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  1. 1. Institute for Public Service Value Unlocking Public Value – Managing High Performance In Government Organisations AGA National Performance Management Conference September 24, 2007
  2. 2. <ul><li>nine countries </li></ul><ul><li>Australia </li></ul><ul><li>Canada </li></ul><ul><li>France </li></ul><ul><li>Germany </li></ul><ul><li>Ireland </li></ul><ul><li>South Africa </li></ul><ul><li>Spain </li></ul><ul><li>Switzerland* </li></ul><ul><li>United Kingdom </li></ul><ul><li>United States </li></ul><ul><li>* case study only </li></ul>Institute for Public Service Value global performance management study <ul><li>research methodology </li></ul><ul><li>literature reviews </li></ul><ul><li>in-depth discussions with 30+ executives </li></ul><ul><li>300 survey interviews </li></ul><ul><li>10 case studies </li></ul>
  3. 3. Which country is your organization based in? n = 313 Survey participants: geographic distribution
  4. 4. “ Outcomes are too difficult to measure or quantify.” “ Current measures are based on service delivery or outputs from individual departments because outcomes are often produced only by the actions of several departments.” “ It’s all too difficult and resource-demanding.” “ There is a lack of managerial or political support for systematic performance management.” Reasons often given for why organisations do not use outcome targets
  5. 5. Yet, most organisations surveyed say they already have a performance management system in place Does your organisation currently have a performance management system? My organisation's current performance management practices help to improve the performance of the organisation?
  6. 6. Does your organisation currently have a performance management system N=311 respondents Countries reporting having performance management system in place
  7. 7. My organisation’s performance management system helps to improve the performance of my organisation N= 282 organisations that have, or are in the process of developing a performance management system Countries reporting that performance management system help improve performance
  8. 8. Most organisations are using targets to evaluate their performance against objectives <ul><li>In your performance management system, do you use targets to evaluate the organisation’s performance against objectives? </li></ul>What types of target does the organisation use to evaluate actual performance against objectives? But there remains great confusion and inconsistencies in the definition of “outcomes.”
  9. 9. IPSV study findings <ul><li>Our research reveals widespread adoption of performance management … Over ninety percent of the government executives interviewed in said that their organizations already use, or are in the process of implementing, a performance management system. </li></ul><ul><li>… and high adoption of a balanced set of performance measures. The majority of organizations report using a balanced set of performance measures including traditional input and output metrics, but also increasingly outcomes </li></ul><ul><li>Performance management is reported to drive value … Where it is being used, performance management helps to improve their organization’s performance. </li></ul><ul><li>… but, is mostly driven through the “rear view mirror.” Most government executives use the system to focus almost exclusively on retrospective review, reward and accountability, rather than also to guide and shape prospective organizational capability and action. </li></ul><ul><li>Despite the increasing use of performance management, government organizations are struggling to align performance objectives to budgeting and to develop the flexibility to respond to mid-cycle deviations from planned performance. </li></ul>
  10. 10. <ul><li>High performing public service organizations: </li></ul><ul><li>align strategic goals to clearly articulated measures that include improved social and economic outcomes, </li></ul><ul><li>reflect evolving stakeholder expectations, political context and organizational capabilities in the measures they use, </li></ul><ul><li>link performance objectives to organizational budgets and plans, </li></ul><ul><li>tie performance objectives to individual employee goals and incentives, </li></ul><ul><li>regularly evaluate and report performance results both internally and externally, and </li></ul><ul><li>feedback into strategy and be flexible enough to change operational course mid-cycle when performance information reveals gaps. </li></ul>In those who are at the leading edge, we identified six ‘distinctive operational capabilities’
  11. 11. Connecting the ‘distinctive operational capabilities’ Link performance objectives to employee goals and incentives Align strategic goals to clearly articulated measures that include improved social and economic outcomes Reflect changes in stakeholder expectations, political context and capability Feedback and change course when performance information reveals gaps Regularly evaluate and report performance results Organizational Strategy: SWOT analysis Link performance objectives to budgets and plans
  12. 12. The frontier of public service performance management <ul><li>High performing government organisations use performance management not simply as a means of retrospective accountability and reward. </li></ul><ul><li>They are also beginning to use performance management, and a balance of metrics including improved social outcomes, to guide and shape prospective organisational capability and action. </li></ul><ul><li>The result is improved service to citizens . </li></ul>
  13. 13. The frontier of public service performance management The Finnish government distinguishes between policy effectiveness – longer term social outcomes such as road safety or public health – and operational effectiveness or the immediate goods and services produced by government such as processing asylum requests or granting degrees in higher education.
  14. 14. Our recommendations <ul><li>Put in place the bases of the six distinctive capabilities and then… </li></ul><ul><li>Secure strong political and managerial leadership and commitment to set path and see journey through to end. </li></ul><ul><li>Foster and enable integration and collaboration across ‘silos’ (separate departments) when needed for improved public service delivery. </li></ul><ul><li>Establish a dedicated, professional capability (team) to drive, manage and sustain the process of performance management. </li></ul><ul><li>Collect, analyze and report performance information as transparently as is allowed by local law and regulation for all stakeholders. </li></ul><ul><li>Continuously assess and develop organisational capability and capacity for future performance improvement. </li></ul>This is a long journey, not a short trip, with continuous improvement as the destination.