Dutch performance information

1. Dutch performance information Hans Monnickendam Ministry of Finance The Netherlands Sydney June 2006

2. How to win the world cup Hiddink Dutch ‘performance indicator’ Van Basten Beenhakker Advocaat

3. A. Einstein • “Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted’

4. What were our goals? • More transparent budget • Focus on policy goals • outcome/output • The way to achieve these goals • More measurable goals • performance indicators

5. What are our results? • Positive • Annual report September  May • Average 60 pages  policy agenda (15 pages) • Reduction of line items 800  140 • Instruments  output • Negative • Unreadable document, too much technical information • Still unclear policy objectives • Still unclear effect of government intervention • Loss of input information

6. Bad practice of indicators • Invites to “meet the number” at cost of quality • Examples • Success introduction market for electricity • measured by acquaintance with companies • salaries of top management! • Pro-active crime prevention, frivolous fining, picking the easiest criminal charges

7. Agenda • More readable budget documents • Courses • Incorporation performance budgeting in primary policy process • ‘Culture’ • Policy documents • Continuation of independent policy reviews • CPB  cost benefit analyses • Interdepartmental policy reviews (independent chair) • Court of Audit • Process check on quality of non-financial information

8. Pyramid of public finance

9. Cash = King