Public Procurement Practice PERFORMANCE MANAGEMENT

STANDARD Public procurement organizations should develop a performance management program that allows for a continuous cycle of improvement and added value ( See Figure 1 ). The performance management program should be integrated across the procurement organization, individual, and supplier levels. 1

Definition

Performance management is an ongoing, systematic approach to improving results through evidence-based decision making, continuous organizational learning, and a focus on accountability for performance. Performance management is integrated into all aspects of an organization’s management and policy-making processes, aligning an organization’s practices so it is focused on achieving improved results for the public. 2

Element 1.1: Strategic Planning: A sound performance management program begins with clearly defined goals and objectives (See Standard of Practice: Strategic Planning ). Initially, strategic planning is the “design” phase of the performance management program. However, as the cycle 3 repeats, this step should act as a “revision” phase, in which the process and components are revised to improve opportunity for learning, accountability, and results ( See Figure 1 ).

In addition, plans for monitoring progress and establishment of accountability should also be developed in the planning phase of the performance management program. In preparation t for the monitoring phase the following should occur: n e m n Establish who, within the procurement department, will be responsible for monitoring e progress. This may vary based on the level at which implementation occurs, but should g a include key decision makers. n n Establish time frames for reporting collected data. ( See Standard of Practice 1: a Strategic Planning ) M n Establish what will be measured to monitor progress and how data will be collected. e c

Element 1.2: Implementation: n a During this phase of the performance management program, regardless of the level (i.e. department, individual, supplier) at which implementation occurs, performance should be m r

measured against the established goals and objectives ( See Standards of Practice: o Performance Measurement and Strategic Planning ). f r e P Public Procurement Practice PERFORMANCE MANAGEMENT (cont.)

Element 1.3: Monitoring Progress: Progress should be monitored to ensure that goals and objectives are being achieved in the most efficient and effective manner. This should be done by: n Collecting the data ( See Standard: Performance Measurement ) n Preparing the reports n Delivering reports to the individual responsible for monitoring progress n Evaluating the reported measures to identify any explanatory information 4 or quality indicators 5 as they relate to the attainment of goals and objectives established in the Strategic Plan. ( See Standards: Strategic Planning and Performance Measurement ) n Sharing performance measurement reports with customers, stakeholders and other groups 6

Element 1.4: Identifying Opportunities for Improvement: Identifying opportunities for improvement is critical to improving procurement performance. This should be done by: n Evaluating reports to identify areas for performance improvement. n Correcting deviation from established objectives and goals. n Noting the successful attainment of goals and objectives. n Planning to increase effectiveness and efficiency in the next cycle by supporting the establishment of new goals and objectives, and/or re-prioritizing opportunities for improvement that were identified ( See Figure 1 ). 7

Background

A performance management program begins with planning, followed by implementation, monitored progress, and identification of

t opportunities for improvement (See Practice: Strategic Procurement

n Planning). e A sound performance management program will assist the procurement m

e organization in meeting both internal and external strategic plan goals

g and objectives. Furthermore, a performance management program will a help the procurement department to demonstrate its value to all n stakeholders, in terms of verified improvements and accomplishments. a When done properly, the performance management program will continuously improve the effectiveness and efficiency of procurement; M

thereby improving service to the public and stakeholders. 8 e c n a m r o f r e P 2 5 4 3 1 F © 9 8 7 6

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Performance Management