The UK performance management framework
Kit Charnaud, Prime Minister’s Delivery Unit
United Kingdom
Tuesday, 28 October 2008
Context
• 40% GDP spent on government services
• Real terms increases in public spending of 4.1% (05/06), 2.7%
(06/07), 2.8% (07/08);
• Key principles of the strategy for public services
– embed value for money across the public sector,
– focus on key cross-government priorities,
– respond to the needs of users
• PMDU role: small unit within Treasury, jointly accountable to Prime
Minister and Chancellor
History - Key features of what was introduced in CSR 1998
• Features of the 1998 Comprehensive Spending Review:
– Three-year spending plans
– Separate capital and current budgets
– Resource accounting and budgeting
– Introduction of Public Service Agreements (PSAs)
• Strengths of UK approach to performance management:
– public statement about the Government’s priorities;
– created an outcome-oriented system,
– sharpened the Government’s accountability to the electorate and to
Parliament
No mechanistic link between performance and resource
allocation in Spending Review
Evolution of the PSA framework
Comprehensive
Spending
Review (1998)
CSR 98
Spending
Review
2000
600 targets
Significant
changes to
CSR model
30 PSAs
110 targets
130 targets
Greater
continuity,
architecture
refined
CSR07
SR04
SR02
SR00
160 targets
First set of
PSAs
published
Spending
Review
2002
Spending
Review
2004
Comprehensive
Spending
Review
Increased
consultation,
Introduction of
standards
focus on
outcomes
A reformed
framework:
Cross-govt PSAs
with published
delivery
agreements
Objectives for all
departments.
Emphasis on
devolution and
user
engagement
Sustainable growth and
prosperity
Fairness and opportunity for
all
Stronger communities and
a better quality of life
A more secure, fair
and
environmentally
sustainable world
1.Raise the productivity of the UK
economy
8. Maximise employment opportunity for all
18. Promote better health and well-being
for all
2. Improve the skills of the
population, on the way to ensuring
a world-class skills base by 2020
9. Halve the number of children in poverty
by 2010-11, on the way to eradicating child
poverty by 2020
19. Ensure better care for all
27. Lead the global effort to
avoid dangerous climate
change
3. Ensure controlled, fair migration
that protects the public and
contributes to economic growth
10. Raise the educational achievement of
all children and young people
20. Improve long term housing supply and
affordability
4. Promote world class science and
innovation in the UK
11. Narrow the gap in educational
achievement between children from low
income and disadvantaged backgrounds
and their peers
21. Build more cohesive, empowered and
active communities
5. Deliver reliable and efficient
transport networks that support
economic growth
12. Improve the health and wellbeing of
children and young people
22. Deliver a successful Olympic Games
and Paralympic Games with a sustainable
legacy and get more children and young
people taking part in high quality PE and
sport
6. Deliver the conditions for
business success in the UK
13. Improve children and young people’s
safety
23. Make communities safer
7. Improve the economic
performance of all English regions
and reduce the gap in economic
growth rates between regions
14. Increase the number of children and
young people on the path to success
24. Deliver a more effective, transparent
and responsive Criminal Justice System
for victims and the public
15. Address the disadvantage that
individuals experience because of their
gender, race, disability, age, sexual
orientation, religion or belief
25. Reduce the harm caused by alcohol
and drugs
16. Increase the proportion of socially
excluded adults in settled accommodation
and employment, education or training
26. Reduce the risk to the UK and its
interests overseas from international
terrorism
CSR07
PSA set
17. Tackle poverty and promote greater
independence and wellbeing in later life
28. Secure a healthy natural
environment for today and
the future
29. Reduce poverty in poorer
countries through quicker
progress towards the
Millennium Development
Goals
30. Reduce the impact of
conflict through enhanced
UK and international efforts
Sustainable growth and
prosperity
Fairness and opportunity for
all
Stronger communities and
a better quality of life
A more secure, fair
and
environmentally
sustainable world
1.Raise the productivity of the UK
economy
8. Maximise employment opportunity for all
18. Promote better health and well-being
for all
2. Improve the skills of the
population, on the way to ensuring
a world-class skills base by 2020
9. Halve the number of children in poverty
by 2010-11, on the way to eradicating child
poverty by 2020
19. Ensure better care for all
27. Lead the global effort to
avoid dangerous climate
change
3. Ensure controlled, fair migration
that protects the public and
contributes to economic growth
10. Raise the educational achievement of
all children and young people
20. Improve long term housing
supply and affordability
4. Promote world class
science and innovation in
the UK
11. Narrow the gap in educational
achievement between children from low
income and disadvantaged backgrounds
and their peers
21. Build more cohesive, empowered and
active communities
5. Deliver reliable and efficient
transport networks that support
economic growth
12. Improve the health and wellbeing of
children and young people
22. Deliver a successful Olympic Games
and Paralympic Games with a sustainable
legacy and get more children and young
people taking part in high quality PE and
sport
6. Deliver the conditions for
business success in the UK
13. Improve children and young people’s
safety
23. Make communities safer
7. Improve the economic
performance of all English regions
and reduce the gap in economic
growth rates between regions
14. Increase the number of
children and young people on
the path to success
24. Deliver a more effective, transparent
and responsive Criminal Justice System
for victims and the public
15. Address the disadvantage that
individuals experience because of their
gender, race, disability, age, sexual
orientation, religion or belief
25. Reduce the harm caused by alcohol
and drugs
16. Increase the proportion of socially
excluded adults in settled accommodation
and employment, education or training
26. Reduce the risk to the UK and its
interests overseas from international
terrorism
17. Tackle poverty and promote greater
independence and wellbeing in later life
28. Secure a healthy natural
environment for today and
the future
29. Reduce poverty in poorer
countries through quicker
progress towards the
Millennium Development
Goals
30. Reduce the impact
of conflict through
enhanced UK and
international efforts
Cross-cutting nature of PSA targets
PSA 20: Improve long term housing supply and affordability – 8
Departments
Indicator 1: Number of net additional homes provided. TARGET
Indicator 2: Trends in affordability: This will be measured using the ratio
of lower quartile house prices to lower quartile earnings
Indicator 3: Number of affordable homes delivered (gross). TARGET
Indicator 4: Number of households in temporary accommodation.
TARGET
Indicator 5: Average Energy Efficiency Rating for new homes.
Indicator 6: Local planning authorities to have adopted the necessary
Development Plan Documents, in accordance with their Local
Development Schemes, to bring forward developable land for housing.
TARGET
CSR07: key features of reform
•
National, outcome-focussed indicators underpin all
PSAs
•
Collaboratively developed Delivery Agreement for
each PSA
•
Accountability within Whitehall strengthened
•
Embed genuine user engagement in design, delivery
and governance across key public services.
•
Reduced bureaucracy and unnecessary data burdens
Accountability structures that drive delivery
Published set of 30 PSAs, that set out what they aim to achieve and how
they are going to do it, and are supported by a clear accountability structure.
Accountability is key and rests with both politicians and officials:
•
•
•
•
Prime Minister, Chancellor, Cabinet
Named Secretaries of State
Senior Responsible Officer for each PSA
A Delivery Board, comprising senior officials from contributing
departments and chaired by the Senior Responsible Officer
• A single responsible Cabinet Committee for each PSA
• Permanent secretaries
• Transparency and accountability to public
Measures and levers drive delivery
Hard levers of
influence
Direct
accountability
Contractual /
regulatory
• No formal or legal sanctions for ministers or departments
• Some PSAs have national targets in their Delivery Agreement
E.g. Skills PSA - Indicator 2. 6 Higher education initial participation rate
Target: Increase participation in Higher Education towards 50 per cent of those
aged 18 to 30 with growth of at least a percentage point every two years to the
academic year 2010/11.
• Inspections – performance against national target
e.g. Ofsted in education
• Accountability structures
Common
purpose
• Contracts – train companies can be fined for delays
• Financial – sometimes extra funding or closure of frontline services
Wider
community
• Earned Autonomy for the frontline e.g. NHS Foundation Trusts
• Performance management – individual performance reporting mechanisms
• Reputational motivations – Departmental performance reporting and
Soft levers
of influence
performance tables
PSAs have worked best when…
• Focus on priorities across delivery chain
• Understand the delivery chain
• Are ambitious
• Based on systematic delivery planning
• Have defined indicators and targets
• Have timely, high quality information
• Recognise targets are not the only tools to improve performance
Vision for the future…
• Citizen empowerment
• New professionalism for the frontline
• Strategic leadership from the centre