1.2.7 Organisation and Process Performance Management Days 11-15

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(1)Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. 1.2.7 Organisation and Process Performance Management Days 11-15 14.2.-18.2.2011 Process Performance Management.

(2) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Day 12 Process development.

(3) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Process development  It is necessary to develop the processes,. which produce the services and products, to be able to develop the activies and functions as a whole  The question is not only about development projects  Process development should be continuous improvement and follow-up.

(4) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Set a clear target  Measurable  Time based  Expressed in a positive way  Challenging but not unrealistic  Widely acceptable.

(5) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Process development process Survey of the present situation. Choosing the processes to be developed. Analysing the processes. Continuous improvement. Process improvement.

(6) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. The survey of present situation  To be able to know where to go, it is essential to know where you are right now  In the survey  Describe the process  Assess the performance of the current process.  The customer opinion is essential  According to the survey information the processes to be developed can be selected.

(7) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Baseline for process development.  Concentrate on the external customers and their needs  The value-added activities are most important, most of the. resources should be used in them.  Are the activities essential for the customer?.  Non-value-added activities should be removed as far as. possible  Concentrate on the products/services of the process  Rights for decision making should be as close to the customer as possible.

(8) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. More efficient processes  Remove unnecessary bureaucracy  Remove unnecessary reports and forms  Remove bottlenecks  Check if there are process stages, where same tasks are     . done twice or even more Minimize the non value-added activities Improve skills and know-how Improve resource allocation Automatize, exploit modern itc Exploit widely used standards, if possible.

(9) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03.  Analyze. The processes to be developed.  Cost-effects  Effects on customer satisfaction  Effects on other processes or effects on the. same process in other organizations  Effects on the organization (e.g. structural changes needed after improvement).

(10) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Process implementation  Communicate the new processes to all. participants in an unambiguous manner.

(11) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Links to the public value model.

(12) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Public service value model. Measures the value created for citizens. Outcomes. High-performance organizations. Low-performance organizations. Cost-effectiviness.

(13) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. The Public sector squeeze Pressure to increase outcomes -National / State elected officials - Legislature. Public service value creation - Citizens and clients. Public Service Agency Pressure to reduce costs -Treasury -Budget makers.

(14) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Inputs, processes and outputs versus outcomes. Traditional Performance measures. Inputs. Resources used to deliver the products and services of a program or organisation. Processes /Activities Series of actions or operations cunducted to achieve an end goal. Outputs. The final products, goods or services produced by a program or organization. Public Service Value Measures Outcome. Initial. Outcomes Intermediate Long-term. The impacts, benefits, or consequences for stakeholders resulting from the outputs of a program or organiation.

(15) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Case: Netra performance reporting.

(16) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. What is Netra?  Netra is the internet reporting service of the central government. administration which caters in particular to the Government, ministries, agencies and institutions – Which contains data on the finances, performance and staff of the central government administration (all the State’s administrative sectors and government agencies) – Which contains a selection of planning and monitoring documents (concerning economic and operational planning and monitoring) of the ministries and their agencies and institutions – Where all the information is in an easy and organised dynamic form – All information is accessible through a single portal – All information is public, Netra is open to all Internet users.

(17) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. The main objectives of the Netra  Support the planning, monitoring and management of the Government, ministries and agencies. Support decision-making. – The information provided by Netra helps perform various kinds of analyses on the connections between operational performance, finances, staff and other resources  Promote the quality thinking and quality management – Especially promote the utilization of the basic performance criteria  Improve the effectiveness of the performance management system – Performance management information (plans, targets, performance outcomes and analysis of them) of the administrative sectors and government agencies will be more comparable – Information can be used for best practices – The quality and usability of the reporting information improves e.g. for preparation of annual reports and other monitoring reports.

(18) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. The main objectives of the Netra  Improve the transparency and publicity of public administration and. operations of public servants – All the information is accessible through one portal and the information is in an easy and dynamic form – Open for everyone, both citizens and all interest groups (just an internet-connection and web browser are needed).

(19) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Customers  Council of state  Ministry of Finance  Other ministries and agencies  Parliament  State audit office  Citizens, media etc..

(20) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Some main principles of the Netra  The information that already exists will be exploited  Three organizational levels for all the information: – State, administrative sector (ministry) and agency.  No other software than a web browser is needed to utilize all the information  Report templates come in both standardised and multi-dimensional formats – Pre-programmed standardised reports will allow you to shape information. through a selection of options – multi-dimensional reports let users view reports from different angles to gain deeper insight into data.

(21) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Netra contents  Central government political control – Government Programme and Government strategy document, linked from. .   . the Prime Minister’s Office website Central government finances and staff data – Dynamic reporting based on Netra databases – Linked from the Ministry of Finance website Central government performance data – Dynamic reporting based on Netra databases Planning and monitoring documents linked from ministry and agency websites Additional information: links to off-budget data – Local authority finances and other public administration – Data on the national economy, etc., from Statistics Finland – EU and international data and evaluations.

(22) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Financial data in Netra Basic structure Accounting. Commercial. organisation. accounting. The State. The State. Budget Economy. Fund Economy. Adminstrative. sector. Accounting. agency. State Fund. Budget. accounting Main titles (or. revenues). Account. Five hierarchy. Chapter /. Class. Item. Budget. account. levels.  The Financial data is centrally derived from the central bookkeeping system . Ministries and agencies can monitor, for instance, the use, budget data and accrued expenditure in commercial accounting concerning all appropriations.

(23) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Data on staff in Netra  The data is transferred from the personnel data system for. government employers (Tahti). – Data on staff numbers and structure of administrative sectors and. agencies – The number of employees and man-years can be grouped as follows • • • • • •. male/female, part-time/all-day, fixed-term/permanent, age-group, level of education, occupational group.

(24) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Planning and monitoring documents  Netra includes state level, ministerial level and agency level documents concerning performance management and planning and monitoring  The documents from every agency and ministry are grouped according to the same standard. The grouping is as follows: – – – – –. Instructions Plans Monitoring Evaluations and reports Other documents.  Each agency and ministry will set up a documentpage to their web-pages – All the documents are accessed from Netra through links to the websites of the. respective agencies.

(25) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Performance information in Netra  Performance data in Netra is maintained by ministries and agencies – ministries and agencies can utilize Netra during performance. negotiation and reporting processes – Performance data are collected from ministries and agencies and placed in the Netra repository  The performance data available in Netra includes – preliminary performance targets for administrative sectors and agencies (budget proposal) – targets agreed in performance agreements – performance outcomes and analyses of them  In Netra performance reporting, administrative sectors and agencies can use those indicators that they ordinarily use in performance measurement.

(26) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Performance information in Netra  Reports can be based both on measurable indicator data and on. verbal qualitative performance targets and outcomes – Performance description of the agency is measured using indicators, and thus indicators must be used in reporting on performance too. The information in the indicators can be augmented with verbal descriptions and evaluations. – Verbal performance data should be as concise and to the point as possible. – Achieved performance is analysed and conclusions and development proposals based on the analysis are presented.  All data are stored in a single central database from which the program retrieves the data requested by the user..

(27) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Performance information in Netra  In the reporting performance data is organised on the basis of the basic performance criteria  Performance data are also grouped according to groupings in the budget (main title, class, item) and the Government strategy document  Performance data can also be viewed by various kinds of functional grouping (task areas, policy sectors, etc.) or according to the perspectives of agency or ministry scorecards, depending on the needs of the administrative sectors and agencies. All reporting functions are governed by user needs..

(28) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Policy effectiveness – Targets of the operational policy, to what. extent they have been attained and their costs – How ministries, agencies and institutions have contributed to the attainment of outcome targets in their operational branches. – Link between the societal impacts of the operational branch and the operational performance of the ministries, agencies and institutions is essential.

(29) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Other aspects of performance  Operational efficiency. – Targets should be considered against the resources employed, the essential. point being to explore how efficiently resources have been allocated and used. – Operational efficiency is described with indicators of economy and productivity. – Also, the efficiency of chargeable activities and co-financed activities is shown with profitability and cost-equivalence data.  Outputs and quality management – The essential data on the outputs (goods and services) produced by an agency or institution and their volume. – Information on the service capacity of the agency, on the quality of its outputs, and on customer satisfaction is also given  Management and development of human resources – Data on the number of staff, staff structure, staff costs, wellbeing at work, competence and other intangible assets, and operational renewal.  Analysis of performance information and conclusions – Achieved performance is analyzed and conclusions and development proposals based on the analysis are presented..

(30) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Main objectives of performance reporting in Netra.  All performance information in one data base – Better accessibility to information – Benchmarking.  Support performance management process (between. ministry and agency) – Standardised report-templates for performance agreement, biannual reports and annual reports  Improve the quality of performance information – Develop performance metrics and targets presented.

(31) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Netra stipulation  All the agencies and ministries in the central government had to publish their performance information in Netra by the end of the year 2007 – at least all the performance targets confirmed by the ministry for the year 2007 had. to be published by the end of the year.  For year 2008 onwards each organization must publish as performance information – Preliminary targets (according to the budget proposal, voluntary) – Targets confirmed by the ministry – Performance outcomes (results, progress towards the targets) – Analysis outcomes – General performance description of the agency.  Targets are always set yearly (e.g. for year 2009, year 2010…),  Reporting is obligatory yearly but biannual (or e.g. quarterly) reporting is also possible.

(32) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. The process Performance management process Performance negotiation process. Budget process Budget Proposal. Preparation. Performance Agreement. Netra performance reporting Targets. Annual reporting process Biannual. Report. (Targets confirmed by the ministry). Annual Report. Report. Preparation. Preparation. Report (Prelimin ary targets). Biannual reporting process. Performance description. Central Government Final Accounts Report Performance description. Preparation. Report (Biannual outcomes). Report (Annual outcomes). Analysis. Analysis Outcomes.

(33) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. The process Final Performance Targets of the. Ministries and Agencies PERFORMANCE AGREEMENT. December. January. November. February. Preliminary Performance. Targets of the Ministries and Agencies BUDGET PROPOSAL. October. March. September. April. August. May July. June. Outcomes and Analysis. from the Agencies ANNUAL REPORT. Outcomes and Analysis. from the Ministries CENTRAL GOVERNMENT FINAL ACCOUNTS REPORT. (Bi-annual outcomes BI-ANNUAL REPORT). 3.

(34) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. How does Netra help in performance management?  The purpose of the Netra is to support the planning, monitoring and. management of, and decision-making in, the Government, ministries and agencies  Financial data, performance data and data on staff can be combined in a single report – The information provided helps perform various kinds of analysis on the. connections between operational performance, finances, staff and other resources.  Netra is a good tool for benchmarking, because all the information is. available through a single portal  Netra is usefull both for planning of future operations and preparation of monitoring reports.

(35) Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03. Experiences  Comparisons between agencies are much easier    . nowadays than before Too many verbally expressed targets – more metrics is needed and more specifically expressed targets The process is still based on documents – they are even more important than expected Commitment is important from all important stakeholders The target should not move during the implementation of the system.

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