suoritusteisto

Suoritusteisto is a Finnish term that translates to performance accounting or performance-based funding in English. It refers to a system where public sector organizations, such as universities or government agencies, receive funding based on their achieved results and performance indicators. Instead of a fixed budget, their financial allocation is tied to meeting specific objectives and targets set by the funding body.

The concept of suoritusteisto aims to improve efficiency, effectiveness, and accountability within the public sector. By linking funding to performance, it encourages organizations to focus on delivering measurable outcomes and to continuously improve their operations. Common performance indicators can include student graduation rates, research output, service delivery times, or customer satisfaction levels.

The implementation of suoritusteisto varies across different sectors and countries. It often involves a complex process of defining relevant indicators, establishing measurement methods, and setting targets. While it can incentivize good performance and resource optimization, critics sometimes raise concerns about the potential for "teaching to the test" or an overemphasis on easily quantifiable metrics at the expense of qualitative aspects. Nevertheless, suoritusteisto remains a significant tool in public sector management aimed at enhancing public value.