Korea’s Performance Management Korea’s Performance Management and Evaluation System and Evaluation System

Policy Analysis & Evaluation BureauPrime Minister’s Office

29. June, 2011

Hong Seok, Yang

ⅠⅠ Introduction to PMO

ⅡⅡ Korea’s Performance ManagementAnd Evaluation System

Contents

ⅠⅠ Introduction to PMO

Structure of Korea’s Public Administration

Prime Minister of Korea

Prime Minister’s Office

1. Structure of Korea’s Public Administration

5 Year Single Term Presidency, No Vice PresidentCharacteristics of Parliamentary System : Prime Minister, assembly member may concurrently hold office of as a minister

Presidential SystemPresidential System

Elected into the office by direct ballotThe President is Head of the State and represents ROK in diplomatic relationsThe Supreme authority to make decisions of the administration, Commander in Chief, appoint government postsAuthority to draft bills and to veto legislations

PresidencyPresidency

Ministry of

Strategy and

Finance

Ministry of

Strategy and

Finance

Ministry of

Education,

Science and

Technology

Ministry of

Education,

Science and

Technology

Ministry of

Foreign Affairs

and Trade

Ministry of

Foreign Affairs

and Trade

Ministry of

Unification

Ministry of

Unification

Ministry of JusticeMinistry of Justice

Ministry of

National Defense

Ministry of

National Defense

Government Structure

(15 Ministries 2 Agencies 18 Offices)

Ministry of Public Administ

ration and

Security

Ministry of Public Administ

ration and

Security

Ministry of

culture, Sports

and Tourism

Ministry of

culture, Sports

and Tourism

Ministry of Food

Agriculture,

Forestry and

Fisheries

Ministry of Food

Agriculture,

Forestry and

Fisheries

Ministry of

Knowledge and

Economy

Ministry of

Knowledge and

Economy

Ministry of Health

and Welfare

Ministry of Health

and Welfare

Ministry of

Environment

Ministry of

Environment

2. Prime Minister of the R.O.K

President appoints Prime Minister with the consent from the AssemblyAppointment of Prime MinisterAppointment of Prime Minister

Prime Minister follows orders of the President to oversee the interior and supports the President as vice-chairman of cabinet meetingBecomes the acting President when the President is unable to perform his dutiesAdministrative supervision and Review of state affairsRecommendation of Cabinet members and Proposal of their dismissal

Authority of Prime MinisterAuthority of Prime Minister

Prime Minister : Kim Hwang-sik (2010.10~)

Prime Minister : Kim Hwang-sik (2010.10~)

EducationEducation

CareerCareer

1971 LL.B, Seoul National University

1971 LL.B, Seoul National University

2010.10~ 41st Prime Minister

2010.10~ 41st Prime Minister

2008~2010 Chairman, Board of Audit and Inspection of the

Republic of Korea

2008~2010 Chairman, Board of Audit and Inspection of the

Republic of Korea2005~2008 Justice, Supreme

Court2005~2008 Justice, Supreme

Court2005 Vice Minister, National Court Administration

2005 Vice Minister, National Court Administration

Supports Premier’s efficient control over the cabinet(1) Major Functions & Role of PMO(1) Major Functions & Role of PMO 3. Prime Minister’s Office

Assists Premier’s protocol, media related affairsPolitical stance, congressional affairs

Secretary ServicesSecretary Services

Sets major policy directions in national scalePerforms social risk & conflict managementAnalyzes & evaluates major government policiesPerforms regulatory reform

Ministerial TasksMinisterial Tasks

Deputy Minister forAdministration

Affairs 1

Deputy Minister forAdministration

Affairs 1

Deputy Minister forManagement of

SocialIntegration

Deputy Minister forManagement of

SocialIntegration

Deputy Minister forRegulatory ReformDeputy Minister forRegulatory Reform

Deputy Minister forPolicy Analysis and

Evaluation

Deputy Minister forPolicy Analysis and

Evaluation

Deputy Minister forPolitical Affairs

Deputy Minister forPolitical Affairs

Deputy Minister forPublic Informationand Press Affairs

Deputy Minister forPublic Informationand Press Affairs

Deputy Minister forAdministration

Affairs 2

Deputy Minister forAdministration

Affairs 2

(2) Organizations(2) Organizations

[1973~1998] The

Administrative Coordination

Office [1998~2008]The Office for

Government Policy Coordination

[2008~] Prime

Minister's Office

The Office for the Government Policy Coordination and

The Prime Minister's Secretariat were merged into the

Prime Minister's Office(PMO).

[1963~2008]Prime Minister's

Secretariat

(3) History(3) History

ⅡⅡ Korea’s Performance ManagementAnd Evaluation System

Introduction to Performance Management

Structure of Performance Management

Primary Contents of Performance Management

Current Status of Government Performance Evaluation

Feedback on Evaluation Results

Integrated Electronic Evaluation System

ⅠⅠ.. Introduction to Performance Introduction to Performance ManagementManagement

The effort to improve efficiency and responsibility of the organization by evaluating the result of the goal that the group has set to accomplish

Definition of Performance ManagementDefinition of Performance Management

Definition of ‘Performance Management’ Definition of ‘Performance Management’ (Government Performance Evaluation Act)(Government Performance Evaluation Act)A series of activities that establish the organization’s responsibility, mid- and long-term goals, yearly plan and outcome indicators in the process of promoting government operations as well as manage process and results in the perspective of economic feasibility, efficiency and effectiveness.

1. Definition

2. Background (1)

Initiated in the private sector in abroad, it was actively adopted in the public sector in an attempt to improve government efficiencyCase of USACase of USA Introduced performance management system based on GPRA (Government Performance and Result Act, 1993) Promote results-oriented system management and strengthen linkage between performance and budget.

Until the mid 1990s, Korea had carried out performance management focusing on input and execution rather than performance of individual policy. To improve the previous performance management system, the government has enacted “Government Performance Evaluation Act” in 2006, and began to promote government performance management in a full scale.

2. Background (2)

U.S.A : Strategic and Performance Plan + PART(Program Assessment Rating Tool) Britain : Public Service Agreement + Green Book(Performance Evaluation)

Strategic and Performance Strategic and Performance PlanPlan

New Zealand : Purchase agreement, Performance agreement (Mostly Minister VS Director) Australia : Resource Agreements (Financial Authority VS Relevant Authority) Denmark : Performance Contract (Mostly Minister VS Director)

Performance AgreementsPerformance Agreements

Overseas

3. History (1)

Since 1961, Performance Management System is continuously developed & supplementedSince 1961, Performance Management System is continuously developed & supplemented

① Policy and Program Assessment System(PPAS) of the Prime

Minister’s Planning and Coordination Office (1961~1981)

Introduced to effectively promote the economic development with the lack of resources

  ② Policy and Program Assessment System(PPAS) of the Ministry

of Economy and Planning (1981~1990)

Discover & expedient each organization’s policy progress control and the cause of weak

③ Policy Evaluation Program of the Prime Minister’s

Administrative Coordination Office (1990~1994)

Check, evaluate, and manage the major policy issues

3. History (2)

 

④ Policy and Program Assessment and Evaluation System of the Prime Minister’s Administrative Coordination Office (1994~1998) Combine the two evaluation system and strengthen the analyze & rectify function of the government task performance

⑤ Government Performance Evaluation by the Policy and Coordination Office : Institution Evaluation (1998~2006) Evaluate each of the government agency’s result & capacity through the Policy evaluation committee constructed with general specialists

⑥ Government Performance Evaluation by the Prime Minister’s Office : Integrated Evaluation (2006~present) Operate the performance management and each evaluation syntagmatically through Government Performance Evaluation Act

ⅡⅡ. . Structure of Performance Structure of Performance ManagementManagement

Prime MinisterPrime Minister

Government Performance Evaluation CommitteeChairman : Joint Prime Minister-CivilCommittee Member : Private experts, Relevant Minister, etc. 13 members

Government Performance Evaluation CommitteeChairman : Joint Prime Minister-CivilCommittee Member : Private experts, Relevant Minister, etc. 13 members

Central Ministries

Self & Specific evaluation

(Prime Minister · Ministry, etc.)

Local Governments

Congruenceevaluation

(Ministry of Public Administration and Security, etc.)

Other Agencies

Business performanceevaluation

(Ministry of Strategy and Finance,etc.)

1. Organization Structure

ⅢⅢ. . Primary Contents of Performance Primary Contents of Performance ManagementManagement

Establish a 5-year Strategic PlanEstablish a 5-year Strategic Plan

Establish an Annual Performance PlanEstablish an Annual Performance Plan

Examine, evaluate, and feedback the implementation of tasksExamine, evaluate, and feedback the implementation of tasks

Propose organization’s future-oriented mission, vision, strategic objectives and performance targets

Examine the implementing condition quarterly or half-yearlyImplement the self-evaluation and the result of feedback based on the year-end result

Propose performance targets / tasks / performance indicators of the year

1. Outline

Inspect performance status

Inspect performance status

ImplementImplement

Establish Strategic and Performance plans, suggest performance indicators

in advance

Establish Strategic and Performance plans, suggest performance indicators

in advance

Policy improvement, human resources, Structure,

budget, bonuses

Policy improvement, human resources, Structure,

budget, bonuses

Self-evaluation orientedUtilize objective and

econometric indicators

Self-evaluation orientedUtilize objective and

econometric indicators

PlanPlan

EvaluateEvaluate

FeedbackFeedback

National Fiscal Operation Plan, etc.

The main task of performance management plan should be reported In the beginning-of-the-year

2. Performance Management Operational System

3. Establishment of Performance Management plan

Since 2007, the central ministries have been establishing 5-year Strategic Plan and suggesting each ministry’s mission, vision, strategic objectives, and 5-year performance targets Government Performance Evaluation Committee supports the establishment of plan to evaluate the validity of performance indicator and goal system of the central ministries Strengthening the annual performance plan’s relevancy with national agenda, ministerial plans and the President’s directives

Mission Organization’s mission (objective) and major functions

⇩  

Vision

Describes the organization’s long-term goals and what it wants to be in the future. Set forth its policy directions and provides motivation for its members

⇩  

Strategic Objectives

The organization’s major goals and the directions it should take in the light of its mission and vision as well as the objectives of the State

⇩  

Performance Targets

Second-level goals that describes strategic objectives in detail; actions to be achieved in a set period

⇩  

Performance Indicators

Quantitative or qualitative indices for the level of achievement of policies of performance targets and tasks

4. Departmental Performance Management Plan

Actualization of mission and goal

ⅣⅣ. . Current Status of Government Current Status of Government Performance EvaluationPerformance Evaluation

1. Integration of individual evaluations

Evaluation which had been separately implemented by specific identification was integrated by Government Performance Evaluation Act It has improved evaluation efficiency, reduced the organization’s burden by the upgrade of integrated evaluation, evaluate method and index of the center ministries ※ Relevant Authority of the whole evaluation process: Prime Minister’s Office, the Ministry of Public Administration and Security, the Ministry of Strategy and Finance

Significance

2. Implementation of Self-evaluation

Under the control of the central administrative head, an organization prepares the self-evaluation system and implements the establishment of performance plan and utilizes the results autonomously

Ensure responsibility and autonomyEnsure responsibility and autonomy

Self-evaluation is implemented after the construction of Self-evaluation committee consisted of civil experts and the establishment of the central administrative head's self-evaluation plan ※ Self-evaluation committee: 10-30 people each, 10-year-critiera: total 39 organizations 920 people Evaluation colligation engine check the results of each part and enhance the credibility, objectivity of the self-evaluation program

Plan establishment and self-evaluationPlan establishment and self-evaluation

3. Implementation of Specific evaluation

Prime Minister evaluates the necessary policies intended for the central ministries to manage state affairs Based on the Annual Performance Plan, implement evaluation and establish evaluation committee composed of non-public officials Results of certain evaluation are determined by the evaluation committee’s deliberation and resolution, and feedbacks of each department should be reflected on the beginning-of-the-year ministerial plan

Category DetailsSelf-evaluation

Major policies Evaluate policies that a central ministry withes to promote with priority within a prescribed time period for achievement of performance targetsFinancial performance Evaluate general spending programs, R&D projects and information and technologyAdministration management competency

Evaluate efforts and performance in the areas of human resources, organization and information and technology management that are planned to be achieved within a set time period

Specific evaluation

Core task Evaluate core functions of the entity and its relevancy with key issues of national affairsJob creation Evaluate tasks related to major job creationGreen-growth Evaluate policies related to national strategy for green growth and execution of central promotion planPolicy management competency Evaluate policy issue management, relationship competency such as coordination, integration and implementation management

Policy PR Evaluate PR planning for major policies, new media PR activities an policy PR outcomeRegulatory reform Evaluate appropriateness/relevancy of regulations, outcome of regulatory reform, customer satisfaction from regulatory reformCustomer satisfaction Evaluate satisfaction of core policies of each ministry, satisfaction of services provided to Korean people

4. Evaluation Cases (Year 2010)

ⅤⅤ. . Feedback on Evaluation ResultsFeedback on Evaluation Results

1. Feedback at the Level of Organization

The head of central ministry implements corrective measures or auditing about self-evaluation and problems associated with inspection results and submits results to the government performance evaluation committee. The head of central ministry submits measures to improve results of specific evaluation In principle, budgets of projects with insufficient evaluation should be reduced by over 10% or be abolished It is not allowed to increase the budget for projects without sufficient objectivity regardless of its performance

Budget reflectionBudget reflection

Utilize evaluation results by linking with organizational management (establishment, abolition, re-arrangement of HR) In the case of insufficient evaluation results, suggest organizational management strategy and measures after organizational diagnosis

Upgrade policyUpgrade policy

ManagementManagement

2. Feedback at the Level of Individual

Evaluation results of tasks are reflected in HR by linking individual performance Above grade 4 public officials: Job Performance Agreement Below grade 5 public officials: the result of Work Performance Evaluation is reflected

Personnel reflectPersonnel reflect

Government performance evaluation result is recorded on the performance management cardPerformance Performance management cardmanagement card

Annual salary based on performance (high-level officials and chief-level public officials), Bonus based on performance (below grade-four public officials) ※ The ratio of high-level officials’ performance based wage by pay rating(2010)

Performance wagePerformance wagePay rating S A B CPersonal ratio 20% Arranged by organization 10%

Wage rate 15% 10% 6% 0%

ⅥⅥ. . Integrated Electronic Evaluation Integrated Electronic Evaluation SystemSystem[e-IPSES : electronic – Integrated Public Service Evaluation [e-IPSES : electronic – Integrated Public Service Evaluation System]System]

Construct policy managing online systemConstruct policy managing online systemConstruct policy managing online systemConstruct policy managing online systemOperation of Integrated Electronic Evaluation System (e-IPSES) Used on the whole system from Establish performance management plan, Examine implement record, Evaluation, to FeedbackChange the document evaluation to online system It reduces evaluation report’s burden and improve transparencyLinkage of e-IPSES with other related systems Throughout-the-Country BPS, Digital Budget Accounting System, e-Human System, etc.

1. Contents of Execution

e-Saram systeme-Saram system OnNara BPS OnNara BPS

Utilized for task performance contract evaluation

Unification of assignment management system

Send evaluation data

Government Function

Classification System

Government Function

Classification System

Digital BudgetAnd Accounting

system

Digital BudgetAnd Accounting

system

Reflected in budget preparation

Inspect records

Feedback on performance results

Process Evaluation

Establish performance

management plan

Integrated Electronic Evaluation System (e-IPSES)

Integrated Electronic Evaluation System (e-IPSES)

2. Linkage System

※ Best Practice

Thank You