Accenture's fifth annual global e-government study

The Accenture Public Sector Value Model *
The Accenture Public Sector Value Model was developed to address the challenge agencies face in developing
a meaningful baseline for measuring performance and performance improvements. It proposes a more
complete approach to measuring successful actions and provides a process for tracking progress over time.
At its simplest, the Accenture Public Sector Value Model considers two levers of public value—outcomes and
cost-effectiveness. By increasing one or the other, agencies can be understood to be creating value. By increasing
one at the expense of the other, they can be understood to be making a trade-off between their two
fundamental means of creating value. A decrease in both levers represents a clear reduction in public value.
A Public Sector Value analysis defines outcomes for government agencies based on their:
• Statutory purpose—What the agency is established to do (for example, a revenue agency is established to
collect tax revenues; a school board is established to educate children; and a police force is established
to maintain public order).
• Stakeholder expectations—What the stakeholders expect of an agency as it performs its statutory duties
(for example, that a social security agency’s interactions with citizens will be prompt, accurate and courteous
and that a revenue agency will minimize the burden of compliance on businesses).
These outcomes are weighted, based on relevant external factors for specific administrations. They are then
measured using metrics, which can be grouped to develop an outcome score. Separately, the cost of the
resources deployed in delivering these outcomes is calculated. Then, by dividing cost into outcomes a costeffectiveness
score is developed (see Figure 16).
Figure 16: A movement toward the top-right quadrant on the Accenture Public Sector Value
Model graph represents real public-sector value creation
Higher-performing
public services
Outcomes
Lower-performing
public services
Cost-effectiveness
• Outcomes are a weighted basket of social achievements
Outcomes
• Cost-effectiveness = (Annual expenditures - capital expenditure + capital charge)
• Hypothesis = greater value is created through generating improved outcomes in a more cost-effective way
A northeasterly movement on the Accenture Public Sector Value Model graph represents real public-sector value creation.
Public-sector value is created as the delivery of outcomes is improved in a cost-effective fashion. Highperforming
agencies will consistently increase the public-sector value they deliver year after year by a
combination of service delivery improvements balanced by increases in cost-efficiency.
The Accenture Public Sector Value Model cannot tell whether a government is performing well or badly.
However, it can tell whether a government is doing better or worse from year to year, or whether it is performing
better or worse than comparable agencies elsewhere. It can identify what actions were taken to
cause improvements and help pinpoint problems. It should not replace other performance measures; rather, it
complements these other approaches. Other performance measures—such as the balanced scorecard approach,
the US Program Assessment Rating Tool or the UK Public Service Agreements—will still be required to measure
whether an agency is being well run.
* Patent pending.
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