Planning for a More Productive Future
– Performance Measurement
NatStats 2010 Conference
16 September 2010
Peter Achterstraat - Auditor-General of New South Wales
Agenda
1.
Productivity and performance reporting
2.
Good performance information
3.
NSW State Plan
4.
Performance Reporting and Annual Reports
Life in the Public Sector….
• Working in a fishbowl
• Working with politics
• Different watchdogs
Public vs Private Sector
Performance Reporting
• Users of private sector reports largely
need information necessary to make
rational investment and credit decisions.
• Public sector reports inform political and
social decisions as well as economic ones.
• Citizens cannot sell up and sever their
relationship with government.
• Greater variety of organisational forms.
Public vs Private Sector
Performance Reporting
 Private sector concerned with proper
functioning boards – maximising profits
 Wider dimensions in the public sector
 maximising public welfare
 Greater accountability and transparency
 Key aspect - demonstrating that taxpayers’
money is used appropriately
 Citizens cannot sell up and sever their
relationship with government
Public Sector Performance
Reporting - Users
Users of public sector reports want to know:
• Are government services achieving what
they set out to do?
• Are services being provided efficiently and
economically?
• Do they comply with the law?
• Are programs provided equitably and using
acceptable standards of behaviour?
Dimensions of Public Sector
Performance Information
Equity
Access
Appropriateness
Objectives
Performance
Effectiveness
Quality
Efficiency
(Simplified version of Productivity Commission framework)
Inputs per
output unit
Types of Public Sector
Performance Reports
• Whole-of-Government
– State Plan - high-level and non-financial
– Total State Sector Accounts – financial
• Agency
– annual reports – non-financial and financial
– continuous reporting – usually web and nonfinancial
• Issue
– usually annual and non-financial e.g. Depart.
Planning’s Local Development Performance
Report
NSW State Plan
NSW State Plan
NSW State Plan
NSW State Plan
NSW State Plan
NSW State Plan
NSW State Plan
NSW State Plan
NSW State Plan
NSW State Plan
NSW State Plan
Performance Information
So where
to from
here?
What makes a good Performance
Information - BPG 7 Principles
1.
2.
3.
4.
Objectives clear and measurable
Focus on results and outcomes
Discuss results against expectations
Complete and informative – setbacks
as well as successes
5. Explain changes over time
6. Provide evidence of value for money
and benchmarks
7. Discuss risks, strategies and the
external factors
AO NSW Better Practice Guide
Area to Improve
Areas to improve:
 ‘First five pages’ or ‘30 second’ test
 Focus more on results and outcomes
 KPIs should measure all your objectives
 Include setbacks as well as successes
 Benchmarking
 Brevity
Audit Office Better Practice
Guide - Checklist
THANK YOU