The Necessity of Measuring Performance
Corporate performance management involves a set of activities that continually evaluate an organizations progress in achieving its strategic objectives. It is the organizations ongoing self-assessment of its performance, to ensure that are all activities and people are contributing effectively and consistently towards an overall goal. The practice of performance management is integrated into all the organizations processes and is an integral element that is planned at the start and carried out throughout the process.
Because performance assessment helps to measure and ultimately improve efficiency, it is a vital activity in any organization, but even more so for those operating in the public sector. Assessing strategic alignment of all activities and the quality of service are key considerations for government organizations, whose services impact all members of society. Performance measurement also serves as a good learning tool, and helps to create a better understanding of what works, what doesnt, and why.
Identifying benchmarks that can be effectively measured is an important part of this evaluation process, because they help examine to what degree objectives are being met and help government to enforce more effective policies and strategies.
Even though public administrations in different countries may have varying approaches to performance measurement, choosing and establishing performance indicators follows a basic set of principles.
It is important to ensure that performance measures are relevant to the governments priorities and that each indicator is the most appropriate way to assess the performance of the output or outcome. Indicators must be well defined and easy to understand, in order to ensure that data can be collected consistently and measured easily. In addition, it is important to ensure that data for each indicator can be produced frequently in order to be able to track progress, or lack thereof.
Setting the right indicators
Performance indicators should be:
- Comparable: so that measurements can be compared to past periods or similar projects.
- Attributable: highlighting how much change can be attributed to different factors, in order to efficiently assess the workforce.
- Reliable and adaptable to change: it is important to consider the sample size of each measurement in order to ensure complete effectiveness.
- Verifiable: backed up with clear documentation so that they can be validated.
Performance management frameworks
Performance management frameworks integrate strategic management, performance measurement, monitoring, evaluation and reporting. An example of this process is the employee performance management system, a framework that can be implemented by the public sector to plan and set employee objectives that aim to increase job satisfaction, productivity, and commitment. Measuring performance effectiveness is based on achieving these objectives. Employees are given fair, accurate and proactive feedback from line managers in order for them to develop and enhance their performance, and effectively contribute to the organizations strategic goals.
How we help
MENTOR helps government organizations with designing and implementing performance management practices, providing guidance on planning, implementation, monitoring, reporting, and evaluation, through custom solutions that facilitate the process.