1. Performance Assurance 5 th August Value Chain Further Evolvement

2. PAF Value Chain What has been produced… The content captured during the session has been documented into the following artefacts:  A log of Risks, Issues, Assumptions & Dependencies raised during the session  A Value Chain diagram detailing the ordered set of primary & support activities that PAF is to perform for the industry…that looks like….

3. Evolving the Value Chain Todays Challenge Our aim is to assist you in the further evolvement of the value chain which consists currently of Level 1 & 2 processes with two targets in mind:  How do we currently view the certainty / clarity of processes / activities that we have highlighted as a key area to PAF? To achieve this we suggest overlaying a ‘Heat map lens’ upon the captured Value Chain.  Test the usefulness of evolving the value chain down further to Level 3 (first level of process activity capture for a specific process area) by producing an Level 3 for some selected Level 2 processes. To achieve this we will be facilitating the ‘capture of the L3 activities’ you would expect to see in order to achieve the core L2 process objective. The following two slides explain these activities…

4. Value Chain – Heat Map Lens How do we currently view the certainty / clarity of processes / activities that we have highlighted as a key area to PAF? We are going to ask you to help us determine the RAG status of each L2 (which in turn will define the L1 colour) which can then be used to help identify areas of concentration / priority for evolvement if deemed appropriate Activity Rules None or severe lack of clarity / understanding exists to the activities required in this area, typically nothing is documented Partial lack of clarity / understanding exists to the activities required in this area, typically some reference material exists. Full clarity / understanding exists upon the activities required in this area, typically all relevant documentation exists Example Heat Map view

5. Performance Assurance Framework Board Proposed Heat Map 1) Establish & Identify Scheme 5) Evolve Scheme 4) Review & Modify Scheme Deliverables 3) Operate the Framework 2) Manage Performance Assurance Scheme 1.1) Define Scheme Principles 1.2) Establish Governance Route 2.1) Monitor Industry Stakeholder Performance 2.2) Monitor Industry Reporting 3.1) Maintain PAF Committee Stakeholders 3.2) Analyse Data 4.1) Obtain Industry Feedback 4.2) Review the Framework 5.1) Manage Change Requirements 3.3) Report Performance 3.4) Incentive Settlement 4.3) Review Scheme Operation 6) Support Industry Stakeholders 6.1) Educate & Support Industry Stakeholders 1.3) Define Objectives 1.4) Identify Industry Stakeholders 1.5) Define Participant Roles 2.3) Capture, Evaluate & Manage Risk 2.4) Set & Publish Performance Targets 5.2) Review Framework Committee 5.3) Publish Review Findings 6.2) Engage & Consult with Industry Stakeholders

6. Performance Assurance Framework Board Suggested Areas for L3 Evolvement for today 1) Establish & Identify Scheme 5) Evolve Scheme 4) Review & Modify Scheme Deliverables 3) Operate the Framework 2) Manage Performance Assurance Scheme 1.1) Define Scheme Principles 1.2) Establish Governance Route 2.1) Monitor Industry Stakeholder Performance 2.2) Monitor Industry Reporting 3.1) Maintain PAF Committee Stakeholders 3.2) Analyse Data 4.1) Obtain Industry Feedback 4.2) Review the Framework 5.1) Manage Change Requirements 3.3) Report Performance 3.4) Incentive Settlement 4.3) Review Scheme Operation 6) Support Industry Stakeholders 6.1) Educate & Support Industry Stakeholders 1.3) Define Objectives 1.4) Identify Industry Stakeholders 1.5) Define Participant Roles 2.3) Capture, Evaluate & Manage Risk 2.4) Set & Publish Performance Targets 5.2) Review Framework Committee 5.3) Publish Review Findings 6.2) Engage & Consult with Industry Stakeholders Potential areas for today’s workshop?

7. Example L3 Process The following example provides a view upon the typical level of detail that is sought within a L3 Process Model…the key principle is around identifying what need to happen at a high level.

8. Questions before we start…