What is performance management? Governments that report they are practicing performance management aren't necessarily doing as much as they might think. GFOA research has found that in reality, very few governments have adopted a true performance management system.

AuthorMucha, Michael J.
PositionPM2 CONNECTIONS: PERFORMANCE MEASUREMENT & MANAGEMENT

Performance management allows jurisdictions to make better decisions, improve transparency, and be more accountable--in other words, to govern better. It is considered a best practice by nearly everyone, across all levels of government. The federal government has attempted numerous performance management programs within its agencies. Many states have legislative requirements for either performance management or performance budgeting. Professional associations such as the Government Finance Officers Association, International City/ County Management Association, and National League of Cities have identified performance management as a best practice and devoted significant time and resources to its research, and private foundations have contributed significant funds to encourage the use of performance management. Numerous research projects have estimated that approximately 40-60 percent of all governments identify themselves as having implemented an organization-wide performance management effort.

However, governments that report they are practicing performance management aren't necessarily doing as much as they might think. GFOA research has found that in reality, very few governments have adopted a true performance management system. Many organizations have settled for much less and therefore fail to achieve the expected benefits. Even worse, some of these failed implementations have perpetuated the idea that performance management requires significant (wasted) effort, diverts attention from what really matters, and is ultimately just ignored, anyway. At a minimum, there appears to be a misunderstanding about what performance management is, causing a mismatch between expectations and reality.

MEASUREMENT VERSUS MANAGEMENT

Many researchers and practitioners differentiate between performance measurement and performance management. (1)

Performance Measurement. Performance measurement refers to the act of identifying, collecting, and reporting measures, which are used solely as a communication tool for demonstrating effectiveness to external stakeholders. Organizations that take this approach often don't use the measures internally to support decision making or integrate the measures with other key processes such as planning and budgeting. "What gets measured gets done" is a common phrase that is often understood to mean that simply calling attention to problems will make government more effective or yield desired results. While this premise...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT