performance management strategy.doc

Bournemouth Borough Council

Performance Management Strategy

March 2009

Bournemouth Borough CouncilPerformance Management Strategy

Contents

Page

1. Context

1.1 Introduction 21.2 The purpose of this strategy 21.3 What is performance management? 31.4 Why performance management is important 31.5 Our performance framework 4

2. What we are aiming to achieve

2.1 Our performance vision 6

3. How we will achieve our vision

3.1 Embedding a performance management culture 73.2 Clear roles and responsibilities 83.3 Regular performance information 103.4 Data quality 11

4. Key actions to deliver strategy

4.1 Delivering the strategy 134.2 Key delivery steps 13

5. Glossary 15


1. Context

1.1 Introduction

Welcome to our Performance Management Strategy. This document sets out our vision for managing performance across the Council. With the change of emphasis on area working and the introduction of Comprehensive Area Assessments from 2009, this strategy will form the basis for the changes required in delivering the Government’s national performance framework.

It is important that everyone who works for the Council recognises that they have a responsibility to improve performance at some level. So that everyone understands their responsibilities this performance strategy has been developed to:

Clearly set out the principles behind performance management;

Establish a clear approach to performance management that will apply at all levels of the organisation;

Clarify what this approach will mean at a number of key levels of the organisation;

Set out a series of objectives that need to be achieved to support performance improvement in the organisation.

1.2 The purpose of this strategy

This strategy sets out our future vision for performance and describes the framework that has been put in place to support the Council in achieving this vision. It sets out what arrangements are currently in place and identifies the areas to be developed further.

In recent years the profile of performance management has been raised nationally and a greater importance placed on the way that we manage our performance. In response to this we have already made significant progress through:

The implementation of a corporate performance management system ‘CorVu’ to provide an accessible, transparent and robust tool for managing performance information;

The production of a comprehensive up to date corporate plan, which provides an overarching strategic framework for co-ordinating service planning and resource allocation;

The strengthening of our systems and processes for performance management, including arrangements for reporting progress against our corporate priorities;

Successful negotiation and effective monitoring of our Local Area Agreements;

Continuous improvement in our management arrangements for securing data quality.

Effective performance management requires not only good management processes and systems but also an organisational culture that supports these systems and integrates them into the day-to-day work of front line staff and managers to

Bournemouth Borough CouncilPerformance Management Strategyencourage and enable them to deliver real service improvements. Instilling this culture throughout the organisation and identifying roles and responsibilities of individuals and groups is a key element of this strategy.


1.3 What is performance management?

One definition of performance management is ‘taking action in response to actual performance to make outcomes for users and the public better than they would otherwise be’ (IDeA, 2004).

Action may be at individual, team, service, corporate or community level. Improvement to outcomes should benefit service users but does not always mean increased service levels – sometimes better outcomes can mean delivering better value for money. Reducing levels of service in one area may free up resources to be used more effectively elsewhere.

Common characteristics of performance management are:

Real-time, regular and robust performance information (including customer/resident satisfaction data not just performance indicators);

Can-do culture inspired by strong leadership; Agreed lines of individual accountability;

Clear performance management review, combining challenge and support.

Effective performance management requires:

Deciding and communicating what needs to be done (aims, objectives, priorities and targets);

A plan for ensuring that it happens (improvement, action or service plans); Checking if this has been achieved (performance measures);

Information reaching the right people at the right time (performance reporting) so decisions are made and actions taken.

This is often described as a cycle of Plan-Do-Check-Review.

1.4 Why performance management is important

‘Organisations that work at performance management are much more likely to provide good services to local people. They concentrate on the services that matter most and are quick to identify problems, find solutions and take actions to improve performance’ (Audit Commission).

Performance management is one element of the Council’s overall arrangements that help us to plan, monitor and manage the delivery of our services. If used effectively performance management can help us to:

Review our plans and policies to ensure they are focused on achieving the right outcomes;

Improve delivery of outcomes for service users;

Track our progress in delivering our priorities and enable us to take any necessary action;

Make informed decisions e.g. is there a need to shift resources or change the way we deliver services to achieve the agreed outcomes;

Communicate to staff what is expected from them and how they fit into the overall framework for managing service delivery;

Provide evidence to inspectors that we are achieving outcomes in line with local needs and expectations;

Bournemouth Borough CouncilPerformance Management Strategy Demonstrate whether our services are delivering

value for money.


1.5 Our Performance Framework

Our performance framework links priorities, objectives and resources – the so-called ‘golden thread’. It links national and local priorities to strategies and plans which are being implemented to deliver them. It demonstrates our ambitions, our plans for delivery and our arrangements for monitoring how we are doing. A clear framework enables us to plan and deliver outcomes based on the needs and requirements of our

community.

Our Sustainable Community Strategy sets the long-term vision for the town (the vision for Bournemouth in 2026) and includes goals for the Council and its partners to deliver. The Local Area Agreement acts as the delivery mechanism for part of the Sustainable Community Strategy and sets stretching targets for improvement.

The Council’s Corporate Plan describes how we will support the Sustainable Community Strategy and focus resources on key priorities and actions for improvement.

The Council's Medium Term Financial Plan (MTFP) reflects the Council's strategic spending priorities and covers a 5 year time frame. Allocation of funding should be based on a clear set of priorities, so service plans need to integrate with budgeting and financial planning.

Service Plans are the cornerstone of the performance framework and demonstrate how each service within the Council will deliver improvements in line with priorities and statutory need. The service planning process is the opportunity to make rational and coordinated decisions about levels and types of provision and how and where to use resources: finance, people, skills and assets. It is also a key process for assessing risks to achievement and how to manage those risks.

Service DirectorLine Manager

Corporate Plan CouncilPriorities & Outcomes

Statutory Plans, National Priorities and National

Outcomes

All CouncillorsCabinet Portfolio Holders

Scrutiny PanelExecutive DirectorService Director

Bournemouth Borough CouncilPerformance Management StrategyRequirements to identify both cashable (reduced spending) and non-cashable (improved performance for the same spending) savings are part of the national efficiency agenda. The service planning process is the right place to identify areas where performance can be reduced,

must be improved or where efficiencies can be achieved for the same level of service. Targets can help to set out what needs to be achieved and when.

Project & team plans provide an understanding to staff of how they should be contributing towards the Council’s priorities and contain detail on planned activities (including statutory service activities).

The corporate timetable for the production of the above plans is available on the policy & performance page on BIZ.


2. What we are aiming to achieve

2.1 Our performance vision

Our vision is to improve outcomes for residents by being a top performing council.

For this vision to be realised information must be

Evidenced based - Decision makers must have confidence that the information produced is based on good quality data;

Transparent - Performance information must be readily accessible to users - the right information in the right place at the right time. Our CorVu performance system plays a vital role in making information available to Members, Executive & Service Directors;

Focused – Performance management must be based on sound prioritisation in line with delivering our key Council priorities. Performance measures must be continually reviewed to ensure relevancy to reduce monitoring for monitoring sake;

Responsibility for managing performance must also be owned. Everyone must accept their role in managing performance and take action to ensure improvement. Staff must understand their contribution to delivering key priorities and feel supported and motivated to manage their own performance effectively. Effective performance management relies on systems and people working together to make sure the right things happen. The hard systems, processes and data, are inseparable from the soft aspects such as culture, leadership and learning; one does not work without the other.


3. How we will achieve our vision

3.1 Embedding a performance management culture

A good performance management culture is one in which people seek out, adopt and deliver good practice. It is a culture in which every person in the organisation understands the vision and priorities and their own role in helping to achieve these.

Whilst it is everyone’s job to manage performance, a performance culture must be driven by Council leaders. Performance management not only requires appropriate information but a strong and visible commitment at a senior level so that it is clear to all staff that performance is ‘everybody’s business’.

Strong leaders and managers must be clear about what kind of performance they expect and communicate the importance of everyone’s contribution towards meeting corporate and community ambitions.

In order for a performance culture to be fully embedded there must be a willingness to assess performance robustly, acknowledging success and supporting further improvement if needed. The culture must encourage a positive approach to performance management so that under performance is reported in an open and honest way to ensure that appropriate action can be taken.

Performance needs to be considered in the context of delivering outcomes and achieving customer satisfaction, monitoring indicators is only one measure of how we are doing and should be considered alongside other factors such as inspection findings, Value for Money results and customer satisfaction surveys to ensure that the whole picture is considered.

Key objectives

Performance is regularly reviewed and challenged at service management team and cluster meetings and necessary action taken. Performance reviews to periodically include peer challenge;

A clear process is agreed for involving & engaging members;

Across the Council managers set clear expectations about performance and communicate this to their staff. Performance is owned at a service level;

A named officer to be nominated in each service to work with the corporate policy & performance team to develop a performance culture throughout the organisation. Each officer to have a clear understanding of their role and be in a position to influence change;

Accessibility of CorVu system and/or CorVu reports improved.


3.2 Clear roles and responsibilities

Effective performance management requires defined roles and responsibilities and clear ownership of outcome measures. A summary of roles and responsibilities is shown below:

Members

Cabinet: Provide a clear vision and set priorities in the Corporate PlanAccountable for delivering the Council’s prioritiesAllocation of resources to enable delivery of prioritiesActive role in performance managing the LAA & Sustainable Community Strategy (SCS). Attend Strategic Delivery PartnershipsEnsure effective performance management within portfolio areaReview and challenge performance for portfolio via scorecards (2009)Key stakeholder in production of service plansEnsure VfM delivered

Scrutiny: Scrutinise performance Ensure relevant actions in place to address under performanceChallenge targetsEnsure improvements made

Overview: Propose new ways of achieving outcomes/improving performance

Senior Managers

Executive Strategic responsibility for delivering cross cutting Council prioritiesDirector Provide a visible commitment to performance – exemplars of good

performance management practice in the way they manage performanceSet strategic direction for service unitsReview performance regularly with Service Directors & provide peer challenge as requiredApprove objectives and targets in service plans ensuring overall strategic direction is reflected across the Council in Unit Service PlansActive role leading Programme Boards ensuring delivery of projects and addressing of risksRegularly review performance of cluster through scorecards (2009 onwards), cluster meetings and 1:1’sChallenge under performance and drive improvementActive role in performance managing the LAA & SCS via attendance at Strategic Delivery Partnerships and Investing in Communities Board (IIC)

Executive Monitor delivery of performance management strategyperformance lead: Ambassador for performance management

Data quality champion

Service Strategic responsibility for delivering services in relation to Council priorities

Directors: as agreed with Executive Directors through the service planning process


Production of annual service plan including setting objectives and realistic targetsEnsure resources are targeted appropriately and follow the efficiency strategyRecognise the impact performance management has on improving service delivery and communicate the importance of everyone’s contributionReview performance with managers via management team meetings & 1:1’s using scorecardsAccountable for performance, taking action & setting realistic targetsEnsure performance is kept high on the agenda within serviceAccountable for signing off of performance data

Performance specialists

Policy & Provide performance support and guidance to Officers & MembersPerformance Lead on performance reviews, inspections, manage the CAATeam: Manage the corporate performance system CorVu

Promote consistent application of the performance framework Take a proactive approach to managing performanceFacilitate the introduction of new statutory PIs Monitor progress against council set outcomes & targetsSeek and provide comparative performance informationProduce performance reports and management information

Data Managers: Accountable for the data quality of an indicator Will ensure that information is collected and provided in line with agreed definitions.Enter information onto CorVu and sign off data as fit for purpose (In some instances this information will be supplied by external partners, and it is the responsibility of the Data Manager to ensure the appropriate quality checks are in place)

Performance Senior manager or Service Director. They own, understand, explain and take

Managers: action on what the information is saying (in particular in relation to under performance) and are responsible for setting targets.

Staff groups

All Staff: Understand and contribute to the priorities of the Council as agreed through the Unit Service Plan, Team Plans and PADRsAware of team and stakeholder objectivesDeliver on personal targets and implement improvement action plans Take a proactive approach to performance

Internal Assess overall arrangements for producing performance informationAudit: Audit high risk indicators

Partners

Bournemouth Responsible for monitoring the delivery of the SCS & LAA

Bournemouth Borough CouncilPerformance Management Strategy2026 team: Propose new ways of achieving

outcomes and improving performancePromote consistent application of the performance framework (including data quality and governance arrangements)Support the partnership boards (Vision board, Investing in Communities, Strategic Delivery Partnerships, Partnership Forums)

Bournemouth Operational responsibility for delivering the goals within the SCSPartnership Provide reliable and timely information to inform decision making Organisations:

Key objectives

Named officer to be nominated in each service to work with the policy & performance team;

Ensure there are accountable officers in place to make sure data submitted in CorVu is accurate and supported by reliable working papers;

Everyone in the Council has a clear understanding of the performance framework and believes that achieving good performance is important;

Ensure Members play a key role in monitoring and managing performance via improved scrutiny arrangements.

3.3 Regular performance information

3.3.1 Reporting system

Performance information is used by a wide range of groups, individuals and stakeholders. To ensure that the information provided is consistent, the Council has developed a corporate performance management system, CorVu, which should be used by officers as the main tool for collating, analysing and reporting performance data in respect of NIs, LAA indicators, Corporate Priority measures and other local PIs. Scorecards have been produced for each of the council’s priorities and for each service as a means of presenting performance. Scorecards support performance management by providing timely, relevant performance data in a simple visual format. They can be used as a quick reference tool, or can be examined to reveal further detail. The information provided allows quick progress updates and ensures informed decisions can be made. The scorecards contain performance data on many areas, and include finance, HR and efficiency information. For example in the Executive Scorecard, Scrutiny Performance Reports, the Quarterly Housing Landlord Performance Report and Cluster Reports.

CorVu provides performance information as required to a range of audiences and identifies our progress in achieving our priorities. The system does not manage the Council’s performance it is merely a way of informing managers of current performance levels, indicating where action is required. For performance to be effectively managed managers must take ownership of their data, understand what it is telling them and take corrective action where necessary. CorVu supports performance management at a local level with support provided by the corporate centre.

Bournemouth Borough CouncilPerformance Management Strategy3.3.2 Active management of performance

Proactive and honest assessment of performance at all levels is a critical part of any performance culture. This can take the form of rigorous target setting or effective action planning to focus on areas of under performance, ensuring prompt corrective action to bring performance back in line with planned profiles.

The Comprehensive Area Assessment looks at how we manage our performance as an area and as a Council and will judge us on our management arrangements, both internally and with partners. The Audit Commission will require evidence that performance is being managed to deliver the required outcomes and where we are under performing, will want to see how we are taking corrective action. Regular internal reporting should ease government reporting as information will be routinely at hand. To ensure that the Council is producing the required performance information, regular audits should take place of what each service produces in the way of performance information to ensure effective management of information.

The Council needs to improve the process of challenging performance. Scrutiny provides a forum for Members to identify issues of concern and an opportunity to work with Officers to implement solutions. The success of scrutiny will depend on the commitment of Members and Officers to take action based on the performance information that is presented to them.

3.3.3 Benchmarking

Benchmarking provides a knowledge base to support the active management of performance through target setting and identification of best practice. We should be benchmarking our

performance with other Council’s and setting targets to ensure continuous improvement. Targets form an essential part of the process and should be used to measure progress in service delivery.

The Council has an active subscription to the CIPFA Corporate Services Benchmarking Club. This provides benchmarking data on accountancy, audit, creditors and benefits administration. The Council has also joined the PricewaterhouseCoopers benchmarking club which provides quarterly comparison information on the national indictor set. In order to strengthen the Council’s benchmarking ability, a ‘Nearest Neighbour Group’ comprising eight Councils that significantly resemble Bournemouth statistically has been defined. This enables more informal benchmarking exercises to be undertaken in any area of the Council.

The corporate review of benchmarking will improve performance by providing guidance to service units on the standards for benchmarking and best practice.

Key objectives

A suite of measures in place which cover all aspects of our priorities including Value for Money and Equality & Diversity

Wide use of CorVu reports and scorecards by Members, Partners and Officers

Bournemouth Borough CouncilPerformance Management Strategy People feel informed about the Council’s

performance and progress in achieving its priorities

Improved challenge of performance involving Members and Officers focusing on underperforming PIs

Target setting based on accurate profiling of data and benchmarking information

Challenging and realistic targets set that reflect the aims of both the council and the service unit

Proactively manage poor performance and recognise/celebrate good performance

3.4 Data quality

Data quality remains a high priority and there is a separate data quality strategy, policy and delivery plan to underpin improvements for managing data. The Council has nominated an Executive Board member who is the data quality champion and has overall strategic responsibility to reinforce the importance of, and responsibility for data quality. The Leader of the Council is our Member champion for data quality.

Data quality is the responsibility of every member of staff but specifically with regard to performance management those entering, extracting or analysing data from information systems including CorVu. It is the role of managers to verify and sign off all national data that is published annually and to ensure that all information entered into CorVu is accurate and has a clear audit trail.

The data quality policy is issued to all managers and staff via the intranet and will be revised and updated to achieve continuous improvement reflecting learning from good practice and experience.

While steps are being taken to improve data quality within the Council, it is also important to consider data quality when sharing information with partners, external agencies and Government departments. Information is an asset of the Council and it is important that responsibility is assigned and appropriate controls are put in place. Not only do officers need to be certain of the quality of data received from partners, but also relevant regard has to be paid to Data Protection and confidentiality issues.

Key objectives

Data quality is taken seriously with good arrangements in place at all levels;

Processes in place to quality assure data entered into CorVu;

Implement agreed delivery plan.


4. Key actions to deliver strategy

4.1 Delivering the strategy

If we are to achieve consistently high standards of performance clear leadership from our senior managers is essential. In addition to the nominated performance champion at Executive Director level we need to ensure there is

a mechanism to monitor and review performance and challenge the relevance of data against service and corporate objectives;

appropriate time at a corporate and service level to talk about performance and improvement;

a delivery plan with clearly identified actions and timescales to support improvement;

a clear communications plan reinforcing the message that all members of staff have a responsibility for performance.

4.2 Key delivery steps

Short term goals (within 1 year)

Named officer nominated for each service to work with the policy and performance team

Role of Cabinet portfolio holder to include responsibility for performance management

Member aspirations and organisational objectives are understood by individuals

More structured learning for Members, Officers and Partners

Accountable officers in place to make sure data submitted in CorVu is accurate and supported by reliable working papers

Performance reviewed at cluster meetings and necessary action taken.

Accessibility of CorVu system and/or CorVu reports improved

Medium term goals (1-2 years)

Across the Council managers set clear expectations about performance and communicate this to their staff. Performance is owned at a service level

Improved challenge of areas of under performance through peer review

Tailored communication of performance information to Members, Partners, Officers and members of the community

Integration of performance systems across the Council

Clear understanding of the performance framework across the Council

Inclusion of performance management within the corporate induction process

Target setting based on accurate profiling within all services


Long term goals (2 years +)

Performance culture in place across all levels of the Council

Fully embedded performance management framework

Evidenced improvement in key areas, 40% of national indicators in top quartile of unitary authorities

A detailed delivery plan is in place to achieve the goals outlined above and to support the delivery of this strategy.

Further information is available from Joanna Freeman, Policy & Performance Manager, Partnerships & Improvement.


5. Glossary

CAA Comprehensive Area AssessmentIDeA Improvement and Development Agency for local governmentIIC Investing in Communities BoardLAA Local Area AgreementMTFP Medium Term Financial PlanNIs National IndicatorsPADR Performance and Development ReviewPIs Performance IndicatorsSCS Sustainable Community Strategy

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