Performance, public sector, CAF, BSC, Malcolm Baldrige Award, Performance Prism, NEV
Recently, a pressure has been put on public sector organisations to remove some criticised lacks in their activities by introducing elements of performance management. It has been assumed, that as…more
Recently, a pressure has been put on public sector organisations to remove some criticised lacks in their activities by introducing elements of performance management. It has been assumed, that as well as enterprises, these organisations have to offer products and services which can be evaluated. Improvement by use of performance management forms an important step towards effective implementation of formulated strategies. The performance management system in public sector organisations has to fulfil four basic functions (transparency, learning, appraising, sancti-ons), which are focused on improvement of professionalism of offered services. The process of performance management has been realised in dynamic environment, which could considerable influence chosen performance metrics. Among available frameworks supporting performance management in business sphere disposable analogies are explored, the common feature of which has been directed on principles of strategic management. These frameworks, such as EFQM, the methodology of CAF has been derived from, or BSC have been spread over the public sec-tor organisations of EU countries. Some of them try to implement even more than one of those frameworks. In recent period attempts to develop new frameworks, such as Sink & Tuttle Model, TOPP Model or Matrix methodology are being made. Parameterisation of performance indicators has been completed by use of benchmarking. There are also new indicators, developed on basis VBM introduced in various countries, such as Singapore. This key performance indicator, close to EVA is called Net Economic Value (NEV). To organise well the implementation procedures, experiences of operation management have been applied. On the other hand, specifics of public sector many lead to perverse effects: it may bureaucratize an organization, killing all incentives for professionalism and innovation. This causes systems of performance measurement to lose their beneficial effect. To minimize the perverse effects a system of performance measurement should be developed in interaction between management and key stakeholders to be dynamic enough to adapt itself to changing conditions.