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Onward and upward: GFOA's Performance Management Initiative. (From the Publisher).(Brief Article)

Government Finance Review

| April 01, 2002 | COPYRIGHT 2002 Government Finance Officers Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Once again, the April issue of Government Finance Review is dedicated to a movement that continues to attract a great deal of attention among finance professionals--performance measurement. The notion of making government more efficient and effective by measuring and reporting performance simply makes too much sense to ignore. Indeed, citizens are coming to demand performance information so that they can hold governments accountable for their use of public resources. GFOA's Performance Management Initiative represents the association's commitment to promoting the integration of performance measurement into budgeting, strategic planning, and management decision-making processes.

Although governments of all types and sizes have implemented some form of performance measurement, the success of these efforts varies from jurisdiction to jurisdiction. A few governments have sophisticated, technology-enhanced programs that tie performance measures to resource allocation, while many others are just beginning to develop them. No matter where you are on the performance measurement continuum, there is much to be learned from the experiences of others. This issue of Government Finance Review is intended to advance the use of performance measurement.

New themes are emerging in the quest for "restuls-oriented" government. Performance measurement should be more than a mere bean counting exercise intended to placate elected officials or to advance a particular political agenda. Rather, performance measurement should be woven into the decision-making fabric of government. For this to happen, however, decision makers must be able to trust the accuracy of performance data. In "Trusting the Numbers: The Power of Data Verification," W. Anderson Williams explains how a sound control framework and regular verification of performance measures can allay skepticism of performance data. Another way to legitimize performance measurement is to involve citizens in the process. Alfred Tat-Kei Ho and Paul Coates explore citizen involvement in performance measurement in "Citizen Participation: Legitimizing Performance Measurement as a Decision Tool."

Once a government has committed itself to performance measurement, there are a number of vehicles for enhancing the value of that system. For maximum effectiveness, performance measures must be consistent with a government's mission, values, and objectives. Some jurisdictions are now experimenting with a private sector model called the balanced scorecard to make performance measures mission-critical drivers of success. Larry Maholland and Patrick Muetz describe their government s adaptation of the balanced scorecard in "A Balanced Scorecard Approach to Performance Measurement." Another way to maximize the usefulness of performance measurement is to integrate it with other improvement initiatives. This dynamic is explored by Joy Clay and Victoria Bass in "Aligning Performance Measurement with Key Management Processes." Finally, the enduring success of results-based government is contingent upon the knowledge and commitment of those assigned to carry out the program, underscoring the need for effective trainin g. Barbara Emerson describes Fairfax County's program ...

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