Implementing PMS within a Decentralized Governance Framework

Institutional Annual Plan (AIP)
Annual institutional plans should be derived from the institutional strategic plan and budget. This
should provide an important link between planning, implementation and the resource envelop.
The plan is critical to an institution as it sets out a broad framework of policies, objectives and
programmes, which the institution seek to pursue on annual basis. Given the fact that the annual
plans are eventually implemented at the lowest organizational level (individual level), it is
important to cascade the annual planning process to that level. Likewise, the annual planning
process should be undertaken through a consultative process.
2. Implementation of the Plans
Once the annual plans, which are consistent with the medium term institutional strategic plans,
have been developed up to the lowest level, focus should move to ensuring that the plans are
implemented effectively and the intended results are achieved. While there are various
methodologies/tools under PMS, the most popular one in public service organizations is
performance agreements.
2.1 The Design of Institutional Performance Agreements
The design of performance agreements should be undertaken in a manner that enables
government to effectively measure and evaluate the performance of public institutions. The
preparation of the performance agreement will need to be preceded by a number of processes
with performance targets being the most important.