The Power of Performance Management

WHAT IS PERFORMANCE MANAGEMENT?

Performance management is a tool used to maximize program success. It is the ongoing review and assessment of program accomplishments toward a project’s goals and objectives. Performance management is about improving organizational performance.

A performance management system consists of a set of integrated performance goals, indicators, and targets combined with an organization-wide reporting system, such as AFI².

WHY PERFORMANCE MANAGEMENT?

• Enhance results.
  Performance management helps organizations and programs focus on achieving results. Effective performance measures are directly relevant to the organization or program mission and goals. It provides intelligence for improving AFI program implementation and outcomes.

• Help tell the AFI story.
  Quantifying achievements, as well as the impact of activities, enables organizations and programs to demonstrate results to stakeholders. Telling the AFI success story lends credibility to the initiative and helps grantees in their sustainability efforts.

• Better decisions and resource allocation.
  Timely and relevant reports on performance lay the groundwork for sound decision-making. It helps managers manage the program at all levels. Performance management systems enable decision-makers to identify what works best, and what training and technical assistance is needed.

• Accountability.
  Actively measuring performance allows organizations and programs to meet the requirements of the Government Performance and Results Act (GPRA), and the AFI Annual Report to Congress. In order to secure continued government funding, it is important for AFI to report positive performance results to both the Office of Management and Budget and Congress.

KEY TERMS IN PERFORMANCE MANAGEMENT

Performance (Performance-based) Management - The business or governmental practice of using performance measures to monitor an organization's progress toward pre-established targets, and using performance data to identify opportunities for improvement.

Goal - A broad statement of a project's intended accomplishments as reflected in the agency’s mission.

Expected Outcome Measure - Type of performance measure designed to measure actual achievement of a program’s objectives and goals, i.e. the results and benefits for the customer/client. Sometimes categorized along a continuum of short and long-term (end) outcomes.

Efficiency Measure - The ratio of project inputs (e.g., staff hours, budgeted dollars, etc.) to project outputs (e.g., services, products, etc.). Efficiency measures define the costs of the results for the customer/client.

Performance Indicator - A measure or set of measures tied to key activities undertaken to achieve the Expected Outcomes. Might include measurement of outcomes, outputs, cycle times, quality, customer satisfaction, responsiveness, cost and efficiency.

Initiative - A project or strategy funded to improve program performance.

Government Performance and Results Act (GPRA) of 1993 - GPRA is a Federal law that is designed to improve the confidence of the American people in the capability of the Federal Government, by systematically holding Federal agencies accountable for achieving program results. Its primary goal is to improve Federal program effectiveness and public accountability by promoting a new focus on results, service quality, and customer satisfaction.