Results-based performance management -next step for government

The South African government is demonstrating its commitment to sustainable change and improved service delivery to all members of society. To achieve this goal, all spheres of government are required to participate and contribute actively to the achievement of the stated national goals and objectives.

These goals and objectives have in turn been adopted into the strategies of the various national and provincial departments, as well as municipal strategies. The challenge, however, arises in measuring the success of the actual implementation of these strategies.

The development of a “results-based performance management framework”, which is directly linked to the strategy, vision and mission of the organisation, provides a more transparent view of the progress towards achieving the strategy. By measuring results, the organisation as well as the responsible individuals will be in a position to have a clear view of performance success and failures. Ambiguity in determining rewards, recognition as well as corrective measures that may be required is, therefore, greatly reduced.

In developing a “results-based performance management framework”, Fujitsu utilises the Balanced Scorecard, with an additional component - the “Strategic Linkage Model”. This model requires the development of strategic objectives, which are divided in two perspectives, namely: activities and outcomes. Distinguishing between activities and outcomes allows organisations to identify the causal relations between strategic objectives. This ensures the strategy is directly linked to the key performance areas and indicators (KPAs and KPIs), thereby addressing the challenge of measuring the impact of activities on the strategy.

In developing key performance indicators (KPIs), Fujitsu applies the Cream principle (Schiavo-Campo) - as advocated by the World Bank. Performance indicators should be clear, relevant, economic, adequate and monitorable:

* Clear: Precise and unambiguous
* Relevant: Appropriate to the subject at hand
* Economic: Available at a reasonable cost
* Adequate: Provide a sufficient basis to assess performance
* Monitorable: Amenable to independent validation

By applying the Cream principle, an organisation has a set of criteria to guide them in the development of key performance indicators, which in turn contributes to a clear, direct and unambiguous performance management framework.

Fujitsu's approach to the development and implementation of a performance management framework (PMF) is much more than merely assisting clients in being compliant or installing a piece of software. Fujitsu has the ability to take the “strategic high road”, which allows organisations to use the PMF as a true management instrument in their review of strategies and policies. Furthermore, the processes affecting the performance management function are incorporated into the PMF, thereby giving effect to the PMF at an operational level.

The need for results-based measurement of performance within government is more evident as it allows for more accurate measurement of actual performance, and more importantly, provide relevant information to take corrective actions in problem areas. By adjusting existing performance management frameworks, the public sector can increase its ability to provide improved services to society in a sustainable manner.