Performance Management/Budgeting in Russia
The label “performance management" encompasses a diverse range of managerial tools used to define goals, create plans, allocate managerial discretion, measure outcomes and reward performance.
In the Russian practice of public management of such a kind, tools have been introduced not as parts of a prearranged and logically coordinated system, rather as and when the need has arisen for them, with approbation during the course of application and turning away from methods that have not proved themselves, meaning by a process of trial and error. In line with this, the sections of this chapter have been arranged not in the logic of a holistic performance management system, rather as a chronological order of decision making on the introduction of given tools.
The process of introducing performance management tools began in Russia in 2004 from a departmental level. It was from this year that so-called reports on performance and key activities of federal executive authorities were drawn up which, in essence, were their indicative plans. This tool still remains in management practice. It is to this that the first section of this chapter is dedicated.
The second section addresses performance management tools of a higher level required to determine and substantiate national objectives, coordinate and balance departmental plans. Such targeted management tools of a federal level consider the concept of long-term development, the main activities of government and sector-based state programs.
The next section is devoted to the tool designed for budgeting at public institutions, which has come to be known as the “government assignment”. On the one hand the government assignment contains a plan pertaining to the volume and the quality of the work and the services of an organization while, on the other, pertaining to the volume funds, allocated to execute the set work and services. Thus, this tool to the greatest extent reflects the principles of performance-based budgeting and assumes a tying in of the volume and quality of services with budget allocations.
The fourth section covers administrative regulations and standards in public services. These tools are used in government bodies to establish standards for quality of service and interaction with the general public and non-governmental organizations.
Finally, in recent years, Russia has seen a fairly broad application of various tools for assessing the activity of federal, regional and municipal authorities, including that of the heads of authorities. These tools are described in the fifth section.