Tài liệu Performance-Based Management Systems Effective Implementation and Maintenance docx

Performance-Based
Management
Systems
Effective Implementation
and Maintenance
AU5427.indb 1 11/19/08 11:10:32 AM
PUBLIC ADMINISTRATION AND PUBLIC POLICY
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EVAN M. BERMAN
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Founding Editor
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Performance-Based Management Systems: Effective Implementation
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Patria de Lancer Julnes
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Performance-Based

Management
Systems
Effective Implementation
and Maintenance
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Julnes, Patria de Lancer.
Performance‑based management systems : effective implementation and
maintenance / Patria de Lancer Julnes.
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Includes bibliographical references and index.
ISBN 978‑1‑4200‑5427‑9
1. Public administration‑‑United States‑‑Evaluation. 2.
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DEDICATION
To George
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AU5427.indb 10 11/19/08 11:10:33 AM
xi
Contents
Acknowledgments xiii
Prologue xv
I: PART MAKING THE CASE FOR PERFORMACE

MEASUREMENT AND PERFORMANCE-BASED
MANAGEMENT
1 Introduction
3
Responding to Multiple Demands 4
Performance-Based Management among Recent Alternatives 6
e Balanced Scorecard 6
Benchmarking 6
Performance-Based Budgeting 7
Down to the Core: Performance Measurement 7
Performance Measurement Is Here to Stay 8
From Efficiency Expectations to Performance-Based
Accountability 10
Beyond Accountability, What Can Performance Measurement Do for
Public and Nonprofit Agencies? 15
Performance Measures as a Tool for Evaluation and
Understanding 17
Performance Measures as a Tool for Control and Oversight 17
Performance Measures as a Tool for Motivating and Mobilizing 18
Performance Measures as a Tool for Improvement 19
Limitations of Performance Measurement 19
Summary 23
2 Using Performance Measurement Information 25
Barriers to Performance Measurement 25
Performance Measurement as Knowledge and Innovation 30
Performance Measurement as Knowledge Creation 30
AU5427.indb 11 11/19/08 11:10:34 AM
xii  Contents
Performance Measurement as Innovation 32
Toward an Elaborated Model 33

Lessons at Must Be Learned 35
II: PART BUILDING THEORY IN SUPPORT OF PRACTICE
THROUGH A MIXED METHODS APPROACH
3 Theoretical Framework
45
Deconstructing Utilization 46
Performance Measurement Adoption and Implementation as
Knowledge Utilization 48
e Knowledge Utilization Framework 50
e Rational Model of Organizational Innovation and Change 54
Formal Politics as Rationality: External and Internal
Requirements 55
Guiding Actions through Goals: A Rational/Technocratic
Perspective 58
Organizational Resources as Technical Capacity 59
Mediating Effects 61
e Political-Cultural Model 61
Interest Groups 63
Internal Politics 63
External Politics 66
Unions as Internal and External Political Actors 67
Organizational Culture 68
Summary 70
4 Research Methodology 75
e Survey: Collecting Quantitative Data 76
Sampling Techniques 76
e Survey Instrument 77
Mailing Strategies 80
Returned Questionnaires and Follow-Up Mailing 81
Response Rate 82

Strengths and Limitations of Survey Studies 82
Analysis of Quantitative Evidence 85
Factor Analysis for Scale Validation 85
Steps in Factor Analysis 86
Strengths and Limitations of Factor Analysis 88
Testing the Reliability of Scales 89
Multiple Regression 90
Model Elaboration: Pattern Matching 91
Path Analysis 92
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Contents  xiii
Addressing Limitations 93
Further Elaboration and Model Verification 93
Possible Remaining Concerns 95
Summary 96
5 Survey Data Description and Preparation for
Hypotheses Testing
97
Variables 98
Data Description 101
Characteristics of Respondents and eir Organizations 101
Dependent Variables: e Utilization of Performance Measures 102
Prevalence of Measures: What Has Been Adopted? 102
Extent of Implementation of Measures 103
Adoption and Implementation in State and Local
Government Organizations 105
Independent Variables 107
Rational/Technocratic Variables 107
Internal and External Interest Groups 110
Multivariate Analyses 113

Factor Analysis and Scale Reliability Testing 113
Dependent Variables and Corresponding Factors 114
Independent Variables and Corresponding Factors 117
Summary 120
6 Modeling Causal Linkages 123
Basic Integrated Models: Deconstructing Utilization Using Pattern
Matching with Respect to the Outcome 127
e Impact of Contextual Factors 127
Formal Politics (External and Internal Requirements) 127
Organizational Politics (External and Internal Interest
Groups) 129
Culture (Attitude and Rewards) 130
Control Variables (Organization Type and Position of
Respondents) 131
Moderation (Interaction) Effects 132
Unionization and Internal Interest Groups 132
Attitude and External Requirements 133
Section Summary: Basic Integrated Model 135
Elaboration: Toward an Estimated Causal Model 137
Mediation and Model Purification 137
e Relevance of Resources, Access to Information, and Goal
Orientation 138
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xiv  Contents
Effect of Formal Politics (External and Internal
Requirements) 140
Effect of Organizational Politics (Internal and External
Interest Groups) 143
Effect of Culture (Attitude and Rewards) 144
Control Variables (Organization Type and Position of

Respondents) 145
Section Summary: Elaborated Models 146
An Estimated Causal Model of Adoption and Implementation 146
Discussion 1: Elaborated Model Explaining Implementation
with Adoption as a Precursor to Implementation 148
Discussion 2: Elaborated Model Explaining Implementation
with Adoption and Goal Orientation, Resources, and Access to
Information as Mediators 149
Significant Factors 149
Discussion 3: Estimated Path Model of an Elaborated Model
Explaining the Adoption and Implementation of Performance
Measures 151
Direct Effects to Adoption and Implementation 151
Indirect Effects on Adoption and Implementation 156
Summary 157
III: PART LETTING PRACTICE INFORM THEORY
7 Interpreting Survey Findings
161
Differentiating the Stages of Utilization of Performance Measurement 163
Formal Politics (External and Internal Requirements) 164
Organizational Politics (External and Internal Interest Groups) 165
Culture (Attitude and Rewards) 168
e Interaction of Unionization and Internal Interest Groups 169
Elaboration toward an Estimated Causal Model: Model Purification
and Mediation 170
Rational/Technocratic Factors: Resources, Access to
Information, and Goal Orientation 171
Politics and Culture in the Realm of Rational/Technocratic
Factors 174
Influence of Formal Politics (Internal and External

Requirements) 174
Influence of Organizational Politics (Internal and External
Interest Groups) 175
Influence of Culture (Attitude and Rewards) 176
Will Organizations at Adopt Implement? 177
Summary 179
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Contents  xv
8 Contextualizing the Quantitative Model 181
Performance Measures Being Adopted 181
What It Means to Implement Performance Measures 183
A Political Perspective on Use of Performance Measures 185
Reasons for Adopting and Implementing Performance Measures 187
Verification of Model Linkages 187
Factors at Predict Adoption 187
Internal Interest Groups 187
Requirements 188
Rational/Technocratic Factors 188
Other Factors 189
Factors at Predict Implementation 189
External Interest Groups 189
Culture 189
Internal Interest Groups 190
Rational/Technocratic 190
Perceptions of Effectiveness of Performance Measurement 190
Challenges of Performance Measurement 192
Strategies for Addressing Challenges 194
Summary 195
9 Two Overarching Themes 197
Performance Measurement Utilization: A Complex Process at

Requires Skills, Strategy, and Resources to Manage 197
Dakota County, Minnesota 199
State of South Carolina, Department of Health and
Environmental Control 200
King County, Washington 201
State of Utah 202
Teen REACH Program, Illinois 203
What ese Cases Tell Us 204
Someone Has to Be in Charge 204
You Have to Be Strategic 205
It Is Expensive, but the Cost Will Decrease over Time 206
Use of Performance Measures Is More than Meets the Eye 207
e Purpose in Using Performance Information 208
Linking Purpose and Use 212
Summary 218
IV: PART SUMMING UP AND MOVING FORWARD
10 Summary and Final Recommendations for Theory and
Practice
221
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xvi  Contents
eoretical Implications for Building Practice-Friendly eory in
Performance-Based Management 222
Steps toward a Refined Model of Utilization of Performance
Measures 224
Pattern Matching 224
Moderation 225
Mediation 225
Model Verification and Contextualization 226
Implications for Practice 227

Look (and Assess) before You Leap 227
You Are in the Midst of the Process, Now What? 230
Motivate 231
Include 232
Educate 232
Use 232
What about Purposes, Audiences, and Number of Measures and
Indicators? 233
Opportunities for Moving Forward 235
e Need for More Quality Training at Includes Program
Evaluation Methods and Techniques 235
e Need for Broader Dissemination of Successes and Failures 236
e Need for More Systematic Research 236
Appendix A 239
National Center for Public Productivity
Survey on the Utilization of Performance Measures 239
Appendix B 247
Protocol for Follow-up Telephone Interviews 247
Adoption 248
Implementation 248
References 251
Index 263
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xvii
ACKNOWLEDGMENTS
A project of this magnitude and scope is never the work of only one person. It
requires the support of many individuals. Such is the case here, and I mention some
of those individuals below. I am indebted to them and many others for sharing their
knowledge and giving me opportunities over the years to gain valuable experience
and achieve intellectual growth.

I’m deeply indebted to Marc Holzer, of Rutgers University-Newark, for the
inspiration to promote government performance and the countless learning and
growth opportunities he has provided me. Marc was also instrumental in the
preparation of the article “Promoting the Utilization of Performance Measures
in Public Organizations: An Empirical Study of Factors Affecting Adoption and
Implementation” which appeared in Public Administration Review 61(6) pp 693
– 708, winner of the William E. Mosher and Frederick C. Mosher Award for best
article written by an academician for the issue year 2001 and the 2001 Joseph
Wholey Distinguished Scholarship Award of the American Society for Public
Administration’s Center for Accountability and Performance. e article was based
on the theoretical grounding and survey data used in this book; to Jay Fountain,
of the Government Accounting Standards Board, for helping me build a founda-
tion from which my research has sprung; to Cheryle Broom, from King County,
Seattle, and Martha Marshall, Management Consultant, whose work I admire and
have learned from over the years; and to the late Marcia Whicker, whose tenacity
and brilliance inspired me.
I’ve also benefited from the consulting and collaborating opportunities I’ve had.
ey provided me with practical knowledge, which has influenced my thinking and
given me a level of depth and wisdom that I could not have obtained otherwise.
Very special appreciation goes to all the public servants who participated in
the studies that I report here and those who in one way or another contributed
examples and other information to help me complete this book. I could not have
done this without them. Also to the editorial team at Auerbach, Taylor & Francis,
especially Raymond O’Connell, Jessica Valiki, and Eva Neumann, for all their help
and patience.
AU5427.indb 17 11/19/08 11:10:38 AM
xviii  Acknowledgments
Finally, I must thank my husband, George Julnes, who has graciously and
patiently spent many hours going over multiple drafts of this manuscript. In the
process, we had many stimulating discussions. I’m grateful to him beyond what

words can convey.
AU5427.indb 18 11/19/08 11:10:38 AM
xix
Prologue
e main goals of this book are to support efforts to build and sustain perfor-
mance-based management (PBM) systems in public organizations and to develop
context-sensitive theory to inform such efforts. is involves helping students and
practitioners learn about the challenges of prior performance management efforts
and gain the knowledge necessary to guide more effective implementation and con-
tinuity of PBM systems. A core component of these systems is performance mea-
surement. Although much has been written about the positive influence and, in
some cases, negative influence of performance measurement, there is little empiri-
cal understanding about its use.
Much of the current problem stems from a lack of integration of theory, evi-
dence, and practical implications in this field. Without an empirically based body of
theory to guide research, much of what we know about performance measurement
in the public sector is based on anecdotal information. is resulting information
is inadequate to guide practice in part because it does not provide a clear picture
of the contributions performance measurement is making to the management of
public and nonprofit organizations.
Furthermore, a lack of understanding of what it takes to effectively implement
and sustain a performance-based management system may be responsible for the
apparent failure of organizations to use performance measurement information to
guide decision making in the public sector. us, this book will address these issues
by focusing on two specific questions: (1) Why isn’t performance measurement
information used more widely and effectively in the public sector? (2) How can we
improve implementation of performance measurement? To address these questions,
I use here a triangulated methodology that allows me to develop robust theory about
the utilization of performance measurement that can be used to guide practice.
To that end, this book is structured around three broad themes. Focusing on

performance measurement as a key element of PBM, the first theme, covered in Part
I, is making the case for performance measurement and performance management.
is part sets the context for the needs addressed by this book. It discusses the place
and contributions of performance measurement in PBM, the rich legacy behind
performance measurement, limitations of performance measurement, some lessons
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xx  Prologue
learned about performance measurement, and competing explanations of the fac-
tors that limit effective use. Part II focuses on the second theme: building theory in
support of practice through a mixed methods approach. is part is built around a
stream of research that reconciles the conflicting explanations about the apparent
lack of use of performance measurement information. is reconciliation supports
a conceptual synthesis that offers new insights for developing a context-sensitive
model of the utilization of performance measurement that can inform practice.
e third theme, covered in Part III, letting practice inform theory, develops these
insights into a pragmatic model of performance-based management. It provides a
more realistic explanation of the contributions of performance measurement and
gives advice derived from current practice. e book ends with a concluding chap-
ter in Part IV, “Summary and Final Recommendations for eory and Practice.”
e chapter highlights the rationale, methods, and findings of the survey study
and follow-up interviews that served as the foundation for this book. In addition, it
provides final insights into how to move practice and theory forward.
It should be noted that an underlying assumption made here is that perfor-
mance measurement systems are complex innovations, and that the factors influ-
encing effective implementation are complex as well, but also fairly understandable
when considered carefully. As such, the utilization of performance measurement
should not be approached as a monolithic concept. Like any policy innovation,
there are stages to the utilization of performance measurement, and at the different
stages diverse issues that affect this policy process emerge. Specifically, the issues
driving the utilization of performance measurement are largely rationally driven

(e.g., by resources, technical know-how) when the measurement is being planned
at the beginning of the effort, but are more politically driven (e.g., due to external
stakeholders) during the later implementation. erefore, to understand the utiliza-
tion of performance measurement, we need to go beyond the rational/technocratic
ideals and borrow from extant literature on public policy implementation, organi-
zational politics and culture, and knowledge utilization. Achieving a more thor-
ough understanding of the mechanisms that affect the utilization of performance
measurement leads to the development of context-sensitive strategies to promote
such systems in public organizations.
Consequently, the book will help practitioners understand what it takes to
effectively implement policies that have potential impacts on their organizations
and the employees, and in particular, it will guide them as they attempt to respond
to the calls for performance-based management. It will also help those in academia
to analyze critically the theories of implementation of public policies in general, in
part by providing a model of the process of theory integration. Students involved in
graduate research in this area will benefit from the practical understanding that this
book will offer on how to build effective research frameworks based on an ongoing
program of research. Furthermore, they will learn how to utilize the available data
analysis techniques to build theory and inform practice.
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Part I
MAKING THE CASE
FOR PERFORMACE
MEASUREMENT AND
PERFORMANCE-BASED
MANAGEMENT
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3
1Chapter

Introduction
Public and nonprofit organizations have been long confronted with the twin pres-
sures of increasing demands for services and decreasing resources. At the same time,
they are facing an increasingly complex global, legal, and competitive environment
that requires organizations to adopt effective strategies for achieving organizational
goals and demonstrating results. For the public sector this emphasis on demonstrat-
ing results has been associated with skepticism by and discontent of the American
public with how their tax dollars are being spent. For the nonprofit sector the pres-
sure is coming from donors and funding agencies, who want to know if funds are
being spent in the most efficient and effective manner.
Paradoxically, as expectations for performance-based management are grow-
ing in the public and nonprofit sectors, there still remains little appreciation and
acknowledgment in practice of these and other challenges managers face in imple-
menting performance-based management (PBM) systems. Current research con-
tinues to show a gap between developing performance measurement systems and
actually using the information (Poister and Streib, 2005; Melkers and Willoughby,
2005; Behn, 2003; Wang, 2000; Joyce, 1997). Assessing this gap is complicated by
the lack of agreement as to what constitutes use. For example, does the simple fact
that performance measurement information is discussed during the budget alloca-
tion process constitute use? Are there different types of use?
In this book I will explain these challenges, the meaning of using performance
measurement information, and suggest strategies to improve performance measure-
ment, and hence support performance-based management. To be sure, anything
that constitutes change from how the organization is used to doing things will
have its setbacks. However, as stated by Heinrich (2002), the “setbacks confronted
in implementing outcomes-based performance management in government should
not discourage efforts to improve government performance.”
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4  Performance-Based Management Systems
Responding to Multiple Demands

Although there are a variety of responses to each of the pressures mentioned
above, performance-based management holds promise as a strategy for respond-
ing to these multiple demands. As defined by Wholey (1999), PBM refers to the
“purposeful use of resources and information to achieve and demonstrate mea-
surable progress toward agency and program goals.” As a concept, PBM enjoys
broad acceptance. However, as will be discussed in this book, in practice it raises
many questions that need to be addressed to fulfill its promise.
What makes PBM an ideal approach to meet the multiple demands outlined
above is that it has two intimately related components: (1) performance measure-
ment and (2) strategic planning. Performance measurement is the regular and care-
ful monitoring of program activities, implementation, and outcomes. A quality
performance measurement system produces timely, reliable, and relevant informa-
tion on indicators that are linked to specific programs and goals and objectives.
Strategic planning, a systematic management process that includes identifying an
agreed upon mission, developing goals and objectives that are linked to the mission,
and formulating strategies for achieving goals and objectives, provides the direction
and the basis for measuring. erefore, performance-based management should be
seen as a system where performance measurement and strategic planning support
and complement each other. is book focuses on the performance measurement
component of performance-based management.
Performance measurement seeks to answer the following questions: “What
are we doing?” and, to some extent, “How well are we doing it?” Managers can
then use this information to improve the quality, efficiency, and effectiveness of
programs delivered. Kopcynski and Lombardo (1999) argue that performance
measurement can help to enlist support and build trust, identify performance
targets, and build a culture of accountability. Behn (2003) adds that the infor-
mation can be used “to evaluate, control, budget, motivate, promote, celebrate,
learn, and improve.”
Inherent in some of these roles is that performance measurement can serve
as a tool for improving the communication between government and citizens.

Performance indicators provide a common language for effective communication
between service providers and stakeholders (Dusenbury et al., 2000). Furthermore,
the process of developing performance measures provides the opportunity for gov-
ernment and other service providers to engage citizens and stakeholders in delibera-
tion about programs, their implementation, and expected outcomes. Ultimately,
the goal of performance-based management is to improve performance and increase
satisfaction among citizens and other stakeholders with the services they receive.
Figure 1.1 is a graphical representation of performance-based management. e
figure suggests several assumptions that are necessary for implementing perfor-
mance-based management in an organization. It presumes:
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