Diagnosing Performance Management and Performance Budgeting Systems: A Case Study in the U.S. Navy

Abstract

We present here a case study of an organization within the U.S. Navy that created a new organizational construct and performance management system. We explore the issues faced by naval leaders as they attempt to use their performance information to make resource allocation decisions at the sub-organization level, and drive budgets at the organization and service (navy) level. We diagnose the practical problems a government organization encounters when implementing a performance management system, to include their influence on budgets, and make recommendations for public sector performance budgeting organizations. This case confirms challenges noted in the literature associated with performance management and performance budgeting systems. We offer recommendations for public officials considering such endeavors.