Paper to the ABS NatStats08 Conference Melbourne November 2008:

Planning and measuring state level progress:

the WA experience

Peter Wilkins

“If we could first know where we are and whither we are tending, we could better

judge what to do, and how to do it …”

-- Abraham Lincoln

Overview

• Some context• WA reporting of performance• Budgets as state plans• Improving usefulness and usage

EFFECTIVENESS

EFFICIENCY

WORKLOAD

COST

OUTPUT

IMPACT

OUTCOME

OUTPUTS

PROCESS

INPUTS

Brief WA history

Mid 80s Efficiency and effectiveness

Late 80s TQM, evaluation

Mid 90s Public sector, risk & knowledge mgt; customer focus, balanced scorecard

Late 90s Output-based management

00s Outcome-based management

Late 00s? TBD

Towards performance governance

Mechanisms for integrating, aligning & framing:

• Citizen engagement• Integrative initiatives eg measurement,

accountability and citizen participation• Whole of government and societal

indicators and impacts

Bouckaert, G and Halligan J 2008

WA Framework

Better Planning: Better Futures (2006)• Five Goals and 21 Strategic OutcomesExample:• Goal 1 Better Services

Enhancing the quality of life and well-being of all people throughout Western Australia by providing high-quality, accessible services

• Strategic Outcome 1.3 A safe community– People should be safe in their homes, their communities and their

workplace and their property should be secure. The impact of human and natural hazards on the community will be minimised. Strategies will aim to ensure that people are protected from others, act in ways that reduce accidental harm to themselves and do not attempt to harm others, including members of their own family.

Specific Strategies

WA Framework (2)

Budget PapersExample: WA PoliceMission: To enhance the quality of life and

well-being of all people in Western Australia by contributing to making our State a safe and secure place.

Four Desired Outcomes eight Services4. A safer and more secure communityService 8. Implementation of the State

Crime Prevention Strategy

WA Framework (3)

Effectiveness KPIs: Reported rate of home burglary the 1000 residential dwellingsProportion of the community who feel ‘safe’ or ‘ very safe’ at

home alone after darkProportion of the community who feel ‘safe’ or ‘ very safe’ at

home alone after darkEfficiency KPIs:Average cost per community safety and crime prevention

partnership managedAverage cost per hour for research, policy development and

support to the Community Safety and Crime Prevention Council

Average cost per $1 million in grants funding administeredSelected audited KPIs

DCS Budget papers 2008-09

Government Goal

Desired Outcome

Services

Enhancing the quality of life and wellbeing of all people throughout Western Australia by providing high quality, accessible services.

A safe, secure and decent corrective services system which contributes to community safety and reduced offenders' involvement in the justice system.

1. Adult Offender Services

2. Juvenile Offender Services

Relationship to Government Goals

Virginia Performs

Virginia Performs

Performance Indicators

• Intended as a guide to understanding organisational performance

• Provide an insight into an organisation’s achievement

• Are indicators, notprecise measures of performance

Factors affecting use

Characteristics of the environment

• information needs• decision characteristics• types of activity being

reported on• skills and work-styles of

senior managers• political climate• competing information• leadership and interest

groups

Characteristics of the information

• information quality• credibility• relevance• communication quality• findings• timeliness• accessibility of

informationWilkins 2006

How useful?

Evidence might include:• contributions to decision-making• satisfaction of users of the information• the quality of the information reported• views of the preparers of the information• linkage of internal and external domains

What could most usefully be covered?

• On target, and what this means? ie the basis of the targets is explained.

• Getting better?• Better than others?• Logical links between observed trends

and the agency’s service(s)? ie cause and effect are explained

• Limitations made clear?

Relevant and Appropriate

The measures and indicators must relate to outcome and outputs being measured.

Indicators provide sufficient information to enable assessment of agency performance, including

Against targetsTrends over timeCompared to others

Fairly Represent

Comprehensive/Completeness Verifiable by independent assessment Free from bias or distortion Quantifiable

Notes to Explain

• how the indicators have been derived• any variations from previous indicators• why the indicators are relevant• why these are key indicators• how the indicators can assist the user• impact of unusual events or

circumstances

Performance Stories

• What was expected?• What was achieved and why?Causality: Contribution Analysis• Theory of change• Evidence• Contribution story

Mayne 2004

Information sources & types

• The majority of public sector performance information is never seen by the public or the Parliament

• External reporting is largely a supply-driven process

• Increased interest in whole-of-government reporting

An Example

Outcome“A responsive vocational education and training sector which meets the needs of Western Australian students and employers

Effectiveness IndicatorVocational education and training (VET) participation rate

Table17: Vocational Education and Training (VET) Participation Rate (Percentages), 2003-2007

2003 2004 2005 2006 2007 Target in 2007-08 Budget Papers

8.1 7.8 7.9 8.0 8.4 8

Contact details

Dr Peter WilkinsOffice of the Auditor General4th floor Dumas House2 Havelock StWEST PERTHWestern Australia 6005AUSTRALIA

Phone: +61 8 9222 7588Mobile: +61 407 380 772Fax: +61 8 9322 5664Email: pwilkins@audit.wa.gov.au

References (1)

Bouckaert, G and Halligan J 2008. Managing Performance: International comparisons.Routledge, London

Mayne, J. (2004). Reporting on outcomes: Setting performance expectations and telling performance stories. Canadian Journal of Program Evaluation 19(1) 31-60.

Mayne, J. and Wilkins, P. (2005). “Believe it or not?”:The Emergence of Performance Information Auditing. In Schwartz, R. and Mayne, J. (eds.). Quality Matters: Seeking Confidence in Evaluation, Auditing and Performance Reporting. New Brunswick, NJ, Transaction Publishers.

van Schoubroeck, L. (2008) Strategic planning: why would politicians be interested? Some insights from Western Australia. Canadian Political Science Association Annual Conference. 6 June. Vancouver, http://www.cpsa-acsp.ca/papers-2008/van%20Schoubroeck.pdf.

van Schoubroeck, L. (2008). Key Performance Indicators: Where are they now?Paper prepared for the Office of the Auditor General Perth, Western Australia. http://www.audit.wa.gov.au/pubs/KPIs_WherearetheynowpaperLVS.pdf

References (2)

WA Department of the Premier and Cabinet (2006) Better Planning: Better Futures: A Framework for the Strategic Management of the Western Australian Public Sector, Government of Western Australia.

WA Department of Treasury and Finance (2004) Outcome Based Management: Guidelines for use in the Western Australian Public Sector, Perth, Government of Western Australia. http://www.dtf.wa.gov.au/cms/uploadedFiles/obmnov04.pdf.

Wilkins, P. (2002). State Whole-of-Government Planning and Reporting : Involving Citizens In Government. Paper to the IPAA National Conference “Powerful Connections” Adelaide November 2002.

Wilkins, P. (1998). Reporting performance: Lessons on how and why from North America. Paper to the Practitioner and Academic Symposium Institute of Public Administration of Australia National Conference, Hobart.

Wilkins, P. and Mayne J. (2002) Providing Assurance on Performance Reports: Two jurisdictions compared http://www.audit.wa.gov.au/reports/providingassurance.html

Virginia Performs (2008) Virginia Performs: Measuring Virginia, http://www.vaperforms.virginia.gov/index.php.