Making the Case for Funding Using Performance Management

Abstract

Even though an agency is performing well, the public may perceive its performance as poor. This perception is due to a lack of relevant information or an imbalance between what an agency knows about its performance versus what the public knows about agency management and results. This is also known as information asymmetry. This paper shows that information asymmetry and the resulting lack of support for agency funding can be corrected using performance management and measurement and effective, ethical communication. This requires that information be presented in a manner that is timely, clear, sincere, truthful, and legitimate. The Washington State Department of Transportation's (DOT) response to a severe funding and accountability crisis is presented. Although the Washington State DOT was well regarded by its national peers as a high-performance agency, public, media, and legislative sentiment questioned its credibility and performance. The Washington State DOT responded to this crisis by instituting a program of regular, timely performance measurement and reporting designed to effectively communicate results to the legislature and the public and thus make the case for increased funding. During a period of approximately 3 years, polling data changed from nearly 75% of voters saying they did not trust the agency to spend tax dollars wisely, to just 12%. At the same time, two transportation tax increases (2003 and 2005) were approved and an initiative to repeal the 2005 tax increase was rejected by voters. The Washington State DOT case suggests that effective performance management and reporting, combined with strong leadership, is important for increasing agency credibility and securing funding.