Lessons from the private sector on performance-based management

Implementation of the Government Performance and Results Act of 1993 (GPRA) has provided a unique challenge for Federal Agencies, such as the Department of Energy (DOE) Office of Waste Management (OWM). While performance measurement, as required by GPRA, is new to Federal Agencies, private industry has applied it at all organizational levels to better manage their operations for some time. There has been significant discussion about how the private sector uses performance measures, but there have been very few empirical studies systematically examining their use. To gather information on comparable private industry practices, waste management industry firms were surveyed through questionnaires and follow-on interviews. Questionnaires were sent to 75 waste management firms throughout the United States and Canada. Twenty-four percent of the firms responded to the questionnaire and participated in the follow-on interviews. The questionnaires were typically completed by vice-presidents or senior financial officers. Information collected from the questionnaire and follow-on interviews provided valuable insight into industry practices in the area of performance measurement. This paper discusses the study results and how they can be incorporated in the DOE OWM performance measures and influence the character of the ``critical few`` metrics used by senior DOE managers