Performance measurement for public sector organisational transformation

This paper discusses the importance of performance measurement for Organisational Transformation in the Singapore public sector and its relation to meeting the expectations of the key stakeholders. The paper also presents an effective Performance Management Framework and suggests a useful step-by-step guide in developing a performance measurement framework system. Organisational transformation is the process of bringing an organisation from the current state to the future state that enables them to embrace the challenges of ever-changing environment and increasing customer demands. Customer, Owner and Employee (COE) – the "tripartite" partnership is the key principle behind the performance measurement framework. COE conceptualises the organisation's value chain and helps formulate the key performance indicators. The performance measurement framework encompasses the macro planning which defines the mission and strategic outcomes to micro planning which determines the tactical/operational measures for each value chain process. It also highlights the importance of input, process, output and outcome (IPOO) measures. Within this value chain, eight Key Result Areas (KRAs) have been identified. They are: quality of work; employee development; innovation; effectiveness; efficiency; quality of products/service; productivity; and customer satisfaction. The approach of this framework is demonstrated through study using the six steps approach.