The UK performance management framework

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The UK performance management framework
Kit Charnaud, Prime Ministers Delivery Unit
United Kingdom Tuesday, 28 October 2008
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Context

• 40 GDP spent on government services
• Real terms increases in public spending of 4.1
  (05/06), 2.7 (06/07), 2.8 (07/08)
• Key principles of the strategy for public
  services
• embed value for money across the public sector,
• focus on key cross-government priorities,
• respond to the needs of users
• PMDU role small unit within Treasury, jointly
  accountable to Prime Minister and Chancellor

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History - Key features of what was introduced in
CSR 1998

• Features of the 1998 Comprehensive Spending
  Review
• Three-year spending plans
• Separate capital and current budgets
• Resource accounting and budgeting
• Introduction of Public Service Agreements (PSAs)
• Strengths of UK approach to performance
  management
• public statement about the Governments
  priorities
• created an outcome-oriented system,
• sharpened the Governments accountability to the
  electorate and to Parliament

No mechanistic link between performance and
resource allocation in Spending Review
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Evolution of the PSA framework
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A more secure, fair and environmentally sustainabl
e world
Stronger communities and a better quality of life
Fairness and opportunity for all
Sustainable growth and prosperity
27. Lead the global effort to avoid dangerous
climate change
18. Promote better health and well-being for all
8. Maximise employment opportunity for all
1.Raise the productivity of the UK economy
19. Ensure better care for all
9. Halve the number of children in poverty by
2010-11, on the way to eradicating child poverty
by 2020
2. Improve the skills of the population, on the
way to ensuring a world-class skills base by 2020
28. Secure a healthy natural environment for
today and the future
20. Improve long term housing supply and
affordability
10. Raise the educational achievement of all
children and young people
3. Ensure controlled, fair migration that
protects the public and contributes to economic
growth
21. Build more cohesive, empowered and active
communities
11. Narrow the gap in educational achievement
between children from low income and
disadvantaged backgrounds and their peers
4. Promote world class science and innovation in
the UK
29. Reduce poverty in poorer countries through
quicker progress towards the Millennium
Development Goals
22. Deliver a successful Olympic Games and
Paralympic Games with a sustainable legacy and
get more children and young people taking part in
high quality PE and sport
12. Improve the health and wellbeing of children
and young people
5. Deliver reliable and efficient transport
networks that support economic growth
23. Make communities safer
13. Improve children and young peoples safety
6. Deliver the conditions for business success in
the UK
30. Reduce the impact of conflict through
enhanced UK and international efforts
24. Deliver a more effective, transparent and
responsive Criminal Justice System for victims
and the public
14. Increase the number of children and young
people on the path to success
7. Improve the economic performance of all
English regions and reduce the gap in economic
growth rates between regions
25. Reduce the harm caused by alcohol and drugs
15. Address the disadvantage that individuals
experience because of their gender, race,
disability, age, sexual orientation, religion or
belief
26. Reduce the risk to the UK and its interests
overseas from international terrorism
16. Increase the proportion of socially excluded
adults in settled accommodation and employment,
education or training
17. Tackle poverty and promote greater
independence and wellbeing in later life
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Cross-cutting nature of PSA targets PSA 20
Improve long term housing supply and
affordability 8 Departments
Indicator 1 Number of net additional homes
provided. TARGET Indicator 2 Trends in
affordability This will be measured using the
ratio of lower quartile house prices to lower
quartile earnings Indicator 3 Number of
affordable homes delivered (gross).
TARGET Indicator 4 Number of households in
temporary accommodation. TARGET Indicator 5
Average Energy Efficiency Rating for new
homes. Indicator 6 Local planning authorities to
have adopted the necessary Development Plan
Documents, in accordance with their Local
Development Schemes, to bring forward developable
land for housing. TARGET
8

CSR07 key features of reform

• National, outcome-focussed indicators underpin
  all PSAs
• Collaboratively developed Delivery Agreement for
  each PSA
• Accountability within Whitehall strengthened
• Embed genuine user engagement in design, delivery
  and governance across key public services.
• Reduced bureaucracy and unnecessary data burdens

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Accountability structures that drive delivery
Published set of 30 PSAs, that set out what they
aim to achieve and how they are going to do it,
and are supported by a clear accountability
structure.

• Accountability is key and rests with both
  politicians and officials
• Prime Minister, Chancellor, Cabinet
• Named Secretaries of State
• Senior Responsible Officer for each PSA
• A Delivery Board, comprising senior officials
  from contributing departments and chaired by the
  Senior Responsible Officer
• A single responsible Cabinet Committee for each
  PSA
• Permanent secretaries
• Transparency and accountability to public

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Measures and levers drive delivery
Hard levers of influence

• No formal or legal sanctions for ministers or
  departments
• Some PSAs have national targets in their Delivery
  Agreement
• Inspections performance against national target
  e.g. Ofsted in education
• Accountability structures
• Contracts train companies can be fined for
  delays
• Financial sometimes extra funding or closure of
  frontline services
• Earned Autonomy for the frontline e.g. NHS
  Foundation Trusts
• Performance management individual performance
  reporting mechanisms
• Reputational motivations Departmental
  performance reporting and performance tables

Direct accountability
E.g. Skills PSA - Indicator 2. 6 Higher education
initial participation rate Target Increase
participation in Higher Education towards 50 per
cent of those aged 18 to 30 with growth of at
least a percentage point every two years to the
academic year 2010/11.
Contractual / regulatory
Common purpose
Wider community
Soft levers of influence
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PSAs have worked best when

• Focus on priorities across delivery chain
• Understand the delivery chain
• Are ambitious
• Based on systematic delivery planning
• Have defined indicators and targets
• Have timely, high quality information
• Recognise targets are not the only tools to
  improve performance

• Vision for the future
• Citizen empowerment
• New professionalism for the frontline
• Strategic leadership from the centre

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