1. Performance Management in the UK Civil Service
Management Unit
Performance Management in the UK Civil Service
Paul Roberts
Cabinet Office

2. Outline Who, why and what are we performance managing?
Key themes of this presentation
Who, why and what are we performance managing?
Key components of the UK system
Current climate and transformation agenda
Linking performance to reward
Performance management in the future
Lessons learnt
Questions
Things we’re not doing well – capability reviews, people surveys, staff feedback and engagement

3. Context – Who? Focus on Performance Management of senior staff
Population of c.3800 people
Less than 1% of workforce of
Approx €20 Billion annual pay bill for all staff
Moderation of pay agreements by external bodies
2 elements to pay – base pay and flexible reward
Not just performance related pay….
Deputy Directors, Directors, Director Generals and Permanent Secretaries all subject to
That’s the who

4. Context – Why ?
Limited resources – need to reward high achievers through a fair and transparent process and within a budgetary envelope
Need to develop and reward good performance and identify and tackle poor performance
Enhance a sense of corporate behaviours through a standardised system
Best practice seen to drive organisational performance across the piece

5. Context – What? Delivery of business objectives
Delivery of capability objectives
Delivery of diversity objectives
Delivery of corporate objectives
Our people, our leadership, our successes and our raison d’être!

6. Key Components Annual objective setting around 4 criteria
Alignment with business needs and objectives
Personal development objectives
Open and honest dialogue with staff
Reliance on feedback – 360° feedback
SMART
Year end appraisal drawing on feedback and output and making pay/bonus recommendations
External review process for moderation
Specific, Measurable, Agreed, Realistic, Time Bound

7. Today’s Climate Transformation of Governmental Services
Challenges to develop new skills and behaviours and drive up service improvements
Leadership
Response to cross-cutting issues
Capability Reviews
Efficiency and Relocation Programmes
Expect to do more for less….

8. Attitudes and Behaviours

9. Attitudes and Behaviours

10. Translating Performance into Reward
Relative appraisal system against peers
Bonus awards reward excellent performance during the year
6.5% of pay bill in 2005/2006
Top 25% received 10-13% of salary as a bonus
Base pay rewards job challenge, competence and market value
Look at variability of bonus payments across departments to increase flexible packages

11. Future developments New performance management guidance for 2007/2008
Explicit definition of what effective performance management can achieve and what is expected
Response to capability reviews, staff surveys
Clear objectives that reflect multi-faceted agendas and business needs
100%, 0%, 0% - Developing corporate behaviours and rewarding them
Tackle poor performance
Revise our pay strategy
Get the basics right!

12. Lessons Learnt (or why we’re fixing it!)
We’re not all that good at it!
Performance / people management needs to be embedded as part of the day job
It’s not just down to HR
Staff perceptions do not match up with SCS own assessments
Need to reflect step changes in behaviours
Need to commit to the process and engagement at senior levels
Peer reviews show up performance systems that do not suit the needs of the business
Honest dialogue not hap