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Performance Measurement and Management

This paper provides action assessment recommended by a task force to President Obama that provides recommendations for improving performance measurement and management in government. Problems with conventional models of evaluation are addressed, along with best practices adopted by new performance assessment models that are more designed to fit with the pluralistic nature of government organization development.

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Performance Management Measurement Introduction Problem Description In the private sector in the wake of monumental business failures corruption and unethical behavior by top executives there has been anincreasing call for greater performance management and measurement byboards of directors government and the public in ways that promoteperformance efficiency effectiveness and great responsibility andaccountability among executives In an era that reflects soaring costs fortaxpayers declining performance and increased ineffectiveness bypolicymakers a similar call has gone out for greater governmentperformance management and measurement to achieve

. (2 1 ). Shift performance measurement models and assessments to include a mix of quantitative and qualitative performance measures for large scale public sector works. S., & Clerkin, R. Other measures are neededin addition to these in order to adequately measure performance on suchprojects, like effective use of resources and satisfaction of stakeholders. Journal of Sociology & Social Welfare, 37(1), 137-148.Lingle, J. Management Review, 12(1), 56-61.Rosenbloom, D. There are four main problemswith performance measurements systems that at times have the effect oflimiting their usefulness: . Such ineffective evaluation and measurementpolicies exist at a time of significant calls for greater governmentperformance, effectiveness and responsiveness in policy. According to Rosenbloom (etal., 2 8) policy outcomes concern themselves with: "What effect is thepolicy output having on the intended target? It is for these reasons that a variety of new approaches to performancemeasurement and management are being developed and applied to policymakingand policy outcomes, so that the challenging aspects of policy performancethat are difficult to measure can be more effectively and accuratelyanalyzed. Frederickson and Frederickson (2 6) provide a literaturereview of studies that demonstrate the challenges and complexities involvedin successfully implementing performance measurement reform. Failure to sustain momentum in implementing the measures. 348). H., Kravchuck, R. . However, a new generation ofperformance measures aims to correct historical inadequacies in applyingsuch models to government. Such models have beenlinked to improved policy outcomes by government policymakers. In Is Measurement Worth It, Lingle and Schiemann (1996) report that one ofthe greatest benefits to government agencies and organizations that adoptbest practices in performance measurement and management is the developmentof a culture that is higher performing, more effective, and moreaccountable than those without such evaluations in place. Creating measures before gaining consensus on strategic imperatives. The pluralistic nature of American government and oforganizational development demand criteria that can be honed and groupedtogether in a single model of performance measurement that offers clearlydefined best practices. Is measurement worth it? H., & Schiemann, W. According to the U.S. In light of the research offered here, the following recommendationsshould be incorporated into government performance measurement andmanagement reform as soon as feasible: . The GAOstrives to achieve this mission through auditing agency operations thatmeasure whether federal funds are being spent efficiently and effectively,while also preparing reports on how well government programs and policies"meet their objectives" (GAO, 2 1 ). Failure to involve those who will use the measures in development. 137). Washington, D.C.: Georgetown Univ. All too often, becauseof the lack of a unified framework of best practices that applies tocomplex government programs, measuring such outcomes can often bechallenging. (2 8). (2 1 ). AsFrederickson and Frederickson (2 6) argue, "Variations in social outcomes,particularly outcomes associated with such loosely defined socialcharacteristics as health, are extremely difficult to demonstrateconvincingly to have been caused by government action independent of otherforces" (p. Public Administration Review, 7 (2), 236-246.Kesti, M., & Syvajarvi, A. Yet various challenges make such assessments difficult. Such criticism is aimed athighlighting areas for improvements in government performance to ensuremore responsive and effective policy outcomes. 1). In the chartbelow, Lingle and Schiemann (1996) reveal the differences in culturesbetween measurement-managed organizations and those that are not measured: Cultural Trait Measured Non-Measured Agreement on strategy 9 % 47% Communication of strategy 6 % 8% Open sharing of information 71% 3 % Cooperation & teamwork 85% 38% Performance 42% 16% Self-accountability 44% 14% Willingness to take risks 52% 22% (p. Despite the congressional watchdogGAO being in place, there are specific problems with its performancemanagement and measurement strategies and methods in light of newdevelopments in these areas designed to improve performance and increaseaccountability and responsiveness. 346). . 9 583 Performance Management & Measurement Introduction/Problem Description In the private sector in the wake of monumental business failures,corruption, and unethical behavior by top executives, there has been anincreasing call for greater performance management and measurement byboards of directors, government, and the public in ways that promoteperformance, efficiency, effectiveness and great responsibility andaccountability among executives. Heavy reliance on static, e.g., equilibrium, analyses and slight attention to time-based and growth ones, like value- added measures. . The benefits and disadvantages of this kind ofperformance measurement and management reform will also be addressed.Challenges to implementing such reforms will be highlighted. Retrieved April 12, 2 1 from: http://www.gao.gov/about/index.html, 1-2. These shortcomings need overcome foreffective implementation of performance measurement and management reform. Industrial Management & Data Systems, 11 (2), 211-229.Lawrence, M., & Frahm, K. Should theorganization fail to guard against these reasons, the best practices in theworld will not provide effective or accurate performance measures: . International Journal of Project Management, 28(3), 228-236.U.S. 15) This makes it even more challenging to accurately assessgovernment management, responsibility and accountability for outcomes. Political administration breaks themajor tenet of traditional management to keep administration and politicsseparate, in that administrators often create policy outputs like rules andstrategic plans (Rosenbloom, et al., 2 8). The GAO often provides performance assessments and critiques ofmanagement for government organizations, such as its criticism of the"centralized command and control" leadership, structure, and culture of theHealth and Human Services Department, a structure unsuited to such a broadorganization with an array of services to provide in the view of the GAO(Frederickson, & Frederickson, 2 6, p. 228). Known as the "iron triangle" of performance measures (on-time, under-budget and according to specifications), these conventionalcriteria are "no more applicable to measure performance on large publicsector works" (Toor & Ogunlana, 2 1 , p. There is a"linear relationship" between the factors of performance measurementsystems, that is between inputs, activities, outputs and outcomes(Rosenbloom et al., 2 8, p. 137).This has caused two basic defects in measuring performance. If not, why not? (1996). A conclusionwill offer a number of recommendations for performance measurement andmanagement of federal policymakers that are aimed at continuous improvementand outcomes of government performance. G. . Heavy reliance on historical patterns and reluctance to accept new structural or process changes that are needed to produce different outcomes. Evaluating local government emergency management programs: What framework should public managers adopt? Ensuring the organization is integrated and focused on strategy and goals in such a manner that measurement drives desired behavior. If so, is achievement related toadministration? It is clear fromthis analysis that government performance and management can and must bemeasured, evaluated, assessed and critically viewed in order to provideongoing, continuous improvement of government management and policyoutcomes. Other problems with implementing performance management andmeasurement reform are related to the difficulty of measuring performancefor direct provision of public services. 7). Failure to recognize the performance measurement process as a continuous one. Retrieved April 12, 2 1 from: http://www.apqc.org/educ/PDF/Performance%2 Measurement%2 Models%2 Myths %2 Misuses%2 and%2 Mistakes%2 -%2 Carl%2 Thor%2 -%2 Jan%2 12.pdf, 1-Toor, S., & Ogunlana, S. Thisis why improved models of performance measurement and management areneeded. Implementation Challenges There are a number of challenges related to implementing effectiveperformance management and measurement reform, primarily because of thecomplex nature of public governance and the diverse stakeholders involvedin outcomes. Best practices show that there are key issues that any effectiveperformance measurement and management model applied to government musthave. GAO (Government Accounting Office). 57)Because of the pluralistic and challenging nature of policy formation andimplementation, the fact that measured organizations have cultures with ahigh level of agreement on strategy and a high level of cooperation andteamwork is another benefit of performance measurement and management. There are some drawbacks to performance measurement and managementreform. Policyoutcomes, in contrast, focus on performance. The changing nature of accountability in administrative practice. Linking measures to strategy, budget, and compensation. Performance measurement: Models, myths, misuses, and mistakes. Policy outcomes, in contrast,are concerned with performance. Public Administration: Understanding Management, Politics, and Law in the Public Sector, 7th Edit. Before visiting new models of government performance measurement andmanagement being applied to government management, it is important todefine public policy and public policy outcomes. Human tacit signals at organization performance development. 13)The final problem listed above is especially important for government whenperformance is being measured on large scale public works. According toLawrence and Frahm (2 1 ) because of a financial accountability focus,"programmatic accountability was reduced to secondary importance" and adivide was created between "macro administrative practices and micro directpractice as administrators became almost exclusively concerned withfinancial accountability" (p. New York: McGraw-Hill Higher Education.Thor, C. . 17). Measures that are not strategic, balanced, or easily implemented. Heavy reliance on summary data that emphasizes averages and discounts outliers. 12) Benefits/Disadvantages of Reform The benefits of performance measurement and management reform forgovernment are significant. . Rather than focus on professional administrationperformance as historical measures had done, government performanceemphasis shifted toward the "rigorous measurement of agency and programperformance" (Frederickson, & Frederickson, 2 6, p. 1). Thor (2 6) defines these critical issues as: . . Balancing financial measures with others, like process and outcome measures. Major federalperformance measurement reform was ultimately enacted in 1993 with thesigning into law of the Government Performance and Results Act (GPRA or theResults Act). . New models of performance measurement andmanagement for government have been developed in the wake of an era ofreform that use this premise as their foundation. Failure to link measures to all stakeholders. Finding the critically few meaningful measures that truly determine organizational health. 347). Is the objective beingachieved? Further performance measure models formajor public sector development projects lack any common framework ofperformance measurement. Traditional performance measurement and management models like thebalanced scorecard are being applied to government organizations, agencies,management and performance outcomes. One problemis causal associations between agency outputs and social outcomes. Before this reform was enacted into law, formal measurement ofgovernment performance was rare or was not seen as critical to policyoutcomes. Policy formation leads to policyoutputs, thinks like officials declarations of intent, defining of powersand methods, and resource allocation. Others issues with implementation of performance measurement andmanagement reform stems from confronting firmly entrenched agency ororganizational cultures that offer significant resistance to change.Rosenbloom (et al., 2 8) argue that there are inherent difficulties inpolicy analysis that make implementation challenging, such as "thelimitations of analytical techniques, problems of measurement, lack ofinformation, and the complexity of so many governmental programs" (p. Policy outputs focus on politics and administration. M. The GPRA is significant because the reform is based on thepremise that "the performance of government can be measured and that suchmeasures are essential to improved government effectiveness" (Frederickson& Frederickson, 2 6, p. Public policy involves"establishing the objectives to be attained and at least sketchilyoutlining the general means to be used in seeking to achieve theseobjectives" (Rosenbloom, Kravchuck, & Clerkin, 2 8, p. (p. Effective performance evaluations enablepolicymakers to pinpoint weaknesses and ineffective actions in policies andcreate improved strategies and methods. Refine and synthesize key elements of evaluation and performance measurement models into a united framework that provides clearly defined best practices for evaluation and performance measurement for government.ReferencesFrederickson, D. Performance Management & Measurement Reform Higher demand for government accountability and development of newperformance measurement models applied to government changed the nature ofperformance measurement for government in the late 19 s. The views of Rosenbloom (et al., 2 8) on the challenges offorming public policy to begin with are eerily similar to thecharacteristics of the recent formulation of health care reform: "Theformulation of public policy is often highly politicized and may involvehotly contested elections, votes in the legislature, and extensive lobbyingactivities" (p. Press.Henstra, D. Once policy passes into law, the stakes of achievingresponsive and effective outcomes are even higher for policymakers. (2 1 ). Measuring the Performance of the Hollow State. . . 348). . (2 6). These five competenciesare management, leadership, culture, skills, and processes (Kesti &Syvajarvi, 2 1 ). GAO website, the mission of the GAO is to"support Congress in meeting its constitutional responsibilities and tohelp improve the performance and ensure the accountability of the federalgovernment for the benefit of the American people" (GAO, 2 1 ). It is difficultto accurately assess government management in some cases for a variety ofreasons. (2 1 ). . O. New calls for increased performance, accountability andresponsiveness by federal legislators and policymakers have led to thedetection of problems and weaknesses with conventional performancemanagement and measurement approaches and models. Conclusion This action assessment makes it clear that greater efforts todevelop and implement performance measurement and management reforms aimedat improving government performance and responsiveness are warrantedimmediately. Federalgovernment performance measurement experiences a paradigm shift at the endof the twentieth century. . Unite program, process, and financial accountability into all performance measurement and evaluation efforts. Henstra (2 1 ) explains that today's evaluationcriteria for performance measure and management need to be "refined andsynthesized into a single framework that provides clear-cut best practicesfor program evaluation and performance measurement" (p. Insufficient behavioral commitment to the process by top leaders. Lawrence and Frahm(2 1 ) argue that historical measures of accountability tended to be"primarily concerned with funding" of financial accountability (p. With what side effects" (p. 8) Even when best practices are adopted and incorporated intogovernment performance measurement and management, there are still a numberof reasons why measurement systems frequently fail. 211). Kesti andSyvajarvi (2 1 ) have developed a new "mental model" of five interconnectedcompetencies they argue are better suited to evaluating the pluralisticnature of government organizational development. At what cost? (Thor, 2 6, p. Frederickson and Frederickson(2 6) note that, "The most frequently used source to assist practitionersin performance measurement (GPRA) makes little mention of the complexitiesintroduced by third-party providers or the measuring of the performance ofregulatory agencies" (p. Conventional models of performance measurement and managementare either inadequate to effectively measure government performance andpolicy outcomes or have a focus that is no longer applicable to moderngovernment policymaking. This action assessment will review performance measurement andmanagement reform in order to highlight a number of best practices beingused to measure performance and management in federal government and policyoutcomes. Adopt new models of competency measurement that align with the pluralistic nature of government organizations and agencies and measure the competencies of management, leadership, culture, skills and processes. In an era that reflects soaring costs fortaxpayers, declining performance, and increased ineffectiveness bypolicymakers; a similar call has gone out for greater governmentperformance management and measurement to achieve the same goals.Currently, the independent, non-partisan agency known as the GovernmentAccounting Office (GAO) is charged with monitoring the performance ofmembers of Congress. One of the biggest stems from the fact that there are oftenlayers of contributors or stakeholders engaged in such projects that makeit fairly difficult to be able to measure only government performance andmanagement as they relate to the final outcomes achieved. (2 6). 347). (2 1 ). A. One of the biggest of these is the potential for misuse or errorsin performance evaluations and assessments. Another problem with government performance measurement andmanagement is that the traditional key performance indicators or measuresused for the private sector are often inadequate to measure policy outcomeperformance. Effective performance measuresalso lead to greater accountability of and responsiveness by policymakers,not to mention generating greater efficiencies and more effective outcomes. G., & Frederickson, H. It isthese aspects of performance in policy outcomes that are the focus ofperformance measurement and analysis in government. Heavy reliance on gross aggregates that tend to understate or ignore distributional contributions and consequences. G. (Thor, 2 6, p. Beyond the 'iron triangle': Stakeholder perception of key performance indicators for large-scale public sector development projects. .

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