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As a bipartisan group of current and former government
executives, business leaders, public management scholars,
and journalists we urge you to make results-focused
management a priority. Embrace performance management,
the use of goals and performance measures as a management
tool, as a critical aspect of your work.
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Make management a priority, in addition to policy and
political priorities. |
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Responding to crises and debating and deliberating policy
can consume all of your time if you let it. Even experienced
leaders can neglect investments in management. We urge you
to recognize this syndrome, and resist it.
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Embrace performance measurement to help you manage. |
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Performance measurement can help you drive progress
toward your goals. Resist the tendency to treat performance
goals and measurements as just a legal requirement. If you
don’t, you will squander a powerful lever for change.
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WHY ? |
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Effective performance management leads to better
outcomes.
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1. |
Performance goals and measures motivate. |
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People like to do well. Ambitious but achievable goals
energize staff.
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Even without a direct link to goals or rewards, feedback
also improves performance. Performance measures also help
people see where their efforts are paying off and where they
need adjustment.
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2. |
Goals and performance measurements communicate. |
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Setting performance goals and monitoring progress toward
them communicates your priorities. Performance
goals and measures focus your workforce on strategic
priorities and help enlist allies who share those goals.
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3. |
Performance measurements lead to important insights. |
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Beyond communicating your priorities, performance
measures reveal what works and what doesn’t. This enables
an agency to replicate what works well and abandon what does
not.
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4. |
Performance measurement and management strengthen
democracy. |
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Debate over priorities is healthy and natural in a
democracy. By setting clear goals and reporting concrete
progress, agency leaders facilitate better-informed
deliberation among the public and its representatives.
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HOW ? |
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The following ten traits characterize the most effective
performance management systems.
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1. |
Outcome-focused. |
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Outcome goals focus agency staff on what ultimately needs
to be accomplished, energize staff, and make it easier to
enlist external cooperation. The flexibility of
outcome-focused goals also encourages innovation. You will
hear many logical reasons why outcome measures are not
appropriate or obtainable for your organization. Listen
carefully, but insist on the clarity of purpose revealed by
outcome measures.
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2. |
Few, simple, and resonant at the top. |
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If everything is a priority, nothing is. Concentrate on a
few strategic goals—five at most, and better fewer. Pick
goals that are conceptually simple. Express them in plain
English. Build your performance measurement and management
system to support them.
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3. |
Challenging, but realistic. |
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Set stretch targets. Challenges motivate. But don’t
stretch past the point of realism. Work carefully with your
agency to frame goals that are ambitious but not
overwhelming.
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4. |
Cascading down and folding back up. |
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Help the people in your organization understand how they
are expected to contribute to each organizational goal, who
has lead responsibility for what, and who has supporting
responsibilities. After setting strategic goals, help your
organization sort out how the goals cascade down and connect
to the work of individual work units and fold back up to
meet agency-wide expectations.
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5. |
Broadly used. |
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Performance management cannot be a paper exercise.
Performance measures are powerful when used on a regular
basis. Talk about your goals and progress measurements to
Congress, the press, your managers, the whole agency, and
individual agency employees. Routine use of performance
measures signals that even as other issues arise that demand
attention, your priorities cannot be set aside. They are, in
fact, priorities.
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6. |
Visible. |
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Make performance information visible. Write it clearly.
Distribute it widely. Post it where people will use it.
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7. |
Interactive and Informational . |
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Invite your agency to explore with you why performance is
strong in some places and weak in others. Promote the
organizational habit of analyzing past performance to craft
better plans. Pose your questions in ways that encourage use
of performance measures as a learning tool.
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8. |
Frequent and Fresh. |
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Up-to-date, detailed data let you detect performance
problems. Outdated reports make it hard to reconstruct the
events that might explain performance variations. Fresh,
frequent outcome-focused performance reports show when
variations arise. This, in turn, makes it easier to find and
fix the causes of poor performance.
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9. Segmentable. |
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The ability to segment information (by geographic region,
client characteristics, industrial sector, intervention
strategy, or whatever breakdowns matter for your agency)
makes it easier to interpret results, draw lessons, and
improve performance.
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10. |
Fact-based. |
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Measures have to be firmly rooted in reality, and seen as
such within and beyond your agency. Treat measurement
accuracy as an essential and integral component of your
performance measurement system.
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An Important Caveat |
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Favor performance over punishment.
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Be careful about linking performance measurement to
rewards and penalties. Poorly structured incentive systems
can backfire, discouraging workers and even rewarding
dysfunctional behavior. For this reason, we urge managers,
legislators, and oversight agencies to emphasize the use of
performance measures for communication, motivation,
feedback, learning, enlistment, alignment, and coordination.
Make sure they work for communication and motivation before
trying the trickier tasks of sanctioning and incentives. |
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Full Memorandum
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