Setting Performance Targets Research Articles

The operational efficiency of English public sport facilities

Based on the database of Sport England's National Benchmarking Service, this paper analyses the operational efficiency of 105 sports halls and swimming pools in England by adopting a mathematical programming technique – Data Envelopment Analysis. Incorporating an insight into the whole industry's performance as well as facilitating a shift from data benchmarking to process benchmarking, analyses at both aggregate and individual levels are presented. At the aggregate level, inefficiency is mainly identified as the inability to use resources in the technically most efficient way. Management type has a significant effect on operational efficiency, where non in-house facilities outperform in-house facilities and the differences in production structure are evident. At the individual level, an illustrative report for an individual facility is presented to demonstrate the assessment of facility performance, the setting of performance targets and the identification of benchmarking partners. Finally, implications and limitations of this research are discussed.

From ‘cycles of disadvantage’ to sure start: Discourses of early intervention in families

Social exclusion is a problematic concept, which is embedded in several different discourses. These off er differing constructions of its causes, and therefore of the policies necessary to address it. This paper examines discourses of social exclusion at two stages in the process of developing New Labour's Sure Start programme of early intervention in families with young children. It argues that in the process of moving from a consideration of research evidence on the intergenerational reproduction of social exclusion to the specification of a set of performance targets for the programme, the conceptualisation of social exclusion became more strongly rooted in a moral underclass discourse, in which individual parental failings are the principal focus of intervention.

Establishing Quality Performance of Distribution Companies Based on Yardstick Regulation

This paper proposes a procedure and methodology for performance target setting related to continuity metrics in electricity distribution networks. This proposal deals with one of the key issues in the monopoly regulation, which is either the reduction of the information asymmetry among economic agents or the emulation of a competitive environment in industry segments usually considered as natural monopolies. This paper develops an approach toward standard definitions for Customer Average Interruption Duration Index (DEC) and Customer Average Interruption Frequency Index (FEC) based on inter-companies comparative analysis. This approach introduces productive efficiency concepts to the definition of network performance. In order to do so, the data envelopment analysis (DEA) technique, used for defining the efficiency frontier, was combined with the dynamic cluster technique, oriented toward models of identification of similar networks. A technique for comparative analysis was used for the definition of the network expected performance. Examples with the Brazilian electric systems are provided to clarify the methodology suggested by this paper

Designing a National Performance Measurement System

During the past two decades, prison executives have begun to use performance-based management more extensively and frequently. The purpose of performance measurement is to assure accountability by translating agency missions into measurable outcomes, setting performance targets, regularly monitoring performance, and working toward quality improvement. Success among state departments of corrections in improving performance through results-driven management led the Association of State Correctional Administrators (ASCA) to begin an initiative to establish a national performance measurement system. A national system would clarify misunderstandings, establish standards, design measurable outcomes, allow cross-agency evaluations, encourage management to be future oriented, and provide motivation for using performance-based management with the profession. This article reviews ASCA's efforts to select measures of correctional performance, identify indicators of those measures, and specify measurement rules.

The cost‐effectiveness of the English smoking treatment services: evidence from practice

To investigate the cost-effectiveness of English specialist smoking cessation services. Combination of observational cost and outcome data from English smoking cessation services to calculate cost-effectiveness ratios. Multivariate analysis of factors influencing variation in services' cost-effectiveness. Fifty-eight of the 92 specialist smoking cessation services in England in 2000/01. Services' costs were estimated using survey data which described services' configurations, staffing, interventions delivered and development. Information on services' throughput and outcomes (as biochemically validated 4-week smoking cessation rates) were obtained from routine sources. With reference to relevant literature and assumptions about relapse and background cessation rates, 4-week cessation rates were converted first to 1-year rates. One-year cessation rates were adjusted to reflect the likely permanent smoking cessation rate attributable to service intervention and finally attributable life-years gained were calculated. A wide variety of sensitivity analyses was performed to test the robustness of the average cost-effectiveness ratio, calculated by combining the cost and life-year gained estimates, for all services. With additional data on deprivation levels in services' areas, ordinary least-squares regression techniques were used to investigate variations in individual services' costs per client and cost-effectiveness ratios. Using an up-to-date estimate for health gain accrued by stopping smoking, the average cost per life gained was pound 684 (95% CI 557811), falling to pound 438 when savings in future health-care costs were counted. With the worst case assumptions, the estimate of cost-effectiveness rose to pound 2693 per life-year saved (pound 2293 including future health-care costs) and fell to pound 227 (pound 102) under the most favourable assumptions. Findings are comparable to previous published studies. The regression results suggest that different factors influence cost per client and the net cost per life-year saved, indicating that decision makers should be careful in setting performance targets for these services. In 2000/01, English smoking cessation services provided cost-effective services operating well below the benchmark of pound 20,000 per quality-adjusted life-year saved (QALY) that is used by the National Institute for Clinical Excellence in the United Kingdom.

Imrpoving Public Sector Performance Management: One Step Forward, Two Steps Back?

This empirical study of the performance management system in the U.S. Workforce Investment Act (WIA) program identifies challenges and prospects for implementing performance management systems effectively in public agencies. the analyses of performance standard setting processes and relationships among standards and state performance levels demonstrate that setting performance targets is a key task that determines the nature of incentives in the performance management system. in the absence of regular adjustments to performance standards for changing local conditions, the WIA system appeared to promote increased risk for program managers rather than shared accountability. Program managers, in response, appeared to make undesirable post-hoc accommodations to improve measured performance.

Using claims data to examine mortality trends following hospitalization for heart attack in Medicare.

To see if changes in the demographics and illness burden of Medicare patients hospitalized for acute myocardial infarction (AMI) from 1995 through 1999 can explain an observed rise (from 32 percent to 34 percent) in one-year mortality over that period. Utilization data from the Centers for Medicare and Medicaid Services (CMS) fee-for-service claims (MedPAR, Outpatient, and Carrier Standard Analytic Files); patient demographics and date of death from CMS Denominator and Vital Status files. For over 1.5 million AMI discharges in 1995-1999 we retain diagnoses from one year prior, and during, the case-defining admission. We fit logistic regression models to predict one-year mortality for the 1995 cases and apply them to 1996-1999 files. The CORE model uses age, sex, and original reason for Medicare entitlement to predict mortality. Three other models use the CORE variables plus morbidity indicators from well-known morbidity classification methods (Charlson, DCG, and AHRQ's CCS). Regressions were used as is--without pruning to eliminate clinical or statistical anomalies. Each model references the same diagnoses--those recorded during the pre- and index admission periods. We compare each model's ability to predict mortality and use each to calculate risk-adjusted mortality in 1996-1999. The comprehensive morbidity classifications (DCG and CCS) led to more accurate predictions than the Charlson, which dominated the CORE model (validated C-statistics: 0.81, 0.82, 0.74, and 0.66, respectively). Using the CORE model for risk adjustment reduced, but did not eliminate, the mortality increase. In contrast, adjustment using any of the morbidity models produced essentially flat graphs. Prediction models based on claims-derived demographics and morbidity profiles can be extremely accurate. While one-year post-AMI mortality in Medicare may not be worsening, outcomes appear not to have continued to improve as they had in the prior decade. Rich morbidity information is available in claims data, especially when longitudinally tracked across multiple settings of care, and is important in setting performance targets and evaluating trends.

Forest certification—an instrument to promote sustainable forest management?

Forest certification was introduced in the early 1990s to address concerns of deforestation and forest degradation and to promote the maintenance of biological diversity, especially in the tropics. Initially pushed by environmental groups, it quickly evolved as a potential instrument to promote sustainable forest management (SFM). To date about 124 million ha or 3.2% of the world's forests have been certified by the different certification schemes created over the last decade. Forest certification shares the aim of promoting SFM with another tool, namely criteria and indicators (C&I) for SFM. C&I sets are mainly developed for the national level to describe and monitor status and trends in forests and forest management. They also provide an essential reference basis for forest certification standards, which set performance targets to be applied on a defined area. Progress in developing these two different tools has been significant. After 10 years of implementation, it is evident that the original intention to save tropical biodiversity through certification has largely failed to date. Most of certified areas are in the temperate and boreal zone, with Europe as the most important region. Only around ten per cent is located in tropical countries. The standards used for issuing certificates upon compliance are diverse, both between certification schemes and within one and the same scheme when applied in different regions. However, they are at least equal to legal requirements and often include elements that set actually higher standards. While the quality of actual audits of the standards is of varying quality, there are indications that independent audits are an incentive for improving forest management. As a voluntary market-based tool, forest certification is depending on the ability to cover the costs incurred and thus on often-elusive green consumer sentiment. Regardless of many difficulties, forest certification has been very successful in raising awareness and disseminating knowledge on a holistic SFM concept, embracing economic, environmental and social issues, worldwide. It also provides a tool for a range of other applications than assessment of sustainability, such as e.g. verifying carbon sinks.

Economic Value Added (R) - Application to Portuguese Public Companies

Economic Value Added (EVA (R)) is a value-based performance measure developed by Stern Stewart & Co. that offers a means of measuring and communicating performance and that may be used in setting performance targets, paying bonus, and valuing capital projects or companies. Based on a survey of Portuguese public companies listed on the Lisbon Stock Exchange, research was carried out on the awareness and the utilization of various performance measures. The results indicate that managers elect performance measures based on net income. Yet more sophisticated measures such as EVA or CFROI are being increasingly adopted. The major contribution of this study is the analysis of the information content regarding Operating Income, Net Income and EVA, based on a sample of 39 Portuguese public companies during the period from 1995 to 1998. The main results suggest that EVA does not have more information content than traditional performance measures in explaining Equity Market Value. The relationship between EVA and Market Value Added (MVA), however, is statistically significant.

Improving performance in public hospitals: a role for comparative costs?

In order to encourage performance improvements, the English government has set targets for acute hospitals to reduce their unit costs. Targets are based on analysis of costs across all acute hospitals. This policy has parallels with that of ‘yardstick competition’, advocated as a means to encourage efficiency in industries that lack competitive pressures. However, the prospect of cost improvements may not be realised in England. Firstly, there are insufficient incentives to respond appropriately to the provision of comparative cost information. Secondly, there is more than one index purporting to measure relative hospital costs. As comparison of unit costs is highly dependent on the measurement technique adopted, caution should be exercised when setting performance targets.

Neural networks and response surface polynomials for design of vehicle joints

Typically, design of a complex system starts by setting targets for its performance characteristics. Then, design engineers cascade these targets to the components and design the components to meet these targets. It is important to have efficient tools that check if a set of performance targets for a component corresponds to a feasible design and determine the dimensions and mass of this design. This paper describes a method to develop tools that relate response parameters that describe the performance of a component to the physical design variables that specify its geometry. Neural networks and response surface polynomials are used to rapidly predict the performance characteristics of the components given the component dimensions. The method is demonstrated on design of an automotive joint. The paper compares neural networks and response surface polynomials and shows that they are almost equally accurate for the problem considered.

Setting Achievement Targets for School Children

This paper develops an approach for setting performance targets for school children. At the centre of the approach is data envelopment analysis (DEA), which is used to identify benchmark puplis who achieve the best observed performance, after allowing for contextual factors. The achievements of these pupils form the basis of the targets estimated. The procedure developed also identifies benchmark pupils who would be especially suitable as role models for raising the attainment of each weaker pupil. The method can be used across a number of schools, within a school, or even a class, provided there are sufficient pupils. The method can be used to set targets on single or multiple outcome variables.

Performance measurement and managerial teams

Organisations increasingly face greater competition and uncertainty. One important organisational development is the creation of inter- and intra-departmental teams that improve both the speed and quality of an organisation’s response. Successful teams require the empowerment of team members, an adequate information base, rewards for team performance, and the requisite abilities in team members. Management accounting systems can provide an integral part of the information base necessary for decision-making and rewarding performance. We investigate the incidence and importance of performance measurement for team performance. Team performance is positively associated with the variety and comprehensiveness of performance measures used. This relationship is enhanced if members participate in setting performance targets. Further, team performance is enhanced when team performance is given a greater weight in compensation. Finally, these effects are mutually reinforcing, such that team performance is substantially better when comprehensive performance measurement is combined with the participation of team members and a larger weight for team performance in their compensation.

Targeted support for new and young businesses: the case of North Yorkshire TEC’s “Backing Winners” programme

This paper reviews the first year experience of a programme (Backing Winners), launched by North Yorkshire TEC in 1995 to provide support for new and young businesses with growth potential. The Backing Winners (BW) programme differs from previous schemes in that it is not restricted to clients who are unemployed, it provides access to some key business services (such as office services), and there is no grant offered to individual businesses. Delivery of BW is focused on Personal Business Mentors (PBMs) whose role is similar to that of the PBA in Business Links. Based on a survey of 144 clients businesses and interviews with representatives of each of the Enterprise Agencies (EAs) contracted to deliver BW, the conclusion is that it was successful during the first year of its operation. Clients were very satisfied with their PBMs and some were active users of group training and office services. The paper also considers a number of policy issues raised by the study. These include broad issues such as the extent to which there is a case for targeting support on new and young firms such as these, and the extent to which the operation of a selective approach at the start‐up stage involves “picking winners”. In addition, BW raises a number of delivery issues which include: the need for adequate resourcing to enable the workload of PBMs (or PBAs) to be compatible with effective delivery; the need to reconsider the use of freelance consultants as PBMs (or PBAs); the need to recognise that many small manufacturing firms have sector‐specific support requirements; the need to set performance targets to agencies contracted to deliver such programmes, which recognise differences between agencies and their catchments.

Setting targets to maximize shareholders value

Setting performance targets and managing to achieve them is fundamental to business success. Targets provide explicit direction to the organization and motivate management to strive for ever higher levels of performance. Jack Welch has described the setting of stretch targets as one of General Electric's three main operating principles, one that “inspires people and captures their imaginations” creating an atmosphere that asks of everyone. “How good can you be?”

Setting performance targets for analytical accuracy

This paper discusses how to set suitable targets for analytical accuracy. The effect of analytical variability will be to reduce the ability of monitoring programmes to detect signals in the environment. Hence analytical targets can be related to simple monitoring objectives such as estimating the mean level at a site or detecting a long-term temporal trend. Theoretical results are presented and demonstrated using data collected to monitor levels of mercury in marine organisms.

Energy indices and performance targets for housing design

The Energy Index was developed as a means of comparative assessment for new and existing residential buildings in the UK. It provides a basis for identifying energy savings from different design measures and a yardstick for setting performance targets. The paper describes the derivation of the Index calculation method, its use in comparing built schemes or design options, and the tabulated energy indices and performance targets against which results can be assessed.

Refinery-utility collaboration to increase value

Severe pressures to reduce costs, improve reliability, and generate higher shareholder value have helped to promote a successful change in the relationship between a major Canadian petroleum refinery and a large electrical utility. The relationship has evolved from a traditional customer/supplier relationship to a new business approach based on collaboration. New ideas have created win-win situations for both organizations. The new business approach has produced improvements in electrical power supply reliability, better equipment reliability, reductions in operating and maintenance costs through maintenance effectiveness and improved safety, and sharing of technical expertise and data. In addition, this new business approach has led to fresh ideas in business practices, maintenance practices, energy efficiency, electrical power monitoring, application of advanced relaying technology, and the setting of performance targets. This article describes the specific application of new technical and business ideas that have been implemented and the significant benefits that have been captured. To date, over $500,000 in annual benefits have been created. The article goes on to outline future possibilities, which could double the annual benefits.

What is higher education for? Strategic dilemmas for the twenty‐first century university

Higher education is still very much is demand throughout the world, but is increasingly financially squeezed because of budget constraints. The UK has responded by encouraging “diversity of mission” and setting performance targets. In practice, however, this has often resulted in sameness rather than diversity. This also raises the question of quality and standards. As a result of these developments the traditional idea of a “university” in the UK is itself being challenged. Discusses the major elements of change in higher education. Concludes that the twenty‐first century university will be unlikely to succeed unless it can manage change effectively.

Past and Present Concepts of Learning: Implications for U.S. Shipbuilders

The experience curve has been used as the model of learning within manufacturing for nearly a century, and has been used as a basis for predicting future performance and for setting performance targets. First, a summary of the experience curve and its underlying premises is given Then deficiencies in experience-based model of learning are presented. The case is made that an organization that attempts to compete on the basis of incremental improvements on past experience, as represented by past competence and number of units produced, will not be able to compete with the most competent competitors that are using market-driven performance targets and conscious learning and problem-solving methods to drive innovation. Two actual examples of learning outside the paradigm of the experience curve are discussed. One method of measuring present learning rates for individual processes is presented. It is concluded that U.S. shipbuilders need to look outside the experience-based model of learning, and the associated idea of series production of standard ships, toward conscious methods of learning and problem solving in order to become competitive in the commercial shipbuilding market.