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Performance measurement

Public bodies, taxpayers and users need to be able to find out how well public money is being spent, especially when budgets have been cut and government spending needs to deliver more for less. To be able to assess the success of policies, programmes and major projects, government must build performance and value for money measures into design, and ensure that decisions are based on these measures.

A "performance framework" provides the information for those making decisions across an organisation to act coherently, address challenges and changes and explain actions taken. As a minimum, such a framework requires: an agreed set of outcomes for which the business is aiming; a realistic plan of what is needed to achieve them; data on performance against relevant measures; and a mechanism for identifying and overcoming obstacles that arise.

Key NAO publications:

Performance measurement: Good practice criteria and maturity model (Nov 2016)
Evaluation in Government (Dec 2013)
Option Appraisal: Making informed decisions in Government (May 2011)
Performance Frameworks and Board Reporting II (May 2011)
Taking the measure of government performance (July 2010)

British Business Bank

This report examines whether the British Business Bank is improving access to finance for small and medium-sized enterprises.

Sector(s): Business and enterprise, Financial services

Performance Improvement area(s): Economic growth, Performance measurement

Department(s): Department for Business, Energy and Industrial Strategy, HM Treasury

Published:
15 Jan 2020

Business support schemes

This report examines the Department for Business, Energy & Industrial Strategy’s management of its business support schemes.

Sector(s): Business and enterprise

Performance Improvement area(s): Economic growth, Performance measurement

Department(s): Department for Business, Energy and Industrial Strategy

Published:
15 Jan 2020

Regulating to protect consumers: Utilities, communications and financial services markets

This report assesses how well Ofwat, Ofgem, Ofcom and the FCA measure and report their performance in protecting consumer interests.

Sector(s): Energy and environment, Financial services, Regulation, consumers and competition

Performance Improvement area(s): Performance measurement, Regulation, User choice and consumer protection

Published:
20 Mar 2019

Environmental metrics: government’s approach to monitoring the state of the natural environment

Our study evaluates how far the government has an effective system for measuring progress towards its environmental objectives.

Sector(s): Energy and environment

Performance Improvement area(s): Environmental sustainability, Performance measurement

Department(s): Department for Environment Food and Rural Affairs

Published:
16 Jan 2019

Good practice from the Excellence in Reporting in the Public Sector Award – Building Public Trust in Corporate Reporting Awards

The Building Public Trust Awards recognise outstanding corporate reporting that builds trust and transparency. This interactive document illustrates a range of good practice examples in public sector reports.

Sector(s): Government, efficiency and transparency

Performance Improvement area(s): Financial management, Performance measurement, Support for Audit Committees, Support to Boards

Published:
18 Apr 2017

Performance measurement by regulators

This good practice guide aids improvement in performance measurement and reporting by regulators and other organisations seeking to deliver outcomes through third parties. It has been developed in collaboration with regulators and includes the NAO’s experience from working with them and examples of regulators’ good practice. It’s complemented by ‘Performance measurement: Good practice criteria and maturity model’.

Sector(s): Regulation, consumers and competition

Performance Improvement area(s): Performance measurement, Regulation

Department(s): Department for Business, Energy and Industrial Strategy, Food Standards Agency, Ofgem, Ofqual, Ofsted

Published:
4 Nov 2016

Government’s management of its performance: progress with single departmental plans

There have been improvements in the way government plans and manages public sector activity, but the NAO does not consider that there exists a coherent, enduring framework for planning and management.

This report is published alongside ‘Spending Review 2015’.

Sector(s): Central Finance and Treasury, Government, efficiency and transparency

Performance Improvement area(s): Operational and programme delivery, Performance measurement, Strategic centre of government

Department(s): Cabinet Office

Published:
21 Jul 2016

Spending Review 2015

This report is published alongside ‘Government’s management of its performance: progress with single departmental plans’.

Sector(s): Central Finance and Treasury, Government, efficiency and transparency

Performance Improvement area(s): Operational and programme delivery, Performance measurement, Strategic centre of government

Department(s): HM Treasury

Published:
21 Jul 2016

Outcome-based payment schemes: government’s use of payment by results

Payment by results (PbR) schemes are hard to get right, and are risky and costly for commissioners. Credible evidence for claimed benefits of PbR is now needed.

Sector(s): Government, efficiency and transparency, Local services

Performance Improvement area(s): Commercial capability and contract management, Commissioning, Financial and service sustainability, Oversight of service delivery, Performance measurement

Department(s): Cabinet Office, HM Treasury

Published:
19 Jun 2015

The effective management of tax reliefs

HM Treasury and HMRC do not keep track of tax reliefs intended to change behaviour, or adequately report to Parliament on whether tax reliefs work as expected.

Sector(s): Tax

Performance Improvement area(s): Customer management, Performance measurement

Department(s): HM Revenue and Customs, HM Treasury

Published:
21 Nov 2014