Recent Experience with Performance Management in the United States Expert Roundtables on Innovative Performance Measurement Tools: Integrated Executive Evaluations World Bank, Washington DC September 29, 2008 John Pfeiffer U.S. Office of Management and Budget [email_address]
BUDGET AND PERFORMANCE INTEGRATION (aka Performance Improvement Initiative) Criteria for Achieving GREEN Senior managers meet at least quarterly to examine reports integrating financial and performance information for all major Department responsibilities. Agency works to improve program performance and efficiency each year; Strategic plans contain a limited number of outcome-oriented goals and objectives. Annual budget and performance documents incorporate measures identified in the PART and focus on the information in the senior management report; Reports the full cost of achieving performance goals accurately in budget and performance documents and can accurately estimate the marginal cost of changing performance goals; Has at least one efficiency measure for all PARTed programs; Uses PART evaluations to direct program improvements and hold managers accountable for them, and uses PART findings and performance information to justify funding requests, management actions, and legislative proposals; and Less than 10% of agency programs receive a Results Not Demonstrated rating for two years in a row.
Executive Order 13450 – Improving Government Program Performance (November 13, 2007)
In 2007, the President signed an Order requiring each agency to designate a Performance Improvement Officer (PIO).
Issue:17% of programs fully achieve long-term and annual goals. Best practices for outcome and efficiency measures and quarterly meetings not identified.
Deliverable: Identify and share exemplary performance measures. Transform ExpectMore.gov into a more robust and useful database.
2. Improving Program Evaluation
Issue: 22% of programs have program evaluations that indicate program is effective. Few evaluations are well-designed. Deliverable: Agencies pilot a process to involve experts in early planning stages of evaluation to ensure rigor.
3. Improving Agency Reporting/Transparency
Issue: Many agencies’ annual reports (PARs) are ≥ 300 pages and should improve readability/transparency, and focus on outcomes and performance challenges.
Deliverable: By spring 2007, recommend guidance for 2008 PAR or 2008 PAR pilot including OMB guidance on validation of performance information.
PART assessments review overall program effectiveness, from design through implementation and results.
PART assesses each program on four components (purpose, planning, management, and results/accountability) and gives a score for each. The scores for each component are then weighted— results/accountability carries the greatest weight (50 percent), and the program is given an overall score.
A program is rated effective if it receives an overall score of 85 percent or more, moderately effective if the score is 70 to 84 percent, adequate if the score is 50 to 69 percent, and inadequate if the score is 49 percent or lower. The program is scored ‘‘Results Not Demonstrated,’’ if it lacks good performance measures or data for existing measures.
OMB, a very powerful budget office attached to the White House, is the principal champion of the PART.
OMB has created an objective and credible process for measuring and assessing the performance of government programs --- very important where opposing politicians in the Congress and outside interest groups are highly influential.
OMB’s career budget analysts are intimately involved in the rating process.
OMB analysts’ educations enable them to understand and interpret monitoring and evaluation results when making PART ratings.
Most OMB analysts have advanced degrees in fields like public policy and administration, economics, law, and science.
Federal agencies generally have comprehensive, effective management and financial information systems.
Agencies take lead in creating the PARTs and collaborate with OMB in their completion, including design of improvement plans.
The Internet facilitates completion of the PART assessments and widespread dissemination and transparency of PART findings.