This document discusses leadership and performance management systems in public sector organizations. It highlights some key challenges with strategy formulation and performance measurement in the public sector, including a lack of clear distinction between objectives, KPIs and initiatives in some strategies. It also discusses the importance of establishing strategy/performance management offices to ensure proper execution of strategies. Additional topics covered include a focus on measuring employee productivity, use of performance management systems to guide employee activities and assess performance, and the importance of high quality public services and transparency.

1. Leadership and performance management
system in public-sector organization

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Key learning points Case study Session review
Exercise Video References
LEGEND

12. © The KPI Institute 2016
Linking
organization values
and objectives to
individual/team
efforts to boost
performance
Encouraging
employee’s
performance
through leadership
Toward citizen-
oriented leadership
performance
Embedding
innovation- and
solution-based
culture to the
organization
Leadership and performance
management system in public-sector
organization
12
1

13. © The KPI Institute 2016
10 trends in the public sector
13
1. Long-term strategy plans
2. Poor strategy formulation
3. The Strategy/Performance Management Office
4. Subjectivity in measuring performance
5. Focus on measuring productivity
6. Employee performance management
7. Data-driven governments
8. Enhanced transparency
9. E-government initiatives
10. High quality public services

14. © The KPI Institute 2016
Source: Abu Dhabi Economic Vision (2013)
14
1. Long term strategy plans
ABU DHABI ECONOMIC VISION 2030, UAE

15. © The KPI Institute 2016
Source: Brunei Vision 2035 (2015)
15
1. Long term strategy plans
BRUNEI VISION 2035 - WAWASAN 2035, BRUNEI
1 • Education Strategy
2 • Economic Strategy
3 • Security Strategy
4 • Institutional Development Strategy
5 • Local Business Development Strategy
6 • Infrastructure Development Strategy
7 • Social Security Strategy
8 • Environmental Strategy

16. © The KPI Institute 2016
Source: KSA National Transformation Program 2020
16
KSA NATIONAL TRANSFORMATION
PROGRAM 2020
• Initiatives are specifically formulated for
every Ministry under rule of
Government;
• There are budgets mentioned for each
initiatives in order to clarify and
elucidate the financial implications of
each initiative;
• The structure of the portfolio is simple;
• Initiatives are correctly formulated.
1. Long term strategy plans

17. © The KPI Institute 2016
2. Poor Strategy FORMULATION
Source: Panama Canal Authority (2009)
17
PANAMA CANAL AUTORITY – Annual report 2009
No clear distinction between objectives, KPIs and initiatives

18. © The KPI Institute 2016 18
3. the strategy / Performance management office
Source: Security and Commodities Authority (2011)
SECURITY AND COMMODITIES AUTHORITY, UAE

19. © The KPI Institute 2016
BEST PRACTICE: EMIRATES IDENTITY AUTHORITY
Source:Emirates Identity Authority(2014-2016)
The Emirates Identity Authority has appointed a Strategy
Support Office to ensure proper functioning of the Strategy
Execution Framework
The Strategy Support Office employs three roles:
THE ARCHITECT - Defines and clarifies the structure of
performance management and the processes required to
execute
THE INTEGRATOR - Ensures that processes owned and run by
other functional executives are linked to the strategy.
THE PROCESS OWNER - Defines, develops and oversees
execution of processes required to manage the strategy.
THE CHANGE AGENT - Facilitates the change process and
communicates the strategy across the organization and to key
stakeholders.

20. © The KPI Institute 2016
Source: Australian Federal Government (2011)
DEPARTMENT OF CLIMATE CHANGE AND ENERGY EFFICIENCY,
AUSTRALIA: ANNUAL REPORT 2010-2011
20
4. Subjective performance
measurement
• Terminology
confusions
• Qualitative KPIs?

21. © The KPI Institute 2016
5. EMPLOYEE PRODUCTIVITY
21
Performance
Management
System
Employee
Performance
Performance
evaluation
system
Productivity KPIs
• In the context of performance
management, labour
productivity can be translated
through productivity KPIs
• Productivity KPIs become part
of a more complex
performance evaluation
system
• Performance evaluation
systems are part of integrated
performance management
systems that value, nurture
and enhance employee
performance

22. © The KPI Institute 2016
Source: National State Auditors Association (2004)
NATIONAL STATE AUDITORS ASSOCIATION, USA
22
5. Focus on measuring productivity
Input
Output
Outcome

23. © The KPI Institute 2016
Source: Philippines Government (2012)
23
6. Employee performance management
PHILIPPINES GOVERNMENT
• Performance-based bonus (PBB)
Performance indicators are
used to measure:
• Quantity
• Quality
• Timeliness
• Costs
For an Agency to be eligible for PBB, it must meet 90% of the performance indicators targets set for:
• The Major Final Outputs (MFOs)
• Support Operations Services (SOS) and General Administration Support Services (GASS)
• Priority Program targets under the five Key Result Areas (KRAs)

24. © The KPI Institute 2016
Source: The Center for Local, State and Urban Policy (2011)
24
7. Data driven governments
MICHINGAN LOCAL GOVERNMENT
“68% of Michigan local governments say they use performance data for decision-
making in some fashion—either internal data for measuring their own operations
or external data for benchmarking against other units— while just under one-
third (29%) say they do not use data in these ways.”

25. © The KPI Institute 2016
8. ENHANCED TRANSPARENCY
25
Source: INFOCOMM Media Development Authority (2016), Service Standards
Disclosure of service standards at INFOCOMM Media Development Authority in Singapore

26. © The KPI Institute 2016
Source: South Korea Ministry of Security and Public Administration (2015), Government 3.0 & E-Government in Korea
26
9. e-government initiatives
South Korea
journey to
eGovernment

27. © The KPI Institute 2016
Source: G4S Assessment Services (2004)
5 key drivers of satisfaction with public services:
27
10. High quality services
• Delivery - the service provides the outcome promised and manages
any difficulties that may arise in the delivery process;
• Timeliness – the service is offered in due time;
• Professionalism – the staff are skilled and treat citizens fairly;
• Information – the information provided is accurate, comprehensive
and the citizens is constantly updated along the delivery process;
• Staff attitude – staff are polite, friendly and sympathetic to citizen’s
needs.

28. © The KPI Institute 2016
Source: Media Development Authority, Singapore (2015)
MEDIA DEVELOPMENT AUTHORITY
SINGAPORE
28
10. High quality services
Good practice:
• Service standards available
for the general public on the
website;
• Service owners and feedback
forms visible next to service
standards

29. © The KPI Institute 2016
Linking
organization values
and objectives to
individual/team
efforts to boost
performance
Encouraging
employee’s
performance
through leadership
Toward citizen-
oriented leadership
performance
Embedding
innovation- and
solution-based
culture to the
organization
Leadership and performance
management system in public-sector
organization
29
2

30. © The KPI Institute 2016
Perceptions of Employee Performance
Management Systems
30
37%
It is a way to get bonuses
and promotions
Guides my activities based on the
performance objectives/KPIs
It contributes to competencies
development
Structured process of planning and
assessing employee performance
It motivates me to achieve
better performance
39%42%
36%32%
Source: The KPI Institute, State of Employee Performance Global Edition (2016)
Bureaucratic and time-
consuming
22%

31. © The KPI Institute 2016
State of employee performance
management in 2016
31
RELEVANCE OF EMPLOYEE PERFORMANCE
Managing/assessing employee
performance
Organizational usage of a
formal performance
management appraisal system
4%
13%
32%
35%
17%
Not a priority
Low priority
Medium priority
High priority
Essential
75%
Source: The KPI Institute, State of Employee Performance Global Edition (2016)

32. © The KPI Institute 2016
Employee satisfaction level with their employee
performance management system
32
37%
40%
23%
Low level of saytisfaction
(1 to 4)
Medium level of satisfaction
(5 to 7)
High level of satisfaction
(8 to 10)
Source: The KPI Institute, State of Employee Performance Global Edition (2016)

33. © The KPI Institute 2016
PERFORMANCE MOTIVATORS (EMPLOYEE OPINION)
33
4%
13%
30%
42%
47%
47%
51%
53%
53%
61%
Other
Latest generation of work equipment
Non-financial rewards
Flexible work arrangements
Public acknowledgement of my work by
management
A better position within the organization
A clear career path
A good team to work with
An inspiring manager
Financial bonuses
Source: The KPI Institute, State of Employee Performance Global Edition (2016)

34. © The KPI Institute 2016
Understanding EMPLOYEE
PERFORMANCE MANAGEMENT
34
Strategic
• Deals with the achievement of the overall organizational objectives
• It is referred to as corporate, business or enterprise performance management
Operational
• Accent upon achieving departmental objectives within the organization
• Frequent use of Dashboards
Individual
• Integrated system is meant to improve the performance of each employee
• Employees responsibilities are aligned towards goals achievement
Personal
• Full self management of all life areas for balanced success achievement
• Structured approach in self management

35. © The KPI Institute 2016
KPIs/
Performance
Criteria
/Expected
Outcomes
Competences Behaviors
EMPLOYEE PERFORMANCE AppraisaL Components
35
Quantitative
Assessment/
Measurable
Qualitative
Assessment/
Observable
Qualitative
Assessment

36. © The KPI Institute 2016
KNOWLEDGE SETS: PUBLIC
SERVICE
36
Source: Queeensland Government (2015)

37. © The KPI Institute 2016
BEST PRACTICE: BEHAVIORAL
Framework FOR LEADERS CIVIL
SERVICE UK
37
Source: Civil Service UK (2016)
• Both effective and
ineffective
behaviors are
explained
• Behaviors are clear
and thorough
• The mirroring of
effective and
infective behaviors
enables in depth
analysis of
behaviors

38. © The KPI Institute 2016
COMPETENCIES AND BEHAVIROS: PUBLIC SECTOR
38
Source: Queeensland Government (2015)

39. © The KPI Institute 2016
LEADERSHIP PROFILE: PUBLIC
SERVICE
39
Source: Queeensland Government (2015)

40. © The KPI Institute 2016
Source: Government of Canada (2016)
LEADERSHIP DEVELOPMENT TOOLS:
GOVERNMENT OF CANADA
40

41. © The KPI Institute 2016
Linking
organization values
and objectives to
individual/team
efforts to boost
performance
Encouraging
employee’s
performance
through leadership
Toward citizen-
oriented leadership
performance
Embedding
innovation- and
solution-based
culture to the
organization
Leadership and performance
management system in public-sector
organization
41
3

42. © The KPI Institute 2016
LEADERSHIP IN PUBLIC SECTOR ORGANIZATIONS: THE
CIVIL SERVICE UNITED KINGDOM
42
• Ensures
effective
delivery of
government
services
• Reveals the
core values of
quality
government
service
• States the
leadership
vision of the
civil service
Source: Queeensland Government (2015)

43. © The KPI Institute 2016
LEADERSHIP STATEMENT
DISUSSIONThe Civil Service Leadership Statement aims to improve leadership across the Civil
Service. It is important that all of us as leaders embrace and demonstrate the
behaviors it outlines.
43
• What will I do differently?
Source: Queeensland Government (2015)

44. © The KPI Institute 2016
Communication
• All leaders must
be able to listen
to others,
process
information, and
communicate
effectively
Leadership
• Successful
leaders instill
trust, provide
direction, and
delegate
responsibility.
Adaptability
• Adaptability is
the ability to
adjust to
circumstances
and think
creatively
Building
Relationships
• Building a
personal
relationship
may be the
most crucial
component of
being a leader
Source: OECD Conference Centre Paris (2014)
CORE COMPETENCIES OF LEADERS
44

45. © The KPI Institute 2016
1. STRATEGY MAP
Source: The KPI Institute (2014)
45

46. © The KPI Institute 2016
2. PERFORMANCE SCORECARD
Source: The KPI Institute (2014)
46

47. © The KPI Institute 2016
3. PERFORMANCE DASHBOARD
47

48. © The KPI Institute 2016
4. PORTFOLIO OF INITIATIVES
Source: The KPI Institute (2014)
48

49. © The KPI Institute 2016
Linking
organization values
and objectives to
individual/team
efforts to boost
performance
Encouraging
employee’s
performance
through leadership
Toward citizen-
oriented leadership
performance
Embedding
innovation- and
solution-based
culture to the
organization
Leadership and performance
management system in public-sector
organization
49
4

50. © The KPI Institute 2016
• “The implementation of a new or significantly improved product
(good or service), or process, a new marketing method, or a new
organizational method in business practices, workplace organization
or external relations”.
Oslo Manual, 2005
Source: Oslo Manual. Guidelines for collecting and interpreting innovation data (2005)
Understanding INNOVATION
50

51. © The KPI Institute 2016
Novelty
• Innovations
introduce new
approaches,
relative to the
context where
they are
introduced
Implementation
• Innovation must be
implemented, not
just an idea
Impact
• Innovations aim to
result in better
public results
including
efficiency,
effectiveness and
user or employee
satisfaction
Source: OECD Conference Centre Paris (2014)
EMERGING PRINCIPLES OF PUBLIC
SECTOR INNOVATION
51

52. © The KPI Institute 2016
5. INNovation as an enabler of
PERFORMANCE WITHIN THE PUBLIC
SECTOR
52
Source: Nesta (2011)
• Organizations in the
Public Sector ranked
different sources of
innovation
• Public Service
representatives stated
that access to best
practice information is
the key external source
of ideas

53. © The KPI Institute 2016
5. INNovation as an enabler of
PERFORMANCE WITHIN THE PUBLIC
SECTOR
53
• Within Public Sector
organizations frontline
staff and service users
are believed to be the
most important sources
of ideas
• Managerial staff, partner
organizations and
suppliers are also stated
as significant
contributors to
innovation initiatives
Source: Nesta (2011)

54. © The KPI Institute 2016
Source: OECD Conference Centre Paris (2014)
ORGANIZATIONAL INNOVATION: A
PUBLIC SECTOR FRAMEWORK
54

55. © The KPI Institute 2016
1. Leader’s performance is justified by how the organization achieves its objectives.
2. An ideal leadership style has to be reflected in higher performance of the organization.
3. Leaders in Public Sector are people who will promote institutional adaptations in the public
interest.
4. Leaders have the ability to influence team members in order to meet organizational demands.
5. Employees performing organizational citizenship behaviors will prone to contribute more into
the innovativeness of the organization if they are supported by leadership behavior.
6. The principles of innovation in Public Sector are: novelty, implementation and impact.
Session review
55

56. © The KPI Institute 2016
REFERENCES
56
• Australian Federal Government (2011), Department of Climate Change and Energy Efficiency annual report
2010–11. Available at: http://www.climatechange.gov.au/about-us/annual-reports/annual-report-2010-11;
• Embassy of Brunei Darussalam to the United States of America (n.d.), Brunei Vision 2035-Wawasan 2035.
Available at: http://www.bruneiembassy.org/brunei-vision-2035.htm;
• Emirates Identity Authority (2014), United Arab Emirates Strategic Plan. Available at:
www.id.gov.ae/assets/ql375iED.pdf.aspx;
• Government Communication Service (2016), Government Communication Professional Competency Framework.
Available at: https://gcs.civilservice.gov.uk/wp-content/uploads/2016/06/gcs.civilservice...competency-
Framework-Feb-16-1.pdf;
• Government of Canada (2016), A Leadership Development Framework for the Public Service of Canada.
Available at: https://www.tbs-sct.gc.ca/psm-fpfm/learning-apprentissage/ptm-grt/ldf-cpl-eng.asp;
• INFOCOMM Media Development Authority (2016), Service Standards. Available at:
https://www.imda.gov.sg/about/service-standards;
• Innovating the Public Sector: from Ideas to Impact, OECD Conference Centre Paris (2014). Available at:
www.oecd.org;
• Kingdom of Saudi Arabia 2030, National Transformation Program 2020. Available at:
http://vision2030.gov.sa/sites/default/files/NTP_En.pdf;
• Media Development Authority, Singapore (2015), Service Standards. Available at:
http://www.mda.gov.sg/AboutMDA/ServiceStandards/Pages/default.aspx;
• Michigan Public Policy Survey (2011), The Center for Local, State, and Urban Policy. Available at:
http://closup.umich.edu/files/MPPS-2011-data-use.pdf;

57. © The KPI Institute 2016
REFERENCES
57
• National State Auditors Association (2004), Best Practices in Performance Measurement. Available at:
http://www.nasact.org/files/News_and_Publications/White_Papers_Reports/NSAA%20Best%20Practices%20Doc
uments/2004_Developing_Performance_Measures.pdf;
• NESTA (2011), Innovation in Public Sector Organizations. Available at:
https://www.nesta.org.uk/sites/default/files/innovation_in_public_sector_orgs.pdf;
• Oslo Manual. Guidelines for collecting and interpreting innovation data (2005). Available at: http://www.oecd-
ilibrary.org/docserver/download/9205111e.pdf?expires=1478597845&id=id&accname=guest&checksum=C1F2D7
12587D4351254BD54B4DE9BAF4;
• Panama Canal Authority (2009), Annual report. Available at: http://www.pancanal.com/eng/general/reporte-
anual/;
• Queensland Government (2015), Capability Frameworks and Strategies. Available at:
https://www.qld.gov.au/gov/workforce-capability-success-profile;
• Republic of Philippines (2012), Performance-Based Incentive System: Frequently Asked Questions. Available at:
http://www.gov.ph/pbb/faqs/;
• Security and Commodities Authority (2011), Annual Report. Available at:
http://www.sca.gov.ae/English/OpenData/Pages/Reports.aspx;
• South Korea Ministry of Security and Public Administration (2015), Government 3.0 & E-Government in Korea.
Available at: http://asean.women.or.kr/wp-content/uploads/2015/03/Lecture-1-GOVERNMENT3.0E-
GOVERNMENT-IN-KOREA_Kim-Sangjin.pdf;
• The KPI Institute (2016), Certified Employee Performance Management Professional. Available at:
http://marketplace.kpiinstitute.org/certified-employee-performance-management-professional-2016.html;
• The KPI Institute (2016), State of Employee Performance Management, Global Edition. Available at:
http://marketplace.kpiinstitute.org/state-of-employee-performance-management.html;

58. © The KPI Institute 2016
REFERENCES
58
• The KPI Institute (2016), Utilities Benchmarking Report;
• The Office of Public Services Reform (2004), The Drivers of Satisfaction with Public Services. Available at:
http://www.g4sassessmentservices.com/Standards/Customer%20Service%20Excellence/Document%20Library/K
ey%20Drivers.pdf;
• United Arab Emirates Vision 2021, National Key Performance Indicators. Available at:
https://www.vision2021.ae/en/national-priority-areas/cohesive-society-and-preserved-identity.

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