Expanding the scope of performance management: while performance management is often assumed to take place on a departmental or organizational level, it can also occur on a much smaller scale.

• Author: Mucha, Michael J.
• Position: Solutions

Many opportunities exist for taking advantage of a strategic approach that uses evidenced-based decision making. While performance management is often assumed to take place on a departmental or organizational level, it can also occur on a much smaller scale. The Government Finance Officers Association's recently published book, Capital Project Planning and Evaluation: Expanding the Role of the Finance Officer, suggests that finance officers should become more involved with the planning aspects of government to help set goals, determine priorities, and develop accountability and tracking mechanisms to make sure that capital projects deliver on promised results--but this concept applies to many things other than capital projects, including new services, initiatives, or programs.

Performance management on this level also goes beyond just the finance office--managers and employees throughout the organization can benefit from establishing clear goals and setting up performance measures to track and focus on results. Following the performance-based process described below will allow for a more effective use of resources, a greater focus on results, and more accountability and transparency for key stakeholders.

1) Define the purpose of the project

2) Define key indicators of success

3) Use the goals as a roadmap during the project

4) Communicate results

5) Review data to learn and improve

DEFINE THE PURPOSE

Not all projects define specific goals and key indicators that target improvements in service levels, business process efficiencies, or cost reductions. When planning projects, however, the outcomes are just as important as the cost and time involved--inputs such as cost and time only provide a portion of the story. Really understanding a project, and the justification for the project, at the level required by elected officials and other decision makers requires project goals that explain both inputs and expected results. Understanding the purpose of the project and defining its goals maintains a focus on the real reason why time and money are being invested, as well as setting expectations that allow for an objective measure of success.

DEFINE KEY INDICATORS OF SUCCESS

When an organization makes investments in infrastructure, facilities, equipment, technology, etc., a return is expected in the form of improved service levels, new services being made available, improved efficiencies, or other cost savings. Identify these expectations upfront...