Paul Rouse

An integral framework for performance measurement

A performance framework is described that distils concepts from the literature about existing frameworks in order to extend capacity to evaluate and appraise performance. This open system interpretation recognises dynamic flows between various organizational levels and allows performance to be viewed in a holistic sense. Both macro and micro views are addressed that range from simple feedback control models to broader evaluation perspectives appropriate to stakeholder requirements and organisation purpose. Three basic dimensions of performance are observed using this framework that form a performance triplet, which is described in a series of principles as part of a first step towards a theory of performance measurement.

Towards a General Managerial Framework for Performance Measurement: A Comprehensive Highway Maintenance Application

This paper describes the application of Data Envelopment Analysis (DEA) to a highway maintenance setting, using measures of inputs, outputs and outcomes reported by New Zealand local authorities. A general framework of performance measurement is developed and illustrated through application to the highway setting. The framework encompasses a performance pyramid embodying multiple-perspectives of the organisation with a structure of measures linking critical success factors to process drivers, methods of data analysis and influencing factors such as professional culture. Distinctions between measures of outcome, output and input enable finer partitioning of analyses into managerial notions of efficiency, effectiveness and economy. The impact of environmental factors on efficiency is explored through two approaches suggested in the literature.

Data Envelopment Analysis with Nonhomogeneous DMUs

Data envelopment analysis (DEA), as originally proposed, is a methodology for evaluating the relative efficiencies of a set of homogeneous decision-making units (DMUs) in the sense that each uses the same input and output measures (in varying amounts from one DMU to another). In some situations, however, the assumption of homogeneity among DMUs may not apply. As an example, consider the case where the DMUs are plants in the same industry that may not all produce the same products. Evaluating efficiencies in the absence of homogeneity gives rise to the issue of how to fairly compare a DMU to other units, some of which may not be exactly in the same “business.” A related problem, and one that has been examined extensively in the literature, is the missing data problem; a DMU produces a certain output, but its value is not known. One approach taken to address this problem is to “create” a value for the missing output (e.g., substituting zero, or by taking the average of known values), and use it to fill in t...

Towards optimal life cycle management in a road maintenance setting using DEA

This paper focuses on local road aspects of the highway system and aims to assess how efficiently, effectively and economically the 73 Territorial Local Authorities (TLAs) in New Zealand have maintained their respective local road networks from a life cycle perspective. Measures of quality, quantity and cost, together with nondiscretionary measures of environmental factors, are incorporated in Data Envelopment Analysis to evaluate each TLAs performance in terms of efficiency, effectiveness and economy. TLAs that have high performance on all three measures provide a best practice indication of the optimal maintenance activity mix to undertake. In this study, the best practice mix of expenditure is 59% routine maintenance, 27% resealing and 14% rehabilitation.

A Randomized Controlled Trial to Determine the Effect of a Model of Restorative Home Care on Physical Function and Social Support Among Older People

OBJECTIVE To determine the impact of a restorative model of home care on social support and physical function among community-dwelling older people. DESIGN Cluster-randomized controlled trial. SETTING Home care in an urban area. PARTICIPANTS Participants (N=205) were randomly assigned to an intervention group (n=108; mean age, 79.1y; 71.3% women; 81.5% New Zealand European [NZE]; 50.8% residing in areas of the highest levels of social deprivation) or a usual care group (n=97; mean age, 76.9y; 60.8% women; 73.2% NZE; 53.5% in the highest levels of social deprivation). INTERVENTION Participants randomly assigned to the intervention group completed a goal facilitation tool with a needs assessor to determine their needs and to establish the aims for the episode of care. Services were structured according to the principles of restorative home care (independence focused with individually tailored activity programs). Usual care participants received a standard needs assessment that informed the delivery of home care services. MAIN OUTCOME MEASURES Short Physical Performance Battery (SPPB), Dukes Social Support Index (DSSI). RESULTS There was greater change over time in physical function (measured by SPPB: F=8.30, P=.003) but no associated increase in social support (as determined by DSSI: F=2.58, P=.09). CONCLUSIONS Significant improvements in physical function were observed after a period of restorative home care services. The absence of an associated change in social support may have been the result of a combination of factors, including the threshold of physical function required for community ambulation, the low rate of allied health service provision, and the time required to reestablish social ties. The findings contribute to a greater understanding of factors necessary to refocus home-based services to emphasize improvements in physical function and independence.

An Application of Data Envelopment Analysis to the Evaluation of Audit Risk

This article demonstrates how data envelopment analysis can be used to weight audit risk factors. Data from a previously reported study applying the analytic hierarchy process is used to facilitate a comparison between these two methods. Data envelopment analysis (DEA) has several advantages, including the ability to accommodate a range of expert opinions on the importance of a specific risk factor, rather than using the median or mean value. DEA can be used to provide high-risk and low-risk assessments and provides benchmark audit units from which other units can be evaluated.

From positive screen to engagement in treatment: a preliminary study of the impact of a new model of care for prisoners with serious mental illness

BackgroundThe high prevalence of serious mental illness (SMI) in prisons remains a challenge for mental health services. Many prisoners with SMI do not receive care. Screening tools have been developed but better detection has not translated to higher rates of treatment. In New Zealand a Prison Model of Care (PMOC) was developed by forensic mental health and correctional services to address this challenge. The PMOC broadened triggers for referrals to mental health teams. Referrals were triaged by mental health nurses leading to multidisciplinary team assessment within specified timeframes. This pathway for screening, referral and assessment was introduced within existing resources.MethodThe PMOC was implemented across four prisons. An AB research design was used to explore the extent to which mentally ill prisoners were referred to and accepted by prison in-reach mental health teams and to determine the proportion of prison population receiving specialist mental health care.ResultsThe number of prisoners in the study in the year before the PMOC (n = 19,349) was similar to the year after (n = 19,421). 24.6 % of prisoners were screened as per the PMOC in the post period. Referrals increased from 491 to 734 in the post period (Z = −7.23, p < 0.0001). A greater number of triage assessments occurred after the introduction of the PMOC (pre = 458; post = 613, Z = 4.74, p < 0.0001) leading to a significant increase in the numbers accepted onto in-reach caseloads (pre = 338; post = 426, Z = 3.16, p < 0.01). Numbers of triage assessments completed within specified time frames showed no statistically significant difference before or after implementation. The proportion of prison population on in-reach caseloads increased from 5.6 % in the pre period to 7.0 % in the year post implementation while diagnostic patterns did not change, indicating more prisoners with SMI were identified and engaged in treatment.ConclusionsThe PMOC led to increased prisoner numbers across screening, referral, treatment and engagement. Gains were achieved without extra resources by consistent processes and improved clarity of professional roles and tasks. The PMOC described a more effective pathway to specialist care for people with SMI entering prison.

Relative efficiency measurement: The problem of a missing output in a subset of decision making units

Data envelopment analysis (DEA), as originally proposed by Charnes et al. (1978) viewed the efficiency measurement problem as one wherein each of a set of DMUs uses the same input and output measures, albeit in amounts that vary from one DMU to another. In some situations, however, the assumption that all DMUs use the same measures may fail. While there is a well known literature related to the problems of missing data and ‘zeros’ in the data, we argue that there is a difference between the situation where a DMU commits the resources to produce an output (but fails to do so, or else a non-zero amount exists but is unknown), and the situation where the DMU intentionally does not produce that output. In the current paper we examine the problem of measuring the efficiency of a set of steel fabrication plants wherein a subset of those plants produce one less than the full set of outputs produced by the others. We develop a DEA-type model for handling this missing output problem.

Synthesizing management control frameworks

Purpose – The purpose of this paper is to investigate the holistic nature of control systems to understand how they operate across organizational levels and manage change.Design/methodology/approach – This paper takes an analytical approach using the viable system model (VSM) to assess the two main frameworks of control reported in the accounting literature.Findings – The VSM provides an elegant framework for management control systems with explicit consideration of: multiple levels of control, communication channels, interactions with the environment, and the mechanisms for attaining balance between stability and change.Practical implications – The evaluation of current management control systems produces specific suggestions for improving the levers of control frameworkOriginality/value – The VSM has not previously been aligned with management control frameworks.

Sustainability reporting integrated into management control systems

Purpose – This paper aims to examine how three different organisations integrate sustainability reporting into management control systems (MCS). Design/methodology/approach – A case study examination of sustainability reporting integrated into MCS in three New Zealand organisations. Findings – The integration of sustainability reporting into MCS holds advantages for organisations to operationalise sustainability objectives, broaden stakeholder accountability as well as intensify interactions with stakeholders, formalise organisation beliefs and improve communication of sustainability measures internally. While frameworks such as the balanced scorecard (BSC) can facilitate implementation of sustainability reporting, some organisations may choose to fully integrate the latter into their management control system. Originality/value – Sustainability reporting is sometimes seen as an external reporting philosophy that can be managed as a separate project. The authors show it can be integrated into MCS, either ...