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USING PERFORMANCE MEASUREMENT TO
IMPROVE THE PERFORMANCE OF
GOVERNMENT:
A "MEGA-TREND" IN INTERNATIONAL
PUBLIC MANAGEMENT
National Civil Service Institute
Examination Yuan
Steve Kelman
Weatherhead Professor of Public Management
Harvard Kennedy School
USE OF PERFORMANCE MEASUREMENT
A “MEGA-TREND” IN PUBLIC MANAGEMENT
 AUSTRALIA/NEW ZEALAND (1980s)
 UK “TARGETS” UNDER THATCHER/MAJOR/BLAIR
 US GOVERNMENT PERFORMANCE AND RESULTS
ACT (1993)
 CHINA (MOSTLY FOR PROMOTION/DISCIPLINE OF
SENIOR OFFICIALS)
INTEREST IN PERFORMANCE
MEASUREMENT = INTEREST IN
RESULTS GOVERNMENT
DELIVERS
PERFORMANCE MEASURES ARE
THE PUBLIC SECTOR'S
EQUIVALENT TO THE PROFIT
MEASURE FOR BUSINESS FIRMS!
UK – COVENTRY YOUTH OFFENDING SERVICE
TWO VIEWS OF PERFORMANCE
MEASUREMENT
 RECORDING – LIKE A THERMOMETER THAT
MEASURES TEMPERATURE WITHOUT CHANGING
IT
A PAPER EXERCISE!
 PERFORMANCE IMPROVEMENT / BEHAVIOR
CHANGE
“USE IT OR USELESS!”
PERFORMANCE IMPROVEMENT APPROACH:
WAYS MANAGERS CAN USE PERFORMANCE
MEASURES
 COMMUNICATION/FOCUS
 MOTIVATION
 LEARNING
 RESOURCE ALLOCATION
PERFORMANCE IMPROVEMENT APPROACH
 COMMUNICATION/FOCUS
 PRIORITIES: “WHAT GETS MEASURED GETS NOTICED”
(CHINA ENVIRONMENTAL TARGETS ADDED TO GDP
GROWTH)
 SMALL NUMBER: “IF EVERYTHING IS A PRIORITY,
NOTHING IS A PRIORITY”
 PARTICULARLY IMPORTANT FROM TOP OF THE
ORGANIZATION
 MOTIVATION
 LEARNING
 RESOURCE ALLOCATION
PERFORMANCE IMPROVEMENT APPROACH
 COMMUNICATION
 MOTIVATION
 GOALS MOTIVATE VS. “DO YOUR BEST”
 MOTIVATION OCCURS EVEN WITHOUT FINANCIAL
REWARDS!
 BEST GOALS ARE NOT TOO EASY BUT NOT IMPOSSIBLE
 KENNEDY: “MAN TO THE MOON IN 10 YEARS”
 BASIS FOR INDIVIDUAL AND/OR GROUP REWARDS?
 LEARNING
 RESOURCE ALLOCATION
PERFORMANCE IMPROVEMENT APPROACH
 COMMUNICATION
 MOTIVATION
 LEARNING
 NEED DATA ABOUT PERFORMANCE AS BASIS FOR
LEARNING ABOUT WHAT’S WORKING AND NOT
WORKING
 FEEDBACK ON YOUR OWN PERFORMANCE OVER TIME –
LEARNING TO THROW DARTS IN A PUB
 COMPARISON ACROSS UNITS DOING SIMILAR THINGS
 “THERE IS NO GREATER WASTE THAN A GOOD IDEA
USED ONLY ONCE.”
 RESOURCE ALLOCATION
PERFORMANCE IMPROVEMENT APPROACH
 COMMUNICATION
 MOTIVATION
 LEARNING
 RESOURCE ALLOCATION
 TIME/ATTENTION
 CONCENTRATE ON WORST?
 BUDGET ALLOCATION WITHIN ORGANIZATION
PERFORMANCE MANAGEMENT…
 THE GOOD NEWS: YOU GET MORE OF
WHAT YOU MEASURE
 THE BAD NEWS: YOU GET MORE OF
WHAT YOU MEASURE
 PROBLEM: “TEACH TO THE TEST”
“TEACH TO THE TEST” (I): GOAL IS FINE,
MEASURE OF THE GOAL IS POOR
“TEACH TO THE TEST” (II): MEASURE IS
FINE MEASURE OF GOAL, BUT IGNORES
OTHER GOALS
“TEACH TO THE TEST” (III):
GAMING/CHEATING
“TEACH TO THE TEST” (I): GOAL IS FINE,
MEASURE OF THE GOAL IS POOR
• USING SHORT-RUN EARNINGS INCREASES FOR JOB
TRAINING PROGRAM GRADUATES AS A MEASURE
OF PROGRAM EFFECTIVENESS
“TEACH TO THE TEST” (II): MEASURE IS
FINE MEASURE OF GOAL, BUT IGNORES
OTHER GOALS
“TEACH TO THE TEST” (III): GAMING/CHEATING
“TEACH TO THE TEST” (I): GOAL IS FINE,
MEASURE OF THE GOAL IS POOR
“TEACH TO THE TEST” (II): MEASURE IS
FINE MEASURE OF GOAL, BUT IGNORES
OTHER GOALS
• QUANTITY/SPEED VERSUS QUALITY
“TEACH TO THE TEST” (III): GAMING/CHEATING
“TEACH TO THE TEST” (I): GOAL IS FINE,
MEASURE OF THE GOAL IS POOR
“TEACH TO THE TEST” (II): MEASURE IS
FINE MEASURE OF GOAL, BUT IGNORES
OTHER GOALS
“TEACH TO THE TEST” (III): GAMING/CHEATING
• AIRLINE ONTIME PERFORMANCE
• CHINA PRISONS FOR PETITIONERS
PROBLEMS DON’T NECESSARILY MEAN DON’T
USE PERFORMANCE MEASURES
 EVERY MEASURE DISTORTS
 DON’T LET THE PERFECT BE THE
ENEMY OF THE GOOD
Performance
Using Imperfect
Measures
?
Performance
Using Perfect
Measures
?
Worst
Performance
Best
Performance
Performance
Using No
Measures
Performance
Using No
Measures
SUMMARY MESSAGE:
 INCORPORATE PERFORMANCE MEASURES AS
AN IMPORTANT PART OF THE WAY YOU
MANAGE AND LEAD YOUR ORGANIZATION
 USE PERFORMANCE MEASURES NOT JUST
TO RECORD YOUR ORGANIZATION’S
PERFORMANCE, BUT TO IMPROVE IT
http://www.whitehouse.gov/omb/expectmore/
http://www.nyc.gov/html/ops/cpr/html/home/home.shtml
http://www.innovations.harvard.edu/showdoc.html?id=7100
Shelley Metzenbaum
“Performance Accountability:
The Five Building Blocks and Six
Essential Practices”
http://www.businessofgovernment.org/pdfs/M
etzenbaumReport2.pdf
-EndThank You.