VDM Verlag Measuring Performance -A Link Between Resources and Results: Measuring Performance in the Public Sector

Few public service organizations have been successful in implementing an effective performance measurement system. Private sector organizations differ in their motivation to measure performance from public sector organizations. Private sector organizations determine success by the amount of profit that is made, while public sector organizations collect taxes and provide services to all. This study examines how a benefits-based management model of service delivery could be effective in measuring performance in the public sector. Public service organizations traditionally measure performance based primarily on efficiency of service, measuring financial targets and numbers served. Government organizations are now being required to report the impact of services. The research concluded that the advantages of performance measurement outweigh the challenges. Quantitative measures are needed to gain and maintain public and political credibility, while qualitative measures are needed to demonstrate the value and the benefits of services. Organizations that adopt performance measurement systems need to be committed to making them meaningful to people at all levels of the organization.