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Performance Management Framework
Government
Government Agencies
Strategic Priorities/Goals
Policy Objectives
Outcomes
Outcome Indicators
Outputs
Output Measures
De
live
ry
Sp
ecifica
tion
Defining Outcomes
Government Agencies
Community
Impacts/Effects
Results
Consequences
Output Output Output Output
Defining Outcomes
• Examples of outcomes:
– improved road safety
– increase in economic growth
– improvement in literacy levels for secondary school students
– access to health services in rural areas
– reduction in unemployment
– more tourist arrivals
Defining Outputs
Goods and Services
for external parties
Government Agencies
Other government agencies
Corporate services
Financial services
IT services
Government
Policy advice
Administration of grants
Public
Health services
Primary education services
Counseling services
IDENTIFYING & MEASURING OUTCOMES
Specifying Outcomes -Agencies
Process for specifying outcomes involves:
1. Identifying outcomes relevant to an agency
2. Outline indicators to measure achievement of outcomes
Useful hints:
1. Clear link with agency’s outputs
2. Ability to measure outcome
3. Consistent with Government’s policies and priorities
Step 1 – Identifying Outcomes
Sources of information:
Strategic Development Plan
Government’s policy statements
Feedback from Ministers
International commitments
Step 2 – Measuring Outcomes
Purpose of measuring outcomes:
• highlight effectiveness of agency outputs in achieving outcomes
Measuring outcomes can be difficult:
• measuring intangibles
• other social/economic factors beyond control of government
• multiple outputs contributing to the same outcome
Step 2 – Measuring Outcomes
Key to developing good outcome indicators:
Relevant
Link between indicator/policy
Appropriate
Allow performance to be assessed
Quantifiable
Extent outcomes have been
achieved
Consultations/Comparisons
Other Govts. Stakeholders
Step 2 – Measuring Outcomes
Examples:
Reduce crime
% reduction over 3 years in reported
cases of robberies and homicides
Improved job growth
% increase in employment rate in
public/private sector
Access to health services in rural areas
% reduction in dental and high
blood pressure cases in rural areas
Specifying Outputs
Process involves:
1. Identifying outputs of the agency
2. Providing a short description of each output
3. Developing performance measures/targets for each output
4. Aggregating outputs into output groups
IDENTIFYING OUTPUTS
Knowing What Your Output Is
Key principles of output specification:
1. External focus
– goods and services provided to parties external to the agency
– applies when developing performance measures
2. Controllable
– ability to influence delivery of outputs;
– use of assets required to deliver the output
– sufficient control over management of funds
Knowing What Your Output Is
3. Comprehensive
– incorporate full range of goods and services provided by the agency
4. Measurable
– allows performance of output delivery to be assessed
5. Informative
– title/description of outputs provide sufficient information of what type of output is being delivered
Describing Your Output
• Description of outputs should be:
– brief but fully describe output being delivered
– title of the output should be stated in terms of ‘what it is’
Administration of school grants (Output)
Assess and determine size of grant. Administer payment of grant. Review entitlement for grants based on acquittal reports. (Description)
Example
MEASURING OUTPUTS
Developing Output Performance Measures
• Characteristics/aspects of performance that will be assessed:
– quantity
– quality
– timeliness
– cost
• Developing performance measures are important:
– provides information on whether outputs were delivered
– used for decision making purposes
– used as tools to assess agency performance
Output Performance Measures
• Quantity measures:
– how many, how much to deliver
Number of applications processed
Metres of road surfaced
Number of patients/cases
Number of student places
Example
Output Performance Measures
– Welfare recipients paid correct amount• Accuracy
– Grants fully assessed before payment made
• Completeness
– Waiting times for elective surgery • Timeliness
– Minister satisfied with policy advice• Customer satisfaction
– Police patrols stationed at all major suburbs• Accessibility
• Compliance – Approved work permits meet legislative requirements
Quality measures:
Output Performance Measures
Policy Advice
External Trade
Example:
Quality measure
Policy advice meets predetermined criteria i.e. evidence of consultations with key stakeholders, scope covers all related issues, informative, relevant, practical options, etc.
Timeliness
Advice delivered within 6 months (3 months past deadline)
Timeliness measures:
Also a quality measure
Key performance measure in its own right
Output Performance Measures
Costs:
• assign input costs to outputs
• provides information on production costs of outputs;
– assist in prioritising resource allocation
• basis of funding through the budget process
Approach to output costing:
• Baseline budgeting;
– mapping new output structure to baseline budget
– applies to pilot ministries for 2005 budget
Setting Performance Targets
• Setting performance targets:
– standards to be achieved against each performance measure
– used as tools to drive, improve, control and measure output performance
• Common approaches to setting targets:
– adopting current performance with a % increase
– best practice i.e. benchmarking
– international standards for other countries
– management decisions based on available resources
Aggregate Outputs into Output Groups
Specifying output groups:
• Defined as a group of outputs similar in nature
• Outputs are grouped for external/budget reporting purposes;
– meaningful & relevant information
Aggregate Outputs into Output Groups
Agency Output Structure
Output Group
External Reporting Budget EstimatesOutputs
(internal outputs)
Sub-output Sub-output Sub-output Low level outputs/ Activities
Level 1
Level 2
Level 3
Specification Process
• Key points to note:
– involve staff in identifying agency outputs
– good understanding of agency’s functions/role
– put in place a system of collecting performance information for monitoring and reporting purposes
– liaise with Budget Division/FMR
Performance Management Framework
Government
Government Agencies
Strategic Priorities/Goals
Policy Objectives
Outcomes
Outcome Indicators
Outputs
Output Measures
De
live
ry
Sp
ecifica
tion
Example
Government Policy ObjectiveTo increase transparency in Government policy decision-making
Establish legislation to provide general public with access to information on government policy decisions
OutcomeA well informed public of
government policy decisions
OutputProvision of policy library service
Output MeasureNumber of policy records accessed
Satisfaction with library service
Output cost
IndicatorIncrease in the number of citizens
accessing government policy records