The UK performance management framework

Kit Charnaud, Prime Minister’s Delivery Unit United Kingdom

Tuesday, 28 October 2008

• 40% GDP spent on government services

• Real terms increases in public spending of 4.1% (05/06), 2.7% (06/07), 2.8% (07/08);

• Key principles of the strategy for public services– embed value for money across the public sector, – focus on key cross-government priorities, – respond to the needs of users

• PMDU role: small unit within Treasury, jointly accountable to Prime Minister and Chancellor

Context

History - Key features of what was introduced in CSR 1998

• Features of the 1998 Comprehensive Spending Review:– Three-year spending plans– Separate capital and current budgets– Resource accounting and budgeting– Introduction of Public Service Agreements (PSAs)

• Strengths of UK approach to performance management:– public statement about the Government’s priorities;– created an outcome-oriented system, – sharpened the Government’s accountability to the electorate and to

Parliament

No mechanistic link between performance and resource allocation in Spending Review

Evolution of the PSA framework

Comprehensive Spending

Review (1998)

CSR 98

600 targets

First set of PSAs

published

Spending Review

2000

SR00

160 targets

Significant changes to CSR model

130 targets

Greater continuity,

architecture refined

Spending Review

2002

SR02110 targets

Increased consultation,

Introduction of standards focus on

outcomes

Spending Review

2004

SR04

A reformed framework:

Cross-govt PSAs with published

delivery agreements

Objectives for all departments.

Emphasis on devolution and

user engagement

Comprehensive Spending Review

CSR07

30 PSAs

28. Secure a healthy natural environment for today and the future

26. Reduce the risk to the UK and its interests overseas from international terrorism

16. Increase the proportion of socially excluded adults in settled accommodation and employment, education or training

25. Reduce the harm caused by alcohol and drugs

15. Address the disadvantage that individuals experience because of their gender, race, disability, age, sexual orientation, religion or belief

30. Reduce the impact of conflict through enhanced UK and international efforts

24. Deliver a more effective, transparent and responsive Criminal Justice System for victims and the public

14. Increase the number of children and young people on the path to success

7. Improve the economic performance of all English regions and reduce the gap in economic growth rates between regions

A more secure, fair and environmentally

sustainable world

Stronger communities and a better quality of life

Fairness and opportunity for all

Sustainable growth and prosperity

17. Tackle poverty and promote greater independence and wellbeing in later life

29. Reduce poverty in poorer countries through quicker progress towards the Millennium Development Goals

23. Make communities safer13. Improve children and young people’s safety

6. Deliver the conditions for business success in the UK

22. Deliver a successful Olympic Games and Paralympic Games with a sustainable legacy and get more children and young people taking part in high quality PE and sport

12. Improve the health and wellbeing of children and young people

5. Deliver reliable and efficient transport networks that support economic growth

21. Build more cohesive, empowered and active communities

11. Narrow the gap in educational achievement between children from low income and disadvantaged backgrounds and their peers

4. Promote world class science and innovation in the UK

20. Improve long term housing supply and affordability

10. Raise the educational achievement of all children and young people

3. Ensure controlled, fair migration that protects the public and contributes to economic growth

19. Ensure better care for all 9. Halve the number of children in poverty by 2010-11, on the way to eradicating child poverty by 2020

2. Improve the skills of the population, on the way to ensuring a world-class skills base by 2020

27. Lead the global effort to avoid dangerous climate change

18. Promote better health and well-being for all

8. Maximise employment opportunity for all 1.Raise the productivity of the UK economy

CSR07 PSA set

28. Secure a healthy natural environment for today and the future

26. Reduce the risk to the UK and its interests overseas from international terrorism

16. Increase the proportion of socially excluded adults in settled accommodation and employment, education or training

25. Reduce the harm caused by alcohol and drugs

15. Address the disadvantage that individuals experience because of their gender, race, disability, age, sexual orientation, religion or belief

30. Reduce the impact of conflict through enhanced UK and international efforts

24. Deliver a more effective, transparent and responsive Criminal Justice System for victims and the public

14. Increase the number of children and young people on the path to success

7. Improve the economic performance of all English regions and reduce the gap in economic growth rates between regions

A more secure, fair and environmentally

sustainable world

Stronger communities and a better quality of life

Fairness and opportunity for all

Sustainable growth and prosperity

17. Tackle poverty and promote greater independence and wellbeing in later life

29. Reduce poverty in poorer countries through quicker progress towards the Millennium Development Goals

23. Make communities safer13. Improve children and young people’s safety

6. Deliver the conditions for business success in the UK

22. Deliver a successful Olympic Games and Paralympic Games with a sustainable legacy and get more children and young people taking part in high quality PE and sport

12. Improve the health and wellbeing of children and young people

5. Deliver reliable and efficient transport networks that support economic growth

21. Build more cohesive, empowered and active communities

11. Narrow the gap in educational achievement between children from low income and disadvantaged backgrounds and their peers

4. Promote world class science and innovation in the UK

20. Improve long term housing supply and affordability

10. Raise the educational achievement of all children and young people

3. Ensure controlled, fair migration that protects the public and contributes to economic growth

19. Ensure better care for all 9. Halve the number of children in poverty by 2010-11, on the way to eradicating child poverty by 2020

2. Improve the skills of the population, on the way to ensuring a world-class skills base by 2020

27. Lead the global effort to avoid dangerous climate change

18. Promote better health and well-being for all

8. Maximise employment opportunity for all 1.Raise the productivity of the UK economy

Cross-cutting nature of PSA targets PSA 20: Improve long term housing supply and affordability – 8 Departments

Indicator 1: Number of net additional homes provided. TARGET

Indicator 2: Trends in affordability: This will be measured using the ratio of lower quartile house prices to lower quartile earnings

Indicator 3: Number of affordable homes delivered (gross). TARGET

Indicator 4: Number of households in temporary accommodation. TARGET

Indicator 5: Average Energy Efficiency Rating for new homes.

Indicator 6: Local planning authorities to have adopted the necessary Development Plan Documents, in accordance with their Local Development Schemes, to bring forward developable land for housing. TARGET

• National, outcome-focussed indicators underpin all PSAs

• Collaboratively developed Delivery Agreement for each PSA

• Accountability within Whitehall strengthened

• Embed genuine user engagement in design, delivery and governance across key public services.

• Reduced bureaucracy and unnecessary data burdens

CSR07: key features of reform

Accountability structures that drive delivery

Accountability is key and rests with both politicians and officials:

• Prime Minister, Chancellor, Cabinet

• Named Secretaries of State

• Senior Responsible Officer for each PSA

• A Delivery Board, comprising senior officials from contributing departments and chaired by the Senior Responsible Officer

• A single responsible Cabinet Committee for each PSA

• Permanent secretaries

• Transparency and accountability to public

Published set of 30 PSAs, that set out what they aim to achieve and how they are going to do it, and are supported by a clear accountability structure.

Measures and levers drive delivery

• No formal or legal sanctions for ministers or departments

• Some PSAs have national targets in their Delivery Agreement

• Inspections – performance against national target e.g. Ofsted in education

• Accountability structures

• Contracts – train companies can be fined for delays

• Financial – sometimes extra funding or closure of frontline services

• Earned Autonomy for the frontline e.g. NHS Foundation Trusts

• Performance management – individual performance reporting mechanisms

• Reputational motivations – Departmental performance reporting and performance tables

Hard levers of influence

Soft levers of influence

Direct accountability

Contractual / regulatory

Common purpose

Wider community

E.g. Skills PSA - Indicator 2. 6 Higher education initial participation rate

Target: Increase participation in Higher Education towards 50 per cent of those aged 18 to 30 with growth of at least a percentage point every two years to the academic year 2010/11.

PSAs have worked best when…

• Focus on priorities across delivery chain

• Understand the delivery chain

• Are ambitious

• Based on systematic delivery planning

• Have defined indicators and targets

• Have timely, high quality information

• Recognise targets are not the only tools to improve performance

Vision for the future…

•Citizen empowerment

•New professionalism for the frontline

•Strategic leadership from the centre