performance measurement and budgeting in the public sector · performance measurement and budgeting...
TRANSCRIPT
Performance Measurement and Budgeting in the Public Sector
GEERT BOUCKAERT (Leuven, Belgium)
Towards a Comprehensive Reform of PublicTowards a Comprehensive Reform of Public GovernanceLisboa, January 28th, 2013
1
1 Performance in the Public Sector1. Performance in the Public Sector
2. From Measuring to Managing Performance
3. From Managing to Increasing Performance
4 G tti t t d4. Getting started
2
1 PERFORMANCE IN THE PUBLIC SECTOR1. PERFORMANCE IN THE PUBLIC SECTOR
3
Policy development&
internal ex antel ti
Needs Environment
evaluation
externalex post
evaluationObjectives
externalex ante
evaluation
internalex post
evaluationInput OutputActivity Effect Trust
5321
decision
7
64
1
monitoring & controlstrategy - finance - personnel - organization - communication
4
• Efficiency or Productivity as expressions of Input-Output relationsy y p p p
• What is the difference between productivity and efficiency:
O
B
AAO
O
DC
DC OO
BO
D
DB II AICI
I
5
• Effectiveness as an expression of Output-Effect relationsp p
E
B
A
BE
AE
DC
DEEc
DB OO AOCO
O
6
• Cost-Effectiveness as an expression of Input-Effect relationsp p
E
B
A
BE
AE
DC
DEEc
BE
DB II AICI
I
7
• Five ways to improve the productivity numbersFive ways to improve the productivity numbers
Q(1) Q (2)
O O
t
I
t
I
8
Q (3) Q (4) Q(5)
O OQ min O
I
( )
t
I
t
I
I
Q max
t t t
9
• Measurement Policy Question:Measurement Policy Question:
– 1 Shall you focus on productivity or on input or output1.Shall you focus on productivity, or on input or output inefficiency, on effectiveness, on trust? And why? How are they related?
– -2.What are comparable clusters to compare efficiency/effectiveness/trust data? (See also DEA/FDH)
– -3.How does this connect to responsibility/accountability profiles?
10
• Macro: government wideg• Meso: policy field or level• Micro: single organisation
MACRO
I O E
- Macro versus Meso versus Micro LevelsMESO
I O E
MICRO
I O E
11
Public sector performance: the micro level
12
Public sector performance: meso
13
• Meso levelO t t ff t d lit t l l• - Output, effects and causality at meso-level
14
Public sector performance: macro
Needs Environment
Objectives
Input OutputActivity Effect Trust
6
5
4
321
1.input/input: economy2 i t/ t t ffi i / d ti it
7
2.input/output: efficiency/productivity3.output/effect: effectiveness4.input/effect: cost-effectiveness5.effect/trust6.output/trust7.input/trust
15
p
Management Accountability Framework (Canada)Management Accountability Framework (Canada)
16
• -Conflicts between levels: micro versus meso
• -NPM focuses on Micro performance but had to take corrective action
• -Does the sum of all micros equal meso? Does the sum of all mesos equal macro?
17
• Macro PerformanceMacro Performance
• -Impact on GDP?Impact on GDP?• -From Zero Hypothesis to Non-zero Hypothesis?• -Technical discussion: Laspeyre Paassche etc ?Technical discussion: Laspeyre, Paassche, etc. ?• -What about quality change over long time series ?
18
• Measurement Policy Question:
• -4 Which level will you focus upon and for what reason?4.Which level will you focus upon and for what reason?
• -5 How do you integrate the different levels?• -5.How do you integrate the different levels?
19
• -Features of individual indicators
• Listings of (sometimes conflicting) quality requirements of indicators:
• -Measurable• -Stable over timeStable over time• -Available data• -Accurate• -Understandable• -Comprehensive• -Congruent with other indicators• -Repeatable• -ObjectiveObjective• -Tangible• -Homogeneous• -Subject to control
A dit bl• -Auditable• -Acceptable cost
20
• Measurement Policy Questions (Quality and Audit):Measurement Policy Questions (Quality and Audit):
• -6 What are the minimal features of a good indicator?6.What are the minimal features of a good indicator?
• -7 What is the strategy to improve the performance7.What is the strategy to improve the performance measurement system?
• -8.How are you coping with the most important (potential) pathologies of measurement?p g
21
2. From Measuring to Managing Performance2. From Measuring to Managing Performance
22
Managing Performance: typologiesManaging Performance: typologies• Performance Administration• Managements of PerformancesManagements of Performances• Performance Management• Performance GovernancePerformance Governance
Managing Performance: componentsManaging Performance: components-MeasuringIncorporating-Incorporating
-Using
23
Policy development&
internal ex antel ti
Needs Environment
evaluation
externalex post
evaluationObjectives
externalex ante
evaluation
internalex post
evaluationInput OutputActivity Effect Trust
5321
decision
7
64
1
monitoring & controlstrategy - finance - personnel - organization - communication
24
FeedbackContract Cycle
FeedbackFinancial Cycle
Feedback
Policy cycle
(Strategic)plan Evaluation
Evaluationcontract
Designcontract AuditBudget
Monitoring
Implementing
Accountancy
25
p gcontract
2001 2002 2003 2004 2005
controlling
2002
controlling cyclus
2003
2004
26
• Measurement Policy Question:Measurement Policy Question:
- 9 Are you going to integrate this information in financial9.Are you going to integrate this information in financial documents, contracts, policy documents? Who is responsible?
• - 10.How are you going to use this information as part of an y g gimprovement process? Who is accountable for what?
27
3. From Managing to Increasing Performance3. From Managing to Increasing Performance
28
-Focus on Performance in a context ofFocus on Performance in a context of Responsibility/Accountability (measure/incorporate/use)
-Agencies: Yes, but ….
-Markets: Yes, but …
-Partnerships: Private sector, other public sector organisations, NGOs, citizens as customers,
29
4. Getting started4. Getting started
30
Challenges to Implementing Performance Information in Public AgenciesInformation in Public Agencies
Institutional and Organizational challenges Country raising issue*
Fostering a climate for performance information (right incentives; ownership; developing learning culture) Chile, Finland, UK,
Setting realistic expectations for performance information (modesty; developing realistic demand; educating users) Finland, Netherlands, Chile, UK, US
Long-term development required; maintaining momentum (commitment of time & $) Finland, Netherlands, UK, US
S tti t f t ti Chil UK USSetting outcome performance expectations Chile, UK, US
Avoiding distorting behaviour (reviewing measures; outcomes focus) Finland, Chile
Accountability for outcomes (accountability meaning; shared outcomes) UK, US
Technical challengesTechnical challenges
Measurement Finland, Chile, Netherlands, UK, US
Selectivity in measurement; overload problems Chile, Netherlands, UK
Attributing outcomes to actions Finland, Netherlands, UKAttributing outcomes to actions Finland, Netherlands, UK
Linking financial & performance management: ‘costing’ outcomes Finland, US
Quality assurance of data and information Chile, Finland, Netherlands, UK, US
Credibly reporting performance UK
31
y p g p
* Unpublished country reports by finance/treasury agencies and/or audit officesSource: Adapted from Mayne 2005
• Organisational Readiness ChecklistOrganisational Readiness Checklist
• Implementation policy: top down versus bottom up; ad hocImplementation policy: top down versus bottom up; ad hoc versus systematic; comprehensive versus incremental; de jure versus voluntary; with or without consultants;
• Measurement Policy Questions:y• -11.On what issues are you not ready to measure
performance?• -12.What concrete strategy and tactics will you use in your
organization to start measuring performance?
32
• Measurement Policy Question: cluster oney• -1.Shall you focus on productivity, or on input or output inefficiency, on
effectiveness, on trust? And why? How are they related?2 Wh t bl l t t• -2.What are comparable clusters to compare
efficiency/effectiveness/trust data? • -3.How does this connect to responsibility/accountability profiles?p y y p
• Measurement Policy Question: cluster two• -4.Which level will you focus upon (micro/meso/macro) and for what
reason? Who is responsible/accountable? How are these levels audited?• -5.How do you integrate the different levels? Who is5.How do you integrate the different levels? Who is
responsible/accountable? How is the integration audited?
33
• Measurement Policy Questions: cluster three6 Wh t th i i l f t f d i di t ? D• -6.What are the minimal features of a good indicator? Do you
have performance auditing?• -7.What is the strategy to improve the performance measurement gy p p
system? Who is responsible for performance auditing? • -8.How are you coping with the most important (potential)
pathologies of measurement?pathologies of measurement?
• Measurement Policy Question: cluster foury• - 9.Are you going to integrate performance information in financial
documents, contracts, policy documents? 10 H i t thi i f ti t f• - 10.How are you going to use this information as part of an
improvement process?
34
• Measurement Policy Questions: cluster fiveMeasurement Policy Questions: cluster five• -11.On what issues are you not ready to measure
performance? Is this subject to audit?p j• -12.What concrete strategy and tactics will you use in your
organization to start measuring performance? Who is accountable for this?
35
Some References• Pollitt Christopher, Bouckaert Geert (2011, 3rd Ed) Public Sector
Reform: A Comparative Analysis – NPM, Governance, and the Neo-Weberian State. Oxford University Press: Oxford.
• Van Dooren Wouter, Geert Bouckaert, John Halligan (2010) , , g ( )Performance Management in the Public Sector. Routledge: London, pp. 198.
• Bouckaert Geert, B.Guy Peters, Koen Verhoest (2010) The , y , ( )Coordination of Public Sector Organizations: Shifting Patterns of Public Management. Palgrave Macmillan, Basingstoke, pp. 326.
• OECD (2009) Measuring Government Activity. OECD, Paris (AuthoredOECD (2009) Measuring Government Activity. OECD, Paris (Authored and Edited by Christopher Pollitt, Geert Bouckaert, and Wouter Van Dooren), pp. 130.
• Pollitt Christopher Bouckaert Geert (2009) Continuity and Change inPollitt Christopher, Bouckaert Geert (2009) Continuity and Change in Public Policy and Management. Edward Elgar, Cheltenham, pp.223.
• Bouckaert Geert, Halligan John (2008) Managing Performance: International comparisons. Routledge, London, 440p.
36
International comparisons. Routledge, London, 440p.
• K.U.LeuvenPublic Management Institute
• Parkstraat 45 bus 3609B-3000 LeuvenB-3000 Leuven• Belgium
• 0032 16 32 32 70
• [email protected]• www.publicmanagement.be
37