Title
Contents
Acknowledgements 5
The Authors 6
Abbreviations 7
Summary 9
1. Introduction 14
2. Methodology 16
3. Approaches to performance management 19
3.1 Definitional issues: What is performance measurement? 19
3.2 Designing performance measures 20
3.3 Performance measurement frameworks and understanding causality 21
3.4 Problems with the use of performance management and measurement 21
3.4.1 Perverse Incentives 21
3.4.2 Costs 22
3.4.3 Negative externalities 22
3.4.4 Balance and breadth 22
3.4.5 Joint measures and targets 22
3.4.6 Poor use of performance information 22
3.5 The role of performance management in the public sector 23
3.6 The importance of context in designing performance management systems 23
4. Performance measurement and Public Employment Services 25
4.1 The role of Public Employment Services in the labour market 25
4.2 Cross-country studies of performance measurement in Public Employment Services 25
5. Commentary on an international review of performance management systems 28
5.1 Overview of performance measurement approach 28
5.2 Output measures 30
5.2.1 Types of output measure 30
5.3 Types of outcome measure 32
5.3.1 Final outcome measure 32
5.3.2 Intermediate outcome measure 33
5.4 Use of performance information and frameworks 37
5.4.1 Hierarchical management and autonomy 37
5.4.2 Performance measurement frameworks and qualitative assessment 38
5.5 Addressing customer segmentation 39
6. Case study Public Employment Services 42
6.1 case study summaries 42
Denmark 42
Netherlands 44
Germany 47
Austria 48
Switzerland 49
7. Conclusions 50
7.1 General principles 50
7.2 Performance measurement and management approach 52
7.3 Performance measurement frameworks 52
7.4 Commentary, performance review and organisational learning 55
Appendix A - Approaches to performance measurement 57
Definitional issues: What is performance measurement? 57
Performance management systems 60
Designing performance measures 60
Performance measurement frameworks and understanding causality 62
Implementing and embedding performance management frameworks 64
Problems with the use of performance management and measurement 64
Perverse incentives 64
Costs 65
Negative externalities 65
Balance and breadth 66
Joint measures and targets 66
Poor use of performance information 66
The role of performance management in the public sector 66
The importance of context in designing performance management systems 69
Appendix B - Performance measurement in Public Employment Services 71
The role of Public Employment Services in the labour market 71
Cross-country studies of performance measurement in public employment services 72
Appendix C - Overview of international PES performance measurement 82
European Union member states 82
Austria 82
Belgium 85
Bulgaria 87
Cyprus 88
Czech Republic 90
Denmark 93
Estonia 95
Finland 97
France 100
Germany 103
Greece 106
Hungary 108
Ireland 110
Italy 112
Latvia 113
Lithuania 115
Malta 117
Netherlands 119
Poland 121
Portugal 122
Romania 125
Slovakia 127
Slovenia 128
Spain 131
Sweden 133
Norway 134
Switzerland 137
Other developed 139
Canada 139
US 141
New Zealand 144
Australia 145
Appendix D - Example case study topic guide 148
1. SELECTION AND PRIORITISATION OF CUSTOMERS 148
2. DATA COLLECTION METHODS 148
3. DATA ANALYSIS AND INTERPRETATION 148
4. COMMISSIONING 149
8. References 150
Table 5.1 Customer segmentation: PES priority or target groups 40
Table 7.1 A typology of PES performance measures 54
Table B.1 PES performance indicator project initial indicators 77
Table B.2 Benchmark performance indicators for the PES Benchmarking Project 78
Boxes
Box A.1 Neely et al.'s ten element framework to ensure appropriate performance measure design 61
Box A.2 A taxonomy of performance management 68
Box B.1 Mosley et al.'s good practice suggestions for PES performance measurement 73
Box B.2 Participating members in the European PES Benchmarking Project 76
Box B.3 European Employment Strategy Indicators 79