For sustained development effectiveness, countries need to be able to manage their own development processes so that they can use their resources for the greatest development impact. They need to have a public sector that delivers essential services economically, efficiently, and effectively.
To do this, Public sector management (PSM) will come into the picture. PSM refers to how government manage the different components or functions of the public sector to deliver national results. This include planning, budgeting, implementation, monitoring, and evaluation. These functions are carried out simultaneously at various levels of government. At the central level of government these functions are often also institutionalized. For example, budgeting is done by the Ministry of Finance.
Results-based PSM recognizes that to achieve optimal development results, planning, budgeting, implementation, monitoring, and evaluation must exhibit results features and be coordinated for maximum efficiency and effectiveness. Development results must be planned for, resources must be allocated, and intended activities must be implemented. Monitoring and evaluating the final outputs are vital to ensure that results are delivered and lessons are learned for future improvement.
Results-Oriented Government focuses on achieving results for customers; being responsive and accountable to the taxpayers.
Main Idea behind results-oriented government is that it focuses on determining the strategic priorities and objectives of the country (outcomes/results) desired to be achieved and translating these outcomes/ results into outputs and linking the allocation of costs to outputs and outcomes and measuring whether outputs and outcomes are being achieved in an efficient and effective way.