korean framework on performance management

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Shin KimSenior Research Fellow Korea Institute of Public Administration

22 June 2015

Korean Framework on Performance Management

International Seminar on Performance Management for the Public Sector

22 June 2015, Colombo, Sri Lanka

Performance Management at National Level:Whole-of-Government Approach

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Overall Structure

949 Action Plans

Vision

Goals

Strategies

Tasks

Acion Plans

20 Policy Strategies

5 Goals

100 Policy Tasks

The 100 policy tasks come under 20 policy strategies aimed at achieving the government's vision.

To implement the 100 policy tasks, the government also set forth about 949 detailed action plans.

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• Per capita income ($30,000 above)• OECD Country• Economy Size (Top 50 Countries) • Top 10 Competitiveness

16 Country

Or

• G7 Country

10 Country

• USA• UK• Japan• France• Germany• Canada• Denmark• Sweden• Switzerland• Netherlands

Target Countries

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Gap Analysis Comparison Between Korea and Top 10

Law

& O

rder

RankingIm

age

Firm

Eth

ics

Firm

Law

Gov

ernm

ent

Fina

nce

Labo

r Rel

Econ

omy

Infra

Une

mpl

oySc

i. In

fraTe

ch In

fra

Top 5

Average of Top 10

Korea

Most Differences in Software Areas

Differences

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Public Opinion National Survey for Visioning (2008. 4)

Areas Needs for Policy Efforts (Multiple Response)

Global Competition

Many Koreans think we are below middle

level countries.

Education

Welfare

Quality of Life

Politics

Security

Public Service

Judiciary

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Goal Setting

Hopeful KoreaIn Harmony

VISION2030

Advanced Country

Vision

• For a Government Serving the People• For a Lively Market Economy• For Active Welfare• For a Country Rich in Talent• For a Global Korea

Goals

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Policy Strategies & Objectives

For a GovernmentServing the People

• To make the Government frugal and competent• To expand decentralization and revive local economies• To establish a trust-based society governed by the rule of law • To make the country safe and to ensure the peoplecan live without anxiety

For a LivelyMarket Economy

• To drastically improve the investment environment• To sharply streamline regulations• To create new jobs through green growth• To promote new growth engines and the service industry

For Active Welfare

• To lay a foundation for the lifetime welfare of all the people• To customize welfare benefits • To stabilize the lives of ordinary citizens and guarantee stable housing • To make all people feel rewarded for their work

For a CountryRich in Talent

• To strengthen educational autonomy and expand educational diversity• To expand educational benefits• To nurture a world-class talent pool• To develop science and technology that will lead the country into a better future

For a Global Korea

• To establish a new peace structure on the Korean Peninsula• To place priority on the national interest while pushing pragmatic diplomacy balanced conducive to the good of all peoples• To construct a solid, advanced national security system• To evolve Korea into a country with good character that is respected widely

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1. Gap For a Government Serving the PeopleRole of Private Sector in Public Service

Government Effectiveness (IMD, 2007) Among 55 Countries

Korea USA Canada Japan England France

ElectricPower

Railway

PostOffice

Country/Public enterprise monopoly

Private management




Policy consistency47

Transparency34

Speed34

Netherlands

Canada

Germany

USA

Japan

Korea


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1. Policy Objectives For a Government Serving the People

Objective 1 : To make the Government frugal and competent

Objective 2 : To expand decentralization and revive local economies

Objective 3 : To establish a trust-based society governed by the rule of law

Objective 4 : To make the country safe and to ensure the people can live without

anxiety


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2. Gap For a Lively Market Economy

Regulatory Reform Market Openness (WTO, 2006)

○ = Regulation × = No or Limited Regulation

1 = Open0= Closed

Korea USA JapanEnglandGermany

EmployingForeigners

Corporate Fund Management

Internet TV

OTC Medicine

Health

Education

Culture/Entertainment

EU USA Korea


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2. Policy Objectives For a Lively Market Economy

Objective 5 : To drastically improve the investment environment

Objective 6 : To sharply streamline regulations

Objective 7 : To create new jobs through green growth

Objective 8 : To promote new growth engines and the service industry


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3. Gap For Active Welfare

Welfare for ElderlyPersonal Burden for Medical Service

Unemployment of Handicapped

Korea

France

England

USA

Korea

Japan

USA

France

Korea

Germany

Japan

Korea Institute for Health andSocial Affairs


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3. Policy Objectives For Active Welfare

Objective 9 : To lay a foundation for the lifetime welfare of all the people

Objective 10 : To customize welfare benefits

Objective 11 : To stabilize the lives of ordinary citizens and guarantee stable

housing

Objective 12 : To make all people feel rewarded for their work


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4. Gap For a Country Rich in TalentStudy Motivation Top 100 Universities Adult Education

Korea

OECDAverage

USA

England

Sweden

Denmark

Singapore

Chian

Netherlands

Japan

England

USA

Korea

Hongkong

Denmark

USA

Korea

AchievementInterest Learn motive


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4. Policy Objectives For a Country Rich in Talent

Objective 13 : To strengthen educational autonomy and expand educational

diversity

Objective 14 : To expand educational benefits

Objective 15 : To nurture a world-class talent pool

Objective 16 : To develop science and technology that will lead the country into a

better future


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5. Gap For a Global KoreaNational Brand Value against GDP

Travel Attractivess International Contribution

JapanNetherlands

USAKorea

SWitzerlandGermany

USAHongkong

JapanKorea

AustraliaNorway

DenmarkGermany

JapanKorea

Per Capita ODA: 1/12 of France and Germany(2007)


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5. Policy Objectives For a Global Korea

Objective 17 : To establish a new peace structure on the Korean Peninsula

Objective 18 : To place priority on the national interest while pushing pragmatic

diplomacy balanced conducive to the good of all peoples

Objective 19 : To construct a solid, advanced national security system

Objective 20 : To evolve Korea into a country with good character that is respected

widely


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Action Plans No Title Due

Date Agency

Goal 1 Government Serving the People

Policy 1 Frugal and Competent Government

Task 1 Capable Government

<1> Government Reengineering○ Revising Government Laws on Organization○ Follow-up of Reorganization○ Improving Government Efficiency

2008. 62008. 62012. 12

MOPASMOPASMOPAS

<2> Innovation of Public Enterprises and Agencies○ Basic Plan for Modernization- Detailed Plan by Areas- Revising Related Laws and Rules○Follow-up of Innovation

2008. 12

2012. 12

MOSF

MOST

.

.

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.

.

.

.

.

.

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Action Plans By Goals

Govern-ment Economy Welfare Talent Global Total

232 316 155 74 172 949

By Year and Ministries

‘08 ‘09 ‘10 ‘11 ’12 합계

1 MOST 16 1 2 0 10 29

2 MOEST 12 31 10 3 26 82

3 MOFAT 13 6 1 1 44 65

4 MOU 0 0 0 0 7 7

5 MOJ 12 3 1 0 12 28

......

......

......

......

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Implementation & Monitoring Ministries

○ Action Plan○ Monthly Check of Progress

NPTRC

○ Progress Check-up○ Revising Plan○ Problem Solving

President’s Office

○ Comprehensive Management○ Adjusting Plans

Prime Minister’s Office

○ Quarterly Verification of Progress○ Evaluation of Tasks

Government agencies will implement policy tasks assigned to them, while checking their progress in real time via the government's online "policy task management system."

The Office of the Prime Minister will prepare implementation updates to present to a "national policy task review council" each quarter.

The government will revise the list of policy tasks every year according to changing environments at home and abroad, making new additions and checking if the completed tasks have achieved desired goals.

Performance Management at Ministerial Level

Establish a 5-year Strategic PlanEstablish a 5-year Strategic Plan

Establish an Annual Performance PlanEstablish an Annual Performance Plan

Examine, evaluate, and feedback the implementation of tasksExamine, evaluate, and feedback the implementation of tasks

Propose organization’s future-oriented mission, vision, strategic

objectives and performance targets

Examine the implementing condition quarterly or half-yearly

Implement the self-evaluation and the result of feedback based on the year-end result

Propose performance targets / tasks / performance indicators of the

year

Outline

Establish annual perfor-mance

plan guide-lines (Jan-

uary)

Draft an-nual per-formance

plan(February)

Review and refine

annual perfor-mance plan (Early

March )

Confirm the annual

perfor-mance

plan(Mid

March)

Since 2007, the central ministries have been establishing 5-year Strategic Plan and suggesting each ministry’s mission, vision, strategic objectives, and 5-year performance targets

Government Performance Evaluation Committee supports the establishment of plan to evaluate the validity of performance indicator and goal system of the central ministries

Strengthening the annual performance plan’s relevancy with national agenda, ministerial plans and the President’s directives

Performance Management Plan

Mission Vision Core Strategy

SWOT Analysis

External Environment

Strategic Direction

Core Strategy

Internal Capacity

StrategicTasks

Derive Strategic

Tasks through BSC

standpoint

Core Success Factors

Core Success Factors for successful implemen-tation of

strategic tasks

Key Performance Indicator(KPI)

Indicator Initiatives

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Operational Planning

Departmental Performance Management

Inspect performance statusInspect performance status

ImplementImplement

Establish Strategic and Performance plans, suggest performance indicatorsin advance

Establish Strategic and Performance plans, suggest performance indicatorsin advance

Policy improvement, human resources, Structure, budget, bonuses

Policy improvement, human resources, Structure, budget, bonuses

Self-evaluation orientedUtilize objective and econometric indicators

Self-evaluation orientedUtilize objective and econometric indicators

PlanPlan

EvaluateEvaluate

FeedbackFeedback

National Fiscal Operation

Plan, etc.

The main task of performance

management plan should be

reported In the

beginning-of-the-year

Performance Management Operation

Category DetailsSelf-evalua-tion

Major policies Evaluate policies that a central ministry withes to promote with priority within a prescribed time period for achievement of per-formance targetsFinancial per-formance Evaluate general spending programs, R&D projects and informa-tion and technologyAdministration management competency Evaluate efforts and performance in the areas of human re-sources, organization and information and technology manage-ment that are planned to be achieved within a set time period

Spe-cific evalua-tion

Core task Evaluate core functions of the entity and its relevancy with key is-sues of national affairsJob creation Evaluate tasks related to major job creation

Green-growth Evaluate policies related to national strategy for green growth and execution of central promotion planPolicy manage-ment compe-tency Evaluate policy issue management, relationship competency such as coordination, integration and implementation managementPolicy PR Evaluate PR planning for major policies, new media PR activities an policy PR outcomeRegulatory re-form Evaluate appropriateness/relevancy of regulations, outcome of regulatory reform, customer satisfaction from regulatory reformCustomer satis-faction Evaluate satisfaction of core policies of each ministry, satisfaction of services provided to Korean people

Performance Evaluation

Under the control of the central administrative head, an organization prepares the self-evaluation system and implements the establishment of performance plan and utilizes the results autonomously

Ensure responsibility and autonomy

Self-evaluation is implemented after the construction of Self-evaluation committee consisted of civil experts and the establishment of the central administrative head's self-evaluation plan ※ Self-evaluation committee: 10-30 people each, 10-year-critiera: total 39 organizations 920 people Evaluation colligation engine check the results of each part and enhance the credibility, objectivity of the self-evaluation program

Plan establishment and self-evaluation

Self-Evaluation

Prime Minister evaluates the necessary policies intended for the central

ministries to manage state affairs

Based on the Annual Performance Plan, implement evaluation and

establish evaluation committee composed of non-public officials

Results of certain evaluation are determined by the evaluation

committee’s deliberation and resolution, and feedbacks of each

department should be reflected on the beginning-of-the-year

ministerial plan

Specific Evaluation

The head of central ministry implements corrective measures or auditing about self-evaluation and problems associated with inspection results and submits results to the government performance evaluation committee.

The head of central ministry submits measures to improve results of specific evaluation

In principle, budgets of projects with insufficient evaluation should be reduced by over 10% or be abolished

It is not allowed to increase the budget for projects without sufficient objectivity regardless of its performance

Budget reflection

Utilize evaluation results by linking with organizational management (establishment, abolition, re-arrangement of HR)

In the case of insufficient evaluation results, suggest organizational management strategy and measures after organizational diagnosis

Upgrade policy

Management

Feedback at Organization Level

Evaluation results of tasks are reflected in HR by linking individual performance Above grade 4 public officials: Job Performance Agreement Below grade 5 public officials: the result of Work Performance Evaluation is reflected

Personnel reflect

Government performance evaluation result is recorded on the performance management

card

Performance management Card

Annual salary based on performance (high-level officials and chief-level public officials), Bonus based on performance (below grade-four public officials)

Performance wage

Pay rating S A B CPersonal ratio 20% Arranged by organization 10%

Wage rate 15% 10% 6% 0%

Feedback at Individual Level

Q&A

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Thank you

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For More Information

Dr. Shin KimThe Korea Institute of Public Administration

E-mail : [email protected]

korean framework on performance management

Education

hopeful korea

country rich

policy tasks

global korea goals

g7 country

country safe

advanced country vision

policy strategies objectives