World's Largest Study into Public Sector Performance Management Reveals Major Differences between Top Performing and Under-Performing Organizations

Over 1,000 Public Sector Organizations Contribute to this Unique Snapshot of Global Performance Management Adoption and Direction

 

 

 

 

 

San Mateo, Calif. – May 13, 2008 – Actuate Corporation (NASDAQ: ACTU), the leader in delivering Rich Internet Applications Without Limits™, today announced the findings of the largest and most comprehensive global study of government and public sector performance management to date.  The research was conducted by Bernard Marr, a leading expert on strategic performance management and Chief Executive of the Advanced Performance Institute and co-sponsored by Actuate and the Chartered Institute of Public Finance and Accountancy (CIPFA). Crucially, the report finds that organizations who apply the principles of strategic performance management significantly outperform those that do not. The report highlights that many public sector organizations have performance measurement initiatives under way, but their efforts are hampered by poor management of the overall process.

The findings, from over 1,000 respondents from the US, UK, Canada and Australia, confirm that merely having a set of performance objectives and performance measures in place does not lead to better performance. In fact, it often leads to a decrease in performance with perverse and dysfunctional behaviours such as sub-optimisation, target fixation and fraud. These findings are important in a world where the use of performance measurement and performance management has mushroomed among government and public sector organizations. The results of this study serve to inspire and create a renewed sense of urgency in this critical market sector to tackle performance management methodically and comprehensively. 

The study, entitled, Strategic Performance Management in Government and Public Sector Organizations attracted respondents from across the globe representing central and local government bodies, as well as national health organizations, police forces, fire and rescue service organizations, courts and educational institutions. The study, which was concluded in early 2008, opens by providing a unique insight into how public service organizations interpret and direct performance management, in addition to highlighting 10 principles for effective performance management, which public service organizations would benefit from if they want to ensure closer alignment between everyday operations and top-level strategy.   

Key insights of the study include:

• While government and public sector organizations have made huge progress with performance management, the implementations are often too mechanical and numbers focused which prevents improvements in performance.
• A skill gap in performance management analytics means that massive amounts of data on performance is collected, but little of it is actually used to provide insight and prompt actionable decisions.
• The lack of a clearly mapped strategy leaves employees confused about direction and unable to make effective decisions to improve performance.
• 68% of organizations have fabricated performance data – this means the performance management system can’t be trusted and it therefore fails to provide valid input into the decision making process which could lead to the wrong or counter-productive decisions and resource allocation, it also means the system fails to improve public accountability and trust.

The study’s author, Bernard Marr, explains the significance of this research, “Performance management has never been more critical in the public sector than it is today, as many governments around the world have introduced legislation mandating performance reporting in the organizations that report to them. Yet it is the way that performance management is handled and directed that makes the biggest difference between top-performing and failing public sector organizations.  Those who indulge in the practice merely to keep external moderators off their backs are missing out on a great opportunity to intelligently and accurately assess and refine their operations, creating employee support along the way.” Bernard continues, “We hope that this research, and specifically the 10 principles or best practices we have defined and tested, will be used as a blueprint to improve the performance management practices in government and public sector organizations around the world, as they strive to address some of the most pressing challenges they have ever known.” 

"Ultimately, making any performance management process function correctly depends on what your organizational priorities are", said Roy Weisert, Strategic Operations Officer, Naval Surface Warfare Center, Dam Neck, U.S. Navy. "It's important to remain focused on strategic goals.  Metrics, effective measurement and KPIs are key to this process, ensuring goals and success factors are at the forefront of systematically improving performance." 

“In our work with public sector organizations around the world, we have seen first-hand the gap that often exists between expectation and reality when it comes to performance management,” said Steve Fluin, senior vice president, performance management group at Actuate.  “While this study identifies areas for concern, it more importantly highlights the best practices that will enable public sector organizations to overcome the challenges inherent in creating sustainable performance improvement. This study will prove an invaluable tool for performance-focused public sector organizations worldwide so that they can avoid the most common pitfalls and achieve more effective performance management.” 

A whitepaper containing the results and conclusions of the survey is available by visiting: http://www.actuate.com/PublicSector-ResearchPaper. 

About the Advanced Performance Institute

The Advanced Performance Institute (API) is the world-leading independent research and advisory organization specializing in organizational performance. The institute provides expert knowledge, research, consulting and training on concepts like Balanced Scorecards, Performance Measurement and Corporate Performance Management.  

The aim of the API is to provide today’s performance focused companies, governments and not-for-profit organizations with insights, advice and services that help them deliver lasting change and superior performance. 

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