Other performance measurement models exist, such as the use of service quality indicators, which focus on customer satisfaction, timeliness, and accuracy and workload or demand measures.

Performance Measurement as a Management Tool

A major component of the Government's performance measurement concept is using performance data for managerial purposes. This is the concept of performance management or Managing for Results. Performance management focuses on two basic questions:

Effectiveness is the relationship of planned goals and objectives to actual outputs or outcomes achieved. By defining program and service targets and measuring the results in terms of outputs and outcomes, Government effectiveness can be measured and enhanced. Outcomes can be measured by collecting data which measure program success (or lack thereof). The data are indicators of whether or not the outcome has been met. Examples of outcomes are pavement condition indexes and pavement smoothness ratings for streets. Other measures of quality, timeliness and effectiveness include customer surveys and response time.

Efficiency is the relationship of inputs to outputs, usually expressed in terms of cost per unit or unit costs. Examples of efficiency measures are the costs to resurface a mile of street or the average cost to repair potholes. Once the input and output measures are established and performance data are obtained, greater efficiencies can be achieved by increasing the outputs, decreasing the inputs or a combination of both. Efficiency indicators also measure productivity where the inputs are measured in terms of hours.

Underlying the Government's objectives is the realization that to change the way the Government performs its business is to change how the Government's managers, supervisors and staff think about Government operations. To be successful, the Government's performance management must involve its managers, supervisors, and staff in most or all of the steps working together. In essence, performance management is the reason why performance measurement exists. The Government can measure performance in order to improve effectiveness and efficiency.

Managing For Results

 

A number of governments have developed or are developing strategic plans including mission and goal statements that articulate their strategic direction. Governments have several programs, which carry out the strategic direction. Programs have performance measures of input, output, outcome and efficiency that measure the achievement of various programs or activities. Should the government adopt the Managing for Results concepts, the government would compile data on the performance measures and report current service levels. This step may include activity based costing or cost accounting to determine the costs of providing programs. Once current service levels are understood, the government would analyze the extent to which current service levels are efficient or effective by comparing current service levels, including costs, to the government's performance over time (baselining) or other comparable cities (benchmarking). The government's current level of performance would be compared to its baseline, other cities, or other standards to be developed in order to perform a gap analysis. This gap analysis would identify revised targets by government programs and provide the foundation a basis from which to develop strategies to improve performance. These revised targets can then be linked to the government's budget by identifying resources needed to achieve the revised targets. Finally, performance reporting would provide internal and external reports on accomplishments including the CAFR, GPFS, the budget document, and Service Efforts and Accomplishments (SEA), balanced scorecard or other performance reporting.