APerformanceManagementFramework …

1 From Measurementand ReportingtoManagementand ImprovingAPe rf orm ance ManagementFr am eworkfor Stat ean dLocal : performance management Commission 5/25/10 3:25 PM Page 1 From Measurementand ReportingtoManagementand ImprovingAPer form an ce ManagementFr ameworkfor Sta teand Local : performance management Commission 5/25/10 3:25 PM Page 3 Copyr igh t2010 by theNatio nal Perf orm ance Manag eme nt Advisory Commission203 North LaSalle Stre et, Suite 2700 Chicag o,Ill ino is com rig hts rese rv Natio nal Per formanc eMan ag emen tAdvisory Commissionencour age sgovern ments to use and rep rod uce this mate rial freely in govern -ment do cum ents. An yother use ofthis material is prohibitedwithout written permissionfrom the pub lishe ary ofCong ress Con trol Numb er: 2010928402 ISB N978- 0-89125- 303-7 Pri nted in the Un ited State sof Ameri spu blicatio nis wr itten with theund erstandingthat neither the publishe rnor the authors are engage din re nde rin gleg al advice.

2 If legal orother expe rt assi stance is requi red ,thereader should solicit the services of acompetentprofession al in thefie pu blisher and the authors sp eci fic ally disclaim any personal liability for loss or risk incurre das acon seque nc eof the use and application,eithe rdirectly orindi rectl y, of any advi ceor informationpresente dhe : performance management Commission 5/25/10 3:25 PM Page 4Me mbe rs of th eNa tional Per for mance Managem ent Advisory Com missionSp onso ri ng Org anizationsAssoc iat ion of Scho ol Busine ss Offic ial s Int ern atio nal (ASB O)Nat iona l Asso ciat ion of State Budg et Offic ers (NASB O)The Counc il of St ate Go vernm ents (CSG )Gov ernm ent Finance Office rs Asso cia tion (GF OA)Interna tional Cit y/Co unty Ma nag em ent Asso ciatio n (ICMA)Nat iona l Asso ciat ion of Countie s (N ACo )Nat iona l Asso ciat ion of State Auditors,Compt roll ers, and Treasurers(NASACT )Nat iona l Cent er fo r State Co urts (NC SC )Nat iona l Confe renc e of Sta te Le gislat ures (NCSL )Nat iona l Le ague of Citie s (NL C)United St at es Confe re nce of May ors (USCM )Commi ss ionMe mbe rsM.

3 Jacque line Ny tes,Chair (NLC), Co un cil lor,City of Indianapolisand Mar ion Coun ty, Ind ian aRi ch ard Devlin,Vic eChair (NCSL), Se nate Majority Leader, State of OregonDav id Ammo ns,Prof essor, Univer sity ofNorth Carolina at Chapel HillDan iel Be cke r(NCSC), State Court Adm inistrator, State of UtahRod Bo ck enfe ld(NACo), Commissioner, Arap ahoe County, Color ad oMic ha el F. Bro wn(ICMA) ,Chie fExec uti ve Office r, County of Santa Barb ara, Califor niaBarbara Cohn Be rman,Direc tor ,Cen ter onGovernme nt Performanceat theFun dfor the City of Ne wYork an dNation al Ce nte rfor CivicInn ovatio nSh aron Dabo in(NASBO) ,Dep uty Secretar yfor PerformanceImprovement, Gove rnor sBud get Of fice,State of Pen nsy lvaniaPeter Fra nchot(NASACT ), Comptro ller, State of Maryland Comp troller s Offic eLarry Jone s(USC M) ,Assi stant Execu tiv eDire ctor, United States Conferen ce of May or sJoh n Kenne y(NASACT ), State of Maryl and ,Comptroller s Offic eLee V.

4 Le gutk o(AS BO ), Chief Busin ess Off ice rfor multip le sc hool distr icts in Flor ida (retir ed)Ke nn eth L. Rust(GF OA) ,Chie fAdmin istrativ eOfficer, City of Portlan d, OregonWilli am C. Vic kre y(CSG) ,Administrative Di rector of the Courts, State of Califor niaSp onso ri ng Org anization Repre se nt ati vesJacq ue line By ers(NACo), Di rector of Re search and Outreach, National Assoc iation of Coun tie sJeffre y L. Esser(GF OA) ,Exec uti ve Di rector /CEO, Gover nment Finance Officers Assoc iationDan iel Ha ll(NCS C) ,Vic ePreside nt, Co urt Con sulting Services, National Cen ter for State Cour tsCh ris Ho ene(NLC) ,Dir ec tor, Center for Resea rch and Innovation,Nation al Leag ue of Citie sAnn e Spra y Kinne y(GF OA) ,Dire ctor, Research and ConsultingCe nter, Gove rnme ntFin an ceOffic ers Assoc iationMicha el La wso n(ICMA), Direc tor, ICMA Ce nter for Per for man ce Measure me nt, International City/Coun ty Man ag eme ntAssocia tionJoh n Mo unt joy(CSG) ,Director of Po licy an dResear ch, The Council of State Gove rn me ntsRo bert J.

5 O N eill , Jr.(ICMA) ,Exec utiv eDire ctor, Intern ation al City/Coun ty Man ag eme nt Assoc iationScot t Pat tison(NASBO) ,Exec uti ve Di recto r,National Associationof State Budg et Offic er sKinney Poy nt er(NASACT ),Exe cutiv eDire ctor, National Associationof State Aud itor s, Comp trolle rs, an dTreasure rsMicha el J. Robinso n(CSG), Seni orDep uty Executive Director, Council of State Gover nmentsRo n Sk inner(ASB O) ,Assistant Exe cuti ve Direc tor, Associationof School Busin ess Officials Intern ationalRo n Sne ll(NCSL) ,Di rector of State Serv ice s, National Conferenceof State Le gislatur esCat he rine L. Spain(NLC), Di rector ,En terp ri se Programs,Nation al League of Citie sJudy Zel io(NCS L),Pr og ram Dir ector ,Fiscal Affairs, National Confer ence of State Le gislatur esCo mmi ss ionSt affAnn e Spra y Kinne y(GF OA) ,Dire ctor, Research and ConsultingCe nter, Gove rnme ntFin an ceOffic ers Assoc iationCh rist ina Alt maye r(GF OA), Consul tan t, Gove rnment Finance Officers Assoc iationMike Mucha(GFOA), Sen ior Consultan t/An alyst, GovernmentFinan ce Off ice rsAssoc iationA : performance management Commission 5/25/10 3:25 PM Page 5ivA : performance management Commission 5/25/10 3:25 PM Page 6Fo re word fro mthe Com mis.

6 ViiIntrod uctio nto the Fra mewor ..1 What is Perfo rm ance Mana ge men t?..3 Why Pe rf or man ce Ma nag eme nt?..4 Perform an ce Manag em ent and the Evolu tion of Pu bl ic ..4 Addres si ng Ch al leng ..4 Mov ingfro mMeas uri ng and Rep orting to Managi ng and ImprovingResul ..5 Organ izat ional Com mitm ent toImp roving ..6Pe rf orm an ce Mana gement Pr ..81. ARe sul tsFo cus Perm eates Strat egi es ,Pro cesses, the OrganizationalCulture,an dDec isi on ..82. Informat ion ,Meas ures ,Goal s, Priori ties ,and Ac tivities Are Relevant to thePrio rit ies an dWel l-Bei ng of the Governm ent and the Co mmuni ..93. Inf ormat ionRe late dto Perfo rmanc e, Deci sions ,Regulations,and Process es IsTransp aren t Easy to Ac ce ss ,Use ,and ..94. Goal s, Program s, Acti vi tie s, and Res ou rces Are Aligned with Priori tiesandDes ire dResu.

7 95. De cisi on sand Proce sses Are Dri ven by Timely, Acc urate, and Pract ice sAre Su stainab le Ove rTi me and Acros ..107. Perf orm anc eManage me nt Transf orms the Organization,ItsManagem ent, andthePol icy-Mak ing Proc ..10 Initia tin g, Impl em enting ,andSus taining Perfor ma nce Mana ..11 Initiati ng Perfo rmance Manage me ..11 Imp leme ntingPerfo rm ance ..12 KeyFacto rs in Su staini ng Pe rform ance ..17Pe rf orm an ce Mana gement Pr act ..21 Plan ni ng :Def ining the Resu lts toBe Achi ..22 Perfo rman ce Bu dge ting :Achi evi ng Resul tsthrough Go od Resou rce Alloc ati ..25 Man age me ntPractic es: Al igning Operatio ns with ..27Ev alu ati on :Asse ssi ng and Unde rst anding Resul ..35 Cros s- Cut tingPracti ces :Me asure ment and ..38Co ncl usio ..43Gl os sary of Per for ma nc eManag eme nt Te.

8 44 Appe ndix: Exa mples of Per for mance Managem ent Initia ..47 Stat ePerfo rman ce Me asure me nt ..47Lo cal Go vern me ntIni tiati ..51Co nt ent sA : performance management Commission 5/25/10 3:25 PM Page 7viA : performance management Commission 5/25/10 3:25 PM Page 8At no time in moder nhistor yhav estate ,local ,an dprovin cial go ve rnm ents been und ergreat er pr essur eto pr ovi de results that matte rto thepubl ic,ofte nwith in sev ere resourcecon st rain the same time, gov ern mentoffic ials an dmanag ers are chal leng edto ov er-com ethe publ ic s lac koftrus tin go ve rn men tat all leve hav ede vel op ed thi sPer forman ce Manag em ent Fram ewo rk forState and LocalGo ve rnme nt tohel ppubl ic-s ec tor organ izatio ns add re ss these chal leng pr imary moti ve dr ivi ng the co mmissi on an dpubli c-se ctor pe rform ance manage me nt ingene ral is the con vi ct ionthat go ve rnm ents must improve the ir foc us onproduc ingre sultsthat bene fit the pub lic, and also gi ve the pub lic con fid ence that gov ern ment has produce dtho se result s.

9 The em ph asi son pro cess an dcom pli anc ethat has typ ifie dtraditi onal pub lic-se cto rman age ment has not be en suffic ientto make this hap pen. There fore, governme ntsmu st chan ge their ap pr oac h. Publi c-se ctor man age men tmust becom esynonymouswithper forman ce manag emen is thetime for govern men tal lead ers to ensure that theorgan izati ons they lead aretak ing res po ns ibi lity for ac hie vi ng results that matte rto the pub lic by practicing perform -anc eman agem ent .Acc omp lish ing this wi ll requi re more than acon ce ptual frame work. It wi ll require public-se cto rleade rs at al llevel s, both electe dan dap poi nte d,not on ly to set high ex pectation sforper forman ce but al so to make aco mm itm en tto improvi ng perform anc e. Leaders mustinst ill asen se of ur gency abo ut imp rov ingperform anc einthei rgo ve rnments, build pe r-formance -bas ed org ani zatio nal culture san dmanag em entstruc ture s, continuouslycom mu -For ew ord fr om the Co mmissionA PerformanceManagementFrameworkviiFrom Measurementand ReportingtoManagementand ImprovingAPerf or ma nce Man agement Fr amew orkfor Stat eand Local Gov : performance management Commission 5/25/10 3:25 PM Page 9viiiA PerformanceManagementFrameworknicate the ne ce ssity of list en ingto the public ,an dprov idere sourc es to assure that ape r-formance- base dcul tur eand rel ated prac tices are initiate dan dsustai ne d.

10 We belie vethatsee king out, un der st andin g, and ap plying perfo rman ceman age me ntprinciples and prac -tic es is no ton ly acr itic al respo nsi bility of public offic ials an dmanag ers, but that it is anet hical obl igati ice per for manc eman age me nt, offic ials an dmanag ers must have accurate, tim ely,and rele vant infor matio nforde ci sion making, alon gwith thesk ills an dknowled ge to ana -lyze res ult san ddes ign imp rov em ents whe nneed are the learn ing an dimprovingaspe cts of per form ance manag em en crati cgov er nm ents are also obligated to beac coun tabl eto theirowne rs the citizen -ry. Perf orm an cemanag eme nt prin ciples an dprac tic esgive gove rn ments the ab ility to pro -vid eeasil yund er st ood and tim el yinfo rmation to the pub licso citi zen scan ass ess theres ults the ir gov er nment is prod uci ng and ful fill thei rrol eas co lle cti ve owners of their gov -ern me nt fee db ac kwe have re ce ived during the proc ess ofcre atin gthis fram ework has re in-forc ed our view that governm en ts wan tbette rinfo rmati on an dpracti cesthat will he lpthem imp ro vere sul means providing bette rways to: und ers tand publ icnee ds; iden tify and imp lemen tpro gram sand ser vic esthat willmeetthose needs; ass ure that pol icies ,strateg ies, and servic esare inali gn me nt; collect and an aly ze perfo rm anc einformat ion.