Just do it? A cautionary tale on implementing performance management regimes

Drew, J; Gamage, S

Just do it? A cautionary tale on implementing performance management regimes

Drew, J

Gamage, S

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Publisher:: Routledge
Publication Type:: Chapter
Citation:: Public Sector Accounting, Accountability and Governance: Globalising the Experiences of Australia and New Zealand, 2018, pp. 105-117
Issue Date:: 2018-01-01

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Field	Value	Language
dc.contributor.author	Drew, J https://orcid.org/0000-0003-3579-5758
dc.contributor.author	Gamage, S
dc.date.accessioned	2022-01-11T22:26:15Z
dc.date.available	2022-01-11T22:26:15Z
dc.date.issued	2018-01-01
dc.identifier.citation	Public Sector Accounting, Accountability and Governance: Globalising the Experiences of Australia and New Zealand, 2018, pp. 105-117
dc.identifier.isbn	9781138563384
dc.identifier.uri	http://hdl.handle.net/10453/152937
dc.description.abstract	There has been a recent trend towards the use of performance indicators-often predicated on financial data-to enhance accountability and transparency of local government both in Australia and abroad. However, performance management also brings with it a range of risks including unintended and intended performance distortions. This chapter reviews the substantial scholarly literature on government performance management before applying the concepts to a particular instance of high stakes performance management: the New South Wales Fit for the Future programme. Fit for the Future required councils to self-assess against seven ratios drawn from financial statement data. Councils which failed to achieve the prescribed benchmarks were subject to forced amalgamations. Empirical evidence is provided which suggests significant levels of distortion in the performance management data. It is argued that careful design and testing of ratios-in order to avoid deleterious outcomes-is extremely important in any performance management regime, irrespective of whether accounting data from audited financial statements is used.
dc.language	en
dc.publisher	Routledge
dc.relation.ispartof	Public Sector Accounting, Accountability and Governance: Globalising the Experiences of Australia and New Zealand
dc.relation.isbasedon	10.4324/9781315121727-9
dc.rights	This is an Accepted Manuscript of a book chapter published by Routledge in [Public Sector Accounting, Accountability and Governance: Globalising the Experiences of Australia and New Zealand, 2018, pp. 105-117] on [01 Jan 2018], https://www.taylorfrancis.com/chapters/edit/10.4324/9781315121727-9/cautionary-tale-implementing-performance-management-regimes-joseph-drew-sasindu-gamage: .”
dc.rights	info:eu-repo/semantics/openAccess
dc.title	Just do it? A cautionary tale on implementing performance management regimes
dc.type	Chapter
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/DVC (Research)
pubs.organisational-group	/University of Technology Sydney/DVC (Research)/lnstitute for Public Policy and Governance
pubs.organisational-group	/University of Technology Sydney/Strength - IPPG - Institute for Public Policy and Governance
utslib.copyright.status	open_access	*
dc.date.updated	2022-01-11T22:26:14Z
pubs.publication-status	Published

Abstract:

There has been a recent trend towards the use of performance indicators-often predicated on financial data-to enhance accountability and transparency of local government both in Australia and abroad. However, performance management also brings with it a range of risks including unintended and intended performance distortions. This chapter reviews the substantial scholarly literature on government performance management before applying the concepts to a particular instance of high stakes performance management: the New South Wales Fit for the Future programme. Fit for the Future required councils to self-assess against seven ratios drawn from financial statement data. Councils which failed to achieve the prescribed benchmarks were subject to forced amalgamations. Empirical evidence is provided which suggests significant levels of distortion in the performance management data. It is argued that careful design and testing of ratios-in order to avoid deleterious outcomes-is extremely important in any performance management regime, irrespective of whether accounting data from audited financial statements is used.

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http://hdl.handle.net/10453/152937