Performance measures are vital in addressing the issues that are attributed to the success of organizations. This necessitates for deployment of a performance measurement procedure, which provides the relevant information required for basing decisions regarding the course an organization should follow to achieve its set goals. Organizations that have been established depend mainly on the turnout of the clients for their existence and success in the industry. It is therefore, of great importance to have a measure that is oriented towards evaluating the outcome of the activities undertaken by the organization. The outcome based performance measure is a tool that is used to determine the level of performance of a given program in an organization or an agency. There are five critical principles that are considered while selecting the outcome based performance measurement. The aim of the paper is to evaluate the principles, and to explain the application of the performance measurement. The outcome based performance measurement focuses on the external elements that an organization depends on for survival. The measurement procedure reflects on the impacts, benefits or changes of clients in the process of service provision. The impacts can be evaluated in the short-term or long term basis depending on the particulars and the objectives of an organization.
The outcome based performance measurement adopted by any organization should indicate the actual performance, and particularly show whether it is stagnant, improving, or deteriorating. It is necessary to identify at least one indicator for each of the outcomes. The process of selection of indicators should be guided by the observations made from the clients. It is then that conclusions are made regarding the state of the organization. In addition, it is beneficial to have a numerical representation of the clients and their behavior as it helps to provide proof of the exactness of the performance measurement. The outcome performance measurement should take into consideration the organization as a whole. This ensures that the results of the performance analysis are significant, and can be used to correctly represent the position of the organization. The designing of the performance measurement should be made in a way that it can be effectively managed. The cost and resources used should be considered to ensure they are appropriately used.
The Mikesell’s 5 critical principles can be applied through the development of reliable and valid documenting for the success of an organization. The performance information collected should then be communicated to all the stakeholders. In addition, it should be used to reflect the state response, and support quality improvement efforts. As for the measurement of outcomes in the Fayette County, we should design programs and policies that should set a mark up to, which the various institutions should reach. In the health centers and hospitals, the outcomes to be measured are mortality rates and morbidity of the population. When it comes to schools, we should measure the outcomes of the students in terms of the number that has passed. It is vital to have a budget for the amount of money spent on measuring outcomes as failure to having it may form a loophole through, which resources are drained without accountability. In addition, a program to make sure that the performance measurement is carried out effectively should be put in place. It would help to emphasize on the need to carry out a performance measurement.
Mikesell, J. (2010). Fiscal Administration. New Zealand: Cengage Learning .