The UK performance management framework

1. The UK performance management framework Kit Charnaud, Prime Minister’s Delivery Unit United Kingdom Tuesday, 28 October 2008

2. Context • 40% GDP spent on government services • Real terms increases in public spending of 4.1% (05/06), 2.7% (06/07), 2.8% (07/08); • Key principles of the strategy for public services • embed value for money across the public sector, • focus on key cross-government priorities, • respond to the needs of users • PMDU role: small unit within Treasury, jointly accountable to Prime Minister and Chancellor

3. History - Key features of what was introduced in CSR 1998 • Features of the 1998 Comprehensive Spending Review: • Three-year spending plans • Separate capital and current budgets • Resource accounting and budgeting • Introduction of Public Service Agreements (PSAs) • Strengths of UK approach to performance management: • public statement about the Government’s priorities; • created an outcome-oriented system, • sharpened the Government’s accountability to the electorate and to Parliament No mechanistic link between performance and resource allocation in Spending Review

4. Evolution of the PSA framework Comprehensive Spending Review CSR07 Comprehensive Spending Review (1998) CSR 98 Spending Review2000 SR00 Spending Review2002 SR02 Spending Review2004 SR04 30 PSAs A reformed framework: Cross-govt PSAs with published delivery agreements Objectives for all departments. Emphasis on devolution and user engagement 600 targets 160 targets 130 targets 110 targets First set of PSAs published Significant changes to CSR model Greater continuity, architecture refined Increased consultation, Introduction of standards focus on outcomes

5. Sustainable growth and prosperity Fairness and opportunity for all Stronger communities and a better quality of life A more secure, fair and environmentally sustainable world 1.Raise the productivity of the UK economy 8. Maximise employment opportunity for all 18. Promote better health and well-being for all 27. Lead the global effort to avoid dangerous climate change 2. Improve the skills of the population, on the way to ensuring a world-class skills base by 2020 9. Halve the number of children in poverty by 2010-11, on the way to eradicating child poverty by 2020 19. Ensure better care for all 3. Ensure controlled, fair migration that protects the public and contributes to economic growth 10. Raise the educational achievement of all children and young people 20. Improve long term housing supply and affordability 28. Secure a healthy natural environment for today and the future 4. Promote world class science and innovation in the UK 11. Narrow the gap in educational achievement between children from low income and disadvantaged backgrounds and their peers 21. Build more cohesive, empowered and active communities 5. Deliver reliable and efficient transport networks that support economic growth 12. Improve the health and wellbeing of children and young people 22. Deliver a successful Olympic Games and Paralympic Games with a sustainable legacy and get more children and young people taking part in high quality PE and sport 29. Reduce poverty in poorer countries through quicker progress towards the Millennium Development Goals 6. Deliver the conditions for business success in the UK 13. Improve children and young people’s safety 23. Make communities safer 7. Improve the economic performance of all English regions and reduce the gap in economic growth rates between regions 14. Increase the number of children and young people on the path to success 24. Deliver a more effective, transparent and responsive Criminal Justice System for victims and the public 30. Reduce the impact of conflict through enhanced UK and international efforts 15. Address the disadvantage that individuals experience because of their gender, race, disability, age, sexual orientation, religion or belief 25. Reduce the harm caused by alcohol and drugs CSR07 PSA set 16. Increase the proportion of socially excluded adults in settled accommodation and employment, education or training 26. Reduce the risk to the UK and its interests overseas from international terrorism 17. Tackle poverty and promote greater independence and wellbeing in later life

6. Sustainable growth and prosperity Fairness and opportunity for all Stronger communities and a better quality of life A more secure, fair and environmentally sustainable world 1.Raise the productivity of the UK economy 8. Maximise employment opportunity for all 18. Promote better health and well-being for all 27. Lead the global effort to avoid dangerous climate change 2. Improve the skills of the population, on the way to ensuring a world-class skills base by 2020 9. Halve the number of children in poverty by 2010-11, on the way to eradicating child poverty by 2020 19. Ensure better care for all 3. Ensure controlled, fair migration that protects the public and contributes to economic growth 10. Raise the educational achievement of all children and young people 20. Improve long term housing supply and affordability 28. Secure a healthy natural environment for today and the future 4. Promote world class science and innovation in the UK 11. Narrow the gap in educational achievement between children from low income and disadvantaged backgrounds and their peers 21. Build more cohesive, empowered and active communities 5. Deliver reliable and efficient transport networks that support economic growth 12. Improve the health and wellbeing of children and young people 22. Deliver a successful Olympic Games and Paralympic Games with a sustainable legacy and get more children and young people taking part in high quality PE and sport 29. Reduce poverty in poorer countries through quicker progress towards the Millennium Development Goals 6. Deliver the conditions for business success in the UK 13. Improve children and young people’s safety 23. Make communities safer 7. Improve the economic performance of all English regions and reduce the gap in economic growth rates between regions 14. Increase the number of children and young people on the path to success 24. Deliver a more effective, transparent and responsive Criminal Justice System for victims and the public 30. Reduce the impact of conflict through enhanced UK and international efforts 15. Address the disadvantage that individuals experience because of their gender, race, disability, age, sexual orientation, religion or belief 25. Reduce the harm caused by alcohol and drugs 16. Increase the proportion of socially excluded adults in settled accommodation and employment, education or training 26. Reduce the risk to the UK and its interests overseas from international terrorism 17. Tackle poverty and promote greater independence and wellbeing in later life

7. Cross-cutting nature of PSA targets PSA 20: Improve long term housing supply and affordability– 8 Departments Indicator 1: Number of net additional homes provided. TARGET Indicator 2: Trends in affordability: This will be measured using the ratio of lowerquartile house prices to lower quartile earnings Indicator 3: Number of affordable homes delivered (gross). TARGET Indicator 4: Number of households in temporary accommodation. TARGET Indicator 5: Average Energy Efficiency Rating for new homes. Indicator 6: Local planning authorities to have adopted the necessary DevelopmentPlan Documents, in accordance with their Local Development Schemes, to bring forward developable land for housing. TARGET

8. CSR07: key features of reform • National, outcome-focussed indicators underpin all PSAs • Collaboratively developed Delivery Agreement for each PSA • Accountability within Whitehall strengthened • Embed genuine user engagement in design, delivery and governance across key public services. • Reduced bureaucracy and unnecessary data burdens

9. Accountability structures that drive delivery Published set of 30 PSAs, that set out what they aim to achieve and how they are going to do it, and are supported by a clear accountability structure. Accountability is key and rests with both politicians and officials: • Prime Minister, Chancellor, Cabinet • Named Secretaries of State • Senior Responsible Officer for each PSA • A Delivery Board, comprising senior officials from contributing departments and chaired by the Senior Responsible Officer • A single responsible Cabinet Committee for each PSA • Permanent secretaries • Transparency and accountability to public

10. Hard levers of influence • No formal or legal sanctions for ministers or departments • Some PSAs have national targets in their Delivery Agreement • Inspections–performance against national target e.g. Ofsted in education • Accountability structures • Contracts – train companies can be fined for delays • Financial –sometimes extra funding or closure of frontline services • Earned Autonomy for the frontlinee.g. NHS Foundation Trusts • Performance management – individual performance reporting mechanisms • Reputational motivations –Departmental performance reporting and performance tables Direct accountability Measures and levers drive delivery E.g. Skills PSA - Indicator 2. 6 Higher education initial participation rate Target: Increase participation in Higher Education towards 50 per cent of those aged 18 to 30 with growth of at least a percentage point every two years to the academic year 2010/11. Contractual / regulatory Common purpose Wider community Soft levers of influence

11. PSAs have worked best when… • Focus on priorities across delivery chain • Understand the delivery chain • Are ambitious • Based on systematic delivery planning • Have defined indicators and targets • Have timely, high quality information • Recognise targets are not the only tools to improve performance • Vision for the future… • Citizen empowerment • New professionalism for the frontline • Strategic leadership from the centre