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Performance management


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Performance Management in the Public Sector

Published in: Government & Nonprofit
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Performance management

  1. 1. Performance Management Introduction to Public Administration
  2. 2. Introduction • Approaches to Public Administration: • New Public Management – trend that surfaced in Europe, Australia, and New Zealand during the 1990s that had significant influence on the Clinton Administration’s market-based, customer-focused, quality-driven reinvention effort. • Notice how this matches with what we discussed before with regard to NPM • Values: • Concern with outcomes/outputs, not behavior • Outcomes success measured by policy analysis • Decision Making: • Very business like • Results oriented (GPRA) • Stakeholders • Customer focus • Outsourcing (non-profit) • Efficiency • Purpose: • Maximize the ability to act like firms. • Serve customers. • Borrows heavily from business practices. • National Performance Review (Al Gore) • Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector by David Osbourne and Ted Gaebler. • Organizational Structure: • More flat, less hierarchical • For example: Total Quality Management • View of the Individual: • Customer • Served not processed
  4. 4. The Results Oriented Approach • The focus would shift from inputs to outputs: • Results oriented – government programs that focus on performance in exchange for granting greater discretionary decision-making power to managers. • Scientific management: • Frederick Taylor - “the one best way” • Productivity – measureable relationship between results produced and the resources required for production; quantitative measure of the efficiency of the organization. • Shift to efficiency and effectiveness. • Difficulties: • Not all public programs and projects are not as easily quantifiable as in the private sector (profit/loss). • Easily quantifiable: • Remember “Don’t Mess with Texas?” • Difficult to quantify • Academic achievement • Credit hour production • Student retention • Graduation rates • GPA
  5. 5. The Results Oriented Approach • Improving Productivity • Improving efficiency of organizational and processing procedures • Streamlining • Paperwork reduction • Information communication technology • Information systems • Reducing costs of organizational and processing procedures • Technology has been particularly beneficial in reducing costs for government. • E-government • Computer and statistical packages • Geographic Information Systems – technological software tools that diagram special information visually. • Summary • The focus on productivity resulted in: • Focus on the quality of execution of programs • Less emphasis on the type of policy analysis previously discussed. • A movement called…
  7. 7. Reinventing Government: Introduction • Reinventing government – the Clinton-Gore administration initiative based on the 1992 book Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector. • The main thrust of the book was to push for business standards to be applied in government: • Customers • Market forces • Customer service • Productivity • Al Gore was fascinated with these ideas and brought these ideas into the Clinton administration. • The appeal: • Politicians liked the idea of “reinventing government” as it served to pose as a motivation to improve government and make it more efficient and effective. • Administrators liked the idea because it replaced externally established goals, decision making, and program evaluation with more discretion to make these decisions internally.
  8. 8. Reinventing Government: GPRA • The Government Performance and Results Act of 1993 (GPRA) • Requirements: • Define long-term goals • Setting annual targets derived from goals • Annual reporting of agency performance relative to goals • Creates: • More accountability for managers • Measureable results of performance • A new managerial objective: • Performance management – results-driven decision making that attempts to link goal achievement with budgetary allocations.
  9. 9. Reinventing Government: Customers and Customer Service • Executive Order 12862 (Clinton 1993) and “Customers” • Reinventing government as suggested by the New Public Management had a “customer” focus. • Focus on: • Customer-service standards – explicit standards of service quality published by federal agencies and part of the reinvention of government initiative. • Executive Order 12862 mandated that agencies: • Identify customers • Identify customers’ needs • Identify customers’ satisfaction levels (with services and post service) • Comparison of customer satisfaction with the private sector. • Benchmarking – quality and productivity improvement methodology that examines those organizations (in this case private sector) that are best at performing a certain process or set of processes and then transplanting the methods into one’s own organization. • Problem: • Cost control
  10. 10. Reinventing Government: Agency Improvement Officers • Executive Order 13450 (George W. Bush, 2007) • Sec. 5.Duties of Agency Performance Improvement Officers. • Subject to the direction of the head of the agency, each agency Performance Improvement Officer shall: • (a) supervise the performance management activities of the agency, including: • (i) development of the goals, specific plans, and estimates for which section 3 of this order provides; and • (ii) development of the agency’s strategic plans, annual performance plans, and annual performance reports as required by law; • (b) advise the head of the agency, with respect to a program administered in whole or in part by the agency, whether: • (i) goals proposed for the approval of the head of the agency under section 3(a)(i) of this order are: • (A) sufficiently aggressive toward full achievement of the purposes of the program; and • (B) realistic in light of authority and resources assigned to the specified agency personnel referred to in section 3(a)(ii)(A) of this order with respect to that program; and • (ii) means for measurement of progress toward achievement of the goals are sufficiently rigorous and accurate; • (c) convene the specified agency personnel referred to in section 3(a)(ii)(A) of this order, or appropriate subgroups thereof, regularly throughout each year to: • (i) assess performance of each program administered in whole or in part by the agency; and • (ii) consider means to improve the performance and efficiency of such program; • (d) assist the head of the agency in the development and use within the agency of performance measures in personnel performance appraisals, and, as appropriate, other agency personnel and planning processes; and • (e) report to the head of the agency on the implementation within the agency of the policy set forth in section 1 of this order.
  11. 11. Reinventing Government: GPRA 2: The Empire Strikes Back • Government Performance and Results Modernization Act of 2010 • “…better connecting plans, programs, and performance information.” • Agencies were required to develop five-year strategic plans that were directly related to agency mission statements. • Agency must report results quarterly, rather than annually, with respect to performance information. • Agencies must have annual plans that demonstrate the strategic plan for the fiscal year and how that plan relates to the five-year plan. • The OMB will produce a report on all agency performance that will be submitted with the president’s budget.
  12. 12. Reinventing Government: Evaluating Performance • National Performance Review (National Partnership for Reinventing Government) (1993 – 2001) – a national committee responsible for studying and monitoring strategies to reinvent government. • Focus: • Smaller government: • Reductions-in-force • Elimination of regulations • Customer-service focus • Greater citizen access • E-government • Social media • The Real Results: • Elimination roughly 250 government programs • Elimination of 16,000 pages of regulations from the Code of Federal Regulations (CFR) • Budget cuts amounting to $137 billion dollars • Reduction of the federal government workforce by 317,000 employees (13%) • The “Results” • 2000 presidential election (Gore vs. Bush) • 60% believed the number of federal employees increased • ~50% were even familiar with reinventing • Gore, who supported NPR, lost.
  13. 13. Reinventing Government • Rewarding Entrepreneurial Spirit • Awards • Sharing of strategies for learning
  14. 14. The New Public Service: Public Administration Pushes Back • The New Public Service – government service based upon the view that democratic theory and definitions of public interest should result from a dialogue and deliberation about shared values. Public servants are motivated by a desire to contribute to society and to respect law, community values, political norms, professional standards, and citizen interests. • Denhardt and Denhardt, The New Public Service • Values: • Democracy • Citizenship • Pride • Administrators who are motivated by a value of public service. • The public interest • Devalues: • Market-driven • Competitive • Customer-focused • Administrators who are motivated by an “entrepreneurial spirit.”
  15. 15. Discussion • Which method, reinventing government or the new public service, do you think is the more advantageous approach to public administration and why? • What are the advantages and disadvantages of a customer-service based approach to public administration? • Is there any advantage or disadvantage to the adoption of business values in public administration?
  16. 16. Topics Not Covered • Politics of Performance Management • Comparing Alternative Performance Management Strategies • Citizen Relationship Management and Electronic Government