USING PERFORMANCE MEASUREMENT TO IMPROVE THE PERFORMANCE OF

GOVERNMENT: A "MEGA-TREND" IN INTERNATIONAL

PUBLIC MANAGEMENT

National Civil Service InstituteExamination Yuan

Steve KelmanWeatherhead Professor of Public Management

Harvard Kennedy School

USE OF PERFORMANCE MEASUREMENTA “MEGA-TREND” IN PUBLIC MANAGEMENT

AUSTRALIA/NEW ZEALAND (1980s)

US GOVERNMENT PERFORMANCE AND RESULTS ACT (1993)

UK “TARGETS” UNDER THATCHER/MAJOR/BLAIR

CHINA (MOSTLY FOR PROMOTION/DISCIPLINE OF SENIOR OFFICIALS)

INTEREST IN PERFORMANCE MEASUREMENT = INTEREST IN RESULTS GOVERNMENT DELIVERS

PERFORMANCE MEASURES ARE THE PUBLIC SECTOR'S EQUIVALENT TO THE PROFIT MEASURE FOR BUSINESS FIRMS!

UK – COVENTRY YOUTH OFFENDING SERVICE

TWO VIEWS OF PERFORMANCE MEASUREMENT

RECORDING – LIKE A THERMOMETER THAT MEASURES TEMPERATURE WITHOUT CHANGING IT

PERFORMANCE IMPROVEMENT / BEHAVIOR CHANGE

A PAPER EXERCISE!

“USE IT OR USELESS!”

PERFORMANCE IMPROVEMENT APPROACH:WAYS MANAGERS CAN USE PERFORMANCE MEASURES

COMMUNICATION/FOCUS

MOTIVATION

LEARNING

RESOURCE ALLOCATION

PERFORMANCE IMPROVEMENT APPROACH COMMUNICATION/FOCUS

MOTIVATION

LEARNING

RESOURCE ALLOCATION

PRIORITIES: “WHAT GETS MEASURED GETS NOTICED” (CHINA ENVIRONMENTAL TARGETS ADDED TO GDP GROWTH)

SMALL NUMBER: “IF EVERYTHING IS A PRIORITY, NOTHING IS A PRIORITY”

PARTICULARLY IMPORTANT FROM TOP OF THE ORGANIZATION

PERFORMANCE IMPROVEMENT APPROACH COMMUNICATION

MOTIVATION

LEARNING

RESOURCE ALLOCATION

GOALS MOTIVATE VS. “DO YOUR BEST”

MOTIVATION OCCURS EVEN WITHOUT FINANCIAL REWARDS!

BEST GOALS ARE NOT TOO EASY BUT NOT IMPOSSIBLE

BASIS FOR INDIVIDUAL AND/OR GROUP REWARDS?

KENNEDY: “MAN TO THE MOON IN 10 YEARS”

PERFORMANCE IMPROVEMENT APPROACH COMMUNICATION

MOTIVATION

LEARNING

RESOURCE ALLOCATION

NEED DATA ABOUT PERFORMANCE AS BASIS FOR LEARNING ABOUT WHAT’S WORKING AND NOT WORKING

FEEDBACK ON YOUR OWN PERFORMANCE OVER TIME – LEARNING TO THROW DARTS IN A PUB

COMPARISON ACROSS UNITS DOING SIMILAR THINGS

“THERE IS NO GREATER WASTE THAN A GOOD IDEA USED ONLY ONCE.”

PERFORMANCE IMPROVEMENT APPROACH COMMUNICATION

MOTIVATION

LEARNING

RESOURCE ALLOCATION

CONCENTRATE ON WORST?

BUDGET ALLOCATION WITHIN ORGANIZATION

TIME/ATTENTION

THE GOOD NEWS: YOU GET MORE OF WHAT YOU MEASURE

THE BAD NEWS: YOU GET MORE OF WHAT YOU MEASURE

PROBLEM: “TEACH TO THE TEST”

PERFORMANCE MANAGEMENT…

“TEACH TO THE TEST” (I): GOAL IS FINE, MEASURE OF THE GOAL IS POOR

“TEACH TO THE TEST” (II): MEASURE IS FINE MEASURE OF GOAL, BUT IGNORES OTHER GOALS

“TEACH TO THE TEST” (III): GAMING/CHEATING

“TEACH TO THE TEST” (I): GOAL IS FINE, MEASURE OF THE GOAL IS POOR

“TEACH TO THE TEST” (II): MEASURE IS FINE MEASURE OF GOAL, BUT IGNORES OTHER GOALS

“TEACH TO THE TEST” (III): GAMING/CHEATING

• USING SHORT-RUN EARNINGS INCREASES FOR JOB TRAINING PROGRAM GRADUATES AS A MEASURE OF PROGRAM EFFECTIVENESS

“TEACH TO THE TEST” (I): GOAL IS FINE, MEASURE OF THE GOAL IS POOR

“TEACH TO THE TEST” (II): MEASURE IS FINE MEASURE OF GOAL, BUT IGNORES OTHER GOALS

“TEACH TO THE TEST” (III): GAMING/CHEATING

• QUANTITY/SPEED VERSUS QUALITY

“TEACH TO THE TEST” (I): GOAL IS FINE, MEASURE OF THE GOAL IS POOR

“TEACH TO THE TEST” (II): MEASURE IS FINE MEASURE OF GOAL, BUT IGNORES OTHER GOALS

“TEACH TO THE TEST” (III): GAMING/CHEATING

• AIRLINE ONTIME PERFORMANCE

• CHINA PRISONS FOR PETITIONERS

PROBLEMS DON’T NECESSARILY MEAN DON’T USE PERFORMANCE MEASURES

EVERY MEASURE DISTORTS

DON’T LET THE PERFECT BE THE ENEMY OF THE GOOD

Worst Performance

Best Performance

PerformanceUsing Perfect Measures

PerformanceUsing Imperfect Measures

?

PerformanceUsing No Measures

?

PerformanceUsing No Measures

SUMMARY MESSAGE:

INCORPORATE PERFORMANCE MEASURES AS AN IMPORTANT PART OF THE WAY YOU MANAGE AND LEAD YOUR ORGANIZATION

USE PERFORMANCE MEASURES NOT JUST TO RECORD YOUR ORGANIZATION’S PERFORMANCE, BUT TO IMPROVE IT

http://www.whitehouse.gov/omb/expectmore/

http://www.nyc.gov/html/ops/cpr/html/home/home.shtml

http://www.innovations.harvard.edu/showdoc.html?id=7100

Shelley Metzenbaum

“Performance Accountability: The Five Building Blocks and Six

Essential Practices”

http://www.businessofgovernment.org/pdfs/MetzenbaumReport2.pdf

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Thank You.