Performance Management Framework

Government

Government Agencies

Strategic Priorities/Goals

Policy Objectives

Outcomes

Outcome Indicators

Outputs

Output Measures

De

live

ry

Sp

ecifica

tion

Defining Outcomes

Government Agencies

Community

Impacts/Effects

Results

Consequences

Output Output Output Output

Defining Outcomes

• Examples of outcomes:

– improved road safety

– increase in economic growth

– improvement in literacy levels for secondary school students

– access to health services in rural areas

– reduction in unemployment

– more tourist arrivals

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

IDENTIFYING & MEASURING OUTCOMES

Specifying Outcomes -Agencies

Process for specifying outcomes involves:

1. Identifying outcomes relevant to an agency

2. Outline indicators to measure achievement of outcomes

Useful hints:

1. Clear link with agency’s outputs

2. Ability to measure outcome

3. Consistent with Government’s policies and priorities

Step 1 – Identifying Outcomes

Sources of information:

Strategic Development Plan

Government’s policy statements

Feedback from Ministers

International commitments

Step 2 – Measuring Outcomes

Purpose of measuring outcomes:

• highlight effectiveness of agency outputs in achieving outcomes

Measuring outcomes can be difficult:

• measuring intangibles

• other social/economic factors beyond control of government

• multiple outputs contributing to the same outcome

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

Step 2 – Measuring Outcomes

Examples:

Reduce crime

% reduction over 3 years in reported

cases of robberies and homicides

Improved job growth

% increase in employment rate in

public/private sector

Access to health services in rural areas

% reduction in dental and high

blood pressure cases in rural areas

Specifying Outputs

Process involves:

1. Identifying outputs of the agency

2. Providing a short description of each output

3. Developing performance measures/targets for each output

4. Aggregating outputs into output groups

IDENTIFYING OUTPUTS

Knowing What Your Output Is

Key principles of output specification:

1. External focus

– goods and services provided to parties external to the agency

– applies when developing performance measures

2. Controllable

– ability to influence delivery of outputs;

– use of assets required to deliver the output

– sufficient control over management of funds

Knowing What Your Output Is

3. Comprehensive

– incorporate full range of goods and services provided by the agency

4. Measurable

– allows performance of output delivery to be assessed

5. Informative

– title/description of outputs provide sufficient information of what type of output is being delivered

Describing Your Output

• Description of outputs should be:

– brief but fully describe output being delivered

– title of the output should be stated in terms of ‘what it is’

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

MEASURING OUTPUTS

Developing Output Performance Measures

• Characteristics/aspects of performance that will be assessed:

– quantity

– quality

– timeliness

– cost

• Developing performance measures are important:

– provides information on whether outputs were delivered

– used for decision making purposes

– used as tools to assess agency performance

Output Performance Measures

• Quantity measures:

– how many, how much to deliver

Number of applications processed

Metres of road surfaced

Number of patients/cases

Number of student places

Example

Output Performance Measures

– Welfare recipients paid correct amount• Accuracy

– Grants fully assessed before payment made

• Completeness

– Waiting times for elective surgery • Timeliness

– Minister satisfied with policy advice• Customer satisfaction

– Police patrols stationed at all major suburbs• Accessibility

• Compliance – Approved work permits meet legislative requirements

Quality measures:

Output Performance Measures

Policy Advice

External Trade

Example:

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:

Also a quality measure

Key performance measure in its own right

Output Performance Measures

Costs:

• assign input costs to outputs

• provides information on production costs of outputs;

– assist in prioritising resource allocation

• basis of funding through the budget process

Approach to output costing:

• Baseline budgeting;

– mapping new output structure to baseline budget

– applies to pilot ministries for 2005 budget

Setting Performance Targets

• Setting performance targets:

– standards to be achieved against each performance measure

– used as tools to drive, improve, control and measure output performance

• Common approaches to setting targets:

– adopting current performance with a % increase

– best practice i.e. benchmarking

– international standards for other countries

– management decisions based on available resources

Aggregate Outputs into Output Groups

Specifying output groups:

• Defined as a group of outputs similar in nature

• Outputs are grouped for external/budget reporting purposes;

– meaningful & relevant information

Aggregate Outputs into Output Groups

Agency Output Structure

Output Group

External Reporting Budget EstimatesOutputs

(internal outputs)

Sub-output Sub-output Sub-output Low level outputs/ Activities

Level 1

Level 2

Level 3

Specification Process

• Key points to note:

– involve staff in identifying agency outputs

– good understanding of agency’s functions/role

– put in place a system of collecting performance information for monitoring and reporting purposes

– liaise with Budget Division/FMR

Performance Management Framework

Government

Government Agencies

Strategic Priorities/Goals

Policy Objectives

Outcomes

Outcome Indicators

Outputs

Output Measures

De

live

ry

Sp

ecifica

tion

Example

Government Policy ObjectiveTo increase transparency in Government policy decision-making

Establish legislation to provide general public with access to information on government policy decisions

OutcomeA well informed public of

government policy decisions

OutputProvision of policy library service

Output MeasureNumber of policy records accessed

Satisfaction with library service

Output cost

IndicatorIncrease in the number of citizens

accessing government policy records