ABSTRACT
This chapter discusses issues relating to the measurement of performance, value and value for money. Performance measurement is a key tenet of NPM and it is this that drives the process rather than the public value framework itself. Inputs are the resources used in the production of goods or services. Activity measures quantify the processes that convert the inputs into outputs. Outputs are the goods or services provided by the organization. Charles Goodhart was an economist and adviser to the Bank of England. Brooks provides an example of this by discussing the relative allocation of resources by charities between delivering the charitable objectives on one hand and administration and fund-raising on the other. The performance paradox is 'a weak correlation between performance indicators and performance itself'. Cost-Benefit Analysis (CBA) takes a wide view of costs and benefits because it takes the perspective of the community as a whole rather than simply the organization.
