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<classification authority="sudocs">GA 1.13:T-GGD-97-151</classification>
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 <subject>Accountability</subject>
 <subject>Comparative analysis</subject>
 <subject>Customer service</subject>
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 <title>Performance-Based Organizations: Lessons From the British Next Steps Initiative</title>
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<abstract>GAO discussed the British Next Steps initiative, a model the
administration used in crafting its performance-based organization (PBO)
proposal, and the lessons that the Next Steps experience suggest for
PBOs in the United States.&lt;p/&gt;GAO noted that: (1) the administration has proposed the creation of PBOs
modeled after the British Next Steps agencies; (2) PBOs, like Next Steps
agencies, seek to separate service delivery functions from policy
functions; (3) in exchange for flexibilities from some governmentwide
requirements, the head of the agency is to be held directly accountable
for the agency&apos;s performance; (4) Next Steps agencies are the British
government&apos;s predominant form of service delivery; (5) these agencies
have reported that, over the years, performance has improved, in some
cases substantially; (6) some agencies have reported significant cost
savings; (7) the British government has confronted some difficult and
continuing issues Congress may want to consider as it considers the PBO
concept; (8) these issues include a lack of clarity in the relationship
between agencies and their parent departments, an uncertainty concerning
who is accountable for performance, and difficulties in developing and
setting performance goals; (9) the British have found that the roles of
the Next Steps agencies and their parent departments often remain
unclear because of the problems inherent in trying to delineate
responsibilities; (10) management decisions made by Next Steps agencies
can have impact on policy choices made by their departments; (11) lack
of clarity in roles between agencies and departments affects
accountability; (12) it is sometimes difficult to tell if a poor result
was due to policy or inadequate implementation of that policy; (13)
British evaluations identified three areas of concern regarding
performance measurement: (a) goal setting does not always reflect what
is realistic as much as adding incremental improvements to prior
results; (b) it can be difficult to determine exactly what to measure;
and (c) it is important to ensure that performance information is put in
a proper context and used to improve performance; (14) GAO reported to
Congress in May 1997 on the administration&apos;s proposal to convert the
Saint Lawrence Seaway Development Corporation to a PBO. GAO found that
such a conversion would result in significant changes in the Seaway&apos;s
management structure, funding mechanism, and relations with Congress;
and (15) however, since PBOs must be created through enactment of
enabling legislation, Congress has an opportunity to define its role
with regard to the Seaway or any other PBO.</abstract>
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<note>Testimony</note>
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<subject>
 <topic>Reengineering (management)</topic>
 <topic>Intergovernmental relations</topic>
 <topic>Public administration</topic>
 <topic>Foreign governments</topic>
 <topic>Accountability</topic>
 <topic>Comparative analysis</topic>
 <topic>Customer service</topic>
 <topic>Interagency relations</topic>
 <topic>Great Britain</topic>
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