Performance Measurement
The design of the performance regime lies at the very heart of contracting because performance measures, and the financial and reputational incentives with which they are associated, drive service delivery.
The Serco Institute has carried out significant research in the area of contractual perfromance measures, using Serco's contracts as a primary research base. A report on the findings of this research, 'What Gets Measured', was published in 2007 and is available below.
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What Gets Measured (PDF) Smith, Briony, 2007 Serco Institute A report examining one of the central tools of service contracting - the performance measurement regime. It summarises an extensive research project, involving more than 40 service contracts across the public sector. The aim of the study was to understand some of the developments taking place in contractual performance measurement and to compare different models in an attempt to understand what works, under what circumstances. The report challenges governments and industry to develop the science of performance measurement, offering a number of recommendations. UK
Effectiveness of Operational Contracts in PFI (PDF)
Stevens, Mike and Rose, Norman, 2007
KPMG LLP
Public Service Agreements: Managing Data Quality - Compendium Report (PDF) National Audit Office, 2005 The Stationery Office This report evaluates the quality of the data recollected by the evaluations systems put in place by UK's Government Departments in accordance to the Public Service Agreements targets. The assessments highlight some deficiencies found and propose some modifications to be made on such systems. UK
To the Point: A Blueprint for Good Targets (PDF)
Targets Commission, 2005
Social Market Foundation (SMF)
Delivering Efficient Public Services Through Better Performance Management Frameworks (PDF)
Kable, 2005
What Gets Measured: Contract Performance on the Voyage to Botany Bay (Web Page) Sturgess, Gary L., 2005 Australian Chief Executive August 2005, p.12, CEDA (Committee For Economic Development of Australia)
An article which examines the importance of evaluation criteria and performance montoring on contracted out public service delivery.
AustraliaLocal Government Contract Management and Performance Survey: A Report Fernandez, Sergio & Rainey, Hal G., 2005 Municipal Year Book 2005, International City/County Management Association A survey that looks at the characteristics of contracts between local government and private providers to find out how they are being managed and determine how successful they are with the aim of producing a model of contracting performance to help public managers. ISBN: 0-87326-851-2 US
The Teaching and Learning of Performance Measurement in UK Undergraduate MS/OR Degrees (PDF)
Wisniewski, Mic and Shafti, Farhad, 2005
Department of Management Science, University of Strathclyde.
A short study into existing teaching provision on the design of performance measurement frameworks, to determine whether there is a need for greater provision to be available. Includes a small survey of performance measurement practitioners looking at commonly used systems and approaches to performance measurement.
Inspection of Bradford local Education Authority (PDF) Office for Standards in Education (Ofsted) and the Audit Commission (AC), 2002 A report on the performance of a failing LEA after educational services were contracted out. It comments that the targets in the Bradford Educational Development Plan are extremely challenging and in some places unrealistic, for example, targets for the failing LEA to exceed national average performance standards, or to improve by up to 15% points in some areas. UK
Incentives and the Efficiency of Public Sector Outsourcing Contracts Jensen, Paul H. and Stonecash, Robin E., 2005 Journal of Economic Surveys, Vol. 19, No. 5. A study of the pros and cons of outsourcing, including an examination of whether the use of high powered incentives crowds out intrinsic motivation in public sector services, and a discusisn of the potential implications of this, if it is so, for the effeiciency of public sector outsourcing. Australia
The Impact of Incentives, Uncertainty and Transaction Costs on the Efficiency of Public Sector Outsourcing Contracts (PDF)
Jensen, Paul H., 2004
London Underground - Are the Public Private Partnerships likely to work successfully? (PDF)
National Audit Office (NAO), 2004
The Stationery Office
The Value for Money component of the two NAO reports on the London Underground PPPs. It deals in some detail with the effectiveness of the performance measures and incentives used in the contracts.
London Underground PPPs: Were they Good Deals? (PDF)
National Audit Office (NAO), 2004
The Stationery Office
The financial component of the NAO's two report on the London Underground PPPs. It suggests that the specification of outputs in the contracts contributed to high transaction costs.
Report on an Announced Inspection of HMP Dovegate (PDF)
Her Majesty's Chief Inspector of Prisons, 2004
The report discusses the use of performance measures for reconviction rates in the Dovegate Therapeutic Community, the first measures of their kind amongst the contracted prisons estate.
Improving Performance - Project Evaluation and Benchmarking (PDF)
Office of Government Commerce, 2003
Achieving Excellence in Construction: Improving Performance - Project Evaluation and Benchmarking (PDF)
Office of Government Commerce, 2003
PFI Construction Performance (Web Page)
House of Commons Public Accounts Committee, 2003
The Stationery Office
A report which looks at performance and performance measurement in PFI construction contracts, further to the National Audit Office's assessment, below.
PFI Construction Performance (PDF)
National Audit Office (NAO), 2003
The Stationery Office
This report assesses performance and performance measurement in PFI construction contracts.
PFI: Meeting the Investment Challenge (PDF)
HM Treasury, 2003
This report offers guidance on the use of the PFI, project performance and operational and policy issues. It contains chapters on performance monitoring, payment mechanisms and other relevant areas such as flexibility.
Reporting on Outcomes: Setting Performance Expectations and Telling Performance Stories (Web Page)
Mayne, John, 2003
Office of the Auditor General of Canada
A report detailing a practical approach to performance measurement in public management and what can be expected from performance reports.
The Operational Performance of PFI Prisons (PDF)
National Audit Office (NAO), 2003
The Stationery Office
A Second Chance - A Review of Education and Supporting Arrangements within Units for Juveniles Managed by HM Prison Service (PDF)
HM Inspectorate of Prisons for England and Wales, 2002
The report includes analysis of incompatibilities between the contract to manage HMYOI Ashfield as negotiated and the performance that would be required of it as a juvenile prison.
How to Manage Performance
Office of Government Commerce, 2002
Role of External Review In Improving Performance (PDF)
Byatt, Ian and Lyons, Michael, 2001
Public Services Productivity Panel
All in a Day's Work (PDF)
Improvement and Development Agency (IDeA), 2001
A briefing note based on information from an IDeA learning day on modernised performance management.
Building for the Future: The Management of Procurement under the Private Finance Initiative (PDF)
Audit Commission, 2001
A report on the lessons drawn from early NHS and local government PFIs which also looks at performance management issues.
Choosing the Right Fabric (PDF)
Her Majesty's Treasury, Cabinet Office, National Audit Office, Audit Commission, Office for National Statistics, 2001
Getting it Together: A Guide to Quality Schemes and the Delivery of Public Services (PDF)
Cabinet Office, 2001
A guidance document on the use of quality schemes in public services.
Measuring the Performance of Government Departments (Report) (PDF)
National Audit Office (NAO), 2001
The Stationery Office
Measured Partnering: The Only Way to Know Whether you are Succeeding
M41 Case Study Project No. 20, 2000
Constructing Excellence
Aiming to Improve: The Principles of Performance Measurement (PDF)
Audit Commission, 2000
An introduction and guide to performance measurement, principally aimed at practitioners.
Guide to Quality Schemes and Best Value (PDF)
Cabinet Office Archives - Department of the Environment, Transport and the Regions, 2000
A report that looks at the use of quality schemes such as Charter Mark, the Excellence Model, IIP, ISO 9000 and the Local Government Improvement Programme, and how they relate to Best Value.
Getting Better All the Time - Making Benchmarking Work (PDF) Audit Commission, 2000 A report that examines benchmarking for improvement and elements that can be included in the benchmarking process. UK
On Target: The Practice of Performance Indicators (PDF)
Audit Commission, 2000
Performance Measurement Association
Performance Measurement Association (PMA), 2000
Organisation for researchers and practitioners in Performance measurement from all sectors and background, administered by Cranfield University. Includes researchers database, key reference list, links and other information.
Public Service Agreements (Web Page)
House of Commons Treasury Committee, 1999
The Stationery Office
Addressing Attribution Through Contribution Analysis: Using Performance Measures Sensibly (PDF) Mayne, John, 1999 Office of the Auditor General of Canada A discussion paper on the challenges of managing for results and measuring outcomes in the public sector in a cost effective way. Canada
Balancing Measures: Best Practices in Performance Management (Web Page)
US National Partnership for Reinventing Government, 1999
The Dynamics of Public Service Contracting - The British Experience Young-Chool Choi , 1999 The Policy Press A study of the inputs, outputs and outcomes of Compulsory Competitive Tendering as well as its longer-term impact. ISBN 1-86134-139-3 UK
The Use and Operation of Performance Information in Service Level Agreements (PDF)
Auditor General, 1999
Australian National Audit Office
Evidence-based analysis of whether the performance assessment framework specified in service level agreements enables the adequate assessment of achievements under purchaser/provider arrangements.
Implementing Reforms in Government Services (PDF)
Industry Commission, 1998
A report that analyses performance, incentives, measures and quality in the education and health sectors.
The Balanced Scorecard Institute (Web Page)
The Balanced Scorecard Institute , 1998
Independent educational institute that provides training and guidance to assist government agencies and companies in applying best practices in balanced scorecard (BSC) and performance measurement.
The Contracting Organization Domberger, Simon, 1998 Oxford University Press Covers a number of areas, including: inputs and outputs, performance monitoring, financial and non-financial incentives ISBN 0-19-877457-5 USA
Performanced-Based Contracting (PDF) Eggers, W.D., 1997 Reason Public Policy Institute How-to Guide No. 17 - Executive Summary USA
Performance-Based Organisations: Lessons from the British Next Steps Initiative (PDF)
United States General Accounting Office, 1997
A study of the British Next Steps Initiative, initiated after the US Administration proposed the establishment of performance-based organisations on a similar model.
Private Prisons and Public Accountability Harding, Richard, 1997 Oxford University Press This book contains useful discussion on the application of input and output measures USA
Serving the American Public: Best Practice in Performance Measurement (Web Page)
National Performance Review, 1997
A report on the development and effective deployment of performance measurement and performance management systems in public and private sector organisations.
Competitive Tendering and Contracting by Public Sector Agencies' Industry Commission (now the Productivity Commission) (PDF)
Industry Commission (now the Productivity Commission) , 1996
Report No. 48
A report of an Industry Commission study looking at issues in public sector contracting, with recommendations and conclusions. It comments on almost all aspects of the performance measurement debate: incentives, inputs vs outputs, monitoring, setting requirements, perverse incentives, etc.
Measuring Performance when there is no Bottom Line Kettl, Donald , 1995 In The State Under Contract, Ed. Jonathan Boston, Wellington: Bridget Williams Books Ltd, pp160-176 A report on the US experience of performance management systems in public governance. USA
The Panopticon Writings Bentham, Jeremy , 1995 Bozovic, M. (Ed.) Verso Bentham discusses the use of financial incentives to manage performance in his conceptual contract prison. ISBN 1-85984-083-3 UK
Competitive Tendering and Contracting in the Public Sector: A Survey Domberger, S. and Rimmer, S., 1994 International Journal of the Economics of Business, Vol. 1, No. 3, pp. 439-453 An international survey of theory, literature and practice on CTC and evidence on cost and quality. It identified a lack of generally accepted measures of quality under CCT contracting. USA
Performance Monitoring and Public Sector Contracting Hall, Christine and Rimmer, Stephen J. , 1994 Australian Journal of Public Administration, 53(4) 453-61 This paper identified a lack of generally accepted measures of quality under CCT contracting UK
Performance Measurement: An Important Tool in Managing for Results (PDF)
United States General Accounting Office, 1992
A report on performance measures as a tool to improve performance and value for money.
Competitive Tendering for Local Authority Services - Initial Experiences Walsh, Kieron , 1991 The Stationery Office A report commissioned by the Department for the Environment to assess the impact of CCT on local authority services. It contains good evidence on increased accountability brought in under contracting. UK
Competitive Tendering and Efficiency: The Case of Refuse Collection Domberger, S.; Meadowcroft, S.A. and Thompson, D.J. , 1986 Fiscal Studies, 7(4), pp.69-87 This study raises the issue of whether contracting offers scope for opportunistic behaviour, for example contractors trying to increase profits by falling short of contractual obligations or reducing service standards where it cannot be detected. UK
A Reappraisal of Incentive Contracting Experience (PDF) Fisher, Irving N., 1968 RAND An evaluation of the effectiveness of incentive contracts as a measn of controlling US military procurement costs, includingan examination of the impact of incentives on contract costs and contractors' performance, as well as an apprisal of the validity of cost savings commonly attirbuted to these contracts. This study analyses a larger sample of more recent data than previous studiesy by the same author, and extends to examine the response of individual contractors to incentive contracts. USA
Improving the Effectiveness of Incentive Contracting (PDF) Fisher, I. N., 1968 RAND A study of incentive contractnig focussing on the US defence sector. The emphasis is on the use of incentive contracting to encourage contractors to control costs, so perfromance refers primarily to financial performance. The paper examines the various effects of incentive contracts on contract costs. There is also a discussion of some strategies for improving the effectiveness of these contracts. USA