Using adjusted performance measures for evaluating resource use

Public service organizations are looking for ways to improve the evaluation of performance and resource allocation. One of the approaches is to use adjusted performance measures, which attempt to capture factors that affect the organizational performance but are outside of the organization’s control. This article illustrates the construction and use of adjusted performance measures to assess the performance of public schools, and reports findings from a study of school-based budgeting in Chicago that relates adjusted performance measures and patterns of budget allocations.