Organizing for Performance Using Performance Metrics to Manage. Dr. Elaine Kamarck Prepared for the Government of Albania November, 2013

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1 Organizing for Performance Using Performance Metrics to Manage Dr. Elaine Kamarck Prepared for the Government of Albania November, 2013

2 What is performance management? Performance management is the process of creating meaningful and useful statistical goals or targets and then using those targets to guide the day to day functioning of the organization. 2

3 Why Use Performance Metrics to manage? 1) They can show you what your project is doing right and what you it is doing wrong; 2) Metrics can serve as an early warning tool that can help you avoid, or at least prevent, problems. 3

4 The Delivery Unit Performance metrics are at the core of the Delivery Unit and an innovation strategy. The establishment of metrics and the monitoring of metrics will allow the Delivery Unit to lead a comprehensive reform initiative. 4

5 3 Steps in Creating a Performance Management System 1) Establish the measures, e.g.: economic, quantitative, qualitative 2) Make all measures public; 3) Use measures to enhance performance and learn how to do things better. NOTE: Make it clear that you do NOT intend to use measures to punish government employees. 5

6 1. Establishing the measures: If the government has not used a measurement system in the past it might to start off by understanding the indicators used by international groups. 6

7 2. Making all Measures Public By making measures public (especially the outcome measures) the leadership of the government and all relevant units become committed to their implementation and the public can hold them accountable. 7

8 3. Using measures The metrics established should be used to guide the day to day activities of the organization. They should not be used to punish people, rather to focus everyone s attention on getting the results done. Metrics should be a way of improving performance and processes. 8

9 3 sets of metrics for effective performance management Outcomes Outputs Inputs 9

10 OUTCOMES: These are things that citizens want and can understand. They are not the same as inputs and outputs. For example: citizens want safe streets. Women want to be able to walk home alone after dark without being afraid. Just paying for more police will not necessarily achieve this goal, if the extra police hired only work during the daytime. 10

11 OUTPUTS: Outputs are intermediary measures of things the government is accomplishing. For example: To fight crime a government might hire an extra 200 police officers. However, simply hiring an extra police officers will not produce the outcome of safer streets if, for example, the extra police officers only work from 900 to 1700 hours. 11

12 INPUTS: Inputs are the things the government buys and pays for: desks, salaries, police cars, weapons, medicine, etc. Inputs do NOT guarantee that the public is served. EXAMPLE: A government can buy enough polio vaccinations to give a vaccine to every child in the country. However, if the vaccines are stolen and sold on the black market or if they are distributed in a way that makes it difficult for the children to get them - they will not achieve the public good. If these things happen the input will not lead you to the outcome of healthy children free from polio. 12

13 Following are some examples Of how to think about performance management. NOTE: only a few inputs and outputs have been included these are for the purpose of examples. Each Ministry should conduct this exercise in conjunction with their delivery unit. 13

14 Tourism Outcome Establish Albania as a favorite Mediterranean tourist destination in the international market. Outputs Improvement in water quality along the coast Improvement in degree of cleanliness of beaches along the coast. Number of new hotel rooms Inputs Develop a tourism strategy for Announce moratoriums on construction in areas important to tourism 14

15 Safety for the citizens Outcome Women are able to walk home after dark without fear of being attacked and/or robbed. Output Numbers of criminals arrested Number of criminals convicted and put in jail Input Salaries for police Weapons and vehicles for police 15

16 Example: Healthy and Smart Children Children who grow up free from preventable childhood diseases Outcome Number of children immunized each year Number of children seen by a health professional each year Output Number of doses of vaccines purchased Number of nurses and doctors serving children, their salaries, their equipment Input 16

17 Traffic Saftey Outcome Reduce the number of traffic deaths & traffic accidents. Outputs Increase in number of roads with clear markings such as white lines Inputs Invest in Albanian traffic signal system Invest in cleaning up roads Create a road safety committee 17

18 Improving Education Outcome Albanian children and teenagers should receive an education good enough to allow them to compete in Europe s university system. Outputs Number of performance Charters created in schools Number of educational institutions cleaned from informal trade Inputs Establish merit-based criteria for appointment of teachers and principals. Announce and model school performance charters 18

19 Sources: Robert D. Behn, Performance Leadership: 11 Practices that can Ratchet up Performance, (IBM Center for the Business of Government, second edition, 2006) (This is not very long and if possible, I would recommend translation of the entire document especially for use by members of the delivery unit.) 19

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