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Improving Performance Information

CONTENTS

1. Introduction

Aim of Strategy

A framework for performance information

Introduction

Background

1               The Performance and Innovation Unit report, “Wiring it up” [1] , recommended developing a national strategy for performance information.  A number of recent studies have also underlined the case for government work in this area:

(a)           The PIU report on analysis and modelling, “Adding it Up”, suggests that better central analysis would be facilitated by well-specified information;

(b)          The Public Services Productivity Panel have highlighted the need for good performance information to support good performance management in a number of their reports;

(c)           The Performance and Innovation Unit (PIU) report “Reaching Out: the Role of Central Government at Regional and Local Level”, suggests that there are significant problems for providers of area-based initiatives, with different, sometimes overlapping information requirements from different departments and organisations;

(d)          The Social Exclusion Unit’s Policy Action Team 18 report Better Information points out that although much information exists on social deprivation it is not possible to use much of it to analyse the problem by neighbourhood because it was not collected in a consistent form, was not collected at all, or was not being shared between organisations;  and

(e)           The Cabinet Office’s Measurement and Performance Project (MAPP) has looked at whether performance measures act as barriers or incentives for multi-agency working and identified a number of areas which need addressing [2] .

2               The purpose of this report is to outline the key components of the government’s strategy to improve performance information. 

3               The paper outlines a number of initiatives – including both new initiatives and existing work - that are helping the public sector to improve the way that it manages and utilises performance information.

4               This strategy outlines a medium term plan for assisting practitioners in the design and review of performance information systems.  It should allow the public sector to share lessons and apply best practice models.

5               The first initiative launched under this strategy is a guide to performance information:  ‘Choosing the Right Fabric:  A Framework for Performance Information’ – it outlines the key terms and concepts commonly used in the field of non-financial performance information.  The guide and this strategy paper build on the expertise and guidance available from the Audit Commission, Office for National Statistics, Treasury, the National Audit Office, and the Cabinet Office.

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Aim of the Strategy

6               The government’s broad strategic goals for performance information are:

• to ensure that systems and processes are in place to produce reliable performance information, particularly for key performance measures;
  
  
• to ensure that national priorities are matched by appropriate performance measures at operational level;
  
  
• to improve the quality of performance measurement, including target-setting, in public services;
  
  
• to ensure that performance management initiatives are integrated nationally and locally where this makes sense, including across organisational boundaries, to help joined-up working;
  
  
• where relevant, to standardise the definitions used in measures collected across public services, where this will help research and joined-up working;  and
  
  
• to make sure that the costs of producing performance information are justified by the benefits, including both monetary and non-monetary costs and benefits;

8               The work outlined in this paper will contribute towards a future where world class performance information practices in the public sector emerge from:

• increased breadth and depth of expertise in performance measurement across the public service;
  
  
• a strong commitment from staff and other stakeholders to use and develop  performance measures in support of management and policy development;
  
  
• full integration of performance information into business planning, management and review processes; and
  
  
• high levels of integrity and trust in the performance information produced by government organisations.

9               This strategy sets out some first steps in improving performance information – and some forums in which further work can be carried out.  But as the public service builds up its expertise in performance information it will want to re-assess the work that is going on, and start new areas of work.  The Treasury and Cabinet Office will periodically review the work that is in progress, setting new priorities where they are needed.

10           Comments on the strategy and priorities you would see for further work are welcome.  Comments can be sent to:

Stephen Balchin
HM Treasury
1 Parliament Street
London
SW1P 3A

Or by e-mail to:  stephen.balchin@hm-treasury.gsi.gov.uk

11           The government’s strategy to improve performance information is already underway through a range of initiatives.  This paper sets out the main existing initiatives, and also proposes some additional work.  Initiatives have been grouped into those that:

• set frameworks within government, encouraging the use of performance information;  and
  
  
• develop best practice and provide help and advice to people setting performance measures.

The section first sets out an overview of initiatives and then describes new initiatives in more detail.

Frameworks in government to encourage use of performance information

12           There are a number of existing initiatives that provide frameworks for high level performance information:  these improve transparency and consistency, and provide a check on the quality of performance information.  The main initiatives are set out below:

Developing Best Practice and providing help

13           A number of developments are already providing help on performance information:

New Initiatives

This strategy sets out a number of additional initiatives which aim to bring together existing work, and develop and spread best practice.  They are:

·        a guide to performance information:  Choosing the Right Fabric: A Framework For Performance Information;

·        the Audit Commission Centre for Performance Measurement;

·        the National Audit Office Directorate of Performance Measurement;

·        a Performance Information Panel bringing together experts working on performance measurement. 

·        Improved training on performance information;  and

·        piloting a performance information web site or gateway.

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2.1 A framework for performance information

14           Practitioners have access to a wide range of guidance material on how to approach performance information. The diversity of models and different approaches to performance information can make the simple ideas behind performance information inaccessible.  

15           ‘Choosing the Right Fabric’ aims to provide the public sector with a synthesis of the key concepts and ideas behind good performance information practices. The guide has been produced jointly by the Treasury, Cabinet Office, National Audit Office, Audit Commission, and Office for National Statistics with contributions from other departments, local government and academics and consultants in the field.

16           The key components of the performance information strategy and guide have been captured in a short checklist.  The checklist will provide a “Quick Guide” to the key questions that should be asked when designing and reviewing a performance information system.


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2.2     Developing performance measurement

17             There are several related initiatives to provide support for public sector bodies in developing their performance measurement systems.  The aim of these initiatives is to promote coherent development of performance measurement across the public sector, drawing on relevant expertise on particular issues and facilitating the networking of good practices. The main groups involved are:

• The National Audit Office, which has created a Directorate of Performance Measurement to co-ordinate work on performance measurement that features in financial audits, reviews of central government bodies’ governance arrangements and in value for money studies.  The Directorate makes sure that the advice and support given to Departments in the course of audit business reflects this breadth of experience.  And the Directorate frames value for money studies to afford Parliament a view of progress in measuring performance, while aiming to establish and promulgate good practices.  The Directorate can help central government Departments, Agencies and NDPBs with the development of sound and cost-effective performance measures and measurement systems.
  
  
• The Audit Commission’s Centre for Performance Measurement is a focus for learning through action, bringing together managers in local government and the NHS, and developing strong networking links with academia, public and private sector organisations tackling similar issues.  Staff from organisations who wish to explore performance measurement issues can be seconded to the Centre - to research particular issues or to build personal expertise.  The Centre is well placed to deal with queries or research proposals from local bodies, or from others across the public sector who have interests in performance measurement of the local delivery of services.
  
  
• The Office for National Statistics has a central unit which can provide advice on methods, and on quality assurance for statistical systems through central government.  The unit maintains links with the academic community, and can advise on how data systems can be put on a methodologically sound basis.
  
  
• These and other sources of expertise will be brought together by the Treasury in a Performance Information Panel.  The Panel will be made up of experts from around government, including the Cabinet Office, the Office for National Statistics and the Treasury, together with representatives from the National Audit Office and Audit Commission.  The organisations included on the Panel have experience of providing advice on the technical quality of Public Service and Service Delivery Agreements, and commenting on the development of guidance for Spending Reviews.  Where there is demand the Panel will look to provide advice in other areas involving the application of information systems and measures.  It will also try to summarise lessons learned on specific aspects of performance information in publications.  The secretariat to the Panel will act as a central contact point for requests for advice which can be directed to the experts most able to help.

18    The Treasury and Cabinet Office will continually review the services provided, in light of demand.

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2.3     Training Programmes

19           There is considerable scope for developing expertise in performance measurement in central government and the public sector as a whole and to make better use of existing experts such as statisticians, accountants, economists and social researchers.

20           Many public sector organisations already run their own specialist training courses but it may be desirable to establish some consistency with the work being undertaken, and to promote a full appreciation of the factors that contribute to effective use of performance measures in policy-making and service-delivery. Performance information also plays a key role in effective improved business planning – part of the Modernising Government agenda.

21           The Cabinet Office is examining the scope and demand for providing training or information to ministers and senior civil servants in order to meet the need for a coherent and informed overview of performance measures. This may be in the form either of new provision, or by reviewing existing provision of training on business planning and performance accountability.


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2.4     Public Sector Performance Information website

22           A demand has been identified [3] for easy access to guidance on performance measurement and to the wide array of databases of performance measures in place or being developed.  A central website with appropriate and up-to-date links presents the most realistic access tool; it could bring together collective knowledge and experience in performance measurement through a central gateway with potential for developing discussion groups, or similar devises as demand dictates.


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3      Conclusion

23           The framework paper and initiatives outlined in this strategy set out the overall direction for performance information in the future.  While the papers establish something of a roadmap, further detailed work will be required to support each of the initiatives. 

24           The following table sets out the main initiatives which contribute to each of the goals set out in the introduction to this document:

25           This strategy must be a living document which will develop and be shaped by the comments we receive and new priorities that emerge.  The practice of performance measurement will need to adapt and keep pace with developments in other areas of the public sector.  Advances in information technology and initiatives in areas such as business planning and performance management will also influence the further evolution of performance information.  This strategy has been designed to provide the mechanisms to take advantage of those developments, while promoting coherent improvement in the business of government as a whole.  Better performance information is not an end it its own right, but it is a means to better performance and accountability.