1. The UK performance management framework
Kit Charnaud, Prime Minister’s Delivery Unit
United Kingdom
Tuesday, 28 October 2008

2. Context 40% GDP spent on government services
Real terms increases in public spending of 4.1% (05/06), 2.7% (06/07), 2.8% (07/08);
Key principles of the strategy for public services
embed value for money across the public sector,
focus on key cross-government priorities,
respond to the needs of users
PMDU role: small unit within Treasury, jointly accountable to Prime Minister and Chancellor

3. History - Key features of what was introduced in CSR 1998
Features of the 1998 Comprehensive Spending Review:
Three-year spending plans
Separate capital and current budgets
Resource accounting and budgeting
Introduction of Public Service Agreements (PSAs)
Strengths of UK approach to performance management:
public statement about the Government’s priorities;
created an outcome-oriented system,
sharpened the Government’s accountability to the electorate and to Parliament
No mechanistic link between performance and resource allocation in Spending Review

4. Comprehensive Spending Review Comprehensive Spending Review (1998)
Evolution of the PSA framework
A reformed framework:
Cross-govt PSAs with published delivery agreements
Objectives for all departments.
Emphasis on devolution and user engagement
Comprehensive Spending Review
CSR07
30 PSAs
110 targets
Increased consultation, Introduction of standards focus on outcomes
Spending Review 2004
SR04
130 targets
Greater continuity, architecture refined
Spending Review 2002
SR02
Spending Review 2000
SR00
160 targets
Significant changes to CSR model
Comprehensive Spending Review (1998)
CSR 98
600 targets
First set of PSAs published

5. CSR07 PSA set A more secure, fair and environmentally
28. Secure a healthy natural environment for today and the future
26. Reduce the risk to the UK and its interests overseas from international terrorism
16. Increase the proportion of socially excluded adults in settled accommodation and employment, education or training
25. Reduce the harm caused by alcohol and drugs
15. Address the disadvantage that individuals experience because of their gender, race, disability, age, sexual orientation, religion or belief
30. Reduce the impact of conflict through enhanced UK and international efforts
24. Deliver a more effective, transparent and responsive Criminal Justice System for victims and the public
14. Increase the number of children and young people on the path to success
7. Improve the economic performance of all English regions and reduce the gap in economic growth rates between regions
A more secure, fair and environmentally
sustainable world
Stronger communities and a better quality of life
Fairness and opportunity for all
Sustainable growth and prosperity
17. Tackle poverty and promote greater independence and wellbeing in later life
29. Reduce poverty in poorer countries through quicker progress towards the Millennium Development Goals
23. Make communities safer
13. Improve children and young people’s safety
6. Deliver the conditions for business success in the UK
22. Deliver a successful Olympic Games and Paralympic Games with a sustainable legacy and get more children and young people taking part in high quality PE and sport
12. Improve the health and wellbeing of children and young people
5. Deliver reliable and efficient transport networks that support economic growth
21. Build more cohesive, empowered and active communities
11. Narrow the gap in educational achievement between children from low income and disadvantaged backgrounds and their peers
4. Promote world class science and innovation in the UK
20. Improve long term housing supply and affordability
10. Raise the educational achievement of all children and young people
3. Ensure controlled, fair migration that protects the public and contributes to economic growth
19. Ensure better care for all
9. Halve the number of children in poverty by , on the way to eradicating child poverty by 2020
2. Improve the skills of the population, on the way to ensuring a world-class skills base by 2020
27. Lead the global effort to avoid dangerous climate change
18. Promote better health and well-being for all
8. Maximise employment opportunity for all
1.Raise the productivity of the UK economy
CSR07 PSA set

6. Sustainable growth and prosperity Fairness and opportunity for all
Stronger communities and a better quality of life
A more secure, fair and environmentally
sustainable world
1.Raise the productivity of the UK economy
8. Maximise employment opportunity for all
18. Promote better health and well-being for all
27. Lead the global effort to avoid dangerous climate change
2. Improve the skills of the population, on the way to ensuring a world-class skills base by 2020
9. Halve the number of children in poverty by , on the way to eradicating child poverty by 2020
19. Ensure better care for all
3. Ensure controlled, fair migration that protects the public and contributes to economic growth
10. Raise the educational achievement of all children and young people
20. Improve long term housing supply and affordability
28. Secure a healthy natural environment for today and the future
4. Promote world class science and innovation in the UK
11. Narrow the gap in educational achievement between children from low income and disadvantaged backgrounds and their peers
21. Build more cohesive, empowered and active communities
5. Deliver reliable and efficient transport networks that support economic growth
12. Improve the health and wellbeing of children and young people
22. Deliver a successful Olympic Games and Paralympic Games with a sustainable legacy and get more children and young people taking part in high quality PE and sport
29. Reduce poverty in poorer countries through quicker progress towards the Millennium Development Goals
6. Deliver the conditions for business success in the UK
13. Improve children and young people’s safety
23. Make communities safer
7. Improve the economic performance of all English regions and reduce the gap in economic growth rates between regions
14. Increase the number of children and young people on the path to success
24. Deliver a more effective, transparent and responsive Criminal Justice System for victims and the public
30. Reduce the impact of conflict through enhanced UK and international efforts
15. Address the disadvantage that individuals experience because of their gender, race, disability, age, sexual orientation, religion or belief
25. Reduce the harm caused by alcohol and drugs
16. Increase the proportion of socially excluded adults in settled accommodation and employment, education or training
26. Reduce the risk to the UK and its interests overseas from international terrorism
17. Tackle poverty and promote greater independence and wellbeing in later life

7. Cross-cutting nature of PSA targets PSA 20: Improve long term housing supply and affordability – 8 Departments
Indicator 1: Number of net additional homes provided. TARGET
Indicator 2: Trends in affordability: This will be measured using the ratio of lower quartile house prices to lower quartile earnings
Indicator 3: Number of affordable homes delivered (gross). TARGET
Indicator 4: Number of households in temporary accommodation. TARGET
Indicator 5: Average Energy Efficiency Rating for new homes.
Indicator 6: Local planning authorities to have adopted the necessary Development Plan Documents, in accordance with their Local Development Schemes, to bring forward developable land for housing. TARGET

8. CSR07: key features of reform
National, outcome-focussed indicators underpin all PSAs
Collaboratively developed Delivery Agreement for each PSA
Accountability within Whitehall strengthened
Embed genuine user engagement in design, delivery and governance across key public services.
Reduced bureaucracy and unnecessary data burdens

9. Accountability structures that drive delivery
Published set of 30 PSAs, that set out what they aim to achieve and how they are going to do it, and are supported by a clear accountability structure.
Accountability is key and rests with both politicians and officials:
Prime Minister, Chancellor, Cabinet
Named Secretaries of State
Senior Responsible Officer for each PSA
A Delivery Board, comprising senior officials from contributing departments and chaired by the Senior Responsible Officer
A single responsible Cabinet Committee for each PSA
Permanent secretaries
Transparency and accountability to public

10. Measures and levers drive delivery
Hard levers of influence
No formal or legal sanctions for ministers or departments
Some PSAs have national targets in their Delivery Agreement
Inspections – performance against national target e.g. Ofsted in education
Accountability structures
Contracts – train companies can be fined for delays
Financial – sometimes extra funding or closure of frontline services
Earned Autonomy for the frontline e.g. NHS Foundation Trusts
Performance management – individual performance reporting mechanisms
Reputational motivations – Departmental performance reporting and performance tables
Direct accountability
E.g. Skills PSA - Indicator 2. 6 Higher education initial participation rate
Target: Increase participation in Higher Education towards 50 per cent of those aged 18 to 30 with growth of at least a percentage point every two years to the academic year 2010/11.
Contractual / regulatory
Common purpose
Wider community
Soft levers of influence

11. PSAs have worked best when…
Focus on priorities across delivery chain
Understand the delivery chain
Are ambitious
Based on systematic delivery planning
Have defined indicators and targets
Have timely, high quality information
Recognise targets are not the only tools to improve performance
Vision for the future…
Citizen empowerment
New professionalism for the frontline
Strategic leadership from the centre