Effectiveness and monitoring of ongoing activities

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Effectiveness and monitoring of ongoing activities
Strengthening the Role of Public Internal
Financial Control

• Presentation held by
• Nils Eklund, PhD
• Expert in Performance Management

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Concept of the 3 Es

Process

Resources
Performance
Effects
Value for money
Economy
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Monotoring task in effectiveness in Sweden

• ObjectiveAllocation of resources based on
  political priorities
• Monitoring outsetMeasure that what ought to
  happen has happened.
• Prime assumptionPlan, budget and set objectives
  that targets towards the political aim
• Monitoring stepsReal objectivesConsisten path
  input to outcome

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Goals to achieve effects

• To achieve real effects we must have real
  objectives.
• Such objectives make a difference in performance
  because we are measured with scales we have
  approved.
• There is a saying What get measured, get done
• Former finish EU commissioner Erkki Liikanen

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Monitoring as a part of financial manangement

• The prime task of financial management is to be a
  tool for the realization of politics.
• Financial management consist of many, many
  elements that together form a systematical
  process o value-adding towards specified
  objectives.
• Monitoring is to look after that each element
  works as intended and as a consistent effort.

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Consistence in Governance
Performance management and Financial management
should keep together if there are any cracks
they should turn up in monitoring
Performance management
Financial management
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Financial management and governance

• Difference between private and public
• Private sector results are tools (means) to
  reach financial objectives.
• Public sector financial resources are tools
  (means) to reach results (Output and outcome)

• What are means and what are objectives
• Good use of building, pupils per m3
• Comforting planning in administration, optimal
  classes 25 pupils per teacher
• Students knowledge

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A hierarchy of objectives

• What are means and what are objectives
• Good use of building, pupils per m3
• Comforting planning for administration, optimal
  classes 25 pupils per teacher
• Students knowledge, 100 examined
• Crucial that objectives are rightly ranked.
  Who knows?

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Securing Britains future

• So our economic goal now and for the future
  must be to become the worlds number one power in
  education.
• Gordon Brown kongresstalet Politics as a moral
  duty, 26/9 2005

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Two kinds of goals

• "In the American view objectives should be hard
  and fast and clearly stated for all to see.
• In the Japanese view they emerge from a more
  fundamental process of exploring and
  understanding the values through which a firm is
  or should be operating.
• A knowledge of these values, the limits that are
  to guide action, defines a set of possible
  actions.
• Gareth Morgan Images of organizations

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Monitoring questions Effectiveness

• What have happened
• Has the goal been achieved at a reasonable cost
  and within the time-limit?
• Was the target group defined correctly?
• Has target-institutions respond as agreed

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Why did costs rise follow the money

• Settlement of refugees in Sweden 1985 -1988
• Costs rising from 670 millions to 1 692 millions
• Capacity visually increased more municipalities
  part in reception programme, 137 241
• But performance deviates refuge per
  municipality goes down from 104 to 62.
• Unplanned use of governmental refugee-camps, to a
  higher cost.
• Variations between comparable municipalities
• Chart Refuge per municipality in 1987

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Other objectives for effectiveness

• Number of people depending on public benefits
  decreasing with u
• 100 of target group have access, t satisfied
• Trust in public institutions - good following of
  law and order

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Monitoring examples, mixed measures

• Swedish tax authority
• Productivity
• Taxation gap, fiscal effect
• Public confidence
• Staff confidence

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Main sourceExisting data and senses

• Statistics
• Accounting
• Complaints
• Participating
• Watching

Your Majesty is very vital. - You mean, I
interfere more than before? But You see, these
days it is necessary, before it didnt mean so
much.'
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Common sense in public manangement

• Good governance requires two things.
  Steering-tools and knowledge. We have no lack of
  steering-tools. Daniel Tharschys,
• Swedish professor in Politics, member of
  Parliament
• My, my, my! Such a lot of guns around town and
  so few brains! Humphrey Bogart

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Monitoring is looking for open doors

• Look for the deviates
• Look for the misfits
• Look for the jumps
• 2 3 3,5 0,5

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On the origin of causes

• When You, while monitoring in the ongoing way,
  registered a row of deviances along Economy,
  Efficiency and Effectiveness You may see
  patterns.
• If they look crucial or serious to the lack of
  outcome You may look again.
• Still worried You turn monitoring to the
  evaluation way.

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Monitoring to trace obstacles to treasury return

• Output should transfer in outcome
• Performance from a organisation should effect,
  have impact on society.
• Impact should result, the return would be
  continuous effects, reach sustainability.
• The problem the political programme was addressed
  is meant to be solved.
• If the problem is solved the programmed should be
  reconsidered as no longer necessary.
• If the problem is not solved the programme should
  be reconsidered as not working.
• Alternatives should be considered.
• Ongoing monitoring raises the questions,
  evaluations may give the answers.

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MonitoringFrom ongoing to evaluation

• What do they do?

Why do they do what they do?