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20 July 2008
API announces the world’s largest study into public sector performance management
The Advanced Performance Institute (API) is pleased to announce the findings of the largest and most comprehensive global study of government and public sector performance management to date. The report was researched and authored by world leading expert on strategic performance management, Bernard Marr from the Advanced Performance Institute and co-sponsored by the Chartered Institute of Public Finance and Accountancy (CIPFA) and Actuate.
Crucially, the report finds that organisations that apply the principles of strategic performance management well outperform those that don’t and it clearly highlights that public sector organisations have an obsession with measuring performance, but fail to manage it.
The findings, from over 1,100 respondents from the UK, US, Canada and Australia, confirm that merely having a set of performance objectives and performance measures in place does not lead to better performance. In fact, it often leads to a decrease in performance with perverse and dysfunctional behaviours such as sub-optimisation, target fixation, and the temptation to juggle figures. These findings are important in a world where the use of performance measurement and performance management has mushroomed among government and public sector organisations. The results of this study should inspire and create a renewed sense of urgency in this critical market sector to tackle performance management methodically and comprehensively
The study, entitled, Strategic Performance Management in Government and Public Sector Organisations attracted respondents from across the globe representing central and local government bodies, as well as national health organisations, police forces, fire and rescue service organisations, courts and education institutions. The study was conducted at the end of 2007 and early 2008 and opens by providing a unique insight into how public service organisations interpret and direct performance management, and it expands to highlight 10 principles for effective performance management, which pressured public service organisations would do well to abide by if they want to bring everyday operations back in line with top-level strategy.
The study’s author, Bernard Marr, explains the significance of this research, “Performance management has never been more critical in the public sector than it is today as governments across the world take this extremely seriously and many have introduced legislations and frameworks for this specific purpose in the organisations that report to them. Yet it is the way that performance management is handled and directed that makes the biggest difference between top-performing and failing public sector organisations. Those who indulge in the practice merely to keep external moderators off their backs are missing out on a great opportunity to intelligently and accurately assess and refine their operations, creating employee support along the way.” Bernard continues, “We hope that this research, and specifically the 10 principles or best practices we have defined and tested, will be used as a blueprint to improve the performance management practices in government and public sector organisations around the world, as they strive to address some of the most pressing challenges they have ever known.”
Key findings include:
• While government and public sector organisations have made huge progress with performance management, the implementations are often too mechanistic and numbers focused which prevents improvements in performance. • Skills gaps in performance management analytics, i.e. organisations are drowning in data but thirsting for information. • The lack of a clearly mapped strategy – which is like expecting to row a boat forward but without ever telling the people who row the boat which direction to aim for. • 68% of organisations have juggled performance data to improve presentation – this calls into doubt the reliability and validity of the information used in the decision making process which could lead to the wrong or counter-productive decisions and resource allocation. If this perception reflects reality, it also highlights a potential public accountability issue with top down performance targeting systems.
“This report is a useful contribution to the debate on performance management in the public sector, as performance management is one of the most popular, but confused, areas in public management at the moment,” said Brendan McCarron, lead advisor, CIPFA Performance Improvement Network. “The best practices enumerated in the report will be useful in illustrating that the emphasis within performance management is changing, and indeed must continue to move from simply collecting and reporting performance data towards actively using performance information to learn and improve. I think this study will make a real impact on how strategic performance management is developed and applied in the UK public sector.”
Steve Fluin, senior vice president, performance management group at Actuate, said: “We frequently witness first hand the gap that exists between expectation and reality when it comes to performance management in the public sector. This study identifies clear areas for concern, but more importantly, it highlights the best practices that will enable these organisations to overcome the challenges inherent in creating sustainable performance improvement. Those public sector organisations that embrace these best practices will avoid the common pitfalls and achieve more effective performance management.”
To download the full version of the report please visit the resources section of this website.
Public Sector Performance Management Conference, 21 May 2008 in London.
This conference is the UK’s prime event on public sector and not-for-profit organisations’ performance management, brought to you by the Advanced Performance Institute (API) and UNICOM Seminars in collaboration with CIPFA. The conference is designed to allow delegates to learn from the experts and leading public sector and not-for-profit organisations about how performance management can be used to improve reporting, planning, prioritisation, budgeting and risk management, and how it can ultimately boost corporate decision making, organisational learning and performance improvement.
In particular, delegates will learn about:
• Best practice examples and real life implementation experiences from leading organisations such as the Royal Air Force, Belfast City Council, the Motor Neurone Disease Association and the NHS, among others.
• How to align performance management, performance measurement, strategic planning and budgeting, risk management, project management, performance reporting and performance reviews.
• How to achieve buy-in across the organisation and overcome the immense frustration with current performance management practices. Both research and practical experience shows that the wrong data is being collected and that many organisations take short cuts in the implementation and subsequently end up with a performance management system that is measuring everything that is easy to measure and nothing that really matters.
• Current state of the art in public sector performance management identified in the world’s largest research study on the topic. Results of this brand new study will be revealed at the event and delegates will receive a complimentary copy of the report summarising the findings.
This conference is designed by the Advanced Performance Institute, provided in partnership with UNICOM Seminars and supported by CIPFA Networks.
Public Sector Performance Management: API partners with CIPFA
The Chartered Institute of Public Finance and Accountancy (CIPFA)has partnered with the Advanced Performance Institute to deliver a stream of events and research focusing on public sector performance.
The collaboration between CIPFA and the API will kick off with a joint conference on the topic organised by UNICOM on the 21st of May 2008 in London. The conference is designed to allow delegates to learn from the experts and leading public sector organisations about how performance management can be used to improve reporting, planning, prioritisation, budgeting and risk management, and how it can ultimately boost corporate decision making, organisational learning and performance improvement.
After the conference a series of workshops will be held in London and York to discuss themes like: • "Strategic Performance Management and the CAA - making sure your authority's performance management systems are fit for purpose". • "Strategic Performance Management and the Strategy and budgeting process" • "Strategic Performance Management - Reconciling what is important locally with National Targets and Indicators".
For more information please e-mail us at: info@ap-institute.com
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