Benchmarking Lessons from the Mercatus Center's Performance Report Scorecard.(Forum: Transforming Bureaucratic Cultures)(Report)

The Mercatus Center at George Mason University produces an annual Performance Report Scorecard that evaluates the quality of the annual performance reports produced by the twenty-four federal agencies covered by the Chief Financial Officers Act. The scorecard is primarily a means of benchmarking best reporting practices. As the quality of reports has improved, however, we have also gleaned insight into helpful management practices showcased in the reports.

Four of the most important are (1) know and measure outcomes, (2) understand causality, (3) link results with costs, and (4) acknowledge shortcomings and have a plan to improve.

Know and Measure Outcomes

As George Harrison and others have said, "If you don't know where you're going, any road will take you there." Agencies should know the outcomes their activities are supposed to accomplish for citizens. They should measure those outcomes so they know whether they are accomplishing them.

The fiscal 2007 report from the U.S. Department of Health and Human Services lists a number of outcome-oriented goals that are also measurable, such as "Improve the safety, quality, affordability, and accessibility of health care," and "Prevent and control disease, injury, illness, and disability." Some illustrative measures include the percentage of the population with prescription drug coverage, the percentage of children with immunizations, incidence of food-borne disease, and incidence of injuries and suicides.

Understand Causality

It's not enough to have goals; agencies should also know how their actions are supposed to affect outcomes and assess how much of the change in outcome was caused by the agency's actions.