¡ Definition : process of quantifying the

efficiency and effectiveness of action.

¡ Interrelated items:
1) Individual measures that quantify the
efficiency and effectiveness of actions.
2) A set of measures that combine to assess the
performance of an organization as a whole
3) A supporting infrastructure that enables data
to be acquired, sorted, analyzed
and interpreted.
¡ To specify broad and abstract goals and
mission to enable evaluation of
organizational performance
¡ Assist in public sector organizations in :
1) Strategy formulation
2) Manage the strategy implementation
process
3) Check position
4) Provide feedback
5) Evaluate and reward behavior
¡ Key results indicators(KRIs) give an overview
of past performance and are ideal for the
board as they communicate how
management has done in a CSF or from a
balanced scorecard perspective
¡ Performance indicators (PIs) tell staff and
management what to do
¡ Result indicators (RIs) tell staff what they have
done
¡ KPIs tell staff and management what to do to
increase performance dramatically.
¡ Key to organization’s success to achieve the
vision, mission, business strategy,
objectives and targets.
¡ Six key priorities areas have been
identified, and all challenges within each
area have been divided into short
term priorities and long term issues.
¡ Each of the NKRA is headed by the
ministry.
 Financial Customer
perspective perspective

Innovation
Internal and
perspective learning
perspective
¡ Encourage managers to overcome the
shortcomings of traditional financial
measurement
¡ Closing the gap between vague mission and
strategic goal statements and operational
activities and measures
¡ Offers a co-ordinated approach to ensuring
that an authority’s declared strategic
priorities and goals are visibly linked to
corporate, service and business plans.
1. EFFICIENCY
ØMeasured by comparing output with input.
ØThe more output for input, the more efficient the
organization will be.
2. EFFECTIVENESS
ØConcerned only with outputs.
ØRefers to the success or failure in achieving the
organization's objectives.
3. ECONOMY
ØConcerned only with inputs.
ØLimited use on its own.
ØConcept and measurement of efficiency must
be acceptable and understood by
management.

ØEfficiency without effectiveness is

purposeless, while effectiveness without
efficiency is wasteful.
Vision and strategy not actionable.
-senior management team failed to achieve consensus as to how the vision should
be achieved.
-Leads to different groups pursuing different agendas.
Strategy not linked to resource allocation.
-long term strategic planning process and annual budgeting process are separated
and result in funding and capital allocation unrelated to strategic priorities.
lack of coordination in strategy and resource allocation.
Strategy is not linked to department, team and individual goals.
the new personnel continue to follow the old traditional performance criteria and
thwart the introduction of new strategy.
- this may be due to lack of incentive system
Feedback is tactical and not strategic.
Feedback concentrates on short term results / and little time is reserved for the
review of indicators of strategy implementation and success.
END…