MODULE 18 – PERFORMANCE MANAGEMENT Stage 2 – Leadership for Strategy

Module Overview Learning Objectives Learning Outcomes To deepen understanding of performance management and how it can be used to more effectively deliver outcomes by the organisation. Learning Outcomes Participants understand the value of performance management in raising the standards of local government. Participants recognise the critical factors that are necessary to make performance management effective. Participants understand the current maturity of performance management approaches in your organisation and what is required to achieve improved results. As a result of this training, participants will be able to introduce a more effective approach to performance management in their own organisation. Stage 2 Module 18 – Performance Management

Module Structure Group Exercise 1 – Performance Management Maturity Assessment Presentation and Discussion on Key Principles of Performance Management Group Exercise 2 – Developing a Performance Indicator Group Exercise 3 – Complete the Performance management table Stage 2 Module 18 – Performance Management

Working Definitions Target Benchmark Baseline Minimum standards A baseline is an established starting point. This allows a comparison of present performance over time. Minimum standards Minimum standards can be set nationally or locally. This allows a comparison of present performance with standards below which performance should never fall. Target Targets can be set nationally and locally. They give staff a performance goal; performance information can tell them how far they have travelled towards that goal. Benchmark A benchmark sets out the performance level of, say, a group of the best- performing local authorities or a set of agreed standards; this allows an organisation to compare its performance within local government or against a recognised level of performance. Stage 2 Module 18 – Performance Management

EXERCISES

Group Exercise 1 – Performance Management Maturity Assessment In groups of 2/3 complete the Section 5.1 Table ‘Performance Management Maturity Assessment’ to understand the strengths and areas for development within your organisation; Discuss in groups on the key areas to be developed. Stage 2 Module 18 – Performance Management

Exercise 2 Presentation and Discussion on Key Principles of Performance Management A presentation provides a broad overview of the key principles of performance management, the types of indicators, a model performance template and performance reporting approaches. Stage 2 Module 18 – Performance Management

Group Exercise 2 – Developing a Performance Indicator In groups of 5, develop a performance indicator in an area which is a) relevant to the key priorities of the organisation and is b) outcome focused; Complete the template in Section 5.2 and present the indicator back to the whole group. Stage 2 Module 18 – Performance Management

Group Exercise 3 – Complete the Performance management table In groups of 5, complete the performance management table in Section 5.3, showing how the indicator developed in Section 2.3 above will be supported with clear milestones and have associated reporting arrangements and individuals responsible for delivery; Report back to the whole group and explain your work. Stage 2 Module 18 – Performance Management

PERFORMANCE MANAGEMENT (previous materials)

What is performance management? A systematic approach to identifying, collecting and using performance data to improve standards of service provision Stage 2 Module 18 – Performance Management

Why performance management? Confronts facts of performance (ie forces leadership to face reality) Helps to identify priorities Strengthens leadership’s legitimacy Citizens’ right to good services Foundation for excellence Stage 2 Module 18 – Performance Management

Why is performance management helpful? Performance information available to: elected representatives and staff local people and organisations Show performance against standards Offer performance trends / comparison Provides baseline for improvement Identifies sources of good and bad practices Stage 2 Module 18 – Performance Management

Role of leadership Ensure facts are at everyone’s fingertips Use facts to push priorities and keep them in focus Use facts to celebrate progress and tackle under- achievement Show courage to manage clearer (ie factual) public knowledge and expectations Stage 2 Module 18 – Performance Management

Activities / Processes Input – output model Inputs Activities / Processes Outputs /Services Outcomes Stage 2 Module 18 – Performance Management

Value in measurement Economy – costs of service Efficiency – ratio of inputs to outputs Quality – achievement of service standards Effectiveness – user satisfaction; do outputs lead to outcomes? Impact – on community (jobs, quality of life etc) Equity – accessibility by all groups Stage 2 Module 18 – Performance Management

Performance indicator pyramid Community Community priorities Organisation KPIs to meet community and organisation priorities Teams PIs owned by senior managers Individual staff PIs owned by managers Personal targets Stage 2 Module 18 – Performance Management

Critical success factors Define and justify the PI clearly Users help to set the PI Performance management is embedded in the culture Process is clear and simple Clear responsibilities Stage 2 Module 18 – Performance Management

What makes a PI effective? Clarity and focus Responsibility Relevant and responsive Credible Timely Cost Stage 2 Module 18 – Performance Management

Risks of performance management Can distort behaviour Can be influenced by factors beyond control Cost of validation Potential excess of indicators Potential demotivation Potential ammunition to opponents Stage 2 Module 18 – Performance Management

Performance management in action Component of plans Monitoring performance; staff appraisal Fundamental Performance Reviews Information management; responsibilities Comparisons (over time; with others) Benchmarking Staff / public consultation / satisfaction Stage 2 Module 18 – Performance Management