An effective Performance Measurement Index requires careful planning in order to measure programs correctly. The image below outlines the step-by-step process used to develop an index approach Exhibit 2. Developing and implementing an index can benefit an agency in several ways. These include addressing long-term institutional challenges to day-to-day operations, such as fostering meaningful discussions about performance and providing employees with a better understanding of how their individual roles impact the overall strategic vision of the agency.
In addition to this and the benefits described in the previous section—performance measurement tied to strategy and facilitated leadership discussions to define success—an index can help an agency realize the following benefits:. A renewed emphasis on performance measurement can provide federal agencies the opportunity to reevaluate their existing approaches. It has also allowed federal agencies to consider implementing a method that both meets requirements and provides their organization with a broad management tool to drive daily operations and improve performance.
The index provides a single score at the enterprise level as well as scores at other management levels, so that leaders receive a view of program areas of strength and areas for improvement. Although this increased transparency can benefit external stakeholders, in addition, internal managers, and leadership can track the effectiveness of programs in accomplishing enterprise goals.
By tying resources to performance results, the index can help agencies better allocate resources to programs and projects. Just as important is the ability to use the index to measure program performance over time, allowing leaders to track changes in performance and compare these trends with similar entities within the agency.
Developing and implementing a Performance Measurement Index will, in most agencies, present a new way of doing business. For some, it represents the first time that performance measures at the project and program levels will be aligned to operational targets set by agency leaders. For others, it may be the first time that people outside of the budget process will establish and manage to performance targets.
Such collaboration can allow an agency to achieve the desirable mission and program impact, and, in return, the highest overall index score. Similar to many other Federal agencies, ATF has historically struggled with measuring outcomes, often depending on performance measures to describe efficiencies and outputs of programs. Deloitte then helped OSM realign the existing measures to develop an updated list of outcome-based goals, along with supporting performance measures to track outputs at the project level.
Senior executives also voted on the effectiveness of each performance measure as a component of its respective priority goal. Performance measurement is a way to continuously monitor and report a program's progress and accomplishments, using pre-selected performance measures.
By establishing program measures, offices can gauge whether their program is meeting their goals and objectives. Performance measures help programs understand "what" level of performance is achieved. Measurement is essential to making cost-effective decisions. We strive to meet three key criteria in our measurement work:. A program sets performance measures as a series of goals to meet over time.
Program evaluations assess whether the program is meeting those performance measures but also look at why they are or are not meeting them.
For example, imagine you bought a new car that is supposed to get 30 miles per gallon. But say, you notice that you are only getting 20 miles per gallon. That's a performance measurement. You looked at whether your car was performing where it should be. So what do you do next? You would take it to a mechanic. The mechanic's analysis and recommendations would be the program evaluation because the mechanic would diagnose why the car is not performing as well as it should.
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