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Performance measurement as a tool for modernising government

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Section five: Where next?

In conclusion, it seems probable that the pressures on departments to develop and institute meaningful systems of performance measurement and review will increase.

With a potential general election only eighteen months away, Ministers will become increasingly anxious to meet their headline targets. New targets – and a whole raft of new policy initiatives – are likely to be given prominence in the forthcoming campaign.
The citizen is becoming more consumer aware and more articulate: a trend that was boosted by the Citizen’s Charter initiative, and is set to grow further with the extension of electronic communications, in effect, bringing the citizen closer to government.
The Treasury is demanding year-on-year productivity increases. Demand for many government services (for example health and education) will continue to rise and it is unlikely that increases in the resources available to departments will keep pace.
The drive to achieve better value for money through the outsourcing of services is likely to continue, placing many aspects of government activity in direct competition with the private sector. This trend also reinforces the need for departments to have sound data on the costs of providing a service and the outcomes expected.

These are challenging trends. Performance measurement could have a fundamental role in responding to them. Done well, performance measurement helps managers know what they are achieving, and adjust the focus of their attention on to those things they need to improve. Done well, performance measurement enables politicans to demonstrate the impact of their policies to the public and provides hard evidence for future policy-making. Done poorly, performance measurement feeds cynicism and provides excuses to argue about the system of measurement, rather than which services need to be improved.

It is crucial that government departments make their PSAs more than just a paper exercise – that they use them as an effective tool to secure continuous improvement as part of modernising government. The twelve key questions attached at Annex A will help people at all levels challenge themselves about how effective their own systems of performance measures and targets will be.

We would welcome comments on any aspect of this paper.

  Email Post
Andrew Foster a-foster@audit-commission.gov.uk Audit Commission
Peter Wilkinson p-wilkinson@audit-commission.gov.uk 1 Vincent Square
Anne Pinney a-pinney@audit-commission.gov.uk London SW1P 2PN

0207 828 1212

index page | section 4 | annex

 

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