100 likes | 351 Views
What is the difference between Performance Measurement and Performance-Based Management?. Performance Measurement is the comparison of actual levels of performance to pre-established target levels of performance. To be effective, performance measurement must be linked to the organizational strategic plan..
E N D
1. ESTABLISHING AND MAINTAINING A PERFORMANCE-BASED MANAGEMENT PROGRAM Sylvester Murray
Professor of Public Administration
Savannah State University
2. What is the difference between Performance Measurement and Performance-Based Management? Performance Measurement is the comparison of actual levels of performance to pre-established target levels of performance. To be effective, performance measurement must be linked to the organizational strategic plan.
3. Cont’d Performance-Based Management essentially uses performance measurement information to manage and improve performance and to demonstrate what has been accomplished.
In other words, performance measurement is a critical component of performance-based management.
4. What are the benefits of Performance-Based Management? It provides a structured approach to focusing on strategic performance objectives.
It provides a mechanism for accurately reporting performance to upper management and stakeholders.
It brings all “interested” parties into the planning and evaluation of performance.
It provides a mechanism for linking performance and budget expenditures
It represents a “fair way” of doing business.
It provides an excellent framework for accountability.
It shares responsibility for performance improvement.
5. Definition: Performance-based measurement is a systematic approach to performance improvement through an ongoing process of establishing strategic performance objectives; measuring performance; collecting, analyzing, reviewing, and reporting performance data; and using that data to drive performance improvement.
6. Six steps to establishing a performance-based management program: Step 1: Define organizational mission and strategic performance objectives
Step 2: Establish an integrated performance measurement system
Step 3: Establish accountability for performance
Step 4: Establish a process/system to collect performance data
Step 5: Establish a process/system to analyze, review, and report performance data
Step 6: Establish a process/system to use performance information to drive improvement
7. Advance Planning and Preparation: Overall the program must have leadership – someone responsible for championing the cause, for getting the ball rolling, and keeping it rolling. Without strong leadership, the program won’t succeed. Then there must be commitment from everyone involved. The degree of commitment will determine its degree of success.
8. Greater detail is important: Who is the strategic planning process owner and how much commitment is there?
Who will execute the planning process in the organization?
How will customers and other stakeholders be represented in planning process?
What are the strategic planning and business planning horizons?
9. Major components of an integrated performance measurement system: The Strategic Plan
Key Business Processes
Stakeholder Needs
Senior Management Involvement
Employee Involvement
Accountability for measures
A Conceptual Framework
Communication
A Sense of Urgency
10. Most Important Framework for Performance-Based Management The Establishment of Accountability for Performance
11.
END
THANK YOU