adelaide hills council special council meeting tuesday … · tuesday 9 september 2014 agenda...

ADELAIDE HILLS COUNCILSPECIAL COUNCIL MEETINGTuesday 9 September 2014AGENDA BUSINESS ITEM

Item: 5.1

Originating Officer: Megan Sutherland, Manager OrganisationalDevelopment

Subject: CEO Performance Review Panel – 2 September 2014Meeting Recommendations - Confidential

1. CEO Performance Review Panel – 2 September 2014 Meeting Recommendations– Exclusion of the Public

Pursuant to section 90(2) of the Local Government Act 1999 the Councilorders that all members of the public, except:

CEO, Andrew Aitken Director Engineering & Assets, Deb Richardson Director Strategy & Development, Marc Salver Director Corporate Services, Tim Piper Director Community & Customer Service, David Waters Manager Governance & Risk, Lachlan Miller Manager Organisational Development, Megan Sutherland Minute Secretary, Kylie Hopkins

be excluded from attendance at the meeting for Agenda Item 5.2: CEOPerformance Review Panel – 2 September 2014 Meeting Recommendations.

The Council is satisfied that, pursuant to section 90(3)(a) of the Act, theinformation to be received, discussed or considered in relation to the AgendaItem is information the disclosure of which would involve the unreasonabledisclosure of information concerning the personal affairs of any person (livingor dead), being the personal affairs of the Chief Executive Officer, in thatdetails of his performance and remuneration reviews and forthcomingperformance indictors will be discussed, which are sensitive and are detailsonly known to those who have participated in the review process.

The Council is satisfied that the principle that the meeting be conducted in aplace open to the public has been outweighed in the circumstances becausethe disclosure of details of the Chief Executive Officer's performance andremuneration may prematurely be disclosed before the details of the reviewshave been agreed with the Chief Executive Officer.

Adelaide Hills Council – Special Council Meeting 9 September 2014CEO Performance Review Panel – 2 September 2014 Meeting Recommendations

2. CEO Performance Review Panel – 2 September 2014 Meeting Recommendations– Confidential

SUMMARY

The CEO Performance Review Panel (Panel) met on 2 September 2014 to progressthe 2013-14 CEO performance and remuneration review and to propose the suite ofkey performance indicators with the CEO for 2014-15.

The recommendations from the above processes are provided for Council’sconsideration.

RECOMMENDATION

That Council resolves:1. Recommends to Council that the CEO has achieved ‘Competent

Performance’ in relation to the 2013-14 Performance Review.2. Recommends to Council to increase the CEO’s TEC Package by 3.15% to

commence from 1 October 2014.3. To adopt the suite of 2014-15 KPIs for the purpose of the CEO’s

performance review (Attachment 2).

3. GOVERNANCE

Strategic Management Plan/Council Policy

Goal 4 A Recognised Leading Performer

Key Issue 4.1 Leadership

Key Action 4.1.4 Meet legislative, regulatory and good governance responsibilitiesand obligations

Legal Implications

The CEO Performance Review Panel is a Sec 41 of Committee of Council under theLocal Government Act 1999.

This process needs to be undertaken appropriately to ensure the CEO is providedwith a fair and consistent approach to performance reviews and that the processwould stand up under scrutiny, as the tool and the outcomes of the review directlyaffect decisions made in relation to the CEO, his performance and remunerationdiscussions.

Section 96 (Council to have a chief executive officer) and Section 99 (Role of chiefexecutive officer) of the Local Government Act 1999.


Risk Management Implications

Consideration of the report mitigates the risk of

Deficient CEO performance review practices result in a lack of accountabilityand loss of stakeholder confidence.

Financial and Resource Implications

There will be a budget impact on any increase in the Total Employment Costpackage. This would be incorporated into the budget.

Customer Service and Community/Cultural Implications

There is a community expectation that the CEO will manage the organisation’shuman, financial and physical resources to ensure they are utilised for the bestoutcomes for the community.

Environmental Implications

Not applicable.

Community Engagement/Consultation

Consultation on the CEO’s performance was undertaken with Council Members,direct reports and managers as part of the performance review process facilitated byMcArthur.

4. BACKGROUND

CEO Performance Review Panel

In relation to performance and remuneration review that Panel’s role is:

The CEO Performance Review Panel (the Panel) will provide advice to Council onmatters related to the Chief Executive Officer and his performance by;

Reviewing the CEO’s performance over the preceding twelve months, inparticular the performance against the Key Performance Indicators (KPIs).

Undertake a review of the CEO’s KPIs to ensure they remain relevant andaligned to Council’s strategic objectives.

Receive and review six monthly updates of the CEO’s performance againstthe KPIs.

Determining the CEO’s remuneration for the following twelve months.

Consider any other related matters that may arise from the review.


CEO Performance Review Panel Meeting – 2 September 2014

The Panel had a final meeting for the 2014 CEO performance review process, theunconfirmed minutes of that meeting are at Attachment 1 of this item.

The Panel resolved, in confidence, the following for Council’s consideration:

6.1. 2013-14 CEO Performance Review

Moved Cr Linda GreenS/- Paula Davies

Carried Unanimously24

That the Panel:

1. Receives and notes the report.

2. Recommends to Council that the CEO has achieved ‘CompetentPerformance’ in relation to the 2013-14 Performance Review.

6.2 2013-14 CEO Remuneration Review

Moved Cr Linda GreenS/- Cr Jan Loveday


That the Panel:


2. Recommends to Council to increase the CEO’s TEC Package by3.15% to commence from 1 October 2014.

6.3 2014-15 CEO Key Performance Indicators

Moved Cr Jan LovedayS/- Paula Davies


That the Panel:


2. Recommends to Council to adopt the suite of KPIs as tabled withthe following amendments:

a. KPI 2b – the wording to refer to a framework with timelinesrather than a timetable;

b. KPI 6 – to be deleted;

c. KPIs 8 & 9 – the KPIs to be combined and the wording to berevised to make reference to the Customer ServicesFramework with the two sub elements being the conduct of theCustomer Service Survey and the performance reportingagainst the key customer service standards;

d. KPI 10 – the wording to be revised to “Improve the culturalperformance of the organisation to be demonstrated by


improvement to the average satisfaction responses from the2014 to the 2015 Employee Opinion Survey” and the removalof the listing of survey questions (1 -13); and

e. Rationalise the numbering of the KPIs to take into account thechanges made.

5. ANALYSIS

The recommendations from the Panel’s meeting are provided for the Council’sconsideration.

6. OPTIONS

Council has the following options:

1. To accept the recommendations of the Panel from any or all of the agendaitems as detailed above.

2. To alter or substitute elements of the recommendations for any or all of theagenda items.

7. APPENDICES

(1) Minutes of CEO Performance Review Panel Meeting 2 September 2014(2) CEO KPI’s for 2014-15(3) 2014 CEO Performance Review Report

Appendix 1Minutes of CEO Performance Review Panel

Meeting 2 September 2014

18CEO PERFORMANCE REVIEW PANEL COMMITTEE

MINUTES OF MEETING TUESDAY 2 SEPTEMBER 201463 MT BARKER ROAD STIRLING

Presiding Member

Members:

Mayor Bill Spragg

Councillors WardCouncillor Jan-ClaireWisdom Manoah

Councillor Jan Loveday Marble HillCouncillor Linda Green Onkaparinga ValleyMs Paula Davies Independent Member

In Attendance

Megan Sutherland Manager Organisational DevelopmentLachlan Miller Manager Governance & RiskAndrew Aitken Chief Executive Officer

1 CommencementThe meeting commenced at 4.02pm

1.1 Appointment of acting Presiding Member

Moved Cr Jan LovedayS/- Cr Jan-Claire Wisdom

Carried unanimously21

That Cr Jan-Claire Wisdom be appointed as acting Presiding Member for thismeeting.

2 Apologies/Leave of Absence2.1 Apology

Mayor Bill Spragg

2.2 Leave of AbsenceNil

2.3 AbsentNil



Presiding Member

3 Previous Minutes of CEO Performance Review Panel Committee – 18 August2014

Moved Paula DaviesS/- Cr Jan Loveday


That the minutes of the meeting held on 18 August 2014 as supplied, beconfirmed as an accurate record of the proceedings of that meeting.

4 Delegation of AuthorityThe CEO Performance Review Panel operates in accordance with the relevantsections of the Local Government Act 1999, and its Terms of Reference.

5 Declaration of Interest by Members of CouncilNil

6 Reports

6.1 2013-14 CEO Performance Review (Confidential)

1. 2013-14 CEO Performance Review – Exclusion of the Public

Moved Cr Jan LovedayS/- Cr Linda Green


Pursuant to section 90(2) of the Local Government Act 1999 the CEOPerformance Review Panel (the Panel) orders that all members of the public,except:

CEO, Andrew Aitken Manager Governance & Risk, Lachlan Miller Manager Organisational Development, Megan Sutherland Matthew Hobby, Consultant, McArthur Rebecca Hunt, Consultant, McArthur

be excluded from attendance at the meeting for Agenda Item 6.1: 2013-14CEO Performance Review.

The Panel is satisfied that, pursuant to section 90(3)(a) of the Act, theinformation to be received, discussed or considered in relation to theAgenda Item is information the disclosure of which would involve theunreasonable disclosure of information concerning the personal affairs ofany person (living or dead), being the personal affairs of the Chief ExecutiveOfficer, in that details of his performance review will be discussed, which aresensitive and are details only known to those who have participated in thereview process.



Presiding Member

The Panel is satisfied that the principle that the meeting be conducted in aplace open to the public has been outweighed in the circumstances becausethe disclosure of details of the Chief Executive Officer's performance mayprematurely be disclosed before the details of the review have beendiscussed with the Chief Executive Officer.

Rebecca Hunt tabled a document entitled “Summary Report on Performance Review 2013-14 Chief Executive Officer – Andrew Aitken”.

Matthew Hobby and Rebecca Hunt addressed the Panel regarding the changes/revisionsfrom the previous version of the Performance Review document.

2. 2013-14 CEO Performance Review – Confidential Item



That the Panel:


2. Recommends to Council that the CEO has achieved ‘CompetentPerformance’ in relation to the 2013-14 Performance Review.

3. 2013-14 CEO Performance Review – Period of Confidentiality

Moved Cr Jan LovedayS/- Cr Jan-Claire Wisdom


That having considered Agenda Item 6.1 in confidence under section 90(2)and 90 (3)(a) of the Local Government Act 1999, the Panel, pursuant tosection 91(7)(b) of that Act, orders that the documents and all minutes beretained in confidence until the Performance Review process has beencompleted by the acceptance of a final report by Council.

Leave of the meeting was granted to move to Item 6.3



Presiding Member

6.3 2014-15 CEO Key Performance Indicators (Confidential)

1. 2014-15 CEO Key Performance Indicators – Exclusion of the Public




CEO, Andrew Aitken Manager Organisational Development, Megan Sutherland Manager Governance & Risk, Lachlan Miller Matthew Hobby, Consultant, McArthur Rebecca Hunt, Consultant, McArthur

be excluded from attendance at the meeting for Agenda Item 6.3: 2014-15CEO Key Performance Indicators.

The Panel is satisfied that, pursuant to section 90(3)(a) of the Act, theinformation to be received, discussed or considered in relation to theAgenda Item is information the disclosure of which would involve theunreasonable disclosure of information concerning the personal affairs ofany person (living or dead), being the personal affairs of the Chief ExecutiveOfficer, in that details of his performance review regime will be discussed,which are sensitive and are details only known to those who haveparticipated in the review process.

The Panel is satisfied that the principle that the meeting be conducted in aplace open to the public has been outweighed in the circumstances becausethe disclosure of considerations of the Chief Executive Officer's performancereview regime may prematurely be disclosed before the details of the regimehave been discussed with the Chief Executive Officer.

Megan Sutherland tabled a document containing an updated version of the CEO KeyPerformance Indicators.

Andrew Aitken addressed the Panel regarding the revised KPIs.



Presiding Member

2. 2014-15 CEO Key Performance Indicators – Confidential Item

Moved Cr Jan LovedayS/- Paula Davies


That the Panel:


2. Recommends to Council to adopt the suite of KPIs as tabled with thefollowing amendments:

a. KPI 2b – the wording to refer to a framework with timelines ratherthan a timetable;

b. KPI 6 – to be deleted;c. KPIs 8 & 9 – the KPIs to be combined and the wording to be

revised to make reference to the Customer Services Frameworkwith the two sub elements being the conduct of the CustomerService Survey and the performance reporting against the keycustomer service standards;

d. KPI 10 – the wording to be revised to “Improve the culturalperformance of the organisation to be demonstrated byimprovement to the average satisfaction responses from the 2014to the 2015 Employee Opinion Survey” and the removal of thelisting of survey questions (1 -13); and

e. Rationalise the numbering of the KPIs to take into account thechanges made.

3. 2014-15 CEO Key Performance Indicators – Period of Confidentiality



That having considered Agenda Item 6.3 in confidence under section 90(2)and 90 (3)(a) of the Local Government Act 1999, the Panel, pursuant tosection 91(7)(b) of that Act, orders that the documents and all minutes beretained in confidence until the Key Performance Indicator setting processhas been completed by the adoption of a final suite of 2014-15 CEO KeyPerformance Indictors by Council.



Presiding Member

6.2 2013-14 CEO Remuneration Review 2014-14 (Confidential)

1. 2013-14 CEO Remuneration Review – Exclusion of the Public




Manager Organisational Development, Megan Sutherland Manager Governance & Risk, Lachlan Miller Matthew Hobby, Consultant, McArthur Rebecca Hunt, Consultant, McArthur

be excluded from attendance at the meeting for Agenda Item 6.2: 2013-14CEO Remuneration Review.

The Panel is satisfied that, pursuant to section 90(3)(a) of the Act, theinformation to be received, discussed or considered in relation to theAgenda Item is information the disclosure of which would involve theunreasonable disclosure of information concerning the personal affairs ofany person (living or dead), being the personal affairs of the Chief ExecutiveOfficer, in that details of his remuneration package will be discussed, whichare sensitive and are details only known to those who have participated inthe review process.

The Panel is satisfied that the principle that the meeting be conducted in aplace open to the public has been outweighed in the circumstances becausethe disclosure of considerations of the Chief Executive Officer'sremuneration package may prematurely be disclosed before the details ofthe package have been discussed with the Chief Executive Officer.

Rebecca Hunt tabled a document entitled “Confidential Remuneration Review ChiefExecutive Officer Adelaide Hills Council”.

Matthew Hobby addressed the Panel on the contents of the document.



Presiding Member

2. 2013-14 CEO Remuneration Review – Confidential Item



That the Panel:


2. Recommends to Council to increase the CEO’s TEC Package by 3.15%to commence from 1 October 2014.

3. 2013-14 CEO Remuneration Review – Period of Confidentiality



That having considered Agenda Item 6.2 in confidence under section 90(2)and 90 (3)(a) of the Local Government Act 1999, the Panel, pursuant tosection 91(7)(b) of that Act, orders that the documents and all minutes beretained in confidence until the Remuneration Review process has beencompleted when Council has determined the 2014-15 Total Employment Costpackage.

7 Next MeetingThe next CEO Performance Review Panel Committee meeting will be held on adate to be determined at 63 Mt Barker Road Stirling.

8 Close Committee meetingThe meeting closed at 5.43pm.

Appendix 2CEO KPI’s for 2014-15

KPI Timeframe StrategicPlanReference

1. Produce a Community Strategy that is endorsedby Council and that will undertake a needsanalysis; develop a demographic profile; andidentify gaps/needs in community developmentand related services.

by June 2015 1.1.1

2. Produce a District Master Plan that is endorsedby Council and that maps and integrates desiredoutcomes for those key physical community,economic and environs priorities within theStrategic Plan.

by June 2015 2.5.1

3. Produce a framework with timeframes for thedevelopment of precinct plans and guidelines foractivity centres and villages with a focus onidentifying a unique sense of place, revitalisation,a central public space, alteration anddevelopment of public infrastructure (e.g. outdoordining, street markets, etc.). The framework withtimeframes is to be endorsed by Council.

by June 2015 2.5.2

4. Produce an Economic Development Strategy thatis endorsed by Council and that establishesCouncil's role, function and key activities inrespect to supporting economic activity within thedistrict.

by June 2015 3.1.1

5. Produce a Strategic Planning and ReportingFramework that is endorsed by Council and thatmonitors the status and achievement of plannedsocial, environmental, economic and governanceobjectives.

by November 2014 4.4.1

6. Review the Council's Rating Strategy to ensurethe fair and equitable impact of rates across thecommunity.

by October 2015 4.4.3

Corporate Plan7. Based on the Customer Service Framework the

following key projects will be undertaken:1. a customer service survey will be produced

and conducted to identify improvements inour customer service delivery.

2. a regular report on performance against keycustomer service standards from Tier 1 ofthe framework

by April 2015

by December2014

Other8. Improve the cultural performance of the

organisation to be demonstrated by improvementto the average satisfaction responses to questionsfrom the 2014 to the 2015 Employee OpinionSurvey.

Appendix 32014 CEO Performance Review Report

Summary Report on Performance Review

2013 - 2014

Chief Executive Officer – Andrew Aitken

STRICTLY CONFIDENTIAL

Consultants: Matt Hobby and Rebecca Hunt

Final Report CEO Performance Review - 2014

Adelaide Hills Council

CONFIDENTIAL Page 2 of 29

REPORT ON PERFORMANCE REVIEW

CHIEF EXECUTIVE OFFICER This is the second performance review of the Chief Executive Officer (CEO) of Adelaide Hills Council, Andrew Aitken, which was undertaken in July and August 2014. This review covered the work of the CEO over the previous 12 month period, since his previous review and also established new performance objectives for the ensuing twelve-month period. The Review Panel conducted the review and all Council Members and Direct Reports & Managers were given the opportunity to provide comments and scoring against 7 Key Result Areas (KRA). A set of 6 Strategic Performance Objectives were reviewed. 13 Council Members including the Mayor and 16 Direct Reports and Managers were invited to participate in the review. 12 Council Members including the Mayor and 16 Direct Reports and Managers participated in the review a 97% participation rate (89% in the last review). One Council Member is on extended leave due to health and did not participate. The following ratings were used during the review and the comments given in this document summarise the outcomes of the process.




PERFORMANCE RATINGS The Performance Indicators used in the process covered seven areas of accountability for Officers at this level. In deciding on the level of overall performance, the reviewers used the following rating system:

RATING

DESCRIPTION

1

CEO’s performance did not meet expectation

2

CEO’s performance was below expectation

3

CEO’s performance met expectation

4

CEO’s performance was above expectation

5

CEO’s performance exceeded expectation

N/A

Unable to rate at this time




Relationships with Council (KRA 1)

(The ability to develop and sustain a positive relationship with Council Members)

In general terms, this KRA is a good measurement of the Councils ‘wellbeing’, as it focuses on the relationship of the CEO with the Council Members.

Andrew is recognised for proactively trying to improve the relationship between Staff and Council Members and by the development of a Communication Plan to ensure Council Members feel more informed. Andrew is trusted by Council Members and he is acknowledged for understanding the importance of the role of Council Members. Participants feel that Andrew has developed effective working relationships with the Community and Council Members through Community Consultation and Council Member Workshops. Andrews understanding of the variation of concerns Council Members have from each of their Communities has assisted in forging these relationships.

Participants feel that communication of issues to Council Members has improved significantly and Council Members would like to see this improvement continue. Direct Reports and Managers acknowledge the success of Andrew’s continuous focus for them to communicate directly with Council Members and feel that Andrew is very committed to this.

The quality and conciseness of reporting has improved with Andrew’s leadership however, participants feel that there is still scope for improvement. The introduction of new templates prompting the author to provide implications has assisted Staff to improve the level of information contained in the reports.

Council Members would like Andrew to be more forthcoming with his recommendations and responses in Council Meetings as they value his direction but they do acknowledge and understand the role of the Governance Manager in the meetings.

The speed and accuracy of Council resolutions has increased with the recent introduction of a mechanism to record, monitor and report on Council resolutions. Direct Reports and Managers feel that the Action Agenda List has increased transparency and may assist Council Members to enhance prioritisation.

Highest scoring question - Keeps Council Members informed on all significant issues

Lowest scoring question - Gives quality advice and direction to Council, and provides very high standard of personal input to Council meetings

The CEO’s performance met expectations in this KRA, in the last review participants felt that it was too early to comment fully in this area but in this review commentary was confident and evidence was provided. There was a slight decrease in the average score from Council Members and a very slight increase from Direct Reports & Managers. There was a significant increase on the CEO’s self-rating from below expectations last review to meeting expectations this review.

2013 2014 An Average

Council Members 3.52 3.44 3.56

Direct Reports/Managers 3.62 3.66

CEO 2.83 3.33




0

0.5

1

1.5

2

2.5

3

3.5

4

2013 2014

KRA 1 Average Ratings

Council Members

Direct Reports & Managers

CEO

5%

44% 39%

5% 7%

KRA 1 Ratings 2013 5 - Exceededexpectations

4 - Aboveexpectations

3 - Met expectaions

2 - Belowexpectations

1 - Did not meetexpectations

N/A - Not able torate at this time

8%

42% 43%

4% 3%

KRA 1 Ratings 2014

2014 Total number of each rating for whole KRA (6 questions)

5 4 3 2 1 N/A

Council Members 3 33 30 7 0 0

Direct Reports & Managers 11 38 41 0 0 5

CEO 0 2 4 0 0 0

Total 14 73 75 7 0 5




Strategic Planning (KRA 2)

(The ability to identify, assess and respond appropriately to both the external and internal environments)

Andrew is regarded as a ‘Strategic Thinker’ and the Strategic Plan was made a priority and endorsed by Council in December 2013. Strategic initiatives have been identified and implemented with the specific projects and initiatives assigned to departments. Progress monitored and reported on monthly.

The development of an Economic Development Strategy has been identified as a priority and Andrew emphasised the importance of Economic Development and noted the plan to resource this function moving forward.

The Strategic Plan has been incorporated into the Corporate Plan and Breakthrough Projects however; Direct Reports and Mangers would like to see further integration into Departmental Business Plans. A template for these plans is currently being reviewed and will assist in this function.

Highest scoring question - Develops and implements strategic initiatives identified in Council’s Strategic Plan and other strategic documentation

Lowest scoring question – Ensures departmental business plans are developed to enable corporate goals to be met and quality services to be delivered, achieving best practice

This was the lowest scoring KRA (marginally by 0.02) and there was relatively consistent scoring by all participants, the average rating provided for this particular KRA was one of meeting expectations. As with the first KRA there was a very small decrease in average scoring from the last review period and Andrew’s self-rating increased from below expectations last review to meeting expectations this review.




CEO 2.20 3.00




0

0.5

1

1.5

2

2.5

3

3.5

4

2013 2014


Council Members


CEO

3%

28%

54%

6%

9%



3 - Met expectaions




3%

28%

42%

9%

18%

KRA 2 Ratings 2014


5 4 3 2 1 N/A



CEO 0 1 3 1 0 0

Total 4 40 61 13 0 27




Operational Management (KRA 3) (The ability to manage the operations of the Council and ensure the measurable outcomes are achieved)

Participants feel that the changes to the organisational structure and senior leadership roles have helped to address resourcing needs but feel that it is an area that needs continued focus to ensure strategic initiatives can be implemented and projects can continue. The CEO acknowledges further work needs to be done in this area and commits to completing this work in the next 6 months.

Andrew is dedicated to continuous improvement and has used the Business Excellence Framework as the basis of the Corporate Plan. Participants are satisfied with the approach that Andrew has taken in regards to the Business Excellence Framework focusing on Service Delivery and Process Improvement.

Council Members have witnessed Andrew’s development of cooperative and strong relationships with his Leadership Team and Staff. Direct Reports and Managers feel the “All Staff Expos” are an effective way for Andrew to show leadership and provide direction to all levels of Staff. Some participants feel that recently there has been improvement in the strength of Andrew’s leadership and direction provided to Council Members and hope this will continue to grow as they feel this may have a positive “knock on” effect in enhancing relationships within his team.

Participants feel the engagement of a Manager of Governance and Risk has ensured that appropriate focus has been given to reviewing and updating policies and procedures. A Policy and Procedure review timeline has been established and Direct Reports and Managers look forward to further opportunities to improve quality and process.

Highest scoring question - Ensures policies and procedures are current, relevant and adequate to enable Council operations to be conducted effectively

Lowest scoring question – Ensures the provision of appropriate support mechanisms and resources to enable departmental business plans to be achieved

Whilst this is the second lowest average scoring KRA the CEO’s performance met expectations. Once again there was a slight decrease in the average scoring from participants with the CEO increasing his average rating when compared to last year.




CEO 2.80 3.00




0

0.5

1

1.5

2

2.5

3

3.5

4

2013 2014


Council Members


CEO

3%

34%

48%

3%

12%



3 - Metexpectaions




6%

33%

35%

11%

12%

KRA 3 Ratings 2014

2014

Total number of each rating for whole KRA (5 questions)

5 4 3 2 1 N/A



CEO 0 1 3 1 0 0

Total 8 48 51 16 4 18




Stakeholder Management and Communication (KRA 4) (The ability to enhance Council’s relationship with its community)

Participants acknowledge the development of a Marketing and Communication Strategy and the commentary reflected the view that ‘more could always be done in this area’. Direct Reports and Managers feel communication is a strength of Andrews which has improved relationships with Community Networks, Stakeholders and the General Public, through Public Consultations, Community Forums and Stakeholder Engagement Strategies. Commentary from Council Members suggests more work done in this area.

Andrew is regarded as “sensitive and professional” to the Community’s needs and is regarded as quickly analysing situations and responding diplomatically and tactfully. Andrew feels that the development and implementation of the Community Engagement Framework will further enhance the ability of the organisation as a whole to recognise and respond to Community needs and aspirations.

Andrew is described as an advocate for Community empowerment and consultation. Andrew identified a gap in obtaining Community feedback, the development of Community Forums and website feedback has reduced this gap. The imminent implementation of the Customer Service Framework including Surveys should close this gap in the future.

Participants believe that Andrew has raised the Adelaide Hills Council profile with his professional memberships and networking including his role as Executive of the LGA MLGG, Convenor of the MLGG CEO Group and LGMA Executive.

Highest scoring question - Develops positive relationships with external authorities, including other local government authorities.

Lowest scoring question – Obtains and actions upon formal feedback from the Community on levels of satisfaction in terms of the quality and extent of customer services provided by Council.

The CEO is meeting expectations in his performance in this KRA and Council Members have increased their average score from the last review.




CEO 3.00 3.00




0

0.5

1

1.5

2

2.5

3

3.5

4

2013 2014


Council Members


CEO

4%

34%

41%

5%

16%



3 - Metexpectaions




8%

37%

43%

4% 8%

KRA 4 Ratings 2014


5 4 3 2 1 N/A



CEO 0 1 3 1 0 0

Total 12 53 63 6 0 11




Human Resources (KRA 5) (The ability to lead and develop staff that are committed to the municipality, competent in their jobs, and achieving job satisfaction)

This KRA can be challenging for Council Members to provide a score as they have limited opportunity to observe the CEO interacting with Staff and a tendency to rate against what they have heard or conversations with Staff rather than what they have observed this is reflected in 31% of Council Members provided a N/A – unable to rate at this time rating.

As highlighted in the last review Andrew is regarded as having well developed Human Resources skills. His commitment to achieving the strategic goals of Council and communication of these strategies to Staff is clear and encouraging. Some Council Members feel that Andrew’s message that it is a ‘privilege to work with Council not a right’ is important and move in the right direction but conversely some Direct Reports and Managers feel this may have effected team morale and not necessarily had the desired outcome.

Andrew’s ability to keep calm and focused under pressure coupled with his professional and articulated responses in difficult or tense situations is regarded as a real strength and effective in achieving positive outcomes. Direct Reports and Managers respect his management of what has been described as “tricky” staff situations.

Andrew is regarded as actively promoting accountability and teamwork; there has been significant focus on cross functional teams and Council Members feel there has been definite improvement in taking a team approach to problems, issues and projects. Direct Reports and Managers feel that continuous improvement has been embedded in everyday activities and this is attributed to Andrew. Participants feel that Andrew supports professional development and encourages Staff to see the ‘bigger picture’ and ask questions.

Andrew drives accountability and is a confident delegator participants feel he could delegate more to his Leadership Team and Andrew believes that this will be strengthened by the Personal/Professional Development Planning process. Adelaide Hills Council is Work, Health and Safety (WHS) and Equal Employment Opportunity (EEO) compliant the importance placed on this is high and the CEO has made a commitment for it to remain a priority.

Highest scoring question - Ensures compliance with Equal Employment Opportunity and Work, Health and Safety requirements throughout the organisation

Lowest scoring question – Encourages a team approach at all levels, promoting initiative and the acceptance of responsibility through clearly defined delegations

The CEO’s performance met expectations in this KRA and whilst a slight decrease in average scores from all participants including the CEO since the last review this area is regarded as a strength.




CEO 3.33 3.17




0

0.5

1

1.5

2

2.5

3

3.5

4

2013 2014


Council Members


CEO

11%

46% 25%

1%

17%



3 - Metexpectaions




9%

36%

31%

6%

17%

KRA 5 Ratings 2014


5 4 3 2 1 N/A



CEO 0 2 3 1 0 0

Total 16 62 54 11 1 30




Financial and Asset Management (KRA 6) (The ability to manage Council’s financial and physical resources to the long term benefit of the municipality)

The Long Term Financial Plan was endorsed by Council in February 2014 and Asset Renewal requirements were incorporated in the plan and are reflected in the Asset Management Plan. Council Members are confident that there will be a budget surplus from the last financial year as was there in the previous financial year.

Quarterly Budget Reviews and regular financial reporting enable Council Members to remain abreast of the fiscal situation. Participants recognise that changes and variations are identified ensuring that budgets are kept on track and the objectives outlined in the Long Term Financial Plan are being realised. Some Council Members would like to see earlier detection of issues to ensure thorough investigation and transparency. Council met all financial legislative and audit requirements and generally participants feel projects are delivered on budget and a minimal capital works carry forward.

Andrew is recognised for promoting a risk aware culture and this has been strengthened by the development of a new Risk Management Framework endorsed by Council in May 2014.

Highest scoring question - Ensures the delivery of programs within budget targets and financial constraints

Lowest scoring question – Ensures Council’s statutory and financial plans and statements are complete and in place

It was considered that the CEO’s performance meets expectations and it should be noted that the average scores for all groups of participants has increased since the last review. Direct Reports and Managers provided the highest percentage of N/A – unable to rate at this time rating on this KRA than any other – 19%.




CEO 2.80 3.00




0

0.5

1

1.5

2

2.5

3

3.5

4

2013 2014


Council Members


CEO

7%

21%

57%

4%

11%



3 - Metexpectaions




9%

28%

50%

2% 10%

KRA 6 Ratings 2014


5 4 3 2 1 N/A



CEO 0 0 6 0 0 0

Total 15 49 87 4 1 18




Personal Competencies (KRA 7) (The manner in which the CEO provides leadership and direction for the Council)

Participants admire Andrews “can do” attitude and feel he is proactive. He is described as being approachable and a listener. His ability to stay calm and remain focussed is regarded as a strength and Direct Reports and Managers consider Andrew to be flexible and resilient and respect his ‘open door’ policy.

The CEO is viewed as a strong communicator and Direct Reports and Managers feel that he is confident interacting with people at all levels in any situation. His interpersonal skills are highly regarded, as his ability to ‘read’ situations and participants feel these are valuable skills in a leadership role. Council Members would like to see Andrew more assertive in Council Meetings and would like presentations to be shorter and more concise.

Andrew takes a “One” Council approach promoting working together rather than in silos. He has endeavoured to cultivate a culture of team work and continued development in this area is planned for the next review period.

Andrew is viewed as having Councils ‘best interests at heart’. He is a confident decision maker and participants feel his decisions and advice is well balanced and informed. He encourages staff to problem solve, ask questions and build on each other’s ideas.

Participants respect Andrew as an effective leader and feel he leads by example. His passion for Community development and commitment to his role is apparent to most participants.

Highest scoring question - Demonstrated professional competence and commitment to the Council and the community

Lowest scoring question – Gives evidence of consistent and effective problem solving and decision making skills

This was the highest scoring KRA and the CEO was regarded as meeting expectations. This KRA had the least N/A unable to rate at this time ratings – 4%.




CEO 3.33 3.33




0

0.5

1

1.5

2

2.5

3

3.5

4

2013 2014


Council Members


CEO

12%

54%

31%

2% 1%



3 - Metexpectaions




10%

45%

37%

2% 4%

KRA 7 Ratings 2014


5 4 3 2 1 N/A



CEO 0 2 4 0 0 0

Total 18 79 64 4 3 6




KPI’s – 2013 to 2014

The following KPI’s were set for the review period.

KPI Timeline

1

Develop and agree a plan (including protocols) to improve the communication and relationship between the staff / CEO and the Council Members.

Comments: Communication Plan has been developed and endorsed by Council in June 2014. It should be noted that commentary is varied from Council Members on whether it has been adopted. (Met expectations).

Council Members 3.36 3.48

Direct Reports & Managers 3.57

CEO 3.00

June 2014

2 Develop and agree with Council a long term Marketing & Communication Plan aimed at improving the branding, image and reputation of Council with the community and other stakeholders

Comments: Draft plan completed and gone to workshop and the CEO confirms final plan will be presented to Council in September. (Met expectations).



CEO 3.00

(i) April 2014 (draft plan)

(ii) October 2014 (final)

3a Review the operational resources of the new organisational structure, implement and report opportunities to improve the ability to achieve strategic objectives. Ensure this review explores the possibility of providing existing people resources with the opportunity to work outside their existing roles and responsibilities.

Related KPIs (staff survey questions):

Considering everything, I’m satisfied with my job – retain a score above 70%

The organisation helps people develop beyond their present jobs where possible – improved score (from 2013 to 2014)

September / October 2014




Comments: The review is currently in progress and more changes will occur by deadline of October 2014. The 2 related KPI’s have not been met. (Met expectations).



CEO 2.00

3b Review the existing functional locations to implement and report opportunities to enhance operational efficiencies and cultural improvement

Comments: this is in progress and on schedule but not completed. (Met expectations).



CEO 2.00

October 2014

4 Establish a risk management framework, including risk assessment and rating tools, overarching policy, procedures, registers, controls and reporting mechanisms

Comments: In progress near completion ahead of time.

(Met expectations).



CEO 3.00

October 2014

5 Conduct a review and establish strategies to improve Council’s Governance framework, including:

Overall structure which includes Council, Committee, Advisory Groups, Subsidiaries etc…

Agenda Structure and meeting procedures. Meeting structures, including timing/calendar of meetings

Comments: Overall structure is on schedule and – agenda structure and meeting procedures is complete. (Met expectations).



CEO 3.00

October 2014




6 Establish an improved customer service framework which furthers the development and implementation of service behaviours, service standards, service levels and service measurement

Comments: Completed and endorsed by Council July 2014. (Met expectations).



CEO 4.00

October 2014




SUMMARY TABLE

Rating 2014 Total number of each rating for all KRAs (39 questions)

5 4 3 2 1 N/A

KRA 1 14 73 75 7 0 5

KRA 2 4 40 61 13 0 27

KRA 3 8 47 51 16 4 18

KRA 4 12 53 63 6 0 11

KRA 5 16 62 54 11 1 30

KRA 6 15 49 87 4 1 18

KRA 7 18 79 64 4 3 6

Total 87 404 455 61 9 115

Performance Indicator

Council Members / Direct

Reports & Managers Overall Rating

CEO

Overall Rating

Commentary

2013 2014 2013 2014

Relationships with Council

3.57 3.56 2.83 3.33 Meeting

expectations

Strategic Planning

3.36 3.31 2.20 3.00 Meeting

expectations

Operational Management

3.58 3.33 2.80 3.00 Meeting

expectations

External Relationships

3.48 3.55 3.00 3.00 Meeting

expectations

Human Resources

3.81 3.59 3.33 3.17 Meeting

expectations

Financial and Asset Management

3.36 3.49 2.80 3.00 Meeting

expectations

Personal Competencies

3.79 3.65 3.33 3.33 Meeting

expectations

OVERALL AVERAGE

RATING

3.57 3.51 2.92 3.13 Meeting

expectations

KPI

3.49 3.38 2.44 2.86

Meeting expectations




8%

36%

44%

4% 10%

Total number of rating for all KRAs 2014

5 - Exceeded expectations

4 - Above expectations

3 - Met expectaions

2 - Below expectations

1 - Did not meet expectations

N/A - Not able to rate at this time

7%

37%

41%

4% 11%

Total number of rating for all KRAs 2013

5 - Exceeded expectations

4 - Above expectations

3 - Met expectaions

2 - Below expectations

1 - Did not meet expectations

N/A - Not able to rate at this time

1%




Comments by Consultant

Summary Introduction This is the second formal Performance Review conducted by McArthur for Andrew Aitken and throughout all KRAs assessed, the final score for all respondents resulted in an average of 3.51, with a median score of 3.00. Andrew is viewed to be meeting performance expectations. There was a very slight reduction in final averages from 3.57 to 3.51 when compared to last year’s review. Feedback was generally consistent and constructive in nature and 100% of participants provided commentary.

Data Analysis Summary There was a 97% participation rate and only 11% across all KRAS were answered with “N/A” for unable to rate at this time. This is a good indication that all parties are aware and informed of the CEO’s performance. It should be noted that in all KRAs the CEO scored himself lower than his Direct Reports and Managers and Council Members. Individual reviewers overall average scores ranged from 2.68 (below expectations) - Ensures the provision of appropriate support mechanisms and resources to enable departmental business plans to be achieved through to 4.00 (above expectations) – jointly - Keeps Council Members informed on all significant issues and Develops positive relationships with external authorities, including other local government authorities. Variances in scoring between the CEO, Council Members, Direct Reports and Managers were minimal and not considered significant. As per the last review, this aspect could be considered as positive in that the CEO is perceived in the same light by both the administration and Council Members. Council Members rated the CEO’s performance slightly lower than the Direct Reports and Managers in only one area - KRA 6 – Financial and Asset Management and KRA 6 and KRA 4 – External Relationships are the two KRA’s to average a higher score than the last review in 2013. There is only very slight variations in total number of ratings from last review to this review with 9 ratings of 1 - did not meet expectations this review period however in the last review there were none. There was also a slight increase in 5 – exceeding expectations from 80 in 2013 to 87 this review. Strengths Andrew is well liked by Council Members, Staff and Community. His ability to drive strategic objectives and promote empowerment of the Community and Staff is considered a strength. Andrew’s ability to remain calm under pressure and focused and professional in difficult situations has helped him earn respect from his team and Council Members. Participants feel that Andrew leads by example and he has made significant advances and changes within Council and effectively overcome road blocks and hurdles. He is acknowledged for his stakeholder engagement and forging strong relationships with external parties. His commitment to continuous improvement and focus on Governance has assisted in developing a framework for Council to build upon and expand. Substantial foundations have been laid and participants are keen to continue with the momentum in the next review period.




Areas for Development Council Members value Andrew’s direction and would like to see Andrew more assertive in Council Meetings i.e. they value his leadership and feel that he could display this more publically. They would like Andrew to condense his presentations and summarise. Economic Development should be an area for focus moving forward and there are still changes to be made in the organisational structure to enhance the collaborative culture and partipants feel results from the Staff Survey should assist in making further improvements with culture. Resourcing seems to be an area of continued discussion. Direct Reports and Managers feel the teams would benefit from the integration of Departmental Business Plans and with the template in daft format quick advancements should be made here.

Conclusion The Chief Executive Officer of Adelaide Hills Council’s overall performance was measured as meeting expectations; he is to be congratulated for his continuance in performance

Matt Hobby and Rebecca Hunt

Consultants




KPI’s – 2014 to 2015

The following KPI’s have been proposed by the CEO for the next twelve month period.

CEO

KPI Reference Timeframe 1 Produce a Community Strategy that is

endorsed by Council and that will undertake a needs analysis; develop a demographic profile; and identify gaps/needs in community development and related services.

Strategic Plan 1.1.1

by June 2015

2 Produce a District Master Plan that is endorsed by Council and that map and integrates desired outcomes for those key physical community, economic and environs priorities within the Strategic Plan.


by June 2015

3 Produce a framework with timeframes for the development of precinct plans and guidelines for activity centres and villages with a focus on identifying a unique sense of place, revitalisation, a central public space, alteration and development of public infrastructure (e.g. outdoor dining, street markets, etc.). The framework with timeframes is to be endorsed by Council.


by June 2015

4 Produce an Economic Development Strategy that is endorsed by Council and that establishes Council's role, function and key activities in respect to supporting economic activity within the district.


by June 2015

5 Produce a Strategic Planning and Reporting Framework that is endorsed by Council and that monitors the status and achievement of planned social, environmental, economic and governance objectives.


by November 2014

6 Review the Council's Rating Strategy to ensure the fair and equitable impact of rates across the community.


by October 2015




7 Based on the Customer Service Framework the following key projects will be undertaken:

1. a customer service survey will be produced and conducted to identify improvements in our customer service delivery.

2. a regular report on performance against key customer service standards from Tier 1 of the framework

Corporate Plan

by April 2015

by December 2014

8 Improve the cultural performance of the organisation to be demonstrated by improvement to the average satisfaction responses to questions from the 2014 to the 2015 Employee Opinion Survey.

by September 2015




Sign Off

Comments by Mayor :




Comments by Chief Executive Officer :

I'm grateful to everyone for taking the time to complete the survey and for providing feedback for me to consider. I take on board the feedback as part of my continuous improvement leadership journey. I'm also pleased with the ongoing confidence shown by both the Council Members and senior leaders. While I understand the reasons for doing so, bringing forward the review by about 3 months has created some challenges, given that most KPIs were due for completion in October. Further, some of the KRA's involved initiatives (eg the Departmental Business Plan template review and the launch of the updated PDP process) that were due to be undertaken in September / October. Having said that, I'm impressed with the work undertaken by staff - often with the support from our elected body - to complete most of the KPIs or to at least have them well advanced by the time of the review. I would like to work with the panel to develop a review process across the year, possibly every 3-4 months. This is an ideal opportunity to review the progress against each KPI and review the suite of KPIs with the CEO and Council. I firmly believe that we are better placed as an organisation now than we were 12 months ago. Over the last couple of months I've felt more confident in the role and in the future of the organisation than at any other time in my tenure here at AHC. I value the continued support provided by Council Members, directors and direct reports, managers and staff and recognise the contribution they are making to the positive - and at times challenging - changes we are making to improve the culture, performance and reputation of the organisation. Andrew Aitken CEO




Sign Off: This performance review was conducted in an open and frank manner and the ratings identified above, accurately and fairly represent the outcomes of the process. ________________________________ ________________________________ Mayor Chief Executive Officer


Page 6

3. CEO Performance Review Panel – 2 September 2014 MeetingRecommendations – Period of Confidentiality

That having considered Agenda Item 6.3 in confidence under section 90(2)and 90 (3)(a) of the Local Government Act 1999, the Panel, pursuant to section91(7)(b) of that Act, orders that the documents and all minutes be retained inconfidence until Council had adopted the final performance report, anddetermined the 2014-15 Total Employment Cost package and adopted the suite ofCEO performance indicators for 2014-15.

adelaide hills council special council meeting tuesday … · tuesday 9 september 2014 agenda...

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