PERFORMANCE MONITORING: STRATEGIES AND INSTRUMENTS «Эффективные механизмы управления реализацией стратегии социально-экономического развития региона» October 21, 2013
Professor Carol Scott Leonard, Chair, Department of Regional Studies, Faculty of Public Administration, National Research University- Higher School of Economic
Outline: Performance Monitoring Instruments • Integrated Monitoring System • Flexibility and dynamic • Some Characteristics of Monitoring Instruments • Simplicity and communication • On the ground indicators • Future Technologies of Performance Management • Learning from business management practices • Real-time monitoring for adapting indicators • Visualization for communication •
INTEGRATED MONITORING SYSTEM Dynamic and Flexible
Types of Performance Indicators • INPUTS • Resources used • PROCESS • Dynamics of the policy cycle, • Institutional arrangements • OUTPUT Products and services • OUTCOMES • On-the-ground results
Outcomes • Example: Marine management • NOT Input Assessment: • Investments • Number of permits issued • Laws and regulations adopted • BUT Outcome Assessment • Improved water quality • Increased public access • Decreased habitat loss
Building the performance indicator system • Instruments are part of the management process and not
an end to themselves. • Instruments draw attention to use of information • Instruments compel review and refinement • Dynamic and adaptive
Strategy Alignment is difficult in a Federation Achieving objectives on all levels Selecting right governance level for particular task Aligning management incentives with performance goals at different levels
Functional clarity especially important in a Federation • The fragmentation of governmental agencies is both
horizontal and vertical. • At any given level, various functions are carried out by a
wide array of separate agencies and organizations, with limited or sporadic coordination. • As a result, fragmentation is the general rule • Many situations are poorly or inefficiently managed.
Example, again: Marine Environment Management of the marine environment is carried out at local, state, regional and national (and, in some cases, marine transportation, for example, international) levels of government Fragmentation is common Conflicts among users and uses are difficult if not impossible to resolve The question for an effective power-sharing model is elusive
Summary: Functional Clarity and Incentive Alignment Regional, Municipal and Federal policy planners • Incentives between levels of government are aligned by clarity
of function • Incentives for planners are aligned with those of tax payers for compliance • Incentives are aligned by inclusion of stakeholders in decision-making
The Management Tree Region Mission Vision Values Region Goals Functional Department Goals Strategic Plan Business Plan
Integrated Assessment Budget Development Allocation of Resources Monitoring Reports Budget Variance Performance Report Card Results
Cautions about “Clarity” • Clear and simple: but do program goals suit this region?
• Stakeholder involvement: • Infrastructure: Railroads? Roads? • Regulations: Speed? Safety? • Performance Standards Diverge • Rural vs urban • One region vs another • One country vs another
• Conclusion: performance indicators developed “on the
ground” once functions and goals are clear
CHARACTERISTICS OF PERFORMANCE INDICATORS What is a good indicator?
Classic Principles Simple, quantiďŹ able and communicable Being credible, easy to understand, and unambiguous Relevant to management objectives and scientiďŹ cally valid. Being capable of being monitored easily to show trends over time. Using accepted and clearly documented methods and units. Being as simple and cheap as possible (while achieving the desired results). Being adaptable for use at a range of scales, wherever possible.
Monitoring Objectives Providing early warning of emerging issues or problems Generalizable at Scale Uses commonly accepted measures, easy to understand Stakeholder involvement in surveillance, monitoring and enforcement.
FUTURE DIRECTIONS Real time, Visualization
Goals for the future • Improved Instrumentation • Sensitive detectors and monitors • Real time Measures • More powerful modeling to capture and analyze data
more quickly • Visualization techniques allow ready use by managers • indicator use will feed to better reporting and
communication
RPM • Real time Performance Monitoring
• Stakeholder Needs Drive Performance Indicators • Allocate Resources as Needed • Empower local teams to improve action plan • Adjust targets to drive optimum performance • Use Models: driver-based predictive construction,
simulation capabilities, and work-flow planning and control.
RPM • Scenario building • Simultaneously assess operational and financial • • •
•
performance Optimize delivery capacity Communicate accurate expectations to communities to maintain trust and baseline for government officials Integrate planning, budgeting and forecasting into the larger management and information resources of government Sustainable Improvement Process
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