The use of KPIs and other performance indicators : the case of the Water Services Corporation

Abstract

Societies and economies are constantly changing during these turbulent times. The same is occurring in Malta, which is also experiencing the changes brought about by the accession to the EU. The Maltese public sector is no exception for these changes which render interpretation of organisational performance ever more complex. In this scenario, this dissertation attempts to evaluate the performance measurement and management methods within a specific organisation from the public sector - the Water Services Corporation. The purpose behind this study is to evaluate the performance management and measurement systems in the Corporation and the local public sector, in the light of the local regulatory framework for disclosure and use of performance information. To satisfy its objectives this study is based on semi-structured in-depth interviews carried out with officials of the Water Services Corporation and the Maltese public sector. Primary information obtained from interviews is compared to literature describing models for the same processes. Legislation does not force public entities to report performance information apart from the annual report. However, it provides the appropriate mechanisms to report organisational performance through the office of the Auditor General and the National Audit Office. This study reveals the commitment shown by the Water ii Services Corporation to exceed legal requirements through extensive use and reporting of performance indicators. Mandatory disclosure of performance indicators is recommended for the entire public sector, with the government linking the distribution of public funds with performance of each government department and entity. Such a recommendation could enhance accountability, quality of service and value for money in