THE BOOKSHELF
Making the Move from Performance
Measurement to Performance Management
By Morgan Shipley
Leading Performance
Management in Local
Government
Edited by
David N. Ammons
ICMA Press
2008, 198 pages, $59
72 Government Finance Review | February 2009
overnments of all sizes have
begun using performance
measures to help direct decisions, policies, and service delivery.
However, not all of them have seen
direct correlations between what the
measures indicate and how government performs. This collection of performance management essays from the
International City/County Management
Association (ICMA) shows that performance measures alone cannot
change the processes and performance
of government services and policy decisions. Rather, governments need to
incorporate performance measurement practices into comprehensive performance management systems that
rely on objective information to
improve services and make policy decisions that are based on results.
G
The essays comprising Leading
Performance Management in Local
Government, edited by David N.
Ammons,present a solid understanding
of the role of performance measurement, the implementation and use of
performance management systems,
and the benefits to be gained for the
government and for external stakeholders. The information is useful to both
neophytes and experienced managers.
The book describes the importance of
identifying services and practices that
need to be improved and using this
information to focus resources. The
book moves from an introduction to
performance measurement and its limitations as a standalone practice, and
into a progressive discussion of performance management practices, successes, and examples.
Performance management refers to
the intentional application of strategies,
techniques, and measures to produce
real improvements.These systems move
beyond both performance measures
and strategic planning to focus government efforts on measurable and attainable targets. Making this shift from
measures to management requires a
new management ethos — one in
which performance plays the vital role
in policy decisions and service delivery
practices.If leadership decides to move
local government beyond simple measurement and into management that is
informed by measurement, improved
performance and real results become
increasingly attainable.
Ammons introduces the reader to the
fundamentals of performance measurement,a practice that gauges the quantity,
quality, efficiency, and impact of local
government practices and service delivery. To be meaningful, measures — the
most common being output, efficiency,
outcome, and productivity — need to
address areas the government and its citizens deem most vital. In other words,
measures work best when they are
aligned with the long-range vision, goals,
and mission of the government. SMART
measures (measures that are specific,
measurable,attainable,results-based,and
time-bound) move government beyond
raw numbers and into a system that influences results and achieves goals.
Barbara J. Cohn Berman explores
results and observations from citizen
focus group sessions conducted by the
Fund for the City of New York’s Center
on Municipal Government. The essay
makes ten key observations on the relationship between citizen involvement
and perceptions, and government
accessibility, accountability, and performance. Cohn Berman illustrates that
citizen involvement and understanding
should play a vital role in performance
measurement decisions and management policies.
Harry P. Hatry outlines five principles
or methods for gathering performance
data. He describes the advantages and
disadvantages of five alternatives for
collecting quantitative performance
indicator data: administrative data from
program and agency records, customer
surveys, trained observer ratings, roleplaying (testing), and special technical
equipment. Including
examples,
exhibits, types, and usage for each
method,Hatry also outlines key criteria,
including feasibility, credibility, and
cost, to help take performance measures to the next level.
David Edwards and John Clayton
Thomas provide an in-depth case study
of Atlanta’s Dashboard approach to
measuring and reporting performance.
The authors highlight the importance
of two factors — the commitment
shown by Atlanta’s leaders, and a welldeveloped strategic plan — in successfully initiating Dashboard. This essay
emphasizes that the system’s success
depends on assessing the city’s performance in a number of areas and
using the resulting measures to improve
the efficiency and effectiveness of government services.
Section II of the book provides five
essays describing methods for imple-
menting performance management.
The focus is on improving results by
incorporating performance feedback
and lessons into management practices. This part of the book emphasizes
that performance and results need to
meet the government’s specific purposes,visions,and goals.Governments need
to emphasize continual learning and
adaptation to consistently meet citizen
expectations and obtain better results.
James E.Swiss and Stephen K. Strauss
provide a step-by-step approach to
designing, establishing, and implementing a performance management system. They describe the process of moving from traditional management practices to results-based management,
highlighting key obstacles. The authors
use case studies to establish a five-step
approach that relies heavily on commitment from the organization’s leadership. Results-based management forces
government to take an active role in
achieving results and focusing on outcomes.
Governments often limit the use of
performance measures,thus limiting the
potential of performance management.
An essay by Ammons and William C.
Rivenbark uses observations from the
North Carolina Benchmarking Project to
explain why. Patterns of data from two
cities that take part in the cooperative
benchmarking project show that more
jurisdictions are using performance
measures, but the results commonly
fail to improve the quality or efficiency
of government services. The authors
establish three factors that would help
organizations use performance data to
improve operations: 1) higher-order
measures such as efficiency; 2) officials
who are willing to embrace intergovernmental and service comparisons;
and 3) management systems that incorporate performance measures.
Theodore H. Poister illustrates the
importance of focusing quality and
efficiency measures on the actual practices within service delivery. Whether
monitoring is done monthly, weekly,
or daily, organizations need to focus
on measurable outcomes when assessing government, program, and service
performance. This essay distinguishes
between common or limited performance measures, which monitor outputs,
and systems designed to measure
quality and productivity, which produce detailed performance indicators
that connect performance measures and
monitoring practices to actual service
delivery systems, results, and programs
at the operating level.
The final essay in Section II explores
and highlights the use of gainsharing, a
way performance management systems
often build in rewards for improved or
excellent performance. Ammons and
Rivenbark use case studies to illustrate
the types of gainsharing and how they
are used, along with the controversies
and risks involved. The essay shows
how governments can narrow the
scope of gainsharing. Organizations
that concentrate on concrete and
manageable targets for employees,
departments, or programs can achieve
favorable results by providing incentives for performance practices, systems, and management.
The third section of the book underscores the importance of moving
beyond developing goals and then just
hoping for the best.Three essays in this
section look at Stat approaches local
governments are using successfully.
Dennis C.Smith and William J.Bratton
provide a case study of CompStat, the
original Stat system, implemented for
the New York City Police Department.
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They look at CompStat as a model system that has led to dramatic improvements in performance management
and should be emulated and adapted
to fit other governments and agencies.
CompStat uses performance data and
indicators strategically to achieve
greater accountability. Based on a system of meetings, questioning, strategies
aimed at improving results, and structural changes, CompStat revolutionized
policy management.
Robert D. Behn identifies Stat systems
and the underlying success factors for
implementing a CitiStat program. Looking first at Baltimore’s CitiStat program,
Behn examines the six visible features
of a Stat program: the room, the meetings, the data, the maps, the technology,
and the questioning. The essay develops the vital role of an active and
engaged executive team and the ways
in which a successful Stat program
installs a performance culture that
responds to citizen expectations, realities,and organizational goals.Behn also
explores adaptations of the CitiStat
approach to performance management
and identifies five important features,
along with 20 additional traits, that help
cities adapt CitiStat to their specific
needs and expectations.
Leading Performance Management in
Local Government takes a step-by-step
approach.Written accessibly and clearly, the book provides insights useful to
governments at any stage of their performance management journey. ❙
MORGAN SHIPLEY is the associate manag-
er for GFOA YieldAdvantage and works in
the GFOA’s Research and Consulting
Center in Chicago.
74 Government Finance Review | February 2009