public management institute the use of indicators on output in management and policy applications...
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Public Management Institute
The use of indicators on output in management and policy applications
Dr. Wouter Van DoorenUniversity of Leuven, Belgium
London
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What’s the issue?
A Public Administration perspective on measurement
Quality of Measurement per se is important, but the key question is whether the data are used, by
whom, why, why not and with what effect?
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What’s the issue?
Supply and demand of information
lo w d e ma n d /u se h ig h d e ma n d /u se
lo w q u a litysu p p ly
ma rg in a l me a su re me n t d e ma n d fru stra tio n
h ig h q u a litysu p p ly
su p p ly fru stra tio n in te n se me a su re me n t
Examples
1. Marginal: green accounting? aren’t we missing something?
2. Frustrated supply; social indicator movement, official statistics?
3. Frustrated demand; objective performance of governance
4. Intense measurement; employment statistics
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What’s the issue?
• The institutional context in which information is embedded, should be taken into account.
• New Public Management doctrine (1980s and 1990s)
more measurement
more use
more effects, both positive and negative
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What’s the issue?
W aning Legitim acy
Fisc al pres s ure
Public C hoic e
Managerialis m
Acc ountability
E ffic ienc y
soc ietal c ontext intellec tual c ontext
public management reform
THE NPM triangle
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What’s the issue?In between, output and outcome
o rg a n isa tio n o r p ro g ra mme
fin a lo u tco me s
in te rme d ia teo u tco me s
a ctiv itie sin p u ts o u tp u tso b je ctive s
so cio e co n o micp ro b le ms
n e e d s
releva nce
efficiency
uti l i ty a nd susta ina bi l i ty
econom y
e n viro n m e n t
cost effecti veness
effectiveness
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Issues in output measurement design
Issue 1: Output as a Transaction or Output as a Provision?
-> Economic notion: output is counted when the transaction is complete, i.e. when the output is consumed. Ex. Number of pupils, prisoners.
-> Public Administration; output as products or services that come out of the production process. Ex. Number of hours taught. Why is this important? ; which indicator would you put in a performance contract?
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Issues in output measurement design
Issue 2: Easy to measure vs. hard to measure
Issue 3: Individual vs. collective
Functional classification
Collective (public goods)
Individual (merit goods)
Measurability Low
High
National defence Job counselling
Road construction
Vehicle registration
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Why is this important?
Eurostat directions make direct output measurement compulsory for individual services, and recommended for collective ones.
BUT the examples show that the distinction individual/collective is not the same as measurable/not measurable
Issues in output measurement design
Issue 2: Easy to measure vs. hard to measure
Issue 3: Individual vs. collective
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Issue 4; simple versus aggregate
How to aggregate and to weigh indicators?
Weights are seldom politically neutral, they reflect policy choices.
Issues in output measurement design
Why is this important?
Challenge for uniform international measurement standards,
such as for calculating GDP
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Some useful measures
Useful measures are measures that allow for policy learning.
Three examples from the report of the Dutch Social and Cultural Planning Office: Public Sector
Performance, an international comparison. (downloadable from www.scp.nl)
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Some useful measuresCost effectiveness education (note, outcome
measure) education
BE
DK
DE
GR
ES
FR
IE
IT
NL
AT
PT
FI
SE
UK
CZ
HU
PL
AU
CA
NZ
US
0
1
2
3
4
5
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0 500 1000 1500 2000 2500 3000
expenditure per capita (euros)
eff
ecti
ven
ess
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Some useful measures
Convicts versus personnel (labour productivity)
UK
SE
FI
PTATNL
IT
IE
FR
ES
GRDE
DK
BE
SK SI
PL
HU
LTLV
EECZ
CY0
5
10
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25
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35
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0 1 2 3 4 5 6 7 8
personnel police/justice per 1.000 population
Nu
mb
er
of
co
nvic
ts p
er
1.0
00 p
op
ula
tio
n
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Some useful measures
Cost effectiveness health care
UK
SE
FI
PT
AT
NL LU
IT
IEFR
ES
GR DE
DK
BE
SK
PL
HU
CZ
NZ CA
AU
1
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0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000
Expenditure per capita (NL €)
heal
th s
tatu
s in
dex
US
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Background document
OECD project on Management in Government: Comparative Country Data
Issues in Output Measurement for "Government at a Glance“
OECD GOV Technical Paper 2 (Second Draft)
Wouter Van Dooren (University of Leuven), Jana Malinska (OECD), Nick Manning (OECD),
Miekatrien Sterck (University of Leuven), Dirk-Jan Kraan (OECD), Geert Bouckaert (University of
Leuven)