Strategic Performance Management: A Tool for Public Sector Transformation.
ABSTRACT
The objective of this research work is to examine Strategic Performance Management as a tool for public sector transformation with reference to Federal Inland Revenue Service, National Agency for Food and Drug Administration and Control, and the Nigerian Communications Commission. Data for the research were collected through primary and secondary sources.
The collected data were analyzed in tables and simple percentages, while the hypothesis was tested using the Chi-square statistical technique. The findings of the study show that:
(i) Strategic Performance Management has resulted in an increase in tax revenue generated by FIRS and improved regulation by NAFDAC and NCC.
(ii) Strategic Performance Management is relevant in transforming public sector organizations into efficient institutions.
(iii) There is a relationship between Strategic Performance Management and operational efficiency.
(iv) The various key performance indicators used to measure performance in the public sector are effective in motivating employees towards achieving pre-determined objectives.
Based on the above findings, the study concludes that the public sector can be run efficiently as in the private sector if performance management processes are put in place. Drawing from the conclusion, it is therefore recommended that efforts should be made to identify simple, meaningful metrics that are driven from the top – down and are relevant to specific stakeholders as they are critical to performance measurement, success, and public sector efficiency.
INTRODUCTION
There is increasing demand on government and its agencies to imbibe governance and leadership principles that will enable it to function and deliver services more efficiently. This is a global phenomenon. Although the advanced economies are progressively pursuing programs and implementing transnational strategies aimed at making their institutions more responsive and function at an optimal level of efficiency, the developing economies are still at the lows of such efforts.
According to McPherson and Ehrig (2005), “Every successful corporate transformation is built upon a solid foundation of effective governance. The private sector has spent years working to develop better models for governing corporate investments and other critical decisions, as well as for monitoring the results of those decisions.” They noted that companies that have gotten governance right have an edge over competitors in reaching and sustaining high performance.
McNamara (1997-2008) posits that the private sector efficiency was achieved on the strength of the implementation of strategic performance management systems. He defined strategic performance management as “the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. This system, he contends is largely lacking in the public sector.
Following that strong leadership from the private sector, government agencies are also seeking to create more effective governance models that can increase their chances for successful transnational efforts in strategy, sourcing, information technology, workforce performance, finance, and many other areas. McPherson and Ehrig note that such a governance model cannot simply be lifted from the corporate arena and applied to the public sector without modification.
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StudentsandScholarship Team.
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