A framework for assessing the effectiveness of performance measurement practices

Abstract

The effective application of performance measurement practices (PMP) is critical for achieving an outcomes-focus for the Queensland Government as it attempts to track the cause and effect between an agency’s outputs and its ultimate impact on the Queensland community and its residents. Much of the research on assessing effectiveness has concentrated on determining factors that affect the level of effectiveness rather than on assessing the overall effectiveness of the practice itself. The need to evaluate effectiveness and the difficulty in operationalising the evaluation process requires a construct to be developed. This paper proposes criteria for assessing PMP effectiveness as well as a framework for operationalisation. An analysis of the literature explored the critical dimensions and attributes of PMP. An expert panel was consulted to review the set of dimensions and attributes and to ensure content validity. Measurement of these attributes was realised through a questionnaire containing 19 initial attributes. The questionnaire was also pre-tested on experts and subsequently administered to participants from three agencies within the Queensland public sector. Construct validity was tested using an exploratory factor analysis to assess the degree to which the questionnaire accurately reflected the concepts that the research is attempting to measure. Comparison of the final attributes with the literature enabled refinement of the model of PMP effectiveness. Planning is underway in the Queensland government for the implementation of this model to benchmark agencies and to improve PMP, thereby accelerating the rate of change in agencies’ PMP and ensuring the successful implementation of Managing for Outcomes. The PMP effectiveness model provides a means of tracking trends and comparing PMP within and across agencies. It will provide an 'as is' benchmark against which longitudinal assessments of change over time in PMP effectiveness will be evaluated.