Performance Measurement

For some time, governments have increasingly been urged to evaluate the results of their efforts. Most frequently, this has meant measuring public-service outputs (or inputs) for purposes of management efficiency and political accountability.
Performance measurement has been defined as “measurement on a regular basis of the results (outcomes) and efficiency of services or programs.” Thus performance measures are quantifiable indicators that, when analyzed, determine what a particular program or service is achieving. Performance measures come in many different forms, including inputs (such as financial resources), outputs (the number of customers served), and outcomes (the quantifiable results of the program). Regardless of their form, performance measures should relate to a particular initiative or strategy of an organization.
Citizens expect their municipal government to provide services in the most effective and efficient manner possible. The kinds of services and the quality of their delivery vary from one community to another, depending in part on the financial and human resources available. The City of Lake Mills is a “full-service” city in that it provides a very broad range of services, including municipal water, electric and sewer, snow removal, brush collection, and a regional public library. The delivery of services affects what is commonly referred to as the “quality of life.” Because of the nationwide economic downturn and significant reductions in local aid from the state, Lake Mills, like most communities in the nation, is facing the dilemma of trying to maintain acceptable levels of service while having to reduce overall expenditures.
Performance measurement involves collecting data in a systematic and objective manner to determine the efficiency and effectiveness of service delivery and program objectives. Performance management is the application of such data into an integrated management system that informs resource allocation and decision making to move an organization toward the achievement of strategic objectives. More recently, a movement has emerged that includes assessing the wellbeing of citizens in a more holistic way by measuring quality-of-life outcomes.
Many factors motivate the application of performance management. In the United States and internationally, governments are applying performance measures and standards to promote greater accountability through high-performing, transparent government agencies and communication with citizens. Indeed, elected officials at every level of government, public managers, and citizens all benefit from implementing sound performance management systems.
Performance management concepts are also being applied to nongovernmental organizations and others interested in establishing a culture of continuous improvement.
A good performance management system yields the necessary data for assessing service needs and performance. In this sense, a good system helps elected officials in their oversight responsibilities. It also helps them make objective resource-allocation decisions and formulate policy.
Performance of a specific service may be tracked over time to demonstrate improvement, or it may be benchmarked against levels of service provided in similar communities. Openly sharing goals and trend and comparative data is an effective way of strengthening elected officials’ credibility with citizens.
Local government managers and their staff can use performance management as a systematic means to conduct continuous evaluation, track progress in realizing strategic plan goals, and inform daily operations. Performance measurement data can be used to identify operational weaknesses and allocate resources accordingly. In addition, an established performance management system can help facilitate the process of setting employee performance goals and evaluating the performance of outside contractors. Indeed, citizen satisfaction improves as local governments respond to citizen input with service delivery improvements.
Two of the strongest tools that managers use in evaluating service delivery is fact finding and fact-based decision making—the power of facts and logic, and the power of good business practices. The opportunity to develop a factual comparison of how our city does compared with other cities, so that we can understand more clearly exactly what our strengths and weaknesses are.
City staff and WCMA are going to work on producing a Benchmarking Report. It was a bit risky to do a comparison of Lake Mills with our peers because you never really know what it will show. While the results may be surprising and the problems identified daunting, we hope to have information in place that we can use to address what was previously ignored or denied.