Multiple Public Service Performance Indicators: Toward an Integrated Statistical Approach

Public service organizations usually produce multiple outputs,measured on different scales, giving rise to a suite of performanceindicators. The traditional approach to statistical analysisof organizational performance has been to develop a separateregression model for each performance indicator. This piecemealapproach, the article argues, may discard valuable information,as it ignores potentially important relationships between individualperformance measures. We therefore propose modeling an organization'sperformance measures simultaneously, using the methods of seeminglyunrelated regressions. The approach implicitly introduces alatent organizational variable into the regressions and maytherefore economize on the need to assemble explicit measuresof organizational characteristics. The method is illustratedusing an example from English public hospitals.