Presentation on theme: "1 Department of the Premier and Cabinet Performance Management Framework Reference Guide Better Practice Guideline for Improving service areas, service."— Presentation transcript:
1 Department of the Premier and Cabinet Performance Management Framework Reference Guide Better Practice Guideline for Improving service areas, service standards and targets reported in the State Budget Performance Unit, Department of the Premier and Cabinet in collaboration with Queensland Treasury and Trade August 2012 NOT GOVERNMENT POLICY
2 Department of the Premier and Cabinet PURPOSE Annual review of service areas, service standards and targets Provide more relevant and appropriate performance information Improve alignment between whole-of-Government direction and agency service delivery Decrease the reporting burden Address issues and risks identified by the Auditor-General
3 Department of the Premier and Cabinet VALUE CHAIN FOR THE QUEENSLAND PUBLIC SECTOR Public sector agencies should deliver services that are valued by clients and other stakeholders Performance Management Governance VALUECHAINVALUECHAIN Client, stakeholder and community expectations and opinions Services create value for clients, stakeholders and the community influencing trust and confidence Agency service delivery Agency business direction Whole of government direction Governance Strategic plan articulates purpose, vision and objectives of agency Performance indicators measure whether outcomes achieve agency objectives Performance reported in annual report Governance Services delivered using the agency’s capabilities (e.g. human, financial, information, physical assets and ICT) and business processes Performance measured using service standards and other measures Performance reported in annual report and Service Delivery Statements Objectives for the community – Getting Queensland Back on Track (pledges) WoG priorities and strategies informed by political and cross jurisdictional commitments Performance reported in WoG reports Governance
4 Department of the Premier and Cabinet The Service Delivery Statements play an integral part of the policy development cycle Improves decision making Useful in evaluating policy decisions and assessing the extent to which service areas are achieving their objectives Improves accountability Useful in examining if government services are being delivered in accordance with the agency business direction SERVICE DELIVERY STATEMENTS (SDS) Performance reported through the Service Delivery Statements… Government should be monitoring its service standards to better understand the outcomes of its policy decisions, identify areas for improvement and develop the best and most appropriate solutions to issues facing Queenslanders. Government should be regularly assessing whether a service is being delivered efficiently and effectively and is being transparent with stakeholders about its performance. … form an integral part of the policy development cycle.
5 Department of the Premier and Cabinet An exemplary service area will have a clear purpose and deliver outputs and outcomes that will help the agency achieve its objectives SERVICE AREAS be aligned to the agency’s objectives Services areas should… be named so it is easy for clients and stakeholders to understand the purpose of the service area from its name clearly state its purpose (objective) and identify its clients and other stakeholders Agencies must develop the following key elements for each service area when a new service structure or a new service area is proposed: the purpose (objective) of the service area (explaining how the service area contributes to the achievement of agency objectives) supporting contextual information for each service area (such as related services and stakeholders and their information needs) a balanced set of service standards and targets. deliver service outputs (i.e. the products and engagements* the service will deliver) * Engagement: Interactions, connections and relationships developed between Government and its stakeholders (including clients).
6 Department of the Premier and Cabinet A successful service standard will measure ‘the right thing’ and ‘measure it right’ Service standards are set with the aim of defining a level of performance that is appropriate for the service and is expected to be achieved. Service standards provide information on whether the government is ‘doing the right things’ through measuring how efficiently and effectively it is delivering its services to its clients and stakeholders. This information also provides evidence that the government is doing the things it said it would do, and ‘doing it right’. However, for this to occur, there is a need to ensure that the government is ‘measuring the right things’ and ‘measuring it right’. Are we measuring the right things? Are we measuring it right? Communicating this information to the community is critical Service standards work best when there is clarity about what is being measured and why. The right things to measure will be ultimately influenced by client and stakeholder expectations, which informs the whole of government direction and the agencies’ business directions. Public sector performance in Queensland has often been measured in terms of what the government has done (e.g. measures of input, process and activity), but better results can be achieved by including service standards measuring the efficiency and effectiveness of its services. SERVICE STANDARDS Service standards work best when there is clarity about what is being measured and why.
7 Department of the Premier and Cabinet To properly measure ‘the right things’, there must be a clear line of sight between the sources of ‘the right things’ and the measures of ‘the right things’ The agency business direction is informed by ‘the right things’. Operational plans describe the services needed to deliver the agency’s objectives. Service standards should measure how well the agency has delivered the services. MEASURING THE RIGHT THINGS Client and stakeholder expectations and consultation Sources of ‘the right things’ Source: Boyle, R. (2009). ‘Performance reporting: Insights from international practice’, IBM Centre for The Business of Government. Whole of government priorities and strategies Ministerial Charter Letters Cross jurisdictional commitments through COAG Benchmarks & industry standards (Results, process or better practices) Measures of ‘the right things’ Relevant to what the agency is aiming to achieve Attributable – capable of being influenced by the agency’s actions Comparable – with either past periods or similar measures elsewhere Well-defined and easy to understand Reliable, credible and able to be measured consistently Measurable – clear and transparent standard of success Timely – performance data can be produced regularly and quickly Achievable – aim for improved standards, but remain attainable Cost-effective in terms of gathering and processing the data Credible – supported by stakeholders, research and/or industry standards
8 Department of the Premier and Cabinet To successfully ‘measure it right’, service standards should be primarily measures of efficiency and effectiveness Service standards should measure both the efficiency of the output and the effectiveness of the outcome. Outcome focused Efficiency: Measures of efficiency reflect how capabilities (inputs/resources) are used to produce outputs, expressed as a ratio of capabilities (inputs/resources) to outputs. Efficiency measures generally assess how well an agency uses its available capabilities (resources) to deliver its outputs. Effectiveness: Measures of effectiveness describe the quantifiable extent of the effect of the service on recipients (i.e. the outcome experienced by them), as a result of the level and quality of the service provided. Standards of effectiveness include “cost” effectiveness (cost to provide the desired outcome) and “service” effectiveness (how well the service achieves its stated purpose [objective]). Input / Output focused Activity: Measures of activity measure the number of service instances, service recipients, or other activities for the service. They demonstrate the volume of work being undertaken. They can often be converted into efficiency measures by combining them with input measures. Process: Measures of process measure throughput, or the means by which the agency delivers the service, rather than the service itself. It demonstrates how the agency delivers services, rather than how effectively services are delivered. Input: Measures of input measure the resources consumed in delivering a service, either as an absolute figure or as a percentage of total resources. Input measures demonstrate what it costs to deliver a service. Quality: Measures of quality measure how well a service is being delivered using specific criteria such as timeliness, client/stakeholder satisfaction, etc MEASURING IT RIGHT
9 Department of the Premier and Cabinet The Report on Government Services (RoGS) ‘service process framework’ demonstrates how efficiency and effectiveness is measured SERVICE PROCESS Service objectives InputProcessOutput Outcomes External influences Service effectiveness Efficiency Cost-effectiveness Service Area Adapted from Steering Committee for the Review of Government Service Provision. Report on Government Services 2012, Productivity Commission, Canberra. (Ch. 1, p. 13)
10 Department of the Premier and Cabinet Setting appropriate targets is equally as important as developing the service standard itself Target checklist: Target does not promote adverse results (e.g. efficiency improves to a level that substantially decreases quality) Target indicates the desired movement of performance (e.g. > x or < x) Target is challenging, but achievable Target is a clear and quantified measure against which the agency can assess performance Target is expressed as an absolute number (i.e. avoid use of words), a range, percentage, or ratio Target is congruent to objectives and targets set in other government publications Target is at or above minimum regulatory standards and benchmarks Service standards that measure regulatory/policy compliance should be reviewed and agency’s should consider removing TARGET SETTING Refer to A Guide to the Queensland Government Performance Management Framework for more information on setting targets.A Guide to the Queensland Government Performance Management Framework
11 Department of the Premier and Cabinet Principles to assist agencies when reviewing service areas, service standards and targets 1. Provide more relevant and appropriate performance information that highlights the efficiency and effectiveness of agency service delivery 2. Increase alignment between the Government’s objectives for the community, strategic plans and agency services 6. Allow for trend analysis 4. Improve consistency across agencies 3. Decrease the reporting burden on agencies 12345 Principles 6 PRINCIPLES 5. Encourage high quality data management
12 Department of the Premier and Cabinet Provide more relevant and appropriate performance information that highlights the efficiency and effectiveness of the agency service delivery 12345 Efficiency and effectiveness 6 Service objectives InputProcessOutput Outcomes External influences Service effectiveness Efficiency Cost-effectiveness Service Area Adapted from Steering Committee for the Review of Government Service Provision. (2010). Report on Government Services 2012, Productivity Commission, Canberra. (Ch. 1, p. 13)
13 Department of the Premier and Cabinet Increase alignment between Government objectives for the community, agency strategic plans and agency services 12345 Clear line of sight 6 Performance Management Governance VALUECHAINVALUECHAIN Client, stakeholder and community expectations and opinions Services create value for clients, stakeholders and the community influencing trust and confidence Agency service delivery Agency business direction Whole of government direction Governance Strategic plan articulates purpose, vision and objectives of agency Performance indicators measure whether outcomes achieve agency objectives Performance reported in annual report Governance Services delivered using the agency’s capabilities (e.g. human, financial, information, physical assets and ICT) and business processes Performance measured using service standards and other measures Performance reported in annual report and Service Delivery Statements Objectives for the community – Getting Queensland Back on Track (pledges) WoG priorities and strategies informed by political and cross jurisdictional commitments Performance reported in WoG reports Governance
14 Department of the Premier and Cabinet Decrease the reporting burden on agencies COAG agreements Existing measures of efficiency or effectiveness already collected and reported by the agency for other purposes… Service standards By increasing alignment with existing measures, the reporting burden will be decreased. Report on Government Services External benchmarks Industry standards 12345 Decrease the reporting burden 6
15 Department of the Premier and Cabinet 12345 Consistency 6 There is a need to improve consistency across agencies in the SDS Inconsistencies Client satisfaction measures Common terms Excessive amount of descriptive text in the service standard Presentation and sub- headings Compliance with ‘regulatory timeframes’ Overly technical and complex language Issues Mitigation strategies Client satisfaction: Encourage agencies to measure clients’ and stakeholders’ satisfaction with the overall service, and the service’s timeliness, ease of access, staff, quality and outcome. Agencies should refer to the Performance Management Framework Reference Guide Measuring Client Satisfaction, published by the Department of the Premier and Cabinet. Presentation and sub-headings: Permitting only one level of sub-headings under each service area (i.e. no sub-sub- headings). Common terms: Ensuring agencies use consistent language (e.g. “people with disabilities”, not “the disabled”). Technical language: Minimising the use of overly complex or technical language that potentially confuses the readers. Excessive text: Encouraging the use of the notes to provide context and understanding for the reader, rather than having overly descriptive service standards. Treasury has agreed to providing additional space for notes. Regulatory timeframes: Service standards that measure the “delivery of XYZ service within regulatory timeframes” are not measures of efficiency and are suggested for deletion or amendment (e.g. into a measure of efficiency).
16 Department of the Premier and Cabinet 1234512345 Data management 6 High quality data management is necessary for improved performance reporting QAO Better Practice Guide: Performance Reviews, July 2010 Elements of relevant and robust performance information: Relevant, appropriate and align with externally reported measures Accurate, reliable and readily-accessible to managers Information is presented clearly with a basis for comparison provided for all data Performance measures are regularly reviewed. ABS Data Quality Framework (No. 1520.0), May 2009 - Seven Dimensions of ‘Quality’: Institutional environment: Collection agencies should build a culture that focuses on quality, and an emphasise on objectivity and professionalism. Consideration of the institutional environment associated with a statistical product is important as it enables an assessment of the surrounding context, which may influence the validity, reliability or appropriateness of the product. Relevance: To be relevant, the collection agency must stay abreast of the information needs of its users. Timeliness: These aspects are important considerations in assessing quality, as lengthy delays between the reference period and data availability, or between advertised and actual release dates, can have implications for the currency or reliability of the data. Accuracy: This is an important component of quality as it relates to how well the data portray reality, which has clear implications for how useful and meaningful the data will be for interpretation or further analysis. Coherence: The use of standard concepts, classifications and target populations promotes coherence, as does the use of common methodology across surveys. Coherence is an important component of quality as it provides an indication of whether the dataset can be usefully compared with other sources to enable data compilation and comparison. Interpretability: The availability of information to help provide insight into the data. Interpretability is an important component of quality as it enables the information to be understood and utilised appropriately. Accessibility: The ease of access to data by users, including the ease with which the existence of information can be ascertained, as well as the suitability of the form or medium through which information can be accessed. Accessibility is a key component of quality as it relates directly to the capacity of users to identify the availability of relevant information, and then to access it in a convenient and suitable manner. A data dictionary is required from every agency and should be modelled on the recommendations made in:
17 Department of the Premier and Cabinet 12345 Trend analysis 6 Consistent reporting of service standards over time enhances transparency and provides a clear assessment of achievements Informs policy analysis, development and evaluation PERFORMANCE TIME
18 Department of the Premier and Cabinet The Auditor-General is expecting significant improvements to government’s performance information so that it highlights value to clients and stakeholders While crediting the government with improvements, the Auditor-General has criticised the low proportion of service standards that are measures of efficiency or effectiveness. The Auditor-General has indicated in previous reports that he expects significant improvements to performance information once the PMF is fully implemented (i.e. September 2011). Report No. 4, 2007 – “Better performance information is needed for the department, the Minister and all stakeholders, including Parliament, for a more informed government” Report No. 1, 2008 – “Failing to answer questions such as Has the agency achieved what it intended to do? Is this better than last year? Is this good enough? Were these activities needed in the first place? Could they have done this for less money?” Report No. 7, 2009 – “A comparatively small number of measures in the agencies’ 2009-10 SDS could be considered measures of efficiency or effectiveness”. CONTINUOUS IMPROVEMENT As a general principle it is suggested that the Service Delivery Statements become a more focused, succinct document reporting on fewer, yet more meaningful targets of performance. Service Delivery and Performance Commission 2007, Report on Strengthening Performance Management in the Queensland Government