Managing and Delivering Performance : How Government, Public Sector and Not-for-profit Organisations Can Measure and Manage What Really Matters

Performance management is at the top of agendas in most government and public organizations, as well as many not-for-profit organizations. In this follow up to his successful book, Strategic Performance Management, the author focuses on the unique challenges public sector organizations face when tackling the issues of strategic performance management. Drawing on his extensive experience of working with numerous government, public sector, and not-for-profit organizations over the author covers:* The context of decision making in the public sector* The significance of the use of budgeting for performance management, and the impact of performance measurements on budgets* A huge range of underpinning cases and examples from the public sector, including cases on the Home Office and the NHS in the UK, and the US Air ForceFor senior executives in the public sector and government, and for faculty and students in the field this is the authoritative strategic level treatment of this fast-growing area. * Based on the author's groundbreaking and already successful Strategic Performance Management title (BH, 2006)- Marr is now one of the leading thinkers in this field internationally* The first rigorous focused analysis for senior public sector management of how to succeed in measurement and management strategies in the light of government scrutiny* Demonstrates public sector 'best practice' and is packed with relevant public sector examples and cases from the UK, Europe, Asia and the US* Demonstrates the clear and growing trend for increasing public sector performace management not just in the UK but in countries such as Canada, Germany, Netherlands, etc. Managing and Delivering Performance 4 Copyright Page 5 Contents 8 About the Author 10 Preface 12 Introduction – Managing and Delivering Performance 14 Part I – Identifying and Agreeing What Matters 24 Chapter 1 Clarifying Purpose, Goals and Values 32 CORE PURPOSE AND MISSION STATEMENTS 33 VISIONARY GOALS AND VISION STATEMENTS 34 CORE VALUES AND VALUE STATEMENTS 35 WHY DO PURPOSE, GOALS AND VALUES MATTER? 38 SUMMARY 39 REFERENCES AND ENDNOTES 40 Chapter 2 Understanding your Outcomes, Outputs and Value Proposition 42 IDENTIFYING KEY STAKEHOLDERS 44 ASSESSING YOUR SECTOR AND ITS COMPETITIVE LANDSCAPE 47 ASSESSING THE ENVIRONMENTAL FORCES 49 A LOOK INTO THE FUTURE 51 CLARIFYING THE STAKEHOLDER VALUE PROPOSITION 53 SUMMARY 56 REFERENCES AND ENDNOTES 57 Chapter 3 Understanding Inputs, Competencies and Resources 58 YOUR ORGANIZATIONAL RESOURCES 59 THE IMPORTANCE OF INTANGIBLE RESOURCES 60 WHAT ARE INTANGIBLE RESOURCES? 61 HUMAN RESOURCES: SKILLS, KNOWLEDGE AND STAFF ENGAGEMENT 62 RELATIONAL RESOURCES: PARTNERSHIPS, IMAGE AND CORPORATE REPUTATION 62 STRUCTURAL RESOURCES: INFORMATION, CULTURE AND PRACTICES 63 CAPABILITIES AND CORE COMPETENCIES 65 THE DYNAMIC NATURE OF RESOURCES 67 ASSESSING YOUR STRENGTHS AND WEAKNESSES 68 ASSESSING WHAT RESOURCES YOU POSSESS IN YOUR ORGANIZATION 69 IDENTIFYING THE RELATIVE IMPORTANCE OF KEY RESOURCES 70 ASSESSING THE INTERDEPENDENCIES OF YOUR RESOURCES 73 ASSESSING THE FUTURE OF YOUR RESOURCES 73 SUMMARY 75 REFERENCES AND ENDNOTES 75 Chapter 4 Mapping and Defining your Strategy 80 WHY MAPS AND NARRATIVES? 81 STRATEGIC MAPPING IN ORGANIZATIONS 82 WHAT IS A VALUE CREATION MAP? 85 VALUE CREATION MAP VERSUS STRATEGY MAP 89 HOW TO CONSTRUCT A VALUE CREATION MAP 91 DEFINING THE ELEMENTS ON YOUR MAP 96 WHAT IS A VALUE CREATION NARRATIVE? 96 HOW TO CONSTRUCT A VALUE CREATION NARRATIVE 97 CASCADING VALUE CREATION MAPS 97 VALUE CREATION MAPS AND NARRATIVES IN PRACTICE 100 SUMMARY 115 REFERENCES AND ENDNOTES 116 Chapter 5 Aligning your Organization with Your Strategy 120 ALIGNING ACTIVITIES 120 ALIGNING BUDGETS 123 ALIGNING ORGANIZATIONAL STRUCTURE AND GOVERNANCE 125 ALIGNING THE MANAGEMENT OF RISK 126 ANALYZING RISK 129 COMPLETING A RISK LOG 138 SUMMARY 140 REFERENCES AND ENDNOTES 141 Part II – Collecting the Right Management Information 142 Chapter 6 Measuring Performance 148 UNDERSTANDING WHY WE MEASURE 150 WHAT WE CAN AND CAN’T ‘MEASURE’ 151 IMPLICATIONS FOR THE USAGE OF MEASURES IN OUR ORGANIZATIONS 154 WHY MEASUREMENT FOR CONTROLLING BEHAVIOR ISN’T WORKING ANYMORE 155 WHY WE HAVE TO BE CAREFUL WITH MEASURING FOR EXTERNAL REPORTING AND COMPLIANCE 158 WHY MEASUREMENT FOR LEARNING AND EMPOWERMENT IS THE ONLY WAY FORWARD 163 SO WHAT DO WE MEAN BY PERFORMANCE MEASUREMENT? 164 THE DOS AND DON’TS OF PERFORMANCE ASSESSMENT 166 SUMMARY 169 REFERENCES AND ENDNOTES 170 Chapter 7 Creating Key Performance Questions 174 QUESTIONS HELP US TO LEARN 175 A MORE SYSTEMATIC APPROACH TO DATA COLLECTION 176 HOW QUESTIONS CAN GUIDE US TO THE RIGHT INDICATORS 177 QUESTIONS HELP US TO INTERPRET 179 THE POWER OF QUESTIONS 179 HOW TO CREATE GOOD KPQs 180 SOME PRACTICAL EXAMPLES OF KPQs 185 WHY KPQs CAN BE MORE IMPORTANT THAN KPIs 186 SUMMARY 187 REFERENCES AND ENDNOTES 187 Chapter 8 Designing Performance Indicators 188 WHAT IS A PERFORMANCE INDICATOR? 188 COLLECTING INDICATORS AND ASSESSING PERFORMANCE IS EASIER THAN YOU THINK 189 INDIRECT AND PROXY INDICATORS ARE OKAY 190 PERFORMANCE INDICATOR DECISION FRAMEWORK 191 PERFORMANCE INDICATOR DESIGN TEMPLATE 196 THE BASICS: WHY DO WE NEED THIS INDICATOR? 197 HOW WILL THE DATA BE COLLECTED? 198 WHAT ARE THE TARGETS? 200 HOW GOOD IS THE INDICATOR 202 WHO WILL SEE THE DATA AND HOW WILL THE DATA BE PRESENTED? 203 DECIDING ON THE MEASUREMENT INSTRUMENT 204 TRIANGULATE INDICATORS 207 INDICES 208 EXPERIMENTING WITH INNOVATIVE PERFORMANCE INDICATORS 208 SUMMARY 218 REFERENCES AND ENDNOTES 219 Part III – Learning and Improving Performance 222 Chapter 9 Fostering a Performance-Driven Culture 224 WHAT IS A PERFORMANCE-DRIVEN CULTURE? 225 ORGANIZATIONAL LEARNING AND A PERFORMANCE-DRIVEN CULTURE 226 CREATING A PERFORMANCE-DRIVEN CULTURE 229 EMPHASIZING LEARNING AND IMPROVEMENT IS KEY 229 FOUR ENABLERS OF A PERFORMANCE-DRIVEN CULTURE 231 THE FOUR BUILDING BLOCKS OF A PERFORMANCE-DRIVEN CULTURE 233 PROVIDE PERFORMANCE-DRIVEN LEADERSHIP 234 REWARD AND RECOGNIZE PERFORMANCE 235 REPORT AND COMMUNICATE PERFORMANCE 237 REVIEW AND DISCUSS PERFORMANCE INTERACTIVELY 241 CREATE DIFFERENT MEETINGS FOR DIFFERENT PURPOSES 244 CHARACTERISTICS OF PERFORMANCE MEETINGS IN A PERFORMANCE-DRIVEN CULTURE 248 SUMMARY 253 REFERENCES AND ENDNOTES 255 Chapter 10 Leveraging Performance Management Software Applications 258 WHY SPREADSHEETS CAN’T DO THE JOB 259 THE POWER OF PERFORMANCE MANAGEMENT SOFTWARE APPLICATIONS 260 SELECTING APPROPRIATE SOFTWARE SOLUTIONS 272 SUMMARY 282 REFERENCES AND ENDNOTES 282 Chapter 11 Learning from Current Performance Management Practices 284 THE 10 PRINCIPLES OF GOOD PERFORMANCE MANAGEMENT 285 SUMMARY 298 REFERENCES AND ENDNOTES 299 Further Reading 300 Index 302 A 302 B 302 C 302 D 303 E 303 F 303 G 303 H 303 I 303 K 304 L 304 M 304 N 304 O 304 P 305 R 306 S 306 T 307 U 307 V 308 W 308 Y 308 "Performance management is top of the agenda for most government, public sector and not-for-profit organizations but the unique issues experienced in these areas mean that specific guidance and advice on building focused strategies and performance management frameworks can be hard to come by." "This practical book on managing and delivering performance in the government, public and not-for-profit sectors is aimed at senior executives and offers a definitive, focused and practically-based strategic treatment of performance management issues." "Ideal for senior executives in the public sector and government, and for faculty and students in the field, Managing and Delivering Performance is the authoritative strategic level treatment of this fast-growing area.",BOOK JACKET..