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Why governments should focus on performance management

Improving government performance management can strengthen public trust and improve service delivery through data-driven decision-making.


In brief
  • Governments are adopting performance management systems to better align services with strategic goals and public expectations.
  • These systems support informed decision-making, optimize resource use and raise accountability.
  • Leadership plays a critical role in fostering a culture of transparency, learning and continuous improvement.

After years of process-focused governance, public institutions are shifting toward results-oriented approaches. A major focus within this is government performance management and the ways that performance can be tracked, assessed and leveraged. By understanding the components and benefits of performance management, governments can increase efficiency while improving outcomes.

Performance management is a structured approach that helps governments use data to evaluate performance, identify areas for improvement and make informed decisions. By aligning day-to-day operations with strategic goals, it enables more efficient processes, better service delivery and improved outcomes for the public.

 

Government performance management has evolved from early efforts focused on efficiency and process improvements to a more sophisticated system emphasizing data-driven decision-making and outcomes. Milestones such as the federal Government Performance and Results Act (GPRA) of 1993 established frameworks for goal setting and accountability, while innovations such as “stat” programs in cities (e.g. New York and Baltimore) introduced real-time data analytics. Today, performance management continues to advance by integrating technology and cross-agency collaboration to improve public service effectiveness and transparency.1

In the download, you’ll learn:

  1. Why governments should focus on performance management
  2. Transforming government performance through effective KPIs
  3. Creating an effective performance management system to improve service delivery and outcomes
  4. Assess and take action

Christina Garcia Busa, Ernst & Young LLP; and Kyle Madura, Ernst & Young LLP contributed to this article.


Summary 

Making performance data visible — both internally and externally — enhances transparency and accountability. Additionally, regular conversations about performance — backed by performance data — promote learning and positive accountability, shifting the focus from blame to improvement. Ultimately, linking performance data to budget, policy and program-level decisions allows governments to improve service delivery and outcomes in a measurable, sustainable way.

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