What is a Performance-Based Organization?
A PBO is a discrete management unit that deals with the public and has operations that can provide clear measures of performance. Primary responsibility for policy making is separated from program operations and remains in the domain of the Department under the control of political appointees. Program operations are retained in the PBO. While this division of responsibilities will be clear, the managers of the PBO will continue to operate within the structure of the organization’s present Department to ensure communication between the policy formulation and operation functions. However, by separating policy decisions affecting those operations from daily activities, we can create a management with strong incentives to manage for results by committing to clear objectives, specific measurable goals, customer service standards, and targets for improved performance. A critical aspect of a PBO is that it would be led by a Chief Operating Officer (COO) hired for a fixed term based on a demon
