Recognizing Public Value: The Challenge of Measuring Government Performance

Transcription

1 Recognizing Public Value: The Challenge of Measuring Government Performance Mark H. Moore Institute for Public Administration in Victoria 24 January, 2008

2 Key Issues to Be Addressed Strategic Uses of Performance Measurement (Where Does Measurement fit in Strategic Triangle?) But Really, Why Measure Performance? (Why Should Public Managers Load a Gun that Others Will Use to Shoot Them?) Where Along the Value Chain is it Best to Measure Performance? (Should One Measure Inputs, Processes, Outputs or Outcomes?) Should We Measure Customer Satisfaction as an Important Dimension of Performance? (If so, who is the customer, and what is it they want?)

3 Sources of Inspiration/Guidance From Program Evaluation Focus on Social Results and Outcomes Calculate Social Benefits and Costs From Business Management Focus on the Financial Bottom Line Measure Customer Satisfaction Management by Objectives

4 I. Quick Review of Creating Public Value: Key Concepts The Strategic Triangle Public Value and the Task Environment The Authorizing Environment Operational Capacity and the Value Chain

5 Strategic Triangle Legitimacy & Support Public Value Operational Capabilities

6 Public Value and the Task Environment The Point of All Managerial Activity is to Create Public Value : to Transform Existing Social Conditions in Collectively Desired Directions The Social Conditions Managers seek to Change Can be Viewed as the Task Environment Demonstrations of Public Value Creation Lie in Evidence Showing Changes in Social Conditions Problem: Not Everyone Sees Public Value in the Same Way

7 The Authorizing Environment: A Picture Courts Elected Legislature Chief Elected Executive Political Appointee Staff Offices Interest Groups Public Manager Media Staff Citizens Clients

8 The Authorizing Environment: A (Westminster) Picture Courts Elected Legislature Interest Groups Media Citizens Prime Minister/Premier Minister Dept Head Public Manager Staff Clients Central Agencies

9 The Value Chain Inputs Organization Activities Processes Procedures Programs Outputs Partners and Co-Producers C L I E N T S A T I S F A C T I O N O U T C O M E S

10 II. Strategic Uses of Performance Measurement Meet Demands for External Accountability Establish Clear, Significant Mission and Goals Foster a Strong Sense of Internal Accountability Learn to Improve Performance

11 Strategic Triangle Legitimacy & Support Public Value Operational Capabilities

12 Strategic Uses of Performance Measurement Meet Demands for External Accountability (Mobilize Support from Authorizing Environment) Establish Clear, Significant Mission and Goals (Develop Measures to Accurately Recognize Public Value) Foster a Strong Sense of Internal Accountability (Focus and Drive Operational Capacity) Learn to Improve Performance (Build Operational Capacity through Reflective Practice

13 III. But Really, Why Measure Performance? Why Put a Gun in the Hands of Those Who Want to and Will Shoot You?

14 Why Measure Performance? They Can Make Us If They Want To! (Why Not Negotiate in Advance?)

15 Why Measure Performance? They Can Make Us If They Want To! (Why Not Negotiate in Advance?) It s the Right Thing to Do! (Its Part of the Office of Public Manager)

16 Why Measure Performance? They Can Make Us If They Want To! (Why Not Negotiate in Advance?) It s the Right Thing to Do! (Its Part of the Office of Public Manager) It s Impossible to Manage Without Embracing External Accountability!

17 IV. Where Along Value Chain Should We Measure?

18 The Value Chain Inputs Organization Activities Processes Procedures Programs Outputs Partners and Co-Producers C L I E N T S A T I S F A C T I O N O U T C O M E S

19 Measuring Outcomes versus Processes and Outputs Why Measure Outcomes? Direct Measure of Value Find Out What Works Test Value Proposition

20 Measuring Outcomes versus Processes and Outputs Why Measure Outcomes? Direct Measure of Value Find Out What Works Test Value Proposition Why Not Outcomes? Expensive to Measure Information Comes in Late Hard to Attribute to Mgrs Often Interested in Features of Process as Well As Results

21 Measuring Outcomes versus Processes and Outputs Why Measure Outputs? Cheap and Easy to Do Easy to Attribute to Mgrs Can Calculate Productivity Focuses Mgr. s Attention Ensure Consistency Use Best Practices Why Measure Outcomes? Direct Measure of Value Find Out What Works Test Value Proposition Why Not Outcomes? Expensive to Measure Information Comes in Late Hard to Attribute to Mgrs Often Interested in Features of Process as Well As Results

22 Measuring Outcomes versus Processes and Outputs Why Measure Outputs? Cheap and Easy to Do Easy to Attribute to Mgrs Can Calculate Productivity Focuses Mgr. s Attention Ensure Consistency Use Best Practices Why Not Outputs? Don t Measure Value Why Measure Outcomes? Direct Measure of Value Find Out What Works Test Value Proposition Why Not Outcomes? Expensive to Measure Information Comes in Late Hard to Attribute to Mgrs Often Interested in Features of Process as Well As Results

23 Conclusion: Measure Both! Create a Data-Rich Environment in Which Discussions of Performance Can be Fact-Based

24 V.Should We Measure Customer Satisfaction? If So,Who is the Customer, and What is it That They Want?

25 Characteristics of Customers in the Private Sector Transact with Organization as Individuals at the Business End of the Organization in Individual Transactions Financially Support the Organization by Voluntarily Purchasing Goods and Services Decisions to Purchase Provide the Moral and Social Justification for the Enterprise

26 Possible Customers in the Public Sector Clients (Transact at Delivery End) Beneficiaries Obligatees (Indirect or Remote Beneficiaries) Overseers/Authorizers (Interact at Reporting End) Elected Representatives Interest Groups Media Taxpayers Citizen

27 Comparing Customers in the Private Sector to Clients in the Public Sector Private Customers Meet Org. in Individual Encounters Pay Full Price for Service/Keep Enterprise Alive with Voluntary Payments Customer Satisfaction is Important Normative Goal Public Clients Meet Org. in Individual Encounters Don t Pay Full Price for Services Get Obligations as Well as Services Satisfaction an Important Normative Goal?

28 Comparing Customers in Private Sector with Authorizers in Public Sector Private Customers Meet Organization at Delivery End Pay Full Price for Service/Keep Enterprise Alive with Choices to Spend Money Customer Satisfaction Important Normative Goal Public Authorizers Meet Organization at Reporting End Provide Resources to Organization (Both Money and Liberty) Satisfying Their Public Policy Aspirations is Important Normative Goal in a Democracy

29 Reasons Why Client Satisfaction Could be an Important Goal of Public Enterprises Clients Had Rights that Were to Be Protected in Delivery of Services and Obligations Authorizers Declared an Important Goal of Public Program Was to Make Clients Happy, or Treat with Dignity Making Clients Happy Helped to Achieve the Socially Mandated Results

30 Two Observations About Outcomes, Client Satisfaction and the Production of Public Value Observation #1: If Outcomes are the Ultimate Goal, then Clients Become Means to the Achievement of that Goal, and Their Conduct Part of the Production Process Observation #2: When Government Organizations are Delivering Obligations, and the Goals of Delivering the Obligation Include the Desire to Have the Client Comply, then Client/ Obligatees Become Parts of the Production Process

31 Conclusion on Customers and Customer Satisfaction Both Service Encounters and Obligation Encounters in the Public Sector Should be Designed not only to Protect Rights and Assure Client Satisfaction, but Also to Produce Those Changes in Client Behavior That are Needed to Achieve Desired Outcomes. That is Necessarily Implied by the Idea that We have Socially Desired Outcomes at all.

32 Authorizers as Customers Provide Resources to Keep Enterprise Alive Both Money and Authority What Do They Want In Exchange?

33 What Authorizers Want Social Outcomes Social Outcomes at Low Cost in Money and Authority Social Outcomes that Include Satisfaction of Clients ****************************************** Specific Things that Make Them Better Off Specific Dimensions of Performance that They Particularly Value

34 Problems Created by Authorizer Demands Incoherent Inconsistent Fickle Unreasonable

35 A Modest Proposal Suppose We Gave Them What they Want? Suppose We Provided Each Constituency or Stakeholder or Authorizer with a Report that Speaks to Their Concerns? Are We Sure That We Face Tradeoffs in Meeting These Demands? Perhaps Most Important Thing to Know is Whether We Are Improving; Not Whether We Have Found Optimal Solution

36 VI. Conclusion Performance Measurement Has A Central Role in Effective, Value Creating Strategic Management

37 Strategic Uses of Performance Measurement Meet Demands for External Accountability (Mobilize Support from Authorizing Environment) Establish Clear, Significant Mission and Goals (Develop Measures to Accurately Recognize Public Value) Foster a Strong Sense of Internal Accountability (Focus and Drive Operational Capacity) Learn to Improve Performance (Build Operational Capacity through Reflective Practice

38 Doing the Work Both Ethical/Normative and Scientific/Positivist Issues Political, Administrative and Technical Tasks Inevitably Exposes Managers to Unresolved Conflict Potential of Failure The Problem Managers Cannot Meet Their Responsibilities and Achieve Their Goals without Doing the Demanding Work Required to Wield This Powerful Instrument