Performance management in Public Sector Organizations was often not accorded the due priority, however with changing times there has been a definitive change in their approach as people have started expecting a lot from these agencies. A vast majority of them have become are more accountable to the government and people they serve than earlier. In such a context the relevance of KPI-s in formulating their performance standards have increased. Broadly KPIs for public sector undertakings can be arranged under four major perspectives namely, financial, internal processes, citizen focus and H.R. and growth. Financial Perspective talks about the KPIs such as fund management, resource allocation, % increase in return on investment and resource utilization. This perspective provides focus toward effective utilization of funds and resources.Internal Processes Perspective comprises of KPIs like number of streamlined processes, number of service delivery targets met, instances of repeat services and response accuracy.Citizen Focus Perspective helps in knowing how well the operations are focused towards the people the organizations is serving. It consists of KPIs like people access, critical error rate, service and product complaints and client satisfaction level.H.R. and Growth Perspective includes KPIs such as % decrease in staff turnover, training days per member, agent coaching ratio, % increase in training budget and % improvement in employment level.
Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
Ideally, you need to have a strategy (in a form of a strategy map) before you start thinking about the ways to measure its execution (KPIs). Don't have a strategy map yet? Use free Strategy Map Wizard to create a strategy map for your current business challenges. The wizard will:
The whole process takes on average 6 minutes. Give it a try right now - it's free.
bonus.
Public Sector organizations are the ones involved in producing and delivering goods 'for' and 'by' the government. Some of the activities can be- 'delivering social security', 'carrying out urban planning' and 'arranging for national defense systems' etc.
Public ownership can be any of the following options- the ones in which taxation brings in the funds, publicly owned corporations (these differ from the previous class in that these enjoy greater financial freedom) and partial outsourcing (for instance, IT service providers).
However, the demarcation lines are somewhat blurred as few companies despite being labeled as 'public companies' belong more to the private sector as these can offers to general public for selling shares.
Hopping on to the management issues of these companies, one feels the need for having a 'performance measurement and management tool'. BSC (Balanced Scorecard) can serve the purpose of enabling managerial group in counting steps and movements.
Ending it all, one can effectively tackle the issue of tracking and monitoring progress of the Public Sector by getting armed with such a tool.
Future course of action can be accurately decided by using this solution in case of Public sector firms.