Effective use and misuse of performance measurement

Performance measurement (PM) is all the rage. It is widely touted as the ne w way of providing for a focus on the results of public programs. But in th e current discussion about PM, there is little recognition of previous PM a ttempts, which failed to live up to their billing. This article identifies fallacies in the logic of PM and provides examples of ways in which PM is r outinely misused. As a result, performance measures are frequently irreleva nt-or worse. Used in isolation, they invariably reward and encourage the wr ong activities and result in less, rather than more, attention to outcome a nd quality. This article also identifies strategies for effective use of PM s. In particular, it identifies how PMs can be useful for monitoring purpos es, for raising questions, and for identifying areas requiring management a ttention. PMs, by themselves, are not appropriate for assessing outcomes, f or determining future directions pr for resource allo cation. They can, how ever, be one important component of a comprehensive evaluation strategy.