NZOQ National Conference May 30-June 1, 2001
Christchurch, New Zealand

Performance measurement in not-for-profit and public-sector organizations

Malcolm Macpherson PhD

Abstract Measuring performance is increasingly important in not-for-profit and public sector organizations – from those as large as the US federal government to the smallest volunteer group. Human resource metrics are the most relevant – spanning function, operations and strategy. Function measures include employee efficiency and effectiveness (turnover, sick leave, insurance and recruitment costs, for example). Operational measures include specifics like revenue per employee, as well as broad measures of effectiveness that link management to performance and returns on investment. Future-oriented strategic measures match capability against anticipated need, and are increasingly a key part of core planning activities. Barriers to effective measurement include fear (of retribution, variation and loss of control). Data may be gathered using top-down or bottom-up approaches. Issues to be considered when implementing a metrics methodology include linking outputs to outcomes, data quality, leading vs lagging indicators, indicator maturity, and imperfection.
Keywords Performance measurement, not-for-profit, public sector, human resources

Full paper as PDF - download
Performance Excellence Principles – Drivers of Innovation in public sector organizations

Malcolm Macpherson PhD

Abstract By their nature risk-averse and process-constrained, with diverse and sometimes conflicting accountabilities, public sector organizations may struggle to focus clearly on innovation – finding new ways to perform better. Used as a test, not a template, the widely applied [Baldrige-derived] performance excellence principles that underpin national award schemes like the Performance Excellence Study Awards and the Business Excellence Award provide an architecture for improvement that can, and does, drive innovative behaviour, even in the public sector: Examples, analysis and fast-start process map.

Full paper as PDF - download

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