NORTHERN TERRITORY TREASURY Performance Development Framework (PDF) Review 2003 Original Treasury PDF Implemented 2009 November reviewed PDF Mercer commissioned to conduct PDF review January 2010

2 NORTHERN TERRITORY TREASURYwww.nt.gov.au/ntt PDF Review Mercer’s Brief: Understand the current PDF Framework Identify the effective components Identify ineffective components Develop a transition plan including: -Recommended changes -Priority areas of focus -Re-branding and re-launching -Benchmark against other jurisdictions

3 NORTHERN TERRITORY TREASURYwww.nt.gov.au/ntt PDF Review Mercer Undertook: PDF documentation examination Interviewed senior executives Held focus groups with operational and policy staff Conducted an all staff online survey Provided report and recommendations

4 NORTHERN TERRITORY TREASURYwww.nt.gov.au/ntt PDF Effectiveness Survey Results

5 NORTHERN TERRITORY TREASURYwww.nt.gov.au/ntt Mercer notes that the above public sector average ratings are only indicative, based on Mercer’s experience in working with various public sector agencies over the past 20 years, in virtually all Australian jurisdictions. Process Goal Setting Measurement Link to Talent Management Ownership and Administration Link to Reward & Recognition Objectives Audit Documentation Communication Feedback Culture Training and Development Eligibility Links to Competencies Foundational Sophisticated ELEMENTS Treasury’s relative level of element design and development Indicative public sector average based on Mercer’s consulting experience Operational Scale Definitions Foundational Foundational performance represents minimal attention to element attainment Operational Operational performance represents a level of functionality that is likely to have a noticeable impact on organisational performance Sophisticated Sophisticated performance represents exemplary attention to element design, development and implementation Comparison against indicative public sector averages

6 NORTHERN TERRITORY TREASURYwww.nt.gov.au/ntt Key Findings and themes 1.Clearly define the purpose of the PDF and its scope 2.Determine roles and responsibilities and ensure participants are held accountable for execution. 3.Develop process maps for the new PDF and streamline / strengthen links to other HR processes. 4.Establish appropriate “break through” or “stretch” goals and targets to create a outcome focused performance based culture.

7 NORTHERN TERRITORY TREASURYwww.nt.gov.au/ntt Key Findings and themes 5.Re-design and simplify PDF forms 6.Integrate PDF with business planning processes and other important HR programs and functions. 7.Training program for supervisors and managers to effectively assess performance and provide feedback. 8.Implement communication strategy to inform, lead and involve all staff in the PDF system.

8 NORTHERN TERRITORY TREASURYwww.nt.gov.au/ntt Implementation of the new Employee Development Framework Change Process Communicate rationale for change Acknowledge the change Shape the political dynamics of change Motivate behaviours for change Align corporate processes Demonstrate SMG and leadership commitment Engage the right level of participation into planning and implementation Outline the benefits of the new system Reward the appropriate new behaviours Send consistent signals through reporting systems and administration processes Provide feedback on progress Educate and Communicate

9 NORTHERN TERRITORY TREASURYwww.nt.gov.au/ntt Linkages to HR Programs Where are the important linkages to other HR programs and priorities? Linkage to the organisation strategy Linkage to Rewards Linkage to career decisions Linkage to individual development Performance Review

10 NORTHERN TERRITORY TREASURYwww.nt.gov.au/ntt Next steps: Complete new EDF format by mid August 2010 Conduct staff survey end August 2010 Assess survey results and incorporate into EDF processes Incorporate Capabilities Leadership Framework Levels into EDF Package. Current Status

11 NORTHERN TERRITORY TREASURYwww.nt.gov.au/ntt Questions?