LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

managerial, to take action based on facts about performance. Performance
management can also be thought of as a tool to help link and underpin the
initiatives that make up the
modernization agenda. Following from the policy development cycle, there are
three areas where indicators can assist local authorities in addressing the
challenges faced by cities. These are:
• developing appropriate policies with clear goals and strategies,
• monitoring the performance and reporting progress of local
governments implementing strategies,
• reviewing policies and strategies.
Since the goals of urban policy cut across different sectors, and should reflect
changes of different level of the strategic management framework (from
project results to strategy aims) the indicators will be of four types:
• Input indicators. Inputs are the resources allocated to specific tasks, such
as the amount of money spent or the total number of employee/hours
needed to deliver a service or project,
• Output indicators. These reflect the quantity of products or units of service
provided to the population,
• Outcome indicators. These measures report the results of programs and
services or relate to the quality of the service e.g. measures of customer
satisfaction,
• Impact indicators. These assess long term quality changes that strategy
implementation activities create in the city changing living conditions or
improving business environment.
When designing monitoring system in practice, specific indicators should be
identified and allocated for specific deliverables. Starting from the bottom of
framework we have projects. Their results can be assessed by means of
output indicators. Programs grouping a similar projects can be reviewed with
outcome indicators. Impact indicators can be designated to strategy objectives
and goals. Such a solution will support integration of the whole strategic
management framework and will work in both directions top-down and
bottom-up. When developing strategy implementation activities (coming down
11