1. MODULE 18 – PERFORMANCE MANAGEMENT
Stage 2 – Leadership for Strategy

2. 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

3. 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

4. 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

5. EXERCISES

6. 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

7. 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

8. 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

9. 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

10. PERFORMANCE MANAGEMENT (previous materials)

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

12. 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
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Module 18 – Performance Management

13. 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
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Module 18 – Performance Management

14. 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

15. Activities / Processes
Input – output model
Inputs
Activities / Processes
Outputs /Services
Outcomes
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Module 18 – Performance Management

16. 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
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Module 18 – Performance Management

17. 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
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Module 18 – Performance Management

18. 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
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Module 18 – Performance Management

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

20. 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
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Module 18 – Performance Management

21. 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