KPIs & Benchmarking

What are Government KPIs? A government key performance indicator (KPI) is a quantifiable measure that the public sector uses to evaluate its performance. Government KPIs function like KPIs used by for-profit businesses they demonstrate the organizations overall performance and its accountability to its stakeholders. In more layman terms, public sector KPIs serve two important purposes: They report important information to citizens. They provide information that directly describes the governments activities. Governments are almost solely responsible for the the social welfare and growth of a community. The constituents cannot hold their government responsible without having access to periodic reporting on key performance metrics. Therefore, without understanding and evaluating KPIs, governments cannot fulfill their commitment to responsible spending and transparency, and the public cannot verify if the required services are being adequately performed.

Benchmarking in public sector organizations Benchmarking in public sector organizations has been the subject of numerous reports. Most of them highlight the importance of benchmarking in the public sector. Many public sector organizations are customer-focused. In the past it was assumed that resources would be available from the government, and that there would be accountability for the resources used in serving the public, but that may be changing in some countries. Service requirements vary from customer to customer, and this non-uniform demand for services places pressure on public sector organizations to streamline their service operations for the best use of available resources. Efficiency is becoming more important in public sector organizations, and the public is demanding greater accountability and better service. Considering the changing environment and prevailing culture in public sector organizations, there is a need to establish suitable performance measures and metrics, and to benchmark performance against best-in-class agencies to improve organizational performance. A critical first step in benchmarking is determining performance measures and corresponding metrics for different areas of public sector organizations.

Using Benchmarks and Key Performance Indicators Benchmarks and key performance indicators can motivate employees, giving them measurable goals to achieve. They can help you see how your company measures up to others in the industry. Benchmarks are one way to readily identify areas where you need to improve. Key performance indicators can help you in planning, and they're useful for evaluating employees.