The Need for Performance Management Systems in Public Higher Education

Abstract

Spending in higher education has increased at phenomenal rates and is demonstrating diseconomies of scale. The primary driver is increased administrative spending. Most universities are managed with a compliance, rather than a performance, mentality. Performance management systems (PMS) are rarely developed in higher education or utilized by management to highlight continuous improvement. A conceptual framework of how to develop a PMS architecture is presented. PMS is illustrated using a regional public university’s data. The conclusion is that it is virtually impossible to accomplish the institution’s mission effectively and efficiently without the ability to make informed, fact-based decisions through a PMS.