Hammersmith & Fulham
Supporting the council’s plans to create a borough
of opportunity through performance management
Purpose of the Framework
Our framework provides a central point of reference to give clarity around the roles, responsibilities,
processes and protocols that support performance information and reporting requirements of the council.
This framework acts as a guide to all those involved in the performance management process and is
intended to help provide improved service delivery to our residents.
Our organisational statement
Achieving high levels of resident and customer satisfaction in order to deliver the best possible
services at the lowest possible cost.
We use our performance management processes to achieve this by;
Providing a framework to help us operate as one council to clear objectives.
Outlining how we will working in collaboration & partnership
H & F Values
We put residents first by;
Being customer focussed
Making change happen to help deliver our objectives.
Working together with respect
With a can do attitude
Delivering value for money through savings and improvements
Why is Performance Management Important?
Effective performance management can help us link and deliver our initiatives, objectives, efficiencies and
modernisation agenda to ensure that;
• We plan the prioritisation of services to meet the needs of the community
• We use Value for Money thinking as part of our everyday work to bring about improvements and
• We have all the necessary performance information and that the quality of this data is complete,
timely and accurate. This information can then be reliably used as the basis for making effective
decisions on the services delivered to the community.
Our Performance Management Framework
Our corporate plan sets out high level visions, priorities and expected outcomes in terms of service delivery
for the council for the following three years. The framework which outlines this process is outlined in a
diagram on the next page.
Community Strategy Local Area Agreement
Development Plan Statement of accounts
Statutory Plans Departmental Plans
Individual work plans/appraisal objectives
OD, Learning & Development Delivery of Objectives
The different levels in the performance system are integrated across various organisational levels, and with
our significant partners, through performance monitoring of the Local Area Agreement. This is described as
the golden thread.
One of the main purposes of our performance management process is to provide a focus and discussion
about how we evolve our services to meet changing needs and external factors, as outlined in the
Community Strategy and the Local Area Agreement. This is then translated into priorities, objectives and
targets. We publish information about performance and improvement through our corporate plan.
Performance planning brings priorities together and cascades them through to departments, services and
individuals. Detailed planning is done at service level. We take a co-ordinated approach to service planning,
with corporate teams providing support or guidance to service managers through templates, training or
acting as critical friends.
A second main purpose of our performance management process is to provide a framework to monitor our
performance against our key objectives. These are laid out in our performance plans and are the
cornerstone of our effective performance management. An effective plan provides a solid foundation for
achievement and forms a vital part of the golden thread, so each person understands how they contribute
to achieving the council’s improvement objectives. The planning process is the opportunity to make
informed rational and coordinated decisions about levels and types of provision and how and where to use
resources: finance, people, skills and assets. It is also a key process for assessing risks to achievement
and how to manage those risks.
Allocation of funding is based on a clear set of priorities linked to our Medium Term Financial Strategy, so
service plans are integrated with budgeting and financial planning. Requirements to identify both cashable
(reduced spending) and non-cashable (improved performance for the same spending) savings are part of
the national efficiency agenda and fits with our ambition to deliver services at lowest cost. The service
planning process is the right place to identify areas where inadequate performance levels can be improved,
costs can be reduced or where efficiencies can be achieved for the same level of service. Target setting
and monitoring is undertaken and helps to set out what needs to be achieved and when. An illustration of
how all the aspects of the council’s performance management regime work together is illustrated in the
INFORMATION MANAGEMENT AND DATA QUALITY
The high standards of services we provide to the local community are the culmination of the delivery of our
corporate, departmental and divisional performance plans.
The performance plans are drawn together taking account of:
1. The strategic long term vision within the Community Strategy.
2. The policies, plans and strategies of the council.
3. Statutory requirements that we have to comply with.
4. The financial requirements as laid out in the Medium Term Financial Strategy (MTFS).
5. Progress on performance indicators from a known starting point against targets, which have been
agreed by cabinet and are available to be scrutinised by the relevant committee.
6. Skills and capability in the organisation, and the development of these, as identified in Learning &
Development plans and workforce planning.
All but the statutory requirements are further informed by:
• Consultations with the borough residents and other stakeholders.
• Impact assessments as to the effectiveness of previous years policies, performances and projects
in relation to and amongst others equalities, environment and financial risk.
The monitoring of performance is collated and reported on the Corvu Performance Management System in
the same manner as the performance plans are produced, with divisional and departmental performances
being input and managed at a local level and with corporate performance measures being drawn from
departments, where they already exist, or being produced by the corporate team where not. This gives a
single point for corporate information and keeps effective control of data quality at the point of service
delivery, eliminates duplication and makes information available on-line to managers.
All these processes result in decisions affecting the performance plans and ultimately service delivery. To
enhance the effectiveness of these it is essential that all information and data is managed effectively and
that the quality is maintained to high standards. To address this, the framework is supplemented by
overarching Data Quality and Risk Management policies.
The Council’s Performance Management, Measurement and Information approach is based on the
• Plan: Understanding current performance, prioritising what needs to be done, identifying actions
that need to be taken and planning for improvement
• Do: Ensuring that the proper systems and processes are in place to support and encourage
improvement and opportunity, take action and manage risk – helping people achieve better
• Review: Understanding the impact of your actions, reviewing performance, speaking to users
and stakeholders about their experience of performance and getting a better picture of changing
circumstances. An essential part of the process is the effective scrutiny of performance
management conducted at Department, Management Team level and Committee.
• Revise: Using lesson learned from review to change your plans or what you do so that future
action is more efficient, effective and appropriate.
The stages will look and feel different depending on where you are in the organisation and the timescale
you are looking at. Major strategic reviews and revision may happen only every few years, although the
cycle may occur every month at a more detailed level. On an informal level, managers may set tasks,
observe performance and give helpful feedback from day to day. This cycle is set out in a diagram below;
Learning to Helping people
change what you achieve better
impact of actions
The Performance Measurement Framework
Authorities that manage performance well focus on capturing and using information about actual
performance – at all levels of the organisation. Reliable information means they can start to make decisions
about what needs improving. Hammersmith & Fulham adopt a rigorous approach to quality, integrity and
timeliness of performance information. The framework considers quality of data of paramount importance
and supplemental to the framework is the council’s own Data Quality and Risk Management policies that
set the standards to those involved in managing, maintaining and reporting on performance. This enables
speedy intervention where performance needs to be improved and ensures that risks relating to
performance are mitigated appropriately.
A picture of performance
Outcomes can only rarely be measured in terms of a single performance indicator (PI), so the council often
identify a group that collectively provides a picture. For a few indicators, this is often called a basket of PIs
however the council relies on an entire performance measurement framework to be able to monitor a range
HM Treasury, the National Audit Office, the Audit Commission, Cabinet Office and Office for National
Statistics developed a framework that sets out the properties of a good system. It is this system that the
council apply and is known or referred to as the FABRIC of performance measurement.
• Focused on the organisation’s aims and objectives
• Appropriate to, and useful for, the stakeholders likely to use it
• Balanced, giving a picture of what the organisation is doing, covering all areas of significant work
• Robust, in order to withstand organisational change or individuals leaving
• Integrated into the organisation, as part of the business planning and management processes
• Cost-effective, balancing the benefits of the information against the costs
Hammersmith & Fulham Objective setting
This defines how the objective setting of the borough is defined. H & F have adopted S.M.A.R.T. as the
primary mechanism for performance objectives being;
S = Specific and clear
M = Measurable and verifiable
A = Achievable ( Realistic as well as challenging )
R = Relevant
T = Time bounded
Hierarchy of Performance Indicators
People need different information at different levels of the organisation. Senior managers and councillors
need a strategic overview of organisational performance while managers require information that helps
them to manage their directorate, service or team. Individuals also need to know how they are performing.
There will be a hierarchy of measures reflecting the structure of the organisation and each of these must be
owned by an individual – a named person must be accountable for the collection of the information and the
performance itself. This hierarchy is set out in the following diagram.
Local Area Agreement (LAA)
The Local Area Agreement 2008 -11 includes 26 designated indicators and targets, 17 mandatory
education targets and 26 local indicators and targets. The designated LAA targets each have a lead
responsible officer and are the subject of individual delivery plans which are monitored by the LAA Steering
Group and the relevant governance board (eg Children & Young Peoples Partnership Board (CYPP), Crime
& Disorder Reduction Partnership (CDRP)). In addition half yearly monitoring reports are submitted to the
Local Public Service Board, where any high level interventions can be agreed in the event of failing
indicators. The mandatory education targets are monitored by Children’s Services Department and the
local indicators are monitored by the lead department and/or partner agency.
Hammersmith & Fulham hierarchy of performance indicators
Types of measure Use of performance information
Community and quality of Community Strategy,
life indicators Partnership working
LAA Indicators Strategic priorities, local
Statutory PI’s area agreements,
Corporate PI’s Corporate plan,
Service level Divisional
indicators Service plans
Management / Individual staff
information performance and
Team/individual PIs managing the
Structure Performance Monitoring How Often?
Borough Statutory & Local Indicators which monitor the
Partnership Community Strategy
Designated & Local LAA Indicators Six-monthly
Boards (eg CYPP, Designated & Local LAA Indicators and LAA
CDRP) & LAA delivery plans
Full Council Statutory Indicators Annually
Leader & Cabinet Statutory & Local Indicators which are key
Members priorities of our Corporate Plan
Statutory & Local Indicators which are key
priorities of our Corporate Plan or key themes of Quarterly
the Scrutiny Committee
Statutory & Local Indicators which are key
priorities of our Corporate Plan
Statutory & Local Indicators contained within the
departmental business plan
Statutory, Local Indicators and Management
Information Indicators contained within the Monthly
divisional business plans
Statutory, Local Indicators and Management
Information Indicators contained within the Monthly
Annually with a
Appraisal Monitoring of Individual’s performance six monthly
Medium Term Financial Strategy (MTFS) overview and timeline
The MTFS process within the Council is now well established and integral part of our planning
and performance management system and has a three year timeframe.
A great deal of work is undertaken on the MTFS by both finance officers and non-financial
managers within departments. This allows the Council to:
- provide savings that enable council tax targets to be met and meet efficiency targets,
- ensure the level of reserves is appropriate,
- identify service delivery trends and changes in legislation that will have a financial impact,
- accurately predict levels of spend in the future to avoid overspends,
- identify revenue costs resulting from capital expenditure,
- cost areas of new or increased priority,
- cost new investment and estimate any subsequent payback, and
- ensure all projects are adequately funded and resourced.
Department’s MTFS submissions are subject to both Lead Member and Leader challenges. This
in turn informs the council’s budget strategy.
MTFS Key Timeline Chart
February/April MTFS process begins; pro forma is completed by a
Departmental Finance Strategy Board representative and returned to
Finance & Corporate Services.
May/June – Cabinet Member challenges Service Director and DMT
June/July – Leader challenge of each Director and DMT
The MTFS Challenge Process
The Challenge process is essentially in two stages:
Stage 1 Cabinet Member Challenge in May/June
This stage of the MTFS process enables the Cabinet Member to challenge the Director and Departmental
Management Team on the proposals that have emerged from the MTFS pro forma preparation. In addition,
it gives opportunities to explore other potential initiatives prior to the Stage 2 Leader Challenge.
The Cabinet Member is assisted in the challenge process by ;
The Director of Finance & Corporate Services
The Deputy Director of Finance & Corporate Services
A Director or Assistant Director from another Service Department
An Assistant Director of Finance & Resources from another Service Department
Stage 2 Leader Challenge of each Director and DMT in June/July.
This stage of the MTFS process is led by the Leader who will normally be accompanied by relevant Cabinet
Members. It is expected that as part of the challenge that Directors will be accompanied by their DMT’s.
The Leader will be assisted by the Director & Deputy Director of Finance & Corporate Services
Area Based Grant
The Area Based Grant (ABG) is a pooled funding stream which is linked to the delivery of the Local Area
Agreement. This has been made the subject of an MTFS style challenge process with a challenge panel
including the Leader and Chief Executive of the Council, the Borough Police Commander and the Chief
Executive of the Primary Care Trust. Funding bids are invited, which will support the delivery of LAA
targets and the challenge panel meet to consider and agree the bids for funding for the coming financial
Summary of Annual Corporate and Budget Planning Process
Community Strategy (5 years +)
Statutory and other strategic plans (3 years +)
Eg. Local Area Agreement, Local Development Framework,
Children & Young Peoples Plan
The Corporate Plan (3 years, revised Annually)
Council’s Priorities, Actions and Targets
Medium Term Financial Strategy (3 years)
Departmental Service Plans (Annual)
Eg. Planning, Waste and Recycling, Housing, Personnel, Finance
Annual work plan and targets and appraisals
Enhancing our Ability to Deliver (Annual)
Organisational Development Learning & Development
(inc. Business Transformation)
Our Annual Corporate and Budget Planning Process timeline
Medium Term Service Detailed Corporate Plan Staff
Financial Planning Budgets Appraisals
February MTFS begins
March 6 month
May Cabinet Member
July Leader Challenge
September 6 month
October Divisional & review
November Departmental Preparation
January Cabinet &
February Scrutiny reports
March Scrutiny reports Corporate Appraisal
April Plan Season
Further Information and Support
The Strategy, Performance & Procurement Division in Finance & Corporate Services provide the corporate
lead on performance management. They oversee the business planning process, and provide advice and
training on business planning, data quality, risk management and use of the corporate performance
management system (CorVu). They convene the Corporate Performance Group, with representatives from
each department, which meets quarterly to ensure the further development of performance management in
Assistant Director, Frank Hansen, 020 8753 2580
Strategy Manager, Peter Smith, 020 8753 2206
Principal Consultant Performance, Dave Wilsher, 020 8753 2212
Principal Consultant Performance, Helen Adams, 020 8753 2216
Principal Consultant Risk Management, Michael Sloniowski, 020 8753 2587
The Organisational Development Division provides support to build individual skills and organisational
capability to support delivery of the corporate plan objectives. They oversee the Council’s Core
Competency framework which underpins the appraisal process.
Assistant Director, Organisational Development, Ellen Lamparter, 020 8753 3782
Head of Learning & Development, Joe McCarron, 020 8753 4990
The Strategy and Resources team lead on the development of the Budget Strategy ensuring that it is
prepared in line with business planning objectives and value for money initiatives.
Corporate Strategy and Resources Manager, Andrew Lord, 020 8753 2531