared with other approaches Effect of specific force configurations on prevention of and success in conflict Effect of specific macroeconomic strategies on economic performance and poverty reduction

Uses of Impact Information Evaluation of programs and policies Design of new programs and policies Strategic planning Justification of budget and staffing requests Identification of relationships between inputs, outputs and outcomes

Outcome Indicators Policy outcomes: – Crime rate – Employment rate – Adult literacy rate Program or strategy outcomes – Reduction in drug-related crimes – Program participants in jobs – Adults in program passing GED

Uses of Outcome Indicators Problem solving and learning Motivating employees and contractors Celebrating successes Reporting to elected officials and public

Output Indicators Number of classes on leadership Number of summons for quality of life offenses Client satisfaction with pre-natal care visits Number (percent) of workplaces inspected Number of highway bridges repaired Number of analyses produced to satisfaction of user Number of operational planes

Uses of Output Indicators Controlling staff and contractors Reporting to elected officials and public Celebrating successes Motivating staff and contractors

Process Indicators Number (percent) of students satisfied with advising Number (percent) of citizen interactions with police Average waiting time to schedule pre-natal care visit Number (percent) of workers involved in developing workplace safety plan Response times to different military alert statuses

Uses of Process Indicators Controlling staff and contractors Reporting to elected officials and public Celebrating successes

Financial and Organizational Learning Indicators Total (service + overhead) cost per pre-natal clinic visit Total funding appropriated by legislature Spending compared to budget Employee satisfaction Percent of employees using computers Percent of employees trained in negotiation methods

Uses of Financial Indicators Controlling staff and contractors Formulating and justifying budget and staffing requests Strategic planning

Uses of Organizational Learning Indicators Controlling supervisors Motivating employees

Performance Standards Specified increase/decrease from baseline; e.g., previous year Specified progress toward a benchmark; e.g., comparable organizations Achievement of a specified level (e.g., 0, 100 percent) Achievement of a negotiated individual goal

Getting the Measures Right Challenges – Avoiding unwanted consequences – Measuring the unmeasurable Responses – Multiple measures – Outcome sequence charts – Ask the customers/users

Using Information Appropriately Challenges: – Accountability for the right things, at the right levels – Placing information in context Responses: – Different uses of different types of information – Communications strategy