Performance Monitoring and Evaluation System (PMES) for Government Departments ISTM 17.03.2015 Rajiv Manjhi, Director, MoHFW

Broad Contours Evolution? What? Why and When to do what? Conventional Performance management ? Performance Management - Why ? What? and How? Performance Monitoring and Evaluation System Evolution? What? Why and When to do what? PMES tools Rajiv Manjhi, Director, MoHFW

Conventional Performance Management System Process-Regulation. Compliance with centrally prescribed standards How things should be done? How inputs be aligned? Performance measure- How much money is spent? Rajiv Manjhi, Director, MoHFW

Performance Deficit Vs. Financial Deficit Low credibility Lower Funding Financial Deficit Poor Performance Rajiv Manjhi, Director, MoHFW

Performance Management -Why? There is a widespread perception around the World that Governments have not delivered what was expected from them. Repeated surveys by professional and independent organisations as well as newspaper stories suggest that the performance of Government is much less than expected. Hence, there is a challenge. Rajiv Manjhi, Director, MoHFW

Performance Management-What? Performance Management in Government is to respond to the challenge and improve our ability to deliver promised results. The goal of performance management is to create a Government that not only does the right things but does them right, that is more efficiently and effectively. Government Effectiveness coupled with efficiency is the key determinant of a country’s competitive advantage. Rajiv Manjhi, Director, MoHFW

What- contd.? Experts agree that in the long run, the race among nations will be won or lost not on the basis of comparative advantage arising from resource endowment, but by the competitive advantage created by the effective and efficient governments. Rajiv Manjhi, Director, MoHFW

Performance Management- How? There is a consensus among management experts that “what gets measured gets managed.” Thus the ability to measure performance of the Government Department lies at the core of the concept of performance management. However, it is critical for the success of the performance management to focus on measuring “results” and “outcomes” and not compliance with “processes” and “inputs.” Rajiv Manjhi, Director, MoHFW

Performance Monitoring and Evaluation System (PMES) for Government Departments Evolution of Performance Monitoring India. PMES in Government- What? Why? When? Who? and How ? Rajiv Manjhi, Director, MoHFW

PMES- Evolution- contd. 1G Performance Budgeting 2G Zero- based Budgeting 3G Outcome Budgeting 4G RFD Rajiv Manjhi, Director, MoHFW

PMES- Evolution- contd. Performance Budgeting Performance specific / tied up budgets Zero Based Budgeting Activities Output Outcome Budgeting Outcomes RFD Non Financial Outcome Rajiv Manjhi, Director, MoHFW

Milestones of present PMES The Prime Minister approved the outline of a “ (PMES) for Government Departments” dated 11.9.2009. Phase- I 59 Departments implemented RFD Phase- II 62 Departments Phase-III 73 Departments Rajiv Manjhi, Director, MoHFW

Introduction to PMES What is present PMES? Why is it needed? When to do what? Who does what? How to do what is required? Rajiv Manjhi, Director, MoHFW

What is present PMES? System to both Evaluate & Monitor. Takes a comprehensive view of departmental performance. Focuses on “Managerial” Performance. Provides a unified and single view of performance. Rajiv Manjhi, Director, MoHFW

Why is it needed? Fragmented Institutional Responsibility. Multiple Principals with Multiple Objectives. Not Me Syndrome. Other Reasons Fragmented Institutional Responsibility. Selective Coverage. Most Performance Management Systems Conceptually Flawed. Rajiv Manjhi, Director, MoHFW

Rajiv Manjhi, Director, MoHFW

Rajiv Manjhi, Director, MoHFW

Who does what? Performance Management headed by Secretary coordinates on behalf of Cabinet Secretary. Steering Committee headed by the Secretary of the Department which oversees the progress of RFD. Core Group headed by Additional Secretary of the Department monitors and ensures preparation and completion of the targets. Wing Heads ensure formulation and implementation of the targets. Rajiv Manjhi, Director, MoHFW

How to do What is Required? The heart of the PMES is Results- Framework Document (RFD) This takes us to the next item on agenda: Walking tour of the Guidelines for Drafting Result-Framework Document (RFD) Rajiv Manjhi, Director, MoHFW

When to do What in Present PMES? 1. Before Beginning of the Financial Year (by Jan 31) Design and Draft Results-Framework Document. 2. Beginning of the Year ( April 1) Follow RFD and accomplish the targets 3. During the Year (after six months – Sept. 1) Monitor progress against agreed targets. 4. End of the year (March 31) Evaluate performance against agreed targets. Rajiv Manjhi, Director, MoHFW

Results-Framework Document (RFD) The essence of the proposed system is simple. It seeks to address three basic questions : (a) What are the main objectives of the Government Department for the year? (b) What actions are proposed to achieve these objectives? (c) How would we know at the end of the year the degree of progress made in implementing these actions? That is, what are the relevant success indicators? Rajiv Manjhi, Director, MoHFW

Five initiatives of PMES Results Framework Document(RFD). Performance Appraisal Report (PAR). Independent Evaluation Office . Prime Minister Delivery Monitoring Unit. Performance Incentives System Rajiv Manjhi, Director, MoHFW

I. Results-Framework Document (RFD) A Results -Framework Document is essentially a record of understanding between a Minister representing the People’s mandate, and the Secretary of a Department responsible for implementing this mandate. Rajiv Manjhi, Director, MoHFW

Format of Results-Framework Document The RFD should contain the following six sections : Section 1: Ministry’s Vision, Mission, Objectives and Functions. Section 2 :Inter se priorities among key objectives, success indicators Section 3:Trend values and the success indicators. Section 4:Description and definition of success indicators. Section 5:Specific performance requirements from other departments. Section 6: Outcome Rajiv Manjhi, Director, MoHFW

II. Performance Appraisal Report (PAR) Accountability for results only trickles-down and does not “trickle-up”. The design of the system should focus on holding the top accountable for performance and the rest will take care of itself. The Government is in the process of reforming the existing system of Performance Appraisal Report (PAR). Under the new system, PARs will be linked to departmental Results- Frameworks. Rajiv Manjhi, Director, MoHFW

III. Independent Evaluation Office To strengthen public accountability of flagship programmes, the Government of India has created an Independent Evaluation Office at an arm’s distance from the Government supported by the Planning Commission. It is expected to work on a network model by collaborating with leading social science research organisations and concurrently evaluate the impact of flagship programmes and place the findings in the public domain. Rajiv Manjhi, Director, MoHFW

IV. Prime Minister’s Delivery Monitoring Unit The Government of India has also created a Delivery Monitoring Unit in the Prime Minister’s Office to monitor flagship programmes and iconic projects and report on their status publicly. All these initiatives are complementary to each other and part of a comprehensive approach to performance management in the Government. Rajiv Manjhi, Director, MoHFW

V. Performance Incentive System The Sixth Pay Commission report as accepted by the Government provides the performance related incentives. The Government is in the process of introducing an element of Performance Related Incentive Scheme (PRIS) which will be based Financial efficiency in performance. Rajiv Manjhi, Director, MoHFW

Ministry’s Vision, Mission, Objectives and Functions. A Vision is an idealised state for the Department. It is the big picture of what the leadership wants the Department to look like in the future. The Department’s Mission is the nuts and bolts of the vision. Mission is the who, what and why of the Department’s existence. Vision is a long-term statement and typically generic and grand. Rajiv Manjhi, Director, MoHFW

Features of a good vision statement Easy to read and understand. Compact and crisp to leave something to people’s imagination. Gives the destination and not the road map. Provides a motivating force, even in hard times. Is perceived as achievable and at the same time is challenging and compelling. Rajiv Manjhi, Director, MoHFW

Mission follows the Vision: Mission is the who, what and why of your Department’s existence. The vision represents the big picture and the mission represents the necessary work. Mission of the Department is the purpose for which the Department exists. It is in one way the road to achieve the Vision. Rajiv Manjhi, Director, MoHFW

Objective is linked and derived from Vision and Mission . Objectives : Objective is linked and derived from Vision and Mission . Objectives are of two types: (a) Outcome objectives address ends to be achieved, and (b) Process objectives specify the means to achieve the objectives Rajiv Manjhi, Director, MoHFW

Thank You Rajiv Manjhi, Director, MoHFW