Page 270 - DMGT522_SERVICES MANAGEMENT

Unit 13: Performance Measurement in Services

performance-based management, the systematic application of information generated by Notes
performance plans, measurement, and evaluation to strategic planning and budget formulation.
“Performance measurement is the selection and use of quantitative measures of capacities,
processes, and outcomes to develop information about critical aspects of activities, including
their effect on the public.”
“Performance measurement is the regular collection and reporting of data to track work produced
and results achieved.”

13.1.1 Why We should Measure Performance?

Performance measurement improves the management and delivery of products and services. A
recent opinion poll asked a group of adults what they thought the Federal government’s top
priority should be. Almost half wanted emphasis put on better management. In a world of
diminishing resources, improving management of programs and services is critical.
Performance measurement improves communications internally among employees, as well as
externally between the organisation and as customers and stakeholders. The emphasis on
measuring and improving performance (i.e. “results- oriented management”) has created a new
climate, affecting all government agencies, and most private sector and non-profit institutions
as well. A results-oriented organisation requires timely and accurate information on programs
and supporting services, whether at Headquarters, Field Elements, or contractor locations.
Collecting and processing accurate information depends on the effective communication of
mission-critical activities.
Performance measurement helps justify programs and their costs. The public, Congress, and
Office of Management and Budget are increasingly taking a more “results-oriented” look at
government programs, and the cost-effectiveness of program expenditures is increasingly being
called into question. In an era of shrinking Federal budgets, demonstration of good performance
and sustainable public impacts with positive results help justify programs and their costs.
Performance measurement demonstrates the accountability of Federal stewardship of taxpayer
resources. Federal employees and contractors want their day-to-day activities to contribute to a
better society. Performance measurement can show that we are addressing the needs of society
by making progress toward national goals.

Performance measurement is mandated by the Government Performance and Results Act (GPRA)
of 1993 and is central to other legislation and Administration initiatives. In addition to holding
Federal Agencies accountable for achieving program results, GPRA also promotes a focus on
service quality and customer satisfaction, and seeks to improve executive and Congressional
decision making by clarifying and stating organisational performance expectations, measures,
and program costs “up front.” The Government Management Reform Act of 1994 gives additional
impetus to improve management of government performance by requiring, among other things,
annual audited financial statements. Agencies must include performance information
programmatic and financial) in the overview to their financial statements.

13.1.2 How We use Performance Measurement

Your organisation may use performance measurement for three basic purposes:

Providing measurable results so the Department of Energy (DOE) can demonstrate progress
towards goals and objectives. This is done by providing specific measurement results that
aggregate to DOE-wide measures.

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