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Performance Management: The Big Picture Institute of Public Administration of Canada Centre of Excellence in Performance Management and Accountability Telfer School of Management University of Ottawa October 22, 2007. pwc. Contents. Does it matter – who cares Models and tools sets

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  1. Performance Management: The Big PictureInstitute of Public Administration of CanadaCentre of Excellence in Performance Management and AccountabilityTelfer School of ManagementUniversity of OttawaOctober 22, 2007 pwc

  2. Contents • Does it matter – who cares • Models and tools sets • A holistic view • A Performance Management framework • Outlook for the Public Sector • Some potential research questions

  3. Performance Management is a major management issue for both the public and private sector CEO’s Top Five • Deals – harvesting value from the right deals • Revenue Growth – enhancing customer profitability • Global Sourcing – outsourcing, shared services and cost effective sourcing • Performance Management – managing business performance • Risk and Regulation – making smarter risk decisions DM’s Top Five • Retirement, recruitment, retention and succession planning • Improved accountability and transparency • Performance management, measurement and reporting • Improving the quality of service delivery, E-service • Citizen-centred service, single window, service partnerships (

  4. Models European Foundation for Quality Management (EFQM) Public Sector Excellence Model ISO 9001:2000 Six Sigma Total Quality Management (TQM) Capability Model Maturity Integration (CMMI) Information Technology Information Library (ITIL) Tool Sets Performance measurement Business Intelligence Balanced Scorecard Performance Prism Diagnostic self-assessments Process mapping/BPR Benchmarking Organizations drive performance improvement through a variety of models and tool sets

  5. Models and Tool Sets share common elements • A focus on processes and results • Identification of improvement opportunities • Improving quality of service to customers • Improving alignment between individual and corporate objectives • Translating strategy into performance measures and targets • Monitoring change initiatives • Improving external communications • Changing organizational culture

  6. Big Picture View on Performance Management: PwC Point of View • PM should not be seen as a new fad or “flavour of the month” • Best viewed as the integration of existing improvement methodologies already known and applied • We recommend a holistic perspective which knits them together into a whole to manage the execution of an organization's strategy PM is a framework for driving strategy into sustainable performance

  7. Key elements of a Performance Management Framework • Organization Vision & Mission • Strategy that reflects the Vision & Mission • Business Plan • Mechanisms to link strategy with Planning • Mechanisms to Operationalize the plan • Targets and Measures as part of the planning process • Data and Tools to measure performance • Reward/Recognition Programs to create an environment for “sustainable performance”

  8. PERFORMANCE MANAGEMENT FRAMEWORK (PM)“Driving strategy into sustainable performance” KEY PLAYERS: KEY ENABLERS: ALIGN Elected Officials Performance Culture Plan Strategy IMPLEMENT Execute Value Creation DM Effective Governance Reward Strategy/Policy Useful, Reliable Data Measure Operations Technology Enablement Insight SUSTAIN EVALUATE CFO/CIO/HR Effective Processes CREATE VALUE FOR . . . Stakeholders Citizens Employees Suppliers & Partners Marketing and Communications Skills & Capabilities

  9. Outlook for the Public Sector • High value Performance Management initiatives are gaining traction with elected officials and the public in high priority policy areas: • Ontario’s Wait Time program exhibits key attributes of high profile PM initiative • Student testing and evaluation through Educational Quality and Accountability Office • More conventional “balanced- scorecard” initiatives receive less public attention but are keenly reviewed by senior management and Boards • OHA hospital scorecards • Municipal benchmarking

  10. Potential research questions • What is the evidence that increased use of performance management tools in the public sector influences budgetary or program decision-making • What investments in people, process and technology are required to design and build the information architecture capable of providing high quality data analysis, insight and reporting • What are the issues which arise from increased transparency associated with public disclosure of organization performance through “league table” reports

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