Hammersmith & Fulham
        Performance Management

Supporting the council’s plans to create ...
Purpose of the Framework
Our framework provides a central point of reference to give clarity around the roles, responsibil...
Community Strategy                                              Local Area Agreement

resources: finance, people, skills and assets. It is also a key process for assessing risks to achievement
and how to mana...
that the quality is maintained to high standards. To address this, the framework is supplemented by
overarching Data Quali...
Outcomes can only rarely be measured in terms of a single performance indicator (PI), so the council often
identify a grou...
Types of measure                      Use of performance information

                    Community and quality of        ...
The MTFS process within the Council is now well established and integral part of our planning
and performance management s...
The Area Based Grant (ABG) is a pooled funding stream which is linked to the delivery of the Local Area
Agreement. This ha...
Medium Term          Service           Detailed        Corporate Plan     Staff
                    Financial         Plan...
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  1. 1. Hammersmith & Fulham Performance Management Framework Supporting the council’s plans to create a borough of opportunity through performance management
  2. 2. 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 Being passionate 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 efficiencies • 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. 2
  3. 3. Community Strategy Local Area Agreement Corporate Plan Medium Term Financial Strategy Workforce Development Plan Statement of accounts Statutory Plans Departmental Plans (annual) Divisional Plans (Annual) Team Plans (Annual) 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. Purpose 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 3
  4. 4. 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 following chart. INFORMATION MANAGEMENT AND DATA QUALITY STATUTORY REQUIREMENTS Corporate PLANNING PROCESS FINANCE PERFORMANCE Planning RISK MONITORING MTFS MANAGEMENT Department SERVICE Planning DELIVERY IMPACT COMMUNITY Divisional ASSESSMENT STRATEGY Planning Other policies and strategies including Asset Management CONSULTATION Service Delivery 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 4
  5. 5. 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-do-review-revise cycle: • 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 performance. • 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; Plan Prioritise and planning for improvement Revise Do Learning to Helping people change what you achieve better do performance Review Understanding the 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 5
  6. 6. 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 of functions. 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 6
  7. 7. 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, Departmental plans Local PIs Service level Divisional indicators Service plans Management / Individual staff information performance and indicators accountability, Team/individual PIs managing the business Performance Timetables Structure Performance Monitoring How Often? Borough Statutory & Local Indicators which monitor the Annually Partnership Community Strategy Local Public Designated & Local LAA Indicators Six-monthly Service Board Governance Boards (eg CYPP, Designated & Local LAA Indicators and LAA Quarterly CDRP) & LAA delivery plans Steering Group Full Council Statutory Indicators Annually Leader & Cabinet Statutory & Local Indicators which are key Monthly Members priorities of our Corporate Plan Statutory & Local Indicators which are key Scrutiny priorities of our Corporate Plan or key themes of Quarterly Committees the Scrutiny Committee Corporate Statutory & Local Indicators which are key Management Quarterly priorities of our Corporate Plan Team Departmental Statutory & Local Indicators contained within the Management Monthly departmental business plan Teams Statutory, Local Indicators and Management Divisional Information Indicators contained within the Monthly Management divisional business plans Statutory, Local Indicators and Management Service/Unit Information Indicators contained within the Monthly Management Service/Unit plans Annually with a Appraisal Monitoring of Individual’s performance six monthly review Medium Term Financial Strategy (MTFS) overview and timeline 7
  8. 8. 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 8
  9. 9. 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 year. Summary of Annual Corporate and Budget Planning Process Borough Partnership 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 Divisional/Teams/Individual (Annual) 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 9
  10. 10. Medium Term Service Detailed Corporate Plan Staff Financial Planning Budgets Appraisals Strategy (MTFS) February MTFS begins March 6 month April review May Cabinet Member June Challenge July Leader Challenge August September 6 month October Divisional & review November Departmental Preparation December Planning January Cabinet & February Scrutiny reports March Scrutiny reports Corporate Appraisal April Plan Season May June 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 the Council. 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 10