USING PERFORMANCE MEASUREMENT TO IMPROVE THE PERFORMANCE OF GOVERNMENT:

1. USING PERFORMANCE MEASUREMENT TO IMPROVE THE PERFORMANCE OF GOVERNMENT: A "MEGA-TREND" IN INTERNATIONAL PUBLIC MANAGEMENT National Civil Service Institute Examination Yuan Steve Kelman Weatherhead Professor of Public Management Harvard Kennedy School

2. USE OF PERFORMANCE MEASUREMENTA “MEGA-TREND” IN PUBLIC MANAGEMENT • AUSTRALIA/NEW ZEALAND (1980s) • UK “TARGETS” UNDER THATCHER/MAJOR/BLAIR • US GOVERNMENT PERFORMANCE AND RESULTS ACT (1993) • CHINA (MOSTLY FOR PROMOTION/DISCIPLINE OF SENIOR OFFICIALS)

3. INTEREST IN PERFORMANCE MEASUREMENT = INTEREST IN RESULTS GOVERNMENT DELIVERS

4. PERFORMANCE MEASURES ARE THE PUBLIC SECTOR'S EQUIVALENT TO THE PROFIT MEASURE FOR BUSINESS FIRMS!

6. UK – COVENTRY YOUTH OFFENDING SERVICE

8. TWO VIEWS OF PERFORMANCE MEASUREMENT • RECORDING – LIKE A THERMOMETER THAT MEASURES TEMPERATURE WITHOUT CHANGING IT A PAPER EXERCISE! • PERFORMANCE IMPROVEMENT / BEHAVIOR CHANGE “USE IT OR USELESS!”

9. PERFORMANCE IMPROVEMENT APPROACH:WAYS MANAGERS CAN USE PERFORMANCE MEASURES • COMMUNICATION/FOCUS • MOTIVATION • LEARNING • RESOURCE ALLOCATION

10. PERFORMANCE IMPROVEMENT APPROACH • COMMUNICATION/FOCUS • PRIORITIES: “WHAT GETS MEASURED GETS NOTICED” (CHINA ENVIRONMENTAL TARGETS ADDED TO GDP GROWTH) • SMALL NUMBER: “IF EVERYTHING IS A PRIORITY, NOTHING IS A PRIORITY” • PARTICULARLY IMPORTANT FROM TOP OF THE ORGANIZATION • MOTIVATION • LEARNING • RESOURCE ALLOCATION

11. PERFORMANCE IMPROVEMENT APPROACH • COMMUNICATION • MOTIVATION • GOALS MOTIVATE VS. “DO YOUR BEST” • MOTIVATION OCCURS EVEN WITHOUT FINANCIAL REWARDS! • BEST GOALS ARE NOT TOO EASY BUT NOT IMPOSSIBLE • KENNEDY: “MAN TO THE MOON IN 10 YEARS” • BASIS FOR INDIVIDUAL AND/OR GROUP REWARDS? • LEARNING • RESOURCE ALLOCATION

12. PERFORMANCE IMPROVEMENT APPROACH • COMMUNICATION • MOTIVATION • LEARNING • NEED DATA ABOUT PERFORMANCE AS BASIS FOR LEARNING ABOUT WHAT’S WORKING AND NOT WORKING • FEEDBACK ON YOUR OWN PERFORMANCE OVER TIME – LEARNING TO THROW DARTS IN A PUB • COMPARISON ACROSS UNITS DOING SIMILAR THINGS • “THERE IS NO GREATER WASTE THAN A GOOD IDEA USED ONLY ONCE.” • RESOURCE ALLOCATION

13. PERFORMANCE IMPROVEMENT APPROACH • COMMUNICATION • MOTIVATION • LEARNING • RESOURCE ALLOCATION • TIME/ATTENTION • CONCENTRATE ON WORST? • BUDGET ALLOCATION WITHIN ORGANIZATION

14. PERFORMANCE MANAGEMENT… • THE GOOD NEWS: YOU GET MORE OF WHAT YOU MEASURE • THE BAD NEWS: YOU GET MORE OF WHAT YOU MEASURE • PROBLEM: “TEACH TO THE TEST”

15. “TEACH TO THE TEST” (I): GOAL IS FINE, MEASURE OF THE GOAL IS POOR “TEACH TO THE TEST” (II): MEASURE IS FINE MEASURE OF GOAL, BUT IGNORES OTHER GOALS “TEACH TO THE TEST” (III): GAMING/CHEATING

16. “TEACH TO THE TEST” (I): GOAL IS FINE, MEASURE OF THE GOAL IS POOR • USING SHORT-RUN EARNINGS INCREASES FOR JOB TRAINING PROGRAM GRADUATES AS A MEASURE OF PROGRAM EFFECTIVENESS “TEACH TO THE TEST” (II): MEASURE IS FINE MEASURE OF GOAL, BUT IGNORES OTHER GOALS “TEACH TO THE TEST” (III): GAMING/CHEATING

17. “TEACH TO THE TEST” (I): GOAL IS FINE, MEASURE OF THE GOAL IS POOR “TEACH TO THE TEST” (II): MEASURE IS FINE MEASURE OF GOAL, BUT IGNORES OTHER GOALS • QUANTITY/SPEED VERSUS QUALITY “TEACH TO THE TEST” (III): GAMING/CHEATING

18. “TEACH TO THE TEST” (I): GOAL IS FINE, MEASURE OF THE GOAL IS POOR “TEACH TO THE TEST” (II): MEASURE IS FINE MEASURE OF GOAL, BUT IGNORES OTHER GOALS “TEACH TO THE TEST” (III): GAMING/CHEATING • AIRLINE ONTIME PERFORMANCE • CHINA PRISONS FOR PETITIONERS

19. PROBLEMS DON’T NECESSARILY MEAN DON’T USE PERFORMANCE MEASURES • EVERY MEASURE DISTORTS • DON’T LET THE PERFECT BE THE ENEMY OF THE GOOD

20. PerformanceUsing Imperfect Measures PerformanceUsing Perfect Measures ? ? PerformanceUsing No Measures PerformanceUsing No Measures Worst Performance Best Performance

21. SUMMARY MESSAGE: • INCORPORATE PERFORMANCE MEASURES AS AN IMPORTANT PART OF THE WAY YOU MANAGE AND LEAD YOUR ORGANIZATION • USE PERFORMANCE MEASURES NOT JUST TO RECORD YOUR ORGANIZATION’S PERFORMANCE, BUT TO IMPROVE IT

22. http://www.whitehouse.gov/omb/expectmore/

23. http://www.nyc.gov/html/ops/cpr/html/home/home.shtml

25. http://www.innovations.harvard.edu/showdoc.html?id=7100

26. Shelley Metzenbaum “Performance Accountability: The Five Building Blocks and Six Essential Practices” http://www.businessofgovernment.org/pdfs/MetzenbaumReport2.pdf

27. -End- Thank You.