Performance_Budgetin..

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Performance_Budgetin..

  1. 1. SPECIFYING & MEASURING PERFORMANCE IN GOVERNMENT
  2. 2. Performance Management Framework Government Government Agencies Strategic Priorities/Goals Policy Objectives Outcomes Outcome Indicators Outputs Output Measures Delivery Specification
  3. 3. Defining Outcomes Government Agencies Community Impacts/Effects Results Consequences Output Output Output Output
  4. 4. Defining Outcomes <ul><li>Examples of outcomes: </li></ul><ul><ul><li>improved road safety </li></ul></ul><ul><ul><li>increase in economic growth </li></ul></ul><ul><ul><li>improvement in literacy levels for secondary school students </li></ul></ul><ul><ul><li>access to health services in rural areas </li></ul></ul><ul><ul><li>reduction in unemployment </li></ul></ul><ul><ul><li>more tourist arrivals </li></ul></ul>
  5. 5. 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
  6. 6. IDENTIFYING & MEASURING OUTCOMES
  7. 7. Specifying Outcomes -Agencies <ul><li>Process for specifying outcomes involves : </li></ul><ul><li>Identifying outcomes relevant to an agency </li></ul><ul><li>Outline indicators to measure achievement of outcomes </li></ul><ul><li>Useful hints: </li></ul><ul><li>Clear link with agency’s outputs </li></ul><ul><li>Ability to measure outcome </li></ul><ul><li>Consistent with Government’s policies and priorities </li></ul>
  8. 8. Step 1 – Identifying Outcomes Sources of information: <ul><li>Strategic Development Plan </li></ul><ul><li>Government’s policy statements </li></ul><ul><li>Feedback from Ministers </li></ul><ul><li>International commitments </li></ul>
  9. 9. Step 2 – Measuring Outcomes <ul><li>Purpose of measuring outcomes: </li></ul><ul><li>highlight effectiveness of agency outputs in achieving outcomes </li></ul><ul><li>Measuring outcomes can be difficult: </li></ul><ul><li>measuring intangibles </li></ul><ul><li>other social/economic factors beyond control of government </li></ul><ul><li>multiple outputs contributing to the same outcome </li></ul>
  10. 10. 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
  11. 11. Step 2 – Measuring Outcomes Examples: % reduction over 3 years in reported cases of robberies and homicides % increase in employment rate in public/private sector % reduction in dental and high blood pressure cases in rural areas Reduce crime Improved job growth Access to health services in rural areas
  12. 12. Specifying Outputs <ul><li>Process involves: </li></ul><ul><li>Identifying outputs of the agency </li></ul><ul><li>Providing a short description of each output </li></ul><ul><li>Developing performance measures/targets for each output </li></ul><ul><li>Aggregating outputs into output groups </li></ul>
  13. 13. IDENTIFYING OUTPUTS
  14. 14. Knowing What Your Output Is <ul><li>Key principles of output specification: </li></ul><ul><li>External focus </li></ul><ul><ul><li>goods and services provided to parties external to the agency </li></ul></ul><ul><ul><li>applies when developing performance measures </li></ul></ul><ul><li>Controllable </li></ul><ul><ul><li>ability to influence delivery of outputs; </li></ul></ul><ul><ul><ul><li>use of assets required to deliver the output </li></ul></ul></ul><ul><ul><ul><li>sufficient control over management of funds </li></ul></ul></ul>
  15. 15. Knowing What Your Output Is <ul><li>Comprehensive </li></ul><ul><ul><li>incorporate full range of goods and services provided by the agency </li></ul></ul><ul><li>Measurable </li></ul><ul><ul><li>allows performance of output delivery to be assessed </li></ul></ul><ul><li>Informative </li></ul><ul><ul><li>title/description of outputs provide sufficient information of what type of output is being delivered </li></ul></ul>
  16. 16. Describing Your Output <ul><li>Description of outputs should be: </li></ul><ul><ul><li>brief but fully describe output being delivered </li></ul></ul><ul><ul><li>title of the output should be stated in terms of ‘what it is’ </li></ul></ul>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
  17. 17. MEASURING OUTPUTS
  18. 18. Developing Output Performance Measures <ul><li>Characteristics/aspects of performance that will be assessed: </li></ul><ul><ul><li>quantity </li></ul></ul><ul><ul><li>quality </li></ul></ul><ul><ul><li>timeliness </li></ul></ul><ul><ul><li>cost </li></ul></ul><ul><li>Developing performance measures are important: </li></ul><ul><ul><li>provides information on whether outputs were delivered </li></ul></ul><ul><ul><li>used for decision making purposes </li></ul></ul><ul><ul><li>used as tools to assess agency performance </li></ul></ul>
  19. 19. Output Performance Measures <ul><li>Quantity measures: </li></ul><ul><ul><li>how many, how much to deliver </li></ul></ul>Example Number of applications processed Metres of road surfaced Number of patients/cases Number of student places
  20. 20. Output Performance Measures <ul><li>Welfare recipients paid correct amount </li></ul><ul><li>Accuracy </li></ul><ul><li>Grants fully assessed before payment made </li></ul><ul><li>Completeness </li></ul><ul><li>Waiting times for elective surgery </li></ul><ul><li>Timeliness </li></ul><ul><li>Minister satisfied with policy advice </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>Police patrols stationed at all major suburbs </li></ul><ul><li>Accessibility </li></ul><ul><li>Compliance </li></ul><ul><li>Approved work permits meet legislative requirements </li></ul>Quality measures:
  21. 21. Output Performance Measures Policy Advice External Trade Example : <ul><li>Also a quality measure </li></ul><ul><li>Key performance measure in its own right </li></ul>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:
  22. 22. Output Performance Measures <ul><li>Costs: </li></ul><ul><li>assign input costs to outputs </li></ul><ul><li>provides information on production costs of outputs; </li></ul><ul><ul><li>assist in prioritising resource allocation </li></ul></ul><ul><li>basis of funding through the budget process </li></ul><ul><li>Approach to output costing: </li></ul><ul><li>Baseline budgeting; </li></ul><ul><ul><li>mapping new output structure to baseline budget </li></ul></ul><ul><ul><li>applies to pilot ministries for 2005 budget </li></ul></ul>
  23. 23. Setting Performance Targets <ul><li>Setting performance targets: </li></ul><ul><ul><li>standards to be achieved against each performance measure </li></ul></ul><ul><ul><li>used as tools to drive, improve, control and measure output performance </li></ul></ul><ul><li>Common approaches to setting targets: </li></ul><ul><ul><li>adopting current performance with a % increase </li></ul></ul><ul><ul><li>best practice i.e. benchmarking </li></ul></ul><ul><ul><li>international standards for other countries </li></ul></ul><ul><ul><li>management decisions based on available resources </li></ul></ul>
  24. 24. Aggregate Outputs into Output Groups <ul><li>Specifying output groups: </li></ul><ul><li>Defined as a group of outputs similar in nature </li></ul><ul><li>Outputs are grouped for external/budget reporting purposes; </li></ul><ul><ul><li>meaningful & relevant information </li></ul></ul>
  25. 25. Aggregate Outputs into Output Groups Agency Output Structure Output Group External Reporting Budget Estimates Outputs (internal outputs) Sub-output Sub-output Sub-output Low level outputs/ Activities Level 1 Level 2 Level 3
  26. 26. Specification Process <ul><li>Key points to note: </li></ul><ul><ul><li>involve staff in identifying agency outputs </li></ul></ul><ul><ul><li>good understanding of agency’s functions/role </li></ul></ul><ul><ul><li>put in place a system of collecting performance information for monitoring and reporting purposes </li></ul></ul><ul><ul><li>liaise with Budget Division/FMR </li></ul></ul>
  27. 27. Performance Management Framework Government Government Agencies Strategic Priorities/Goals Policy Objectives Outcomes Outcome Indicators Outputs Output Measures Delivery Specification
  28. 28. Example Government Policy Objective To increase transparency in Government policy decision-making Output Measure Number of policy records accessed Satisfaction with library service Output cost Establish legislation to provide general public with access to information on government policy decisions Outcome A well informed public of government policy decisions Output Provision of policy library service Indicator Increase in the number of citizens accessing government policy records

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