Monitoring Performance lessons from international experience Bill Dorotinsky
Monitoring Performance: lessons from international experience Bill Dorotinsky Budget Execution Course January 17, 2003
New Public Management? ¬ Features – Formal contracting – Purchaser-provider split – Agencies - flexibility ¬Origins – advanced industrial countries ¬Applicable to developing countries? 2
Implementing effective performance monitoring requires: ¬ Setting organizational incentives to support performance monitoring – Predictable funding – Flexible resource application at program level ¬ Getting performance monitoring consistent with organizational culture – Individual versus group responsibility ¬ Need for central unit to play active and effective leadership role in defining criteria and implementing practical performance monitoring – May not be Mo. F!! 3
Implementing effective performance monitoring requires (2): ¬ Linking ongoing performance measurement with more periodic program and policy evaluations • Frequently, performance measures simply indicate the need for deeper evaluation ¬ Attention to client/customer/citizen in developing performance monitoring – Citizen/beneficiary surveys not a substitute – Client satisfaction only one measure 4
Integration of performance and financial management is easier where strategic/target objective setting is linked to resource allocation global or output-based budgeting is in place full-cost activity accounting is in place programs consist of tangible and measurable products or services ¬ integration is attempted at the level of program management and operational management ¬ the impact of programs can be seen soon after delivery ¬ the results can be attributed to the program with high degree of confidence ¬ ¬ 5
Other lessons ¬ Measures should be ones program managers use regularly, find useful, and are part of normal management information systems ¬ Clear model of program ¬ Choosing the right goal and outcome measures – not easy! ¬ Outcomes don’t supplant other measures ¬ Performance monitoring creates “demand-pull” for better data; will change data systems ¬ Performance monitoring as culture change, rather than merely a paper exercise: effects will vary. – stakeholder buy-in and partnering – decentralization 6
Other lessons ¬ If central budget institutions lead performance budgeting efforts, which is natural, then a prerequisite of success is redefining the role of the central budget institution from command-control to collaboration. ¬ Uncertainty breeds skepticism-- but also motivates ¬ Great danger of misinterpretation and misuse ¬ Underestimates of interdependence ¬ Shorter the time horizon, more process oriented the measure ¬ Performance budgeting is iterative, evolutionary ¬ Need auditing of data systems and performance reports 7
Introducing performance orientation into budgets ¬ Need not be complex – Piloting – Informal ’political’ contracts – Start with fundamentals • • • Mission statements Defining programs within organizations Defining outputs Developing logic models of programs Full costing of programs Ex poste report of what was done – Benchmarking performance for similar activities 8
Other tools ¬Other tools for getting some handle on performance: – Public expenditure tracking surveys – Client-satisfaction surveys 9
- Slides: 9