Managing in the Public Sector

Week 5
 Definition
• Performance management is the activity of evaluating
organisational results against planned performance,
identifying opportunities for improvement, and taking action
to fix problems or enhance successes. In the public sector this
is often identified as managing for results.

http://www.public-sector performance.com/performance-management.html
 Discussion
• In groups, discuss and provide feedback on
what makes an effective performance
management process for public sector
services
 What Makes It Work
• Work is planned with consideration for objectives, activities,
funding, stakeholders, outputs, outcomes and
measures/standards that will demonstrate results;
• Managing for results with a clear understanding of why they
exist, what they want to achieve, and how they will achieve it;
• Make decisions based on results /evidence, and adjust plans
and tactics as required based on what they have learned;
• They are accountable for results, and report reliably on their
performance, supporting effective evaluation and the need to
be accountable to Parliament and Citizens.
 Pervasive Performance Management
(BP2)
• Performance management, considered by many to
be the next generation of Business Intelligence(BI), is
a framework for organising, analysing, and
automating business methodologies, metrics,
processes, and systems that drive business
performance.
• Pervasive PM brings transactional systems and
analytic systems together to provide more
information at the point of decisions.
Business Week Research Services The Payoff of Pervasive Performance
Management: Microsoft May 2008
 Pervasive Performance Management
in Government
• High Level Public Policy Aspirations Expressed as Outcomes
• Strategic Business Planning
• Performance Measurement Tools and Techniques
• Targets
• Implementation
• Monitoring
• Measuring Results
• Verification of Results
• Communicating Performance Achieved
• Review and Evaluation
• Continuous Environmental Sensitivity
• Ongoing Commitment at All Levels
 Why Measure Performance?
• What gets measured gets done.
• If you don’t measure results, you can’t tell success
from failure.
• If you can’t see success, you can’t reward it.
• If you can’t reward success, you’re probably
rewarding failure.
• If you can’t see success, you can’t learn from it.
• If you can’t recognise failure, you can’t correct it.
• If you can’t demonstrate results, you can’t win public
support.

Osborne & Gaebler, www.cabinet-office.gov.uk

 PMS Wedge (BP3-4)

Your
Organisation
Progress

PMS

Develop to meet
progress

Time
8
 Doing things right

Efficient

OUTCOME
Equality Sustainable
CUSTOMER

Effective

Doing the right things

27
 Standards, Targets & KPI’s
(BP 5-6)
Standards:Levels of service provision that should be
achieved (quantity, quality & impact)

Targets : Milestone for service improvement

against standards

Key Performance Indicators: is a measurable value that

demonstrates how effectively an
organisation is achieving key business
objectives. Used at multiple levels to evaluate
their success at reaching targets.

10
Balance Score Card

https://www.youtube.com/watch?
v=6AwStmfS2HY
 Public/Not for Profit Balance Scorecard
Financial Stewardship
How do we prudently
manage public resources
and maximise the value
we provide?

Citizens/Stakeholders Internal Processes

How do we maximise the Strategy or At what business
benefits to our customers processes must excel to
and stakeholders
Opps Plan meet the needs and
expectations of those we
serve?
Organisational
Capacity
How will we sustain our
ability to produce and
improve?
Kaplan and Norton’s Balanced Scorecard
 Why use a Balance Score Card?
(BP7-8)
• Valid and meaningful data related to own organisations key
performance measures.
• Vehicle for improving communication and gaining
feedback.
• Process for organising data so that the strengths and AFI’s
(area for improvement) can be identified.
• Tool to increase visibility and focus on successes and AFI’s.
• Fits with Quality Management Frameworks e.g. ISO 9001
• Can help with external audits

13
 Using the Indicators (Example)
• The indicators are designed to
– allow comparison between areas and to look at improvement over
time - some relatively long term.
– It has been agreed that these indicators will not be subject to targets
although local areas may wish to set improvement aims where
appropriate.
• The core suite of indicators be considered within the wider
context of health and social care measurement.
• Provide an indication of progress towards the outcomes
• Comparisons across partnerships and described at Scotland
level, but will not provide the full picture.
• Local partnerships will need to collect and understand a wide
range of data and feedback that helps understand the system
at locality level, and manage and improve services.
 Contemporary Scorecards (BP7)
• Organisations today create bespoke
scorecards which reflect the key dimensions of
their organisational performance. Often using
Red, Amber, Green (RAG) approaches to
highlight aspects of performance.
 A Traffic Light System (BP8)
Category Description
Strong - good capability for future delivery in place in line with the capability
model. Clear focus on the action and improvement required to deliver
transformation over the medium term.
Well placed - well placed to address any gaps in capability for future delivery
through practical actions that are planned or already underway. Is making
improvements in capability and expected to improve further in the medium
term.
Development area - the department should be capable of addressing some
significant weaknesses in capability for future delivery by taking remedial
action. More action is required to close those gaps and deliver improvement
over the medium term.
Urgent development area - significant weaknesses in capability for future
delivery that require urgent action. Not well placed to address weaknesses and
needs significant additional action and support to secure effective delivery. Not
well placed to deliver improvement over the medium term.
Serious concerns - serious concerns about current capability. Intervention is
required to address current weaknesses and secure improvement in the
medium term [N.B. Only used infrequently, for the most serious gaps]
The Scottish Government National
Performance Framework
 Measuring & Assessing Performance
• Strategic Objectives
– 5 objectives
– Underpin the purpose of the kind of Scotland people would want to
live in
• National Outcomes
– 11 outcomes
– Describe what the Government wants to achieve
• National Indicators
– Track National Outcomes
– 81 National Indicators
– Not comprehensive but carefully chosen
which show clear progress
The Scottish Government Strategic Objectives
• WEALTHIER & FAIRER – Enable businesses and people to increase their
wealth and more people to share fairly in that wealth

• SMARTER – Expand opportunities for people in Scotland to succeed from

nurture through to life long learning, ensuring higher and more widely
shared achievements

• HEALTHIER – Help people to sustain and improve their health, especially in

disadvantaged communities, ensuring better, local and faster access to
health care

• SAFER & STRONGER – Help local communities to flourish, becoming

stronger, safer places to live, offering improved opportunities and a better
quality of life

• GREENER – Improve Scotland’s natural and built environment and the

sustainable use and enjoyment of it
www.gov.scot
11 Outcomes, 81 Indicators and linked SDGs
 Definitions: What are the different elements of the
NPF & what can they tell us? (1)
• 11 National Outcomes: These describe the features of the
kind of Scotland we want to create as a consequence of
our collective actions. They are population level end
results we want to be experienced by the people of
Scotland. They have a statutory basis in the Community
Empowerment (Scotland) Act 2015.

• Values statement: inform the behaviours people in

Scotland should see in everyday life and are part of a
commitment to improving individual and collective
wellbeing. Help with what to prioritise and how to behave
to get there.

• Purpose statement: The “reason for being” of the NPF,

giving long term aim and direction.

www.gov.scot
Definitions: What are the different elements of the
NPF & what can they tell us? (2)

• 81 National Indicators: Give a

broad picture of progress
towards the outcomes on
some important measures (at
the national level and also for
population sub-groups).

• While they are important to measure, they are not the only important
measures of progress towards Scotland’s National Outcomes, and whether
Outcomes are being realised for all requires exploration of performance
differences and gaps between groups through the Equality Evidence Finder.

• There are risks and unintended consequence of focussing too much on the
Indicators themselves rather than the Outcomes; the Indicators are best seen
as one important source of evidence that paint a broad picture of “how we’re
doing” socially, economically, and environmentally.
www.gov.scot