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SECTION 6: IMPLEMENTING ORGANISATIONAL PERFORMANCE MANAGEMENT
Section introduction
6.1 In this section the key successful features of organisational performance management in a government context are considered, making extensive use of the data gathered from the organisations which participated in the research interviews. Eleven interviews were conducted with representatives of public sector organisations currently active in organisational performance management. The following organisations participated in the research interviews: Audit Commission; Audit Scotland; Cabinet Office; Department for International Development; Improvement and Development Agency; Improvement Service; NHS Ayrshire and Arran; North Lanarkshire Council; South Lanarkshire Council; Stirling Council; and Strathclyde Police. Interviews took place between January and July 2008.
6.2 The section begins by considering the views of contemporary public managers in relation to the performance management questions posed in the research interviews. Thereafter, the section develops by clarifying the factors likely to lead to effective implementation by drawing on the concept of 'perfect implementation'. The section ends by identifying what works in the implementation and ongoing management of a performance management framework.
Interview question 1: What has been the impact of organisational performance management in a government context?
6.3 There was consensus amongst the interviewees that organisational performance management increases managerialism and all interviewees believed that this was an appropriate trend. The impacts have not been systematically evaluated and there has been research which questions the extent to which organisations perceived to be 'high performers' do in fact deliver and sustain high performance levels. The overall opinion was that the impact was more of an internal change than a change which enhanced organisational effectiveness in the short term but there was a belief that organisational performance management improves organisational performance.
Interview question 2: How useful are systems of organisational performance management in a government context?
6.4 There was general agreement on the potential utility of organisational performance management. If this were not the case, why would governments globally embrace organisational performance management? In addition, why would global organisations such as the OECD, the United Nations and the World Bank promote organisational performance management in government? The conclusion must be that systems of organisational performance management in a government context are useful.
Interview question 3: What are the benefits to be gained from the introduction of an organisational performance management in a government context?
6.5 The interviewees generally believed that in the short term the benefits would tend to be efficiency gains but in the medium to longer term the benefits would be enhanced output levels and possible progression towards planned outcomes. However, there were some concerns about the capability of organisational performance management to deliver outcomes. Outcomes, it was agreed by most, are difficult to predict and some planned outcomes are subject to too many variables and constraints resulting in uncertainty and setbacks.
Interview question 4: Who are the beneficiaries of organisational performance management in a government context?
6.6 The interviewees agreed that the beneficiaries in the short term would be politicians and senior managers as organisational performance management systems enhance 'top-down' control. Most interviewees believe that the potential benefits would accrue both internally and externally and the population as a whole would receive better public services as a consequence of organisational performance management. All agreed that UK evidence of this assertion is limited.
Perfect implementation
6.7 The concept of the 'ideal' model of public policy implementation, developed by Gunn (1978), focuses on the pre-conditions that would ensure the successful implementation of a policy or strategy. Those responsible for implementation should do their best to promote the attainment of these circumstances over the implementation period to ensure success. The concept remains worthy of consideration as a framework for enhancing the effectiveness of organisational performance management in a government context. The original Gunn model has been supplemented by Mackie (2004 and 2005) and others and incorporates elements of contemporary policy analysis, strategic management and change management. The pre-conditions of 'perfect implementation' include factors such as: adequate time and resources available as required; objectives understanding and complete agreement; continuity and competence of decision-takers; perfect monitoring and Best Value; and positive, transparent, robust and objective performance evaluations.
6.8 What works in the implementation an ongoing management of a performance management framework will be contingent on a range of factors not all of which can be controlled. However, there remains consensus amongst the public managers interviewed that organisational performance management is here to stay in the practices of government at all levels. It is a better way of managing public services.
Key points
- There is widespread belief in the merits of organisational performance management particularly for improving internal managerial decision-making and the implications of this for enhancing organisational performance (intra-organisational benefits).
- There is less evidence of the value of extra-organisational performance as it is difficult to identify and quantify the benefits of stakeholder reporting. However, in a democracy there is a need to ensure the transparency of public service decision-making and value for money and these are the drivers for extra-organisational performance management in a government context.
- Effective implementation of organisational performance management requires comprehensive approaches which consider the pre-conditions of 'perfect implementation'.
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