A robust performance measurement and reporting system is needed to comply with the Public Finance Act 1989 and the Crown Entities Act 2004, as relevant to different agencies. Both acts require State sector agencies to identify and report on performance8. This guidance outlines the key steps required to build and run an integrated performance measurement process that will help agencies comply with the legal requirements of these two acts.
Progress in the above areas will also help agencies and sectors to show progress against the Development Goals for the State Services9. Two of the six Development Goals, in particular, can only advance through the adoption of good performance measurement practices:
The Value-for-Money Goal: Good performance measurement capabilities and measures allow agencies to show value-for-money. Measures help managers to improve the delivery, efficiency and cost-effectiveness of policy and operational outputs, and show progress against outcome goals. Measures are required for both internal monitoring, and statutory reporting.
The Coordinated State Agencies Goal: Enhanced performance measurement improves coordination and collective results by informing decision-making, clarifying shared outcomes and production targets (outputs etc.), providing the feedback needed to adjust strategies and plans, and creating baselines against which progress is tracked.
8 See sections 19 and 40 of the Public Finance Act 1989 (Reprinted 16 September 2005) and sections 139 - 149 of the Crown Entities Act 2004.