© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Introduction to Performance Management Seminar on “Quality Manager in the Public Sector” Romania, March 2008

Do we need to Performance Manage ? “I am too busy to do PM” “I leave that to the policy experts” “We have an expensive IT system to do that” “We can look at PM when we have sorted out the organisation” 2

So what is performance management? A system for helping us to focus on improving the things that are most important for our organisation to achieve its aims. In other words it is central to the management of an organisation –Not an add on –Not a matter for others –Not an IT system 3

What are your aims? The starting point is to be clear what you are trying to achieve. E.g. High level A healthier population? A wealthier population? Greater market share? Lower level More cost effective road repairs? Greater use of libraries? Improved achievement levels in a school? 4

What are the most important things to get right? What are the principal causal factors which are going to determine the achievement of your aims? This needs time and discussion There is usually a hierarchy of causes 5

Causal hierarchy 6 Improved health Reduced obesityReduced smokingInfant health Better nutritionExerciseSmoking in public places Price of cigarrettes Maternal nutrition Breastfeeding rates

How do you know if you are making progress? Need relevant effective measures “Performance measurement indicates how well an organisation is performing against its aims and objectives” Choosing the right measures is critical and not always easy It is not a job just for experts, though they can help 7

How measures bring clarity Possible measures: Increase in jobs and investment Reduction in derelict land Increased wage levels in local industries We chose: Increasing the income of local people This meant greater focus on skills and mobility than new jobs and development 8 Aim: regenerating the local economy

Why measure? What gets measured gets done If you don’t measure, you can’t tell success from failure If you can’t see success, you can’t reward it 9

Good performance measurement Focused: on the organisation’s objectives and aims Appropriate: to and useful for those using it Cost Effective: balances the benefits with the costs “Measure what you value, don’t just value what you measure” 10

‘Smart’ targets Setting targets helps to focus on improvement Specific: ideally to achieve something specific Measurable: a clear definition and way of measuring it Achievable: but also involving an element of challenge Relevant: linked to the organisation’s objectives Timely: have a clear timeframe for achievement 11

Where the experts do come in Collecting data needs to be rigorous and reliable otherwise the results will be dismissed IT systems can help but never start there How results are presented can be important 12

13

PIs have limitations It can be hard to set meaningful measures It can be hard to collect reliable data They can create perverse incentives 14

15

Action improves performance not PIs Do not ‘watch the weather forecast’ Take action in response to what the PI is telling you 16

Summary Performance management essential to help your organisation to reach its goals Performance measurement is essential to assess how well you are doing The process of deciding what you are aiming to achieve, identifying the most important things to get right, and choosing effective measures is key –don’t leave to other people Take the measurement seriously …and most important Act on what you find! 17

Hierarchy of objectives for public safety in your city

To increase the public’s feeling of community safety To deter crime To increase public’s knowledge of actual levels of crime To prevent crime To provide high visibility policing To detect crime To use community reps to inform people To use Neighbourhood Watch Groups To use media First step: Establish a clear hierarchy of objectives Example 1: Hierarchy of objectives for safety