The document outlines a framework for developing an effective corporate performance information system including an overall framework, criteria for individual measures, and components for managing performance information. The framework consists of 6 criteria: focused, integrated, balanced, cost effective, appropriate, and robust. Individual measures should be relevant, attributable, well-defined, reliable, comparable, timely, verifiable, and avoid perverse incentives. Key components include aligning measures with strategic objectives, monitoring results, evaluating performance, and comparing performance over time.
1. A Framework for Performance Information Summarising and distilling the original cross-sector national guidance on performance information. This includes the overall framework for corporate performance information, the criteria for individual measures, and components for managing performance information. Paul Askew speakingdata.org.uk
2. A. Framework for Performance Information … on the organisation’s aims and objectives. Focused F … to, and useful for, the stakeholders who are likely to use it. Appropriate A … giving a picture of what the organisation is doing, covering all significant areas of work. Balanced B … in order to withstand organisational changes or individuals leaving. Robust R … into the organisation, being part of the business planning and management processes. Integrated I … balancing the benefits of the information against the costs. Cost Effective C Source: National Audit Office
3. B. Criteria for Individual Performance Measures … to what the organisation is aiming to achieve Relevant … capable of being influenced by actions which can be attributed, and it be clear where accountability lies Attributable …with a clear, unambiguous definition so that data will be collected consistently, and easy to understand and use Well Defined … accurate enough for its intended use, and responsive to change Reliable … with either past periods or similar programmes elsewhere. Comparable … producing data frequently enough to track progress, and quickly enough for the data to still be useful. Timely … with clear documentation behind it, so that the processes which produce the measure can be validated. Verifiable … able to avoid perverse incentives – not encourage unwanted or wasteful behaviour. Incentives
4. C. Components for Managing Performance Measures Results Monitor Evaluate Strategy Measures Targets Purpose, objectives, plans Aligned with strategic objectives Evaluate this performance system Intended level of performance Actual performance achieved Compare performance over time and with others Performance Framework Focused Balanced Cost Effective Robust Appropriate Integrated Source: Based on National Audit Office. FABRIC. A Framework for Performance Information. March 2001.
5. D. Corporate Performance Framework – Distilled Performance Framework Focused Integrated Balanced Cost Effective Appropriate Robust Cost Effectiveness Economy Effectiveness Efficiency Business Activity Resources Inputs Process Output Outcome Measures: Relevant Attributable Well Defined Reliable Individual Criteria: Performance Measurement Comparable Verifiable Incentives Timely Components: