The state of performance management Visa Paajanen/NAOF

2 Content Performance management reform: goals NAOF’s audit Audit findings Recommendations Discussion

3 Performance management reform in the early 1990’s reform amendments to budget legislation goals: - improve efficiency - improve actors’ possibilities to achieve outcomes by giving operational freedom - increase accountability by requiring reporting on achievement of targets - decentralize decisionmaking in allocation of resources

4 NAOFs audit critical or negative observations, nature of audit work financial audit: time series of goal setting and reporting (but quality of goals or reports is not audited) performance audit: - mainly focus in individual administrative sector or agency - observations almost entirely apply to documents - but there are lot of audit findings and they concentrate to the certain problems

5 Audit findings, performance management resource and normative steering still extensively used in state administration (performance management is just added to exixting system) actors’ freedom to achieve results has not ingreased significantly on the other hand: in many cases actors’ degree of success (rearing of responsibility) does not justify greater freedom

6 Findigs, setting targets mechanism for setting targets is unclear productivity and economy are not steered and managed with performance targets (actually this means that performance management is not in use) targets do not form a logical hierarchy targets and resources are not linked to each other targets are not measurable policy effectiveness targets are not connected to time series

7 Findigs, setting targets targets are not real and challenging no targets concerning operational efficiency or productivity and economy (lack of targets is not explained in management documents) instead of targets agencies present income and expense information, person-years and cost information for different units

8 Findings, accounting the state of performance accounting is quite poor monitoring systems for operational outputs are lacking or have shortcomings problems especially in allocating work costs ”it appears that those who have management responsibility do not believe they need the information produced by accounting to extent that proper performance management would necessarily require”

9 Findings, others thit is unclear what consequences achieving or failing to achieve targets have for an organization significance of incentives is small performance management of tranferred funds is minimal actors are not able to separate impacts of their own activities in complex field of causes and effects evaluation of activities does not have adequate position

10 Positive findings performance management is development step to ensure the efficient and proper use of resources public setting of targets and reporting on their achievement increases transparency of administration

11 Recommendations essential to motivate management and personnel (incentives) Responsible for developing administration should strive to act so that there is positive need to display results in accountable way performance management model should be adapted to meet the needs of different type of activities (maybe it is not possible to adapt everywhere) Ministries should, with agencies and enterproses, reach a coherent, justified and documented view of (1) how targets should be set for performance as a whole, (2) considering different aspects of performance and (3) what information should be presented to give a true and fair picture of performance the development of most important basic factor in performance management system, accounting, should be improved

12 Summary in the begining focus was in setting targets in the begining ministries in relation to subordinate administration was viewed as critical factor next decade attention was sifted more towards describing results to Parliament and accountability next: back to target?

13 Discussion state of performance management in Turkey? - has there been development in system? - what are main problems at the moment? - if you recognize problems, are there any easily adaptable improvements? - who should be most active in solving these problems?