ministry of finance pocket guide-ontario

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Intermediateterm outcommeasures

Outputs andshort-termoutcomes

Project Planmilestones

Public resultmeasures anhigh level

indicators

he diagram to the right illustrates the relationship oferformance measurement to other parts of the results-ased management process. The focus is on ministryrategies for meeting government priorities or serving

nother important public interest. Performance measuresor these strategies demonstrate the contribution that their

esults make to government priorities.

he results achieved at the activity level, in the form ofutputs or short-term outcomes, will be used to supportroject plans, quarterly reporting and Management Boardf Cabinet and Cabinet policy submissions. However, thetter submissions should also be supported by evidence

hat demonstrates intermediate term outcomes.

he performance measures that ministries report centrallyill be a combination of:

) measures related to public reporting and,) intermediate level outcome measures that demonstrate

the contributions of ministry strategies to meetinggovernment priorities or serving other important publicinterests.

Performance

measurement ishe method for

demonstratingesults.

Results

GovernmentPriorities

All OtherGovernment

Activities

MinistryStrategies

Ministry Activities

AgencyActivities

Broader PublicSector Activities

A Quick Reference for Ministries | October 20

What gets measured gets done

If you don't measure results you can't tell success from failure

If you can't see success you can't reward it

If you aren't rewarding success, you're probably rewarding fa

If you can't see success you can't learn from it

If you can't recognize failure you can't correct it

If you can demonstrate results you can win public support

Pocket Guide to

Performance

Measurement:


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Developing performance measures is not easy. Poorly integrated performance measurement systems can be worse than nosystem at all and may actually support poor decision-making. There are six steps to establishing good performance measures.

"There is nothing so useless as doingefficiently that which should not bedone at all."

Ministries should use logic models to illustrate relationships among activities, strategies and the results to be achieved.

Ministries should consult with third party service providers, broader public sector organizations and other ministries to alignperformance measurement systems to promote greater coordination and avoid duplication.

Developing performance measures is an iterative process and it is rare to get a satisfactory product the first time. It may behelpful to research measures that have been developed for similar activities elsewhere.

A number of pitfalls can compromise the value or usefulness of a performance measure. The most common pitfalls are attributionand measurement corruption.

A baseline is the level of results at a given time that provides a starting point for assessing changes in performance andestablishing objectives or targets for future performance.

A target is a clear and concrete statement of planned results (including outputs and outcomes) to be achieved within the timeframe of parliamentary and departmental planning and reporting against results which can be compared. Every ministry is askedto use comparative data to set targets based on its own performance, established industry standard, articulated customerpreference and/or performance of a comparable organization. Reasonable targets are challenging but achievable.

Once established, measures are used to measure progress, take corrective actions and adjust targets where applicable.

The important points to remember when creating a logic model are:

relationships between the boxes.

A logic model is an iterative process that involves many people working together rather than a

product which one person can produce. The information entered into the logic model at the early stages may need to be revised as new

information is entered.

It's not just the information in the boxes that counts, but the

he logic model provides a foundation foreveloping performance measures that willupport decision-making. A logic model is aool that can help define strategies andctivities in relation to government priorities. clearly shows the among

overnment priorities, ministries' strategicbjectives, and how ministry activitiesontribute to achieving those objectives andriorities through their expected outcomes.he process of creating a logic model and

making the linkages among inputs, outputsnd outcomes can help build commonnderstanding of what is expected, prioritizectivities and identify appropriate perfor-

mance measures.

any people will be familiar with programogic models, but they can also be used at atrategic level or created for the work of anntire organization. Everyone who uses logic

models adjusts them to meet their ownurposes, but a standard logic modelshown at right.

relationships

Performance Measures:Six Steps to CreatingPerformance Measures

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Use a logic model to define the ministry's strategies in relation to government priorities

Identify and consult on cross-ministry or horizontal initiatives

Identify individual performance measures

Check the measures for pitfalls

Establish baselines

Set performance targets

Logic Model

Inputs Activities Outputs OutcomesHigh Level

Change

Your Planned Work Achieving Objectives

Logic Model Process - How Each Component Leads To The Next Stage

Larger Public Interest:(Government Priorities Are Usually Here)

Customers: Who Benefits

Objectives Of The Strategy:What Does The Strategy Hope To Accomplish

List all i nputs Li st all activ iti es Li st the tangi bleproducts of the

activities

List the changes inparticipation, awareness,behaviour, compliance or

capacity that are expectedto result from the activities

in the short term

List the benefits orchanges in conditions,

attitudes and behaviourthat are expected to

result from theactivities in the

intermediate term

Activities Outputs Desired Short-Term Outcomes

Inputs

Standard Logic Model Diagram

Desired Inter-mediate Outcomes


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Meaningful performance measures should subscribe to the following criteria:

Show how ministry activities contribute to achieving results

Use reliable, verifiable and consistent data collection methods

Provide key information for decision-making

Capture all areas of significant spending

Identify and track impact as well as progress towards meeting desired outcomes

Incorporate consideration of risks and act as thermometers for risk management.

should be developed to demonstrate the short-termprogress that ministry activities make towardsachieving the objectives of ministry strategies.

(short-term and intermediate term) should bedeveloped to demonstrate the achievement ofministry strategies and / or the contribution ofministry strategies to meeting government priorities.

he Ontario government uses three levels oferformance measurement:

Identifying output measures and high-level indicators is relatively eaidentifying good outcome measures can be difficult. The Ontario goveusesthree typesof outcome performance measures.

The extent to which a strategy is producing its plannedin relation to use of inputs.

output

The extent to which a strategy is producing its plannedand meeting intended objectives. At least one

outcome effectiveness measure is required for each ministrystrategy.

outcomes

Modern Controllership Training

Policy Innovation and Leadership

attribution

Canadian Comprehensive Auditing Foundation principl

unit, Fiscal and Financial Policy Division, Ministry Finance offers free courses on performance measurement to support ministries in theto develop performance measurement systems and monitor and report on performanDetails and registration information are available at:

For more information on the relationship between performance measurement and resbased management, see the website at

For a more detailed discussion of and how to avoid attribution problemsJohn Mayne's article, Addressing Attribution Through Contribution Analysis: UsingPerformance Measures Sensibly, (Office of the Auditor General of Canada, 1999), ava

A full discussion of the located at:

http://intra.mc.fin.gov.on.ca

http://opspolicy.gov.on.ca/scripts/index_.asp?action=31&P_ID=14198&N_ID=5&PT_&U_ID=0

http://www.oag-bvg.gc.ca/domino/other.nsf/ html/99dp1_e.html/$file/99dp1_e.pdf

http://www.ccaf-fcvi.com/english/documents/ executive_summary.pdf

.

.

.

our on performance measurement cane reached through Kevin Perry, Manager, Performance Measurement andvaluation, Program Management & Estimates Division, 416-325-1290;

heincludes links to:

The Performance Measurement Guide Web links to international Performance Measurement literature,

resources, and cross-jurisdictional comparisons Web links to OPS Ministry materials about their own

performance measurement and management systems.

or a full of performance measurement termsbe used across the Ontario Public Service,

ee Appendix 2 of the Guide.

Management Board Secretariat advisor

Program Management & Estimates Division website

glossary

).

)

[email protected]

http://intra.pmed.mbs.gov.on.ca

Queen's Printer for Ontario, 2004.

measure social, environmental or economicconditions for which government alone is notaccountable, but which reflect the extent to whichthe government's priorities are being achieved.

The degree to which the intended recipients or beneficiaries of aproduct or service indicate that the product or service meets theirneeds and expectations for quality and efficiency.

Ministries should use outcome measures of effectiveness, efficiency, andcustomer satisfaction wherever possible.

Is the measure actually a good measure of the objectives the strategy intends to achieve?

Does the measure actually measure what it is supposed to?

Do different users of the same measure report the same result?

Will the measure produce the same data if measured repeatedly?

Does the measure relate to factors that the ministry can affect?

Is the measure clearly defined and easily understood?

Does the measure provide correct information in accordance with an accepted standard?

Is the value of the measure greater than the data collection costs?

Is the measure able to measure change?

Can data be collected and processed within a useful timeframe?

Can the data be compared with either past periods or with similar activities?

Does the data feeding the measures relate to the same factors in all cases at all times?

Will the measure be interpreted to encourage appropriate behaviours?

In order to demonstrateresults we need to measure

our performance and usethat performance

information for planningand on-going management

of government activities.Reporting performance is

important to guidedecision-making andsupport continuous

improvement efforts.

MeaningfulMeasures

Outputmeasures

Outcomemeasures

igh leveldicators

Efficiency:

Effectiveness:

Customersatisfaction:

Relevance:

Validity:

Reliability:

Verifiable:

Attribution:

Clarity:

Accuracy:Cost Effectiveness:

Sensitivity:

Timeliness:

Comparability:

Consistency:

Integrity:

Measures Checklist

Conclusion

Where to Find More Information
http://intra.mc.fin.gov.on.ca/http://opspolicy.gov.on.ca/scripts/index_.asp?action=31&P_ID=14198&N_ID=5&PT_ID=2620http://opspolicy.gov.on.ca/scripts/index_.asp?action=31&P_ID=14198&N_ID=5&PT_ID=2620http://www.oag-bvg.gc.ca/domino/other.nsf/%20html/99dp1_e.html/$file/99dp1_e.pdfhttp://www.ccaf-fcvi.com/english/documents/executive_summary.pdfhttp://opspolicy.gov.on.ca/scripts/index_.asp?action=31&P_ID=14198&N_ID=5&PT_ID=2620mailto:[email protected]:[email protected]://intra.pmed.mbs.gov.on.ca/http://intra.pmed.mbs.gov.on.ca/http://www.ccaf-fcvi.com/english/documents/executive_summary.pdfhttp://www.oag-bvg.gc.ca/domino/other.nsf/%20html/99dp1_e.html/$file/99dp1_e.pdfhttp://opspolicy.gov.on.ca/scripts/index_.asp?action=31&P_ID=14198&N_ID=5&PT_ID=2620http://intra.mc.fin.gov.on.ca/mailto:[email protected]

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