4.5 Performance Measurement and Reporting
Public bodies play an important role in the delivery of public services and with Executive Agencies are key components in the Scottish Executive's programme for modernising service delivery. It is imperative, therefore, that your organisation can show that its resources have been used effectively and efficiently in the delivery of high quality services. Efficiency indicators and performance measurement and business targets are an essential tool to help focus on what is required and review how resources have been managed and objectives met.
Key targets are agreed as part of the planning process with the sponsor Department and performance is reported against those targets. These should include targets for efficiency and effectiveness of operations and quality of service provided. Public bodies should contribute to the Scottish Executive's Efficient Government programme by identifying specific projects that will deliver efficiency improvements. Such improvements should be quantified and measured.
Your organisation should ensure that robust systems are in place to monitor performance against these targets. A report on the extent to which performance targets have been achieved should be incorporated into your organisation's Annual Report, where appropriate giving a summary of trends over a five-year period.
Policy and Financial Management Reviews
External Best Value Audits of individual bodies will provide Ministers with the assurance that each public body is considering accountability, governance, structure and funding arrangements on an ongoing basis. In addition, all public bodies will be subject to a periodic review, currently known as a Policy and Financial Management Review ( PFMR), which assesses public bodies in such a way as to satisfy Ministers that:
- the functions of the body under review are still necessary;
- the public body model is the best way of delivering those functions;
- the work of the body contributes to both Departmental and Scottish Executive objectives; and
- any opportunities for quality, efficiency and productivity improvements in the organisation and operations of the bodies covered by the review have been identified and considered, including a location review and an assessment of opportunities for joining up services.
The Minister will report the outcomes of this review to the Scottish Parliament. You should find out from your Chair when the last review was undertaken and obtain a copy of the Report. You may wish to check to see if the recommendations contained in the Report have been implemented, or form part of an action plan in the process of being implemented. Any changes to the current review process will be notified to all public bodies by the Scottish Executive.