Paper to the ABS NatStats08 Conference Melbourne November 2008:

1. Paper to the ABS NatStats08 Conference Melbourne November 2008: Planning and measuring state level progress:the WA experience Peter Wilkins

2. “If we could first know where we are and whither we are tending, we could better judge what to do, and how to do it …” -- Abraham Lincoln

3. Overview • Some context • WA reporting of performance • Budgets as state plans • Improving usefulness and usage

4. IMPACT OUTCOME OUTPUTS PROCESS INPUTS EFFECTIVENESS EFFICIENCY OUTPUT WORKLOAD COST

5. Brief WA history

6. Towards performance governance Mechanisms for integrating, aligning & framing: • Citizen engagement • Integrative initiatives eg measurement, accountability and citizen participation • Whole of government and societal indicators and impacts Bouckaert, G and Halligan J 2008

7. WA Framework Better Planning: Better Futures (2006) • Five Goals and 21 Strategic Outcomes Example: • Goal 1 Better Services Enhancing the quality of life and well-being of all people throughout Western Australia by providing high-quality, accessible services • Strategic Outcome 1.3 A safe community • People should be safe in their homes, their communities and their workplace and their property should be secure. The impact of human and natural hazards on the community will be minimised. Strategies will aim to ensure that people are protected from others, act in ways that reduce accidental harm to themselves and do not attempt to harm others, including members of their own family. Specific Strategies

8. WA Framework (2) Budget Papers Example: WA Police Mission: To enhance the quality of life and well-being of all people in Western Australia by contributing to making our State a safe and secure place. Four Desired Outcomes eight Services 4. A safer and more secure community Service 8. Implementation of the State Crime Prevention Strategy

9. WA Framework (3) Effectiveness KPIs: Reported rate of home burglary the 1000 residential dwellings Proportion of the community who feel ‘safe’ or ‘ very safe’ at home alone after dark Proportion of the community who feel ‘safe’ or ‘ very safe’ at home alone after dark Efficiency KPIs: Average cost per community safety and crime prevention partnership managed Average cost per hour for research, policy development and support to the Community Safety and Crime Prevention Council Average cost per $1 million in grants funding administered Selected audited KPIs

10. DCS Budget papers 2008-09 Relationship to Government Goals

11. Virginia Performs Virginia Performs

12. Performance Indicators • Intended as a guide to understanding organisational performance • Provide an insight into an organisation’s achievement • Are indicators, notprecise measures of performance

13. Characteristics of the environment information needs decision characteristics types of activity being reported on skills and work-styles of senior managers political climate competing information leadership and interest groups Characteristics of the information information quality credibility relevance communication quality findings timeliness accessibility of information Wilkins 2006 Factors affecting use

14. How useful? Evidence might include: • contributions to decision-making • satisfaction of users of the information • the quality of the information reported • views of the preparers of the information • linkage of internal and external domains

15. What could most usefully be covered? • On target, and what this means? ie the basis of the targets is explained. • Getting better? • Better than others? • Logical links between observed trends and the agency’s service(s)? ie cause and effect are explained • Limitations made clear?

16. Relevant and Appropriate • The measures and indicators must relate to outcome and outputs being measured. • Indicators provide sufficient information to enable assessment of agency performance, including • Against targets • Trends over time • Compared to others

17. Fairly Represent • Comprehensive/Completeness • Verifiable by independent assessment • Free from bias or distortion • Quantifiable

18. Notes to Explain • how the indicators have been derived • any variations from previous indicators • why the indicators are relevant • why these are key indicators • how the indicators can assist the user • impact of unusual events or circumstances

19. Performance Stories • What was expected? • What was achieved and why? Causality: Contribution Analysis • Theory of change • Evidence • Contribution story Mayne 2004

20. Information sources & types • The majority of public sector performance information is never seen by the public or the Parliament • External reporting is largely a supply-driven process • Increased interest in whole-of-government reporting

21. An Example Outcome “A responsive vocational education and training sector which meets the needs of Western Australian students and employers Effectiveness Indicator Vocational education and training (VET) participation rate Table17: Vocational Education and Training (VET) Participation Rate (Percentages), 2003-2007

22. Contact details Dr Peter Wilkins Office of the Auditor General 4th floor Dumas House 2 Havelock St WEST PERTH Western Australia 6005 AUSTRALIA Phone: +61 8 9222 7588 Mobile: +61 407 380 772 Fax: +61 8 9322 5664 Email: pwilkins@audit.wa.gov.au

23. References (1) Bouckaert, G and Halligan J 2008. Managing Performance: International comparisons.Routledge, London Mayne, J. (2004). Reporting on outcomes: Setting performance expectations and telling performance stories. Canadian Journal of Program Evaluation 19(1) 31-60. Mayne, J. and Wilkins, P. (2005). “Believe it or not?”:The Emergence of Performance Information Auditing. In Schwartz, R. and Mayne, J. (eds.). Quality Matters: Seeking Confidence in Evaluation, Auditing and Performance Reporting. New Brunswick, NJ, Transaction Publishers. van Schoubroeck, L. (2008) Strategic planning: why would politicians be interested? Some insights from Western Australia. Canadian Political Science Association Annual Conference. 6 June. Vancouver, http://www.cpsa-acsp.ca/papers-2008/van%20Schoubroeck.pdf. van Schoubroeck, L.(2008). Key Performance Indicators: Where are they now? Paper prepared for the Office of the Auditor General Perth, Western Australia. http://www.audit.wa.gov.au/pubs/KPIs_WherearetheynowpaperLVS.pdf

24. References (2) WA Department of the Premier and Cabinet (2006) Better Planning: Better Futures: A Framework for the Strategic Management of the Western Australian Public Sector, Government of Western Australia. WA Department of Treasury and Finance (2004) Outcome Based Management: Guidelines for use in the Western Australian Public Sector, Perth, Government of Western Australia. http://www.dtf.wa.gov.au/cms/uploadedFiles/obmnov04.pdf. Wilkins, P. (2002). State Whole-of-Government Planning and Reporting : Involving Citizens In Government. Paper to the IPAA National Conference “Powerful Connections” Adelaide November 2002. Wilkins, P. (1998). Reporting performance: Lessons on how and why from North America. Paper to the Practitioner and Academic Symposium Institute of Public Administration of Australia National Conference, Hobart. Wilkins, P. and Mayne J. (2002) Providing Assurance on Performance Reports: Two jurisdictions compared http://www.audit.wa.gov.au/reports/providingassurance.html Virginia Performs (2008) Virginia Performs: Measuring Virginia, http://www.vaperforms.virginia.gov/index.php.