ABSTRACT
The objective of this research work is to examine Strategic Performance Management as a tool for public sector transformation with reference to Federal Inland Revenue Service, National Agency for Food and Drug Administration and Control and the Nigerian Communications Commission. Data for the research were collected through primary and secondary sources.
The collected data were analyzed in tables and simple percentages, while the hypothesis were tested using the Chi-square statistical technique.
The findings of the study show that: (i) Strategic Performance Management have resulted in increase in tax revenue generated by FIRS and improved regulation by NAFDAC and NCC. (ii) Strategic Performance Management is relevant in transforming public sector organization into efficient institutions. (iii) There is a relationship between Strategic Performance Management and operational efficiency. (iv) The various key performance indicators used to measure performance in public sector are effective in motivating employees towards achieving pre-determined objectives.
Based on the above findings, the study concludes that the public sector can be ran efficiently as in the private sector if performance management processes are put in place. Drawing from the conclusion, it is therefore recommended that efforts should be made to identify simple, meaningful metrics that are driven from the top – down and are relevant to specific stakeholders as they are critical to performance measurement, success and public sector efficiency. It is also recommended that corporate mission statement should be motivating for members of the organization and of the society and they should feel it worthwhile working for such an organization or being its customers.
CHAPTER ONE INTRODUCTION
BACKGROUND OF THE STUDY
There is increasing demand on government and its agencies to imbibe governance and leadership principles that will enable it function and deliver services more efficiently. This is a global phenomenon. Although the advanced economies are progressively pursuing programmes and implementing transformational strategies aimed at making their institutions more responsive and function at optimal level of efficiency, the developing economies are still at the lows of such efforts. According to McPherson and Ehrig (2005), “Every successful corporate transformation is built upon a solid foundation of effective governance. The private sector has spent years working to develop better models for governing corporate investments and other critical decisions, as well as for monitoring the results of those decisions.” They noted that companies that have gotten governance right have an edge over competitors in reaching and sustaining high performance.
McNamara (1997-2008) posits that the private sector efficiency was achieved on the strength of the implementation of strategic performance management systems. He defined strategic performance management as “the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals.” This system, he contends is largely lacking in the public sector.
Following that strong lead from the private sector, government agencies are also seeking to create more effective governance models that can increase their chances for successful transformational efforts in strategy, sourcing, information technology, workforce performance, finance and many other areas. McPherson and Ehrig notes that such governance model cannot simply be lifted from the corporate arena and applied to the public sector without modification. “Unique cultural and structural characteristics of
government organizations must be accounted for if governance models are to be successfully applied.”
The Federal Inland Revenue Service (FIRS), National Agency for Food, Drugs Administration and Control (NAFDAC), and the Nigerian Communication Commission (NCC) are three institutions that successfully implemented transformational programme with very visible result in terms of operational efficiency. The organizations have fully adopted the private sector operational model with highly improved service offerings. This research work will therefore focus on the transformation strategy and current operational module to provide a guide for its replication in other government institutions.
1.2 STATEMENT OF THE PROBLEM
Private sector operational efficiency is a gulf away from the gross inefficiency of the public sector institutions and agencies. Service delivery in the public sector is at sub- optimal levels. And the reason is that governance culture in those agencies does not emphasize efficiency in its processes and procedures as could be achieved through the implementation of strategic performance management. Their major challenge is lack of ability to implement clear performance measurements that makes it possible to execute corporate strategy successfully. Problems often associated with strategic inefficiency in the public sector organizations includes:
Failure to determine and clearly set out of objectives to be achieved
Non-identification of alternative ways of achieving the objectives.
Non-evaluation of alternatives in terms of its objective-achieving ability
Initiatives for cost-cutting often do not come with concrete delivery plans.
And most importantly bureaucratic bottlenecks and inappropriate allocation of resources also hindered efficient public sector performance.
These issues highlighted above threw up the interest to carry out this study to examine how the application of strategic performance management could transform public sector organizations into productive and efficient institutions.
1.3 OBJECTIVES OF THE STUDY
FIRS a few years ago launched a strategic transformation programme to restructure and strengthen its processes and procedures. The objective was to set the platform for greater efficiency in tax administration and operating process uncommon in the public sector. The outcome of this effort is a significant turnaround in its operations with impressive results. The study therefore aims at establishing the following:
i. To determine the extent strategic performance management has resulted in increase of revenue generated by Federal Inland Revenue Service, monitoring and regulatory process efficiency in NAFDAC, and NCC.
ii. To determine the relationship between operational efficiency and strategic performance management.
iii. To evaluate strategic performance management as a tool for transformation of public sector organizations.
iv. To evaluate the various key performance indicators (KPIs) used to measure employee performance in Federal Inland Revenue Service and by extension, other public sector organizations.
1.4 STATEMENT OF RESEARCH QUESTIONS
The following research questions were formulated to guide the study:
1. Is there any relationship between increase in tax revenue and strategic performance management?
2. Is strategic performance management relevant in transforming public sector organizations into efficient institutions?
3. How does strategic performance management engender efficiency in the public sector organizations?
4. Are there key performance indicators (KPIs) in place in the Federal Inland Revenue Service, National Agency for Food and Drug Administration and Control, and Nigerian Communications Commission to measure employee performance and do they motivate?
1.5 STATEMENT OF HYPOTHESIS
Considering the statement of the problems and the objectives of the study, the following research hypotheses were formulated to guide the study.
Ho1: Strategic performance management has not resulted in increased tax revenues generated by Federal Inland Revenue Service / regulatory compliance of National Agency for Food and Drug Administration and Control, and Nigerian Communications Commission.
Ho2: Strategic performance management is not relevant in transforming public sector organizations into efficient institutions.
Ho3: There is no relationship between strategic performance management and improved operational efficiency.
Ho4: The various key performance indicators used to measure employee performance in the public sectors are not effective in motivating employees towards achievement of pre-determined objectives.
1.6 SIGNIFICANCE OF THE STUDY
The following are the importance of the study.
It will be very useful to the management of Federal Inland Revenue Service towards ensuring that corporate goals and objectives are met effectively and efficiently.
This research will also help FIRS, NAFDAC & NCC to know how employee performance could be improved towards achieving corporate goals.
It will enable the Management of public sector institutions to know how strategic management could bring the much needed transformation in the organization.
It will also be beneficial to other public sector agencies that suffer from inefficient management to improve their performance
This research will also be beneficial to student and professionals carrying out further research in the areas of strategic performance management as it will serve as a good reference material.
1.7 SCOPE OF THE STUDY
This research work is based on FIRS, NAFDAC and NCC. It examined strategic performance management as a tool for transformation of public sector organizations. The research depends on primary data collected from three institutions.
1.8 LIMITATIONS OF THE STUDY
This research work was carried out under intense academic pressure that took a heavy toll on available time. The researcher encountered some constraints as there were some initial difficulties in getting access to materials and some other relevant information from FIRS,
NAFDAC and NCC. Besides, being a self-sponsored research, finance posed serious challenges as data gathering required several trips between Lagos and Abuja offices of the institutions. Notwithstanding the above constraints, the research study was successfully completed as scheduled and met all the required objectives and standards.
This material content is developed to serve as a GUIDE for students to conduct academic research
STRATEGIC PERFORMANCE MANAGEMENT A TOOL FOR PUBLIC SECTOR TRANSFORMATION
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