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Decision Making and Performance Management in Public Finance
Kamu Maliyesinde Karar Alma ve Performans Yönetimi
TR08IBFI03
Case: Gender Budgeting
 Gender= women or men, girls or boys
 Gender Equality: equality between the genders
 In work, education, personnel policy
 Mainstreaming means to bring something out of the
margins into general policy work
 Beijing 2000 conference decided to aim for Gender
Mainstreaming, also in budgeting
 Budgets have traditionally been ”gender blind”
Decision Making and Performance Management in Public Finance
Kamu Maliyesinde Karar Alma ve Performans Yönetimi
TR08IBFI03
Cultural issues and Performance Management?
 New Public Management, 'Swedish way': Finland & other
Nordics, UK and NL have been active adapters. Protestant work
ethic and cultur of rationality? Motive and opportunity: motive
due to large public sector, opportunity in uniform state, coherent
public sector, national culture marked by consensual running of
affairs.
 Dutch 'polder' model, evidence rather than ideology.
Egalitarianism and risk aversion, 'feminine'? (division of cultures
to egalitarian, hierarchist, individualist, fatalist) masculine
vs.feminine (masculine more competitive, less likely in wealthy
societies and colder weather requiring cooperation and
participation to survive) National cultural dimensions (table)
 Cultures that tolerate uncertainty and ambiguity. Transformation
from hierarchic, top-down to more bottom-up, learning system
by using Balanced Scorecard
Decision Making and Performance Management in Public Finance
Kamu Maliyesinde Karar Alma ve Performans Yönetimi
TR08IBFI03
National cultural dimensions
Power distance
Individualism
Masculinity
Uncertainty avoidance
Belgium
65
75
54
94
Canada
39
80
52
48
Denmark
18
74
16
23
Finland
33
63
26
59
France
68
71
43
86
Germany
35
67
66
65
Greece
60
35
57
112
Ireland
28
70
68
35
Italy
50
76
70
75
Norway
31
69
8
50
Portugal
63
27
31
104
Spain
57
51
42
86
Sweden
31
71
5
29
Switzerland
34
68
70
58
Netherlands
38
80
14
53
Turkey
66
37
45
85
UK
35
89
66
35
USA
40
91
62
46
Decision Making and Performance Management in Public Finance
Kamu Maliyesinde Karar Alma ve Performans Yönetimi
TR08IBFI03
Country experiences and case studies
 Finland and other Nordic countries are very similar
 Finland, Sweden, Denmark, Norway
 efficiency and service quality oriented, outputs in focus in the beginning
rather than outcomes
 governance is based on legislation
 central administration is divided – small ministries and underpinning
rather independend agencies
 performance management uses for policy guidance, not appraisals
 effective decentralization of decision making powers towards front line
managers
 restructuring the roles of Parliament, Cabinet of Ministers, line
ministries and all levels of operative agencies
Decision Making and Performance Management in Public Finance
Kamu Maliyesinde Karar Alma ve Performans Yönetimi
TR08IBFI03
Country experiences and case studies
 The Netherlands
 One of the pioneers of performance management: new accounting
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system in 1999, Programme Budgeting since 2001, headed by Ministry of
Finance since 2002
Often grouped with in the “Swedish box” with other Nordics
Aiming for transparency, more information to the parliament
Appraisal in 2006: 74% less line items, system and aims not clear enough
Prone to use performance management for appraisals: Management of
Performances, not quite Performance Management?
Decision Making and Performance Management in Public Finance
Kamu Maliyesinde Karar Alma ve Performans Yönetimi
TR08IBFI03
Country experiences and case studies
 UK (the Anglo-Saxon Approach: UK, Canada, Australia, New Zealand, US)
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strategy- and policy oriented, outcomes in focus
governance is based on ”programs”, not that much on creating new legislation
uniform multilevel pyramid type administrative structures, managerial responsibilities on the
very top of the administrative machine
efforts for decentralization and privatisation
 UK
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yearly business plans that expected results are derived from, also agreements between Treasury
and sector ministries on goals to be achieved
goals for efficiency, savings, improved resource allocation and transparency are usually expected
First country to start doing wide spending reviews with Public Service Agreements with concrete
measurable targets for 3 years. Parliament has a strong role. 2007 'corporate PSA's' & delivery
agreements (110 output targets)
 Advanced Performance Institute / UK: recent study found that
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66% of managers Occasionally fabricate data
Massive data collected, only 10% is useful
20% of time in many organizations is spent filling forms, auditing, measuring and reporting
performance
60% of managers feel their strategy is not clear or understood