Performance Measurement and Performance Information in New Democracies

Abstract

This article explores the introduction of performance measurement tools in new democracies by presenting a qualitative study based on Estonian governmental documents and performance audits. A set of specific factors help to explain difficulties in introducing performance measurement tools in immature policy environments: instability, poor strategic planning and policy analysis, an implementation gap, uncritical and uninformed transfer of Western performance management initiatives. Although the authors recognize the limits of generalizations based on the Estonian example, the presence of such 'transitional' factors is likely to make the development of performance measurement in new democracies even more complicated than in the West.

The Riskiness of Public Sector Performance Measurement: A Review and Research Agenda

“…Political pressures that enrol PM in impression management efforts can cause PM design to be unsupportive for its role in discharging accountability to external constituents (Chang, ) and can cause PM‐induced gaming (Bevan and Hood, ). These pressures, as well as turbulent policy environments and pre‐occupation with management fads can cause PM to be misaligned to public sector goals and organisational contexts (Milakovich, ; and Nõmm and Liiv, ). Volatile political support for PM can also cause under‐utilisation of PM information (Yang and Hsieh, ; and Hou, ), as can political and institutional pressures to conform to norms of economic rationality, especially if decoupled or loosely coupled PM systems are implemented (Johansson and Siverbo, ; and Torres et al., ).…”

The failed implementation of performance management in Irish central government

“…Proponents of rational planning models attribute a number of benefits to their use, including the expectation that PSOs which have clear goals perform better (Andrews & Van de Walle, , p. 776), and that the first step in an organization's strategic planning process is to set goals. Accordingly it has been suggested that “… planning is a critical function for organizational development through achievement of the goals” (Jung & Lee, , p. 789); with performance information (as per Figure ) being used internally for better planning and externally for greater accountability (Nomm & Randma‐Liiv, , p. 862). Nomm and Randma‐Liiv () further suggest that internal uses of performance information should underpin benchmarks which inform future decisions and budget allocations.…”

“…Accordingly it has been suggested that “… planning is a critical function for organizational development through achievement of the goals” (Jung & Lee, , p. 789); with performance information (as per Figure ) being used internally for better planning and externally for greater accountability (Nomm & Randma‐Liiv, , p. 862). Nomm and Randma‐Liiv () further suggest that internal uses of performance information should underpin benchmarks which inform future decisions and budget allocations. This dovetails with observations that such information can improve decision‐making (de Lancer Julnes, , p. 58) and form an important element of good management (Van Dooren, , p. 21).…”

“…This dovetails with observations that such information can improve decision‐making (de Lancer Julnes, , p. 58) and form an important element of good management (Van Dooren, , p. 21). As regards external use of performance information, Nomm and Randma‐Liiv (, p. 862) expect its publication to improve the image and legitimacy of PSOs, while others suggest that externally disseminated performance information can provide an overview of the impact an organisation has (Liguori, Sicilia, & Steccolini, , p. 15) as well as highlight potentially problematic issues (Johnsen, , p. 124).…”

Development of Estonian local government accounting: the stages of evolution during the years 1991–2013

“…Estonian local governments have also followed the practice of lean state and public sector, fostered by the majority of Estonian governments since 1991 (Nõmm and Randma-Liiv, 2012;Tõnnison, 2006). Still, any rapid political and economic transformation in a given society requires a great deal of administrative competence to prevent intense social destabilisation (Tõnnison, 2004).…”