1. ESTABLISHING A PERFORMANCE MANAGEMENT SYSTEM A Paper by Harry Hatry and Ritu Nayyar-Stone Presented by Joel Turkewitz

2. Overview of Presentation Time line for Introduction Roles and Responsibilities in Establishing Performance Management Design issues in Developing an Appropriate Performance Management System Key issues in the Implementation process

3. Timeline (3 year process) Year One Establish an oversight committee and a multi- year plan Market Performance Management among Stakeholders Develop Guidance materials and a training plan Identify Current Data Availability and Develop Data Collection Plan Develop a Process for Citizen Input

4. Time-line (years 2-3) Establish a Baseline and Set Targets for Improvement Develop Procedures for Data Quality Control Report Performance Information Use Performance Info in Budget Use Performance Info in Service Improvement

5. Timeline (con’t) Conduct annual performance reviews and recognition awards based upon performance

6. Composition of National Oversight Steering Committee Budget Office Finance Office National Planning Office Line Ministries – up to 3 Operating agencies (at least 3) Civil Service/Human Resource office Office of Auditor General/Inspector General Outside Expert Member of Parliament

7. Roles and Responsibilities Role of Oversight Office Role of Ministries and Agencies Role of Legislature and other clients Role of Other bodies – internal and external audit, accounting

8. Role of National Oversight Agency Establish ground-rules regarding program structure, indicator selection, quality control, reporting requirements. Provide training to budget examiners in performance analysis Establish requirements for strategic planning Monitor support being provided to ministries and agencies. Design incentives for performance management

9. National Committee – Lead Agency Design and Implementation of performance management requires the attention of a lead agency – office of a central ministry (MPB or Ministry of Finance). Lead agency responsible for developing guidance and assistance to ministries and agencies

10. Role of Ministries and Agencies Must translate guidance into a system that is useful and used within the organization. Core questions: What will lead the effort in the organization Who will select performance indicators Will there be a strategic plan and when Who will be trained, in what, by whom What resources are needed to implement

11. Core Issues for Organizations (2) Who will need to report on performance, to whom, and when. How will internal performance targets be established? What kind of IT support system is needed What will be the role of clients What quality control procedures will be used How should performance info be made public What internal incentives will be created

12. Parliament and other clients Assist in defining the indicators that matter for them. Assist in defining timing of reporting, content, and style. (shift from information to communication). Assist in actual monitoring using their informational advantage

13. Role of other bodies – financial management Alignment of financial management procedures and operations to support performance. Development of internal auditing process around monitoring. Development of work program on accuracy of information, and use of performance information by Supreme Audit Institution.

14. Core Design Issues Need for Cultural Change Taking advantage of existing public sector strengths. Defining incentives for performance management Non-monetary incentives Monetary incentives

15. Incentives (2) Non-monetary Increased budget Increased discretion Recognition awards Added opportunities for training Publishing reports Holding regular “How are we doing” meetings

16. Incentives (3) Monetary Linking individual salary to performance Including performance criteria in yearly performance appraisal Performance bonuses

17. Cross-cutting Implementing Issues Capacity Development What levels Technical training Training is use of performance data Long-range strategic planning Controlling data quality Determining costs