Maturity Model for Performance Measurement Frameworks This maturity model was developed as part of the 2009 NAO report “”. It sets out the characteristics of five levels of maturity of both an organisation’s performance measurement framework and how it is used by the board in decision-making. We applied this matrix to the 24 organisations we assessed in 2011 for “”. Organisations can apply this model to themselves in a self-assessment process to evaluate their current level of maturity in performance reporting, enabling them to plan improvements. Level 1 – Existing 2 – Functioning Level 3 – Enabling Level 4 – Challenging Level 5 - Optimising Developing a framework A framework for performance measures exist. Performance information gives a view of at least basic expected outcomes, outputs, and inputs. The performance measures in the framework are logically structured. The framework is structured around shared strategic objectives and provides an overview of the organisation’s performance. Performance measures show how the organisation is progressing towards achieving strategic objectives. The framework shows how enablers (inputs and processes) contribute to strategic objectives. Performance measures are based on business models and delivery maps. Performance measures express progress on key drivers for the organisation. The organisation understands the links between performance measures. The framework is integrated within the organisation. A line of sight links lower level objectives with high level strategic objectives. Business unit, team, and individual performance measures are connected to the corporate performance measurement framework. The among key drivers of performance are quantified and validated to produce leading indicators. Statistical analysis evidences the relations between key performance drivers. Selection of performance measures is on the impact on outcomes of the drivers they represent.
Reporting performance information Performance information is produced. Performance data is collected throughout the organisation. Performance is collated at a corporate level to give on oversight of the organisation. Data is of high quality and timely. Data is controlled for accuracy, reliability, validity, and robustness. Performance information is reported in a timely fashion to higher levels of the organisational hierarchy. Performance reports are accessible and actionable. Performance reports are coherently structured and easily understood. Graphs, status ratings (e.g. RAGs), and explanatory allow the reader to focus on the most important issues and identify senior responsible owners Targets and benchmarks are used as comparators. Expectations for value for money are formulated in terms of challenging targets. Benchmarks drive efficiency by providing comparators with other organisations. Performance reports explain the story of the organisation’s performance and suggest a course of action. Analysis and reporting promotes cost effectiveness by providing option appraisal to assist decision-making. Reports give insight into what has influenced performance, as well as describing performance achieved. Using the framework Performance information is reported to the Board. A performance report is provided to the Board. Performance information is monitored by the Board. The Board monitors consequences and impacts of the performance reports. The Board discusses performance information with senior management. The ensures staff understand how they contribute to strategic objectives. Performance information is used by the Board to evaluate the effectiveness of activities. The Board queries the effectiveness of activities, focusing on problem solving and generating learning. Performance information is used to prioritise resources. The organisation reports aligned performance and cost information. Performance information is linked to financial information and used to determine value for money. The organisation reports integrated performance and cost information. The Board uses value for money information to make strategic decisions about whether or not to engage in areas of activity. Performance information is communicated and used throughout the organisation and a performance culture exists. The creates opportunities and incentives for staff to drive continuous performance improvement. There is a feedback mechanism that enables the framework itself to be altered to take account of changing business needs. Performance data inform debate of the marginal costs/benefits of activities and are used to drive allocative efficiency.