International experiences, Sweden. Visa Paajanen,
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1 International experiences, Sweden Visa Paajanen,
2 Performance management, Sweden Start in 1980 s Reform 1990 s New reform 2001 traditionally decision-making is delegated (to agency level) 2
3 Goal for performance management Government stated in budget bill that there is a need: - to reallocate resources continuously - to improve efficiency and productivity in public sector - to better follow-up (accountability?) between demand and achievement in management - to better express what results are expected
4 Economic control Economic control divided to two sub-controls Performance management control -control system that involves setting goals for organizations and activities - collecting performance information systematically - analysing and assessing the results against stipulated goals Financial control: - economic frameworks for organisations resource consumption - this include appropriations, conditions for chargeable activities, investment frameworks, and borrowing frameworks. 4
5 Control system when evaluating agencies or activities both controls must be used control has role in budget-process - common structure: government instructions for annual steering document (letter of appropriations): objectives and results in dialogue between agency s management and responsible ministry, and government s reporting to parliament in theory there is possibility to gather all information from this information
6 Structure - 12 ministries, government works in collegial manner - decisionmaking is largely delegated to agency-level - 48 policy areas, goals for policy areas in budget process (goals are rather stable) - most policy areas are divided to activity areas, government sets goals - (activity areas sub-divided to branches)
7 Goals - goals in policy level normally effectiveness goals or objectives, formally set by parliament - activity and branch level performance goals - in letter of appropriations to agency government (responsible ministry) sets the goals and required reporting to activity areas and branches
8 Performance information in budget-process budget is twice in parliament, in spring and autumn spring budget bill consist of two parts: proposed appropriations for next year report of performance related to goals set in parliament
9 Budget process autumn budget: final content and decision government level budget negotiations: focus in future spendings very limited use or concern of performance information in bydget negotiations ministry-agency level nogotiations: also attention in past peformance letter of appropriations inclede both sides possiblility to line ministry demand certain reporting on performance note! managements remuneration of management is partly based on this reporting (accountability!)
10 Problems to solve parliament: goals or objectives should be formulated so that it s possible to follow-up achievement performance should be reported in quantitative figures should be connection between goals and performance information more focus on performance than measures or actions focus on activities (sub-divided policy areas) not on agencies goal achievement improvements needed in links between performance and appropriation
11 Problems to solve Agencies: difficulties in measuring their activities reporting demands have increased too much and they don t know how this information is used motivation problems when in agency it is not clear how demended performance information is connected to task or goals of agency
12 Problems to solve (formulating objectives and good indicators, link between performance and appropriations) matrix structure, horizontal cooperation vs vertical management system (money talks) performance management in ministries
13 Questions is it realistic to use performance information to ensure accountability and use it as basis for resource allocation? Kuhcen, Nordman: not in Sweden would it possible to evaluate agencies activities on base of the performance information themselves produce? Kuhcen, Nordman: no clear answer where all this information is in use? - internal use, develop effiency - reporting to parliament in some degree - focus on steering not evaluation
14 Possible future development if information is not in good use, we should reduce production of it (costs in collecting information and procedures) divide information collected: annual and longer intervals sometimes it is necessary to evaluate theory behind steering systems: do we have tecnical problems or is there something more fundamental behind them?
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