Performance measurement is the essential foundation on which performance management can be built. It is, therefore, an increasing priority for all managers in the public sector. In local government, the introduction of best value means that authorities should develop local performance indicators and publish their performance against both these and nationally defined performance indicators. The Performance Assessment Framework (PAF) in the NHS and in social services in England, the NHS Wales Performance Management Framework (PMF), and Public Service Agreements (PSAs) in central government are encouraging all public service managers to develop their own performance measurement systems. In addition, the Government is committed to developing a performance information strategy bringing together all existing work on the design, usability and accessibility of performance measures and targets.
It is important that this investment in performance measurement delivers the benefits expected. This paper is aimed at helping public service managers to develop and use effective performance measurement as an important component of their overall strategic and operational management. It builds upon the lessons learnt by the Audit Commission, and the ideas of other experts in the field. Effective performance measurement usually requires good performance indicators. A companion paper, On target: The practice of performance indicators has been published to give more detailed advice on devising performance indicators.
Included in this management paper:
- Why measure performance?
- The principles underlying effective performance measurement
- Making it work
- The way ahead