This report discusses how public sector performance management can be improved through both cultural change and by using tools widely available in the private sector.

The report looks at:

• issues facing performance management in the public sector
• the cultural challenges involved in improving performance management
• the specific role of the finance function
• the importance of having the right kind of finance staff

This report offers a specific approach to a difficult public sector challenge, how to effectively performance manage activities throughout the entire chain from policy formulation to delivery of services.

It includes a case study which provides an excellent example of the practical adaptation of two well-known existing tools – the balanced scorecard (a strategic performance tool) and activity based costing (a costing methodology) to create objective costing.