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Performance Management

A local council has just received approval for L15 million from the National Lottery to build a new Arts, Media and Cultural Centre but it needs to find the matching capital Money for the project. It has also to find the annual running costs of L1 million for the new facility at the same sound as it needs to reduce its total Leisure and Arts budget by L5 million.

How can performance management and review processes assist with this complex decision and ensure that effective delivery of the project if agreed?

The local council has three main problems to resolve from this scenario. These are:

1. Matching the capital money and running costs of the proposed project.

2. Significantly reducing the leisure and arts budget, the sector in which the proposed project is in.

3. Keeping all major interest groups internally and externally from the project, relatively content.

However, the problems involving the interest groups are virtually impossible to resolve. This is due to people's contradicting needs; this creates the task of catering for each individual group's needs, which is unobtainable. Therefore, the council must take an interest in the most significant party, the public; this includes the implications of the other ma


 Needs for qualities as well as quantitative review

The objectives set need to be linked to a review process. This is a crucial tool in timing strategic argument into practical actions - a lever to effectively policy implementation.

 Local Businesses: There will be two contrasting views regarding the local business community. Firstly, there will be the businesses located near the new site. These are likely to react positively to the project, as it would increase the profitability and value of their business. In contrast, the businesses located near the possible existing sites are likely to react negatively to the project, as it will reduce the levels of business in the area due to the removal of through trade generated by the existing establishments. There is likely to be a positive reaction from local construction companies as they will be aware of the opportunities to tender a bid for the construction.

In the example of the Director of Finance the performance indicator could be a cash value negotiation at the time, or agreed savings from other budgets at a particular time etc.

For the ability to use performance management within the project, it needs to be segmented into various sections that can possibly be measured over the duration of the project. The project has multiple objectives that need defining. These objectives are usually defined and the outcomes normally judged using the five E's:



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Approximate Word count = 2933
Approximate Pages = 12 (250 words per page double spaced)


  

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