PUBAFFRS 7554
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What is Performance
Management ?
Performance Management involves collecting data
in a systematic and objective manner to determine the
efficiency and effectiveness of service delivery and
program objectives. Performance management is the
application of such data into an integrated management
system that informs resource allocation and decision
making to move an organization toward the achievement
of strategic objectives.
Source:
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ICMA “Performance Management: When Results Matter”: <http://www.icma.org/documents/PerfMeas_small.pdf
Performance Management
has been around for a while…
 PPBS (Planning Programming-Budgeting System) –Lyndon Johnson
 MBO (Management by Objectives) – Richard Nixon
ZBB (Zero-based Budgeting) – Jimmy Carter
NPR (National Performance Review) – Bill Clinton
GPRA (Government Performance and Results Act)
PMA (President’s Management Agenda) – George W. Bush
Accountable Government Initiative – Barack Obama
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What is GPM ?
Integrated processes and systems focused on achieving measurable results…
Planning
Measuring
&
&
Budgeting
Monitoring
Evaluating
&
Improving
… where managers communicate plans, respond to issues and learn from experience.
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GPM is…
o Planning & Budgeting establishes resource and performance targets.
o Measuring & Monitoring reveals deviations between targets and
results.
o Evaluating & Improving realigns targets and results.
o Performance Data fuels the process
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Osborne-Gaebler in “Reinventing Government”
1. What gets measured, gets done.
2. If you don’t measure results, you can’t tell success from
failure.
3. If you can’t see success, you can’t reward it.
4. If you can’t reward success, you’re probably rewarding
failure.
5. If you can’t recognize failure, you can’t learn from it.
6. If you can demonstrate results, you can win public
support.
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Why do Performance
Management?
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Public demand for more accountability and transparency
Inability to communicate and execute strategy
Inability to defend/explain budget recommendations
Inability to deliver timely and complete performance
reports
Shrinking revenues
Lack of performance information to make informed
investment decisions
Rising citizen expectations
Demand for more services
New government mandates
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Why do Performance Management?
Public Administrators from small towns to large
federal agencies are facing a growing number of
initiatives amid economic uncertainty that only can
be resolved by tracking performance and funding
effectiveness.
There is a need for good performance
information to make informed management and
investment decisions.
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Is Implementing a Performance
Management System easy?
NO!!!!!
Can it be done?
YES!
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How did we do it in Franklin
County?
• Started Managing for Results Initiative with the agencies that
reported directly to the county administrator.
• Hired resources to assist departments with developing five year
strategic plans and annual strategic business plans for our thirteen
agencies.
Developed vision and mission.
Created a portfolio of services.
Developed Performance Measures for each service.
Determined how to collect data.
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Next Step
• Get the rest of the county elected officials to buy in to the Managing
Results Initiative
• Met with all 42 Elected officials and requested their participation
Was there resistance? Absolutely
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Carrot and stick approach was used to win over support
Provided the resources – Outside consultants
Power of the budget
Asked the media to follow our progress
Internal and External Competition
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Communication is critical
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Elected Officials
Department Heads
Middle Management
Human Resource Staff
Finance Staff
Union Leadership
Front Line Staff
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RESULTS
• Inventory of services 2100.
• Grouped them into 218 programs.
• Created Performance Measures for each
program.
• Agencies began collecting Performance
measures monthly.
• Created infrastructure to begin performance
based budgeting.
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Performance Based Budget
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Each department/elected official was
required to present annually:
- Strategic Business plan for their operation
- Program performance and cost data for the past year.
- Performance goals for the upcoming year.
- Funding necessary to achieve the results presented in
the business plan.
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RESULTS
• More information to make investment decisions.
• 30 line item budgets
217 Program budgets
• Increase efficiency- 18 of the 30 agencies
received less money than the prior year.
• Enabled operations to continue without major
loss of services and reduction in workforce.
• Better informed public, leadership and staff.
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