Performance Management Framework
Introduction
A good performance management system helps organisations achieve their aims and objectives. For it to work, there needs to be a clear vision of what the organisation is trying to achieve and realistic targets which support the achievement of these aims and objectives.
This vision needs to be clearly communicated to all Councillors and staff, so that individuals have a good understanding of their work priorities and can see how these contribute to broader corporate targets and priorities.
The performance management system needs to provide clarity about who is responsible for delivering particular targets and ensure that these individuals have the required resources and support, and are empowered to do the necessary work to achieve the target.
Following Best Practice
The Local Government Association (LGA), Audit Commission and Improvement and Development Agency (IDeA) have produced guidance and advice on best practice in relation to performance management.
A number of authorities have been identified as demonstrating best practice and tend to share the following characteristics:
- A strong vision of what the organisation is trying to achieve effectively communicated within the organisation
- Robust and effective planning systems which ensure that the allocation of resources follows service demands and delivery is measured and monitored against clear targets
- Staff who are empowered to act by providing clarity about who is accountable for what within clear managerial frameworks
- A focus on community priorities based on facts about customer and citizen need
This clearly links performance management to financial management, communications, consultation and the empowerment of staff. It is also clear that for organisations that have made significant progress, performance management has become an intrinsic element of the day-job rather than an add on.
The political leadership, senior managers and staff within the authority have a shared understanding of the organisation's priorities and of what needs to be done to realise these priorities.
There must be easy and regular access to information about how well services are performing and where resources are insufficient to meet desired policy or project outcomes. This document sets out a new Performance Management Framework for Dartford Borough Council based on the above.
The Corporate Plan
The Kent Thameside Community Strategy (2003), developed by the Local Strategic Partnership, sets out broad strategic priorities for the area.
The Council has assessed its own contribution to these priorities and must now finalise its own corporate objectives in order to put in place a new Corporate Plan. This will set out the key top-level targets for the authority.
The Corporate Plan will reflect the needs of the community served by the Council and make use of the considerable amount of performance information which is available.
It will also reflect the outcomes of consultation undertaken by the Council, for example during the preparation of the Community Strategy.
The Corporate Plan will be reviewed annually in line with the performance management cycle on page 5 of this document. Consultation with staff, community and partner organisations is an important element of this.
Consultation with the community in particular is essential to ensure that their priorities continue to be reflected in the Corporate Plan. This may be achieved, for example, through an annual survey of residents.
Proposals in respect of this will be brought forward in the Communications and Consultation Strategy.
The Corporate Plan will be made widely available within the organisation and to partner organisations and the community. It is also recognised that the Council has a number of statutory and non-statutory strategies in place.
As these are revised on a cyclical basis, it will be necessary to ensure that they support and are in line with the new priorities of the Council as set out in the Corporate Plan.
Service Plans, Targets and Performance Indicators
It is vital that the priorities and top-level targets in the Corporate Plan are effectively cascaded through the organisation. To achieve this, each service area has an annual Service Plan, which sets out its role in delivering the corporate priorities.
The format of the Service Plan has been revised and simplified this year. The Service Plan sets out main aims and objectives of the service, appropriately referenced to corporate priorities, the Community Strategy and other strategy documents.
It sets out the key targets for the service in the year and the Best Value and Local Performance Indicators that are in place in respect of the service. In relation to indicators, it is proposed that in the future it should also include the previous year's performance outcome, the current year target and, where relevant, the top quartile level of performance.
In addition, the Service Plan includes a list of stakeholders and services users, and a summary of the staff and financial resources (both capital and revenue) utilised by the service.
A full schedule of targets for that service forms an appendix to the Service Plan. For each target, key actions, milestones, risks and lead officer are identified. This appendix is in effect an Action Plan for the work of that service during the year.
Appropriate performance measures will be developed at each level of the organisation from high-level community objectives and performance indicators to more detailed measures and targets at the level of the team and the individual.
In terms of measuring the Council's effectiveness in delivering its priorities, it is necessary to develop an appropriate limited number of key corporate indicators to monitor performance at a corporate level.
Some of these may be Best Value Performance Indicators, but it is recognised that many of these do not correspond to corporate or community priorities and they do not relate to all service areas.
Developing suitable local indicators, which measure performance in relation to identified corporate priorities and targets, will be an important element of the new performance management framework. All Service Plans will be reviewed in the context of the revised Corporate Plan.
Linking Resource Allocation to the Corporate Plan and Service Plans
It is necessary to integrate financial and service planning for a policy-led planning cycle a nd to ensure that resources are allocated according to priorities. To achieve this, Service Plans will be reviewed as part of the budget cycle.
Any request for additional resources or a redirection of existing resources will show how it supports corporate priorities and what improvements to services and outputs willbe achieved.
Members will then review available resources against corporate priorities and allocate resources accordingly .
Risk Management
In line with the Council's obligations to ensure that strategic and operational risks are fully assessed and managed, risk management is also an important element of the Performance Management Framework.
Detailed proposals in respect of a risk management strategy are under development and will be brought to the Cabinet for consideration in the near future.
An objective and balanced statement in relation to the Council's arrangements for dealing with risk management will be included in the Best Value Performance Plan.
An annual review of both corporate and operational risks is incorporated into the performance management cycle. All managers responsible for the preparation of Service Plans will assess and take account of the key risks to be managed in delivering the objectives and targets in their plan.
Performance Appraisal
Service plans are linked through to individual work plans and targets through the revised performance appraisal process introduced this year as part of the new Competency Framework. This process relates to all posts in the Council.
This ensures that the achievement of targets by individuals is monitored and appraised annually and reviewed on an interim basis.
The appraisal process will identify the needfor any additional training or developmental needs to ensure that the Council has the skills base in place to support quality service delivery.
Reviewing and Monitoring Performance
Currently all Best Value Performance Indicators and a number of Local Performance Indicators are monitored and reported to Cabinet quarterly. These reports set out progress in comparison to the previous year's performance and the current year target.
It is now proposed that the formal quarterly reports to Cabinet, monitoring progress on key performance indicators and strategic targets, will highlight exceptions, i.e. indicators which are not on target or where performance is declining.
Explanations for this and proposed remedial actions to be taken to improve performance will be reported. All indicators subject to exception reporting will be continue to be highlighted and considered in these quarterly reports, until performance is back on target.
The Best Value Performance Plan sets out comparisons between Dartford Borough Council's performance, top quartile performance and the performance of other authorities. The quarterly reports to Cabinet will also include this comparable data where appropriate.
Once the new administration's key corporate objectives and targets have been set, there will be a review of indicators to ensure that those reported on a regular basis closely reflect the key service objectives of the Council.
As part of the new framework, key corporate targets and Performance Indicators will be monitored on a more regular basis by senior management, so that weaknesses, delays or downward trends can be identified and tackled at an early stage.
The community will receive feedback on the performance of the Council in relation to its priority services. The best means of achieving this will be considered as part of the Council's Communications and Consultation Strategy.
Best Value
The Best Value process will be a key element of the Council's approach to service improvement. The role of the Best Value Review Committee is primarily to drive improvement by reviewing the Council's services, focusing particularly on the needs and wishes of service users, and bringing forward recommendations for improvement to the Cabinet.
The current process for doing this has become verybureaucratic and it is considered appropriate to streamline and simplify the review process.
The terms of reference for the Best Value Review Committee and the means whereby reviews are carried out will be re-examined in this context with appropriate amendments being drafted for adoption by the General Assembly of the Council at its Annual Meeting in May 2004. In addition the forward programme of reviews for the Council will reflect corporate priorities.
The Best Value Performance Plan
The Best Value Performance Plan has a significant role in the Performance Management Framework. Its aim is to provide a clear indication of how the Council is performing, both in relation to its own targets and in comparison with other authorities, and to set out priorities and targets for the year ahead.
In future it will be known as the Council's Performance Plan or Annual Plan, to demonstrate its significance to the Council, which is much wider than just the Best Value process. Its content, format and presentation will be reviewed, to ensure that it is an accessible and useful document in addition to fulfilling all statutory requirements.
A Performance Management Cycle
The key elements of an annual performance management cycle are as follows:
| April/May | Staff appraisals conducted on the basis of agreed priorities and targets for the year ahead. |
| June | Performance/Annual Plan in place – this includes a review of the previous year's performance, indicators and priorities and targets for the year ahead. |
| July to October | Corporate Plan reviewed in the light of performance and financial outcomes, re-evaluation of corporate priorities and consultation with residents and service users. |
| October/ November | All
Service Plans reviewed. Progress on current service
priorities evaluated and proposals developed for
the next financial year in the context of performance
outcomes and revisions to Corporate Plan.
Bids for additional resources or a redirection of resources submitted as part of the budget process. Review of corporate risks following update of Corporate Plan. Six-month staff appraisal reviews carried out. |
| December/ January | Cabinet considers allocation of resources for the forthcoming year against identified priorities in the Corporate Plan and Service Plans. |
| Early March | Budget finalised. |
| End of March | All Service Plans for following year finalised including targets. Service managers have undertaken a review of operational risks associated with Service Plans. |
Action Plan
Many aspects of the Performance Management Framework are already in place. An Action Plan will now be developed to tackle the outstanding issues. The Cabinet Secretary and the Best Value Manager will be responsible for taking this work forward.
A comprehensive officer guidance manual on the Performance Management Framework will be prepared in line with the recommendations of the Corporate Governance Health Check carried out by Kent County Council.
In conjunction with this briefing, sessions will be held for senior managers and service plan authors to roll out the new arrangements.
