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Written By: Dr Leesi Gborogbosi, and, Mr. Eric Beeka
Performance monitoring in the public sector is at this point in time a matter of real importance and this is of keen interest to Gabriel Domale consulting as we help public institutions to transform.
It is no longer news, that part of the confrontational effects of the COVID-19 pandemic is high indebtedness. This period of the COVID-19 pandemic has been a period of a financial crisis. Internally generated revenue of a state and other public revenue sources are surely affected adversely yet salaries have to be paid to public workers while they stay at home.
It is indeed a period of a global crisis that have stunted economic and other activities hence, the Government and other public policymakers are bound to experience a high volume of public debt.
This public debt issue is a long-lasting issue, it will cover a longer time view given the accumulated debt burden caused by this financial crisis on the future public budgets and on future generations.
Therefore, it is timely for the government to be aware of the necessity to give value for money and to efficiently implement performance check on all levels of the public sector just to eradicate cases of speculative performance and achieve a sustainable performance which is believed to drive revenue.
Explicitly, in this moment of increasing pressure arising from the current pandemic, improving efficiency, effectiveness and performance should be a top priority for any political agenda interested in increasing overall productivity of the public sector.
The public sector is understood by this article as institutions supported from the State and municipal budgets, or organisations managing and using State resources or agencies instituted by the Government to generate revenue or to serve one public purpose or the other.
Performance measurement should demonstrate the resultant evidence of productivity. To achieve an effective performance measurement, the following result-oriented strategies should be adopted:
Performance Related Pay (PRP) Strategy
The performance-related pay strategy is a strategy that rewards performance. In a performance measurement/monitoring system that adopts a performance-related pay system, consignments are paid to every agency according to performance.
This measure is designed to enhance efficiency and effectiveness in the service delivery of public organizations as performance rewards will motivate every agency to strive for and maintain high-performance records. The performance-related pay system offers performance-related bonuses to best performing agencies including the employees in such agencies.
Employees or agencies may be categorized into performance groups at the end of each performance measurement exercise, this will determine what the reward will be. The reward traditionally may involve cash bonuses or increase in wages
Baseline Approach
Performance measurement can be effective if there is a baseline against which to compare the measured results. Again, performance measurement is only useful if the measured results are compared against a baseline.
From available resources and operational supports, from allocations and other relevant aids, there should be a budgeted result call it an expected result as per performance from individual agencies or employees. These expected performance results form a baseline against which the actual performance measurement results are compared.
This strategy will give a deep insight into the percentage of performance.
External Expert Ploy
it is not enough to merely implement a performance system with rules and regulations and then leave it to run, this has been the common error in most performance measurement systems. Rather than allow a performance system to merely run by itself, engage a hands-on operational approach.
By this, we mean to engage the services of expert consultants who will work independently to ensure performance is expertly measured with the right tools and strategies.
Such independent experts who will for the sake of their reputation leave no stone unturned in most cases, the external expert approach is efficient to compare the results of an internal measurement system for the purpose of checks and balances, perhaps for the purpose of efficacy and transparency
There are several ways that performance measurement can drive efficiency in the public sector. We have highlighted some below:
Performance measurement reduces the danger of budget misappropriation
Performance measures are centred on data. It gives information about whether or not an agency or organisation is achieving its objectives and if progress is being made or not towards attaining organizational goals.
One of the oldest systematic uses of performance measures has been for purposes of accountability specifically related to the budget process and because performance measurement reveals the degree to which agencies had met their targets, it can form the basis for decisions on future resource allocation/Budget.
If this is the case, then performance measurement could contribute to reducing the danger of a budget Slack and can therefore increase efficiency.
Performance measurement increases transparency
Instead of relying merely on financial information provided by annual budgets and public sector accounting, performance indicator-based output or outcome-oriented budgeting serves as a check on accounting results and increases the transparency of the accounting results.
If Input-output relationships become more transparent, then it becomes more obvious how efficiently a public authority, a public service provider intends to operate. Performance measurement especially a multidimensional one increases the transparency of public services delivered thereby increasing efficiency.
Performance measurement motivates
When the top management of a Government agency knows that a performance check will be conducted on their activities, especially when it will form the yardstick for future allocation/budget, every other personnel working with them will take their work seriously as well because the management will be forced to influence other personnel to be at their best just to get results.
Furthermore, with an effective performance measurement system in place, it becomes very easy to identify under-performing agencies and teams, because their outputs can be directly analyzed. Performance measurement helps to identify the cost-efficiency of each agency in the public sector.
The significance of a systematic and functional performance measurement/monitoring cannot be overemphasized.
The current pandemic has caused a decline in the economy of every state and effectiveness on the part of every stakeholder especially the public sector is what will make the adverse effects of the pandemic on the economy an elastic one.
In other words, what is key to the renaissance of the economy adversely affected by the COVID-19 Pandemic is the effectiveness of especially the public sector; and one of the sure ways effectiveness and efficiency can be achieved in the public sector is by a performance measurement system that pays attention to a PRP strategy, sets baselines and employs a third party for checks and balances.
One of the signs that a Government is or will be successful is the much of attention paid to matters of economic interest.
If the public sector intends to address the issue of misuse of public funds, performance monitoring is inevitable.
It is vital to state additionally, that until accountability is achieved, in the public sector, achievements in the public sector cannot be sustained.
Gabriel Domale Consulting leverages our deep hands-on industry experience to provide consulting services including strategy, corporate governance, transformation, due diligence, cost reduction strategy, training, financial modelling, valuation, fundraising, business model innovation, value for money audit, data analysis, estimation, performance monitoring and reporting.
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Dr Leesi Gborogbosi and Mr Eric Beeka
Dr Leesi Gborogbosi is the CEO of Gabriel Domale Consulting, a management consulting firm based in Nigeria, that helps companies in Africa to grow, provides insights to leaders and transforms institutions.
He has about three decades of leadership experience in the oil and gas industry (Shell Nigeria). He is an expert in finance, strategy, corporate governance, transformation, cost management, leadership development and due diligence.
Dr Leesi Gborogbosi was Project Finance Manager of Upstream Oil & Gas Projects (7 projects - Headline size: $8 bln) - Southern Swamp Associated Gas System, Forcados Yokri Integrated Project, Otumara, Adibawa, Agbada and Assa North/Ohaji South Projects.
He provided advisory services namely, strategic planning, budget management, funding strategy, risk management, governance, due diligence and investment plan covering the full life cycle of the seven major upstream oil/gas projects, power facilities and export pipelines.
He collaboratively works with business leaders and their organizations to identify growth opportunities and create value through operational excellence in strategy implementation and capital efficiency by delivering projects within costs, building strategy and planning frameworks and crafting of innovative funding solutions.
Dr Leesi Gborogbosi provides support to finance leaders to make crucial decisions and optimize performance through financial excellence in finance systems and accounting operations, budgeting, finance transformation, cost reduction, governance, risk, and compliance.
He has doctoral degrees in strategy and business studies and MSc (Research Methodology in Management) from IE Business School, Madrid and an MBA (Finance and Banking) from the University of Port Harcourt, Nigeria; and BSc (Accountancy) from the University of Nigeria, Nsukka. He had his secondary education at Federal Government College, Jos, Nigeria.
His doctoral dissertation focuses on strategy implementation, collaboration, the role of middle managers, and the dynamics of social movements (host communities).
Dr Leesi Gborogbosi leverages his professional experience as a Certified Management Consultant (CMC); Fellow, Institute of Chartered Accountants of Nigeria; and The Institute of Management Consultants. He is member of the Chartered Institute of Procurement & Supply, London; Nigerian Institute of Management (Chartered); and Strategic Management Society, Chicago, United States.
He was nominated by the Strategic Management Society, Chicago for "Best International Conference Paper Prize Awards" in 2017 and 2015. He was appointed the Chair for the Session on “Leading change implementation processes” at the Strategic Management Society conference in Denver, United States in 2015.
Dr Leesi was a member of the Strategic Management Society “Special Committee on Diversity and Inclusion”, Chicago, USA, with the responsibility of providing the Strategic Management Society Board of Directors with a good audit of where the Strategic Management Society stands with respect to inclusiveness in its activities.
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About us: Gabriel Domale Consulting, a leading management consulting firm, helps companies in Africa to grow, provides insights to leaders and transforms institutions. Our consultants utilize their decades of hands-on experience to provide advisory in finance, strategy, corporate governance, transformation and leadership training to help companies and public institutions to transform their operations. We encourage leaders seeking insights to visit our BLOG here and also Request For Proposal (RFP) for our consulting services here
Published origninally on 12th Dec 2020 09:31:55
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