Result Oriented Task Management

Joonghoon PARK (KIPA)

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 CONTENTS

1. Backgrounds of Government Innovation

2. Understanding Performance
3. Performance Measures and Information
4. Performance Management
5. Setting Up Performance Plan
6. Ways of Developing Performance Measures /
Indicators

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 1. Backgrounds of
Government Innovation

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 Backgrounds of Government Innovation

Characteristics of the Public Sector

• No/rare solid performance measures/indicators (e.g. sales, market share, profit, stock, debt)
• No relation between revenues and sales
• Difficult to secure responsibility because of no performance information
• Under these circumstances, the public sector has difficulties in maintaining efficiency and
effectiveness
• 1980-90s: economic difficulties (demand>supply of resources)

Management Approach in the Past

• Control on resource allocation
• Management based on work plan
• Audit oriented monitoring
• Very limited concern on final effects/impact

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 Paradigm Shift in the Public Sector

Citizen/customer oriented management rather than what

Supplier oriented
government wants, focus on citizen/customer needs/expect
management Identify the administrative needs from the citizen/customer

Input/process Performance/result oriented management rather than

resources/process, focus on effects achieved by
oriented government/project approach by performance plan and
management evaluation

Government Market oriented management rather than government’s

oriented will/power, utilize market system of utilizing
management incentives/competition to stimulate activities

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2. Understanding Performance

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 Work Process

Process/
Inputs Outputs Outcomes
Throughput
Effect/impact
Produced work
Personnel budget Activities goal
results
achievement

(Example: Policy on Unemployment)

Input Process/Activity Output Outcome

•Budget •Registration, •Number of payment •Number of

•Personnel examination, receiver employment

•Organization payment, etc. •Number of work •Unemployment rates

•Set up programs for participants •Living conditions of
work •Number of trainees unemployed
•Set up/provide •Number of
training counselling cases
•Counselling for
employment

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 Work Process

Process/
Inputs Outputs Outcomes
Throughput
Effect/impact
Produced work
Personnel budget Activities goal
results
achievement

(Example: Industry Park)

Input Process/Activity Output Outcome

• Budget/land • Inducing company • Number of • % of

• Personnel • Set up incentive companies/emplo employment
system yment
• Organization • % of national
• Manage industry • Occupancy of industry
park park
• National
• Provide assistance • Product of park development/
to companies GDP
• Production/sal
es of park

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 Performance Concept

● Performance is something achieved during a certain time period, on

certain functional areas by intended activities
● Performance = efficiency + effectiveness
● Efficiency (quantity dimension) ⇒ how well the resources are spent
- workload or output scale ⇒ Standardization : output/input
- output per unit resources, resources consumed per output
● Effectiveness (quality dimension) ⇒ the degree of the intended
purposes (goals) are achieved
- magnitude of outcome, quality of output or services
● Mostly performance level is measured by the magnitude of input,
workload, output, outcome
⇒ But mostly performance originally desired or intended is outcome
⇒ So, result oriented performance is outcome oriented/focused

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3. Performance Measures and Information

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 Why Performance Measures and Information

Make rational decision making

• Rational policymaking & resource appropriation

• For all levels of hierarchy: president, minister, bureau chief, director, etc.

Securing accountability

• To the general people/customers; the parliament; the executives

Better performance through feedback

• Through better resource distribution/allocation

• Through better management and planning
• Through adjusting policies and implementation

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4. Performance Management

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 Factors of Performance Management

What is performance management?

• Performance management means that “managing certain institution/activities

based on performance, effect, and results”
• In other words, it means goal-oriented management
• All activities are guided by where we are heading, what we are going to
accomplish
• All activities are evaluated by results, effects, and performances

 Before performance management: activity plan oriented management

(what we are going to do)

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 Factors of Performance Management

Factors of performance management

• Setting up performance plan
• Activities/implementation of performance plan to achieve the goals
• Performance measure/evaluation, especially result-oriented performance
• Share & open the performance information
• Feedback of the performance information
• Devolve managerial authority

Factors of performance plan

• Setting up mission
• Setting up goals: strategic and performance goals
• Setting up performance measures and ways of measuring
• Setting up activity plan

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 Performance Management System in Korea

Self-evaluation Special Evaluation

Evaluation by each institution Evaluation by PMO

• Policy projects • National policy

• Budget projects agenda/projects
• Administrative management • Administration reform
 Organization • Citizen satisfaction
management • Anti-corruption, etc.
 Personnel management
 Information
management

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 Key Points in Performance Management

● What are the goals/basis in defining performance?

● What are the performance indicators in measuring performance?

● How to measure and collect performance data?

● How to utilize the performance information?

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 Difficulties in Performance Measure

● The complexity of goals and values

● Setting up indicators/measures for outcomes

● Setting up the linkage between certain activities and results

● Sorting out real effects from exogenous variables

● Burdens resulting from performance evaluation and management

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 Korean Experience of Performance Management

Evaluation System Problems/Limitations

Evaluation related program

Diverse/intensive evaluation
system
• Too much evaluations
• Activity oriented evaluation
• Ministries
• Centralized/compulsory
• Public organizations
utilization/feedback
• Local governments
• Control by evaluation rather
• Specialized agenda
than goals, effects,
 Integrity
performance
 Grant
• No/limited concern on
 Personnel management
devolution

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5. Setting Up Performance Plan

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 Setting Up Goals – Performance Plan

Analysis
Goal
Current situation
problems
system Activity
needs mission plan
vision performance
goals Activity plan to
management
do things, how,
when, what etc Evaluation system
Feedback

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 Setting Up Goals – Elements of Goal System

Mission
main function Vision
granted to a the desired future
Strategic
certain state of a certain
institution institution in terms goal
of mission Performance
Highest level
accomplishment goals/effects goal
intended cascaded down
goals of the
strategic goal

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 Setting Up Goals

Types of Goals

● Performance goal : what are you going to accomplish in terms of final effects
● Activity goal : what are you going to do in terms of activities
⇒ declaration of what we are going to accomplish/do vs specific target(level) based on
certain performance indicators

Ways of Defining Goals

● Higher level goals : specified in terms of performance goals (outcome manner)

● Middle or lower level goals : specified in terms of activity goals
(output or workloads)
⇒ any type of goal provides specific direction of activities

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 Performance Indicators/Measures

What are performance indicators/measures?

• Index of indicators of measuring the magnitudes of performance level

• Specified data can be collected, produced and applied for the
measures

Types of performance measures

• Input measures
• Output measures
• Workload measures
• Outcome measures

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 Performance Measures/Indicators

Types of performance measures

• Efficiency measures = Quantitative measures (output, workload, input)

• Effective measures = Qualitative measures (outcome)

Result-oriented performance management

• In doing performance management, use outcome/effect or at least final

output measures

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 6. Ways of Developing
Performance Measures/Indicators

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 Activity or Workload Measures

Measures performance in terms of activity or workload

How to approach to define activity or workload measures

• Describe what kinds of activity do you usually do
• Classify the activities specified
• Specify measures to reflect the magnitudes and quality of classified activities

Examples of workload or activity measures

• Number of registered cases, processed cases
• Patrol mileages for police officers

Target of applying the workload or activity measures

• Best fit for the people or organization, who have no complete control over final work
• Usually best fit for the street level employees and work

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 Output Measures

Measures the final products of activities

How to approach to define output measures

• Define the final products (outputs) produced from activities
• Specify measures to reflect the magnitudes and quality of the outputs
• Efficiency measures can be employed for standardization
(e.g. number of cars produced vs. unit time consumed per a car production)

Examples of output measures

• Number of trainees finished
• Road constructed
• Number of research report published
• Number of cases prosecuted

Target of applying the workload or activity measures

• At the stage of completing a work or product
• Usually appropriate for institutional level
• A certain point of a work completed
• Complement for outcome measures

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 Outcome Measures

Measures the effect, impact of the final products (output)

• The degree of pre-specified goals accomplished
• The quality of service provided
• The status of a problem which is predesigned to be solved

Approaches of defining outcome measures

• What are the goals/results intended to accomplish through a certain project or policy?
• How do you know whether a certain projects or policy is executed properly?
• What are the evidences which can represent the success or failure of a project/policy or activities?
• What kind of changes are expected to be happen in the regional society or citizens?
• What are the possible long term or short term adverse impact?
• What kind of results/impact are expected to the society or citizens when the project or policy is terminated?
• What are the factors which decide the quality of a service? (accessibility, timelines, politeness, appropriateness,
etc.)

Specify measures or indicators which can represent the above mentioned items

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 Outcome Measures

Examples of output measures

• Satisfaction index
• Quality of services
• Number of crimes reported per 1,000 people
• The ratio of employed trainees/trainees completed

Types of outcome measures

• Completion rate of prescribed goals
• Quality of services: accessibility, timeliness, usefulness, politeness, etc.
• The condition of a certain region or citizens
• Survey result on customer satisfaction
• Adverse impact of a project or policy to a certain region or citizen is predesignated to be solved

Target of applying the outcome measures

• Employ at the stage of completing a work or product
• Usually appropriate for institutional or functional level impact
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Points to be Considered in Setting Up Performance Measures

User of the performance information (who needs it)

• President, parliament, citizen: institutional level performance

information, mostly outcome information.
• Head of institution or department: department or personal level
performance information, mostly output or workload information

Both top-down and bottom-up approach

• Top-down for those who use performance information

• Bottom-up for those who are evaluate

Side or unintended effects of applying performance measures:

distortion of activities
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 Practice Learning

Examine current agency plan with performance perspective

• Is it easy to figure out what is the agency going to accomplish?

• Does the plan provide specific goals, targets, performance measures?

Discuss the advantages and difficulties of performance management

• Advantages/benefits
• Difficulties/limitations

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 Practice Learning

Describe the Missions/Major Functions

(Why does your agency exist/established)

• Agency missions and functions

• Highest level organizational chart and the missions/functions

Describe the Effects/Impacts Expected

(What is your agency going to change/produce)

• Goals/effects expected by agency level

• Goals/effects expected by bureau/department

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 Practice Learning

Key Performance Indicators for Goals/Effects Accomplished

(How do you know intended effects have achieved)

• Agency key performance indicators and measurement formula

• Bureau/department key performance indicators and measurement formula

Propose Strategic Dimensions/Directions

(How would you accomplish the effects/ what would you do to accomplish
the missions and effects)

• Strategic dimensions/directions for agency

• Strategic dimensions/directions for bureau/department

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Thank You

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