<ul><li>TOOLKIT FOR ORGANISATIONS WISHING TO REVIEW </li></ul><ul><li>THE POTENTIAL OF PERFORMANCE MANAGEMENT SYSTEMS </li></ul><ul><li>WITHIN THEIR ORGANISATION </li></ul>
Contents <ul><li>Introduction to the Project </li></ul><ul><li>Getting Ready </li></ul><ul><li>Assessment Documents </li></ul><ul><li>Funding Overview </li></ul><ul><li>Moving Forward </li></ul><ul><li>Budgeting (Income and Outgoing) </li></ul><ul><li>Sustainability </li></ul><ul><li>Action Planning </li></ul><ul><li>Strategic Overview </li></ul><ul><li>Organisational Learning Cycle check and amend at the end </li></ul>
Introduction to the Project <ul><li>SUSTAIN Consultancy was asked by NCompass to </li></ul><ul><ul><li>Identify the progress to date within the county of Northamptonshire regarding the use and development of Performance Management Systems (PMS) within the Local Infrastructure Organisations (LIOs) </li></ul></ul><ul><ul><li>Identify the issues and barriers found in supporting and implementing PMS with front line agencies </li></ul></ul><ul><ul><li>Externally benchmark the performance management systems available within the UK, and assess their relevance for front line VCS organisations </li></ul></ul><ul><ul><li>Create a toolkit for the LIOs to use to support the development of this work </li></ul></ul><ul><li>The following presentation is the template for the toolkit which will be developed and issued to the LIOs within Northamptonshire. </li></ul>
Presentation Outputs <ul><li>This presentation has been designed as a toolkit </li></ul><ul><li>It is intended to support Voluntary and Community Sector organisations (VCS) when reviewing the potential for implementing Performance Management Systems </li></ul><ul><li>It is intended to be used by Infrastructure Agencies (supporting VCS organisations) or directly by VCS agencies themselves </li></ul><ul><li>It seeks to provide a step-by-step process for individuals or groups wishing to implement performance management systems </li></ul><ul><li>It provides narratives and techniques </li></ul><ul><li>It is designed to be interactive </li></ul><ul><li>Planning and scoping out the potential of a performance management system or quality management system process within each organisation should take between 2-3 months depending upon the status of the organisation and will need to involve every level of an organisation. </li></ul>
Why bother with a Performance Management System? <ul><li>Many organisations within the VCS say that they have a difficult enough time managing their daily workload let alone focus on implementing a quality standard or a performance management system!! </li></ul><ul><li>BUT </li></ul><ul><li>There is increasing external pressure on voluntary and community sector groups to have strong, robust management systems in place </li></ul><ul><li>Many funders are now specifically looking to grant aid or commission work within the VCS to organisations with acknowledged performance/ quality management systems/standards </li></ul><ul><li>Implementing a performance management system SHOULD provide an opportunity to streamline processes and tasks and improve the efficiency of an organisation’s work </li></ul><ul><li>Used properly such systems are a STRONG management tool </li></ul><ul><li>There are myriad quality or performance management systems out there; some are generic others are specialist focusing upon a particular sector or area of work. </li></ul>
How long is this going to take? <ul><li>The following is suggested as an indicative timeline but you will need to </li></ul><ul><li>honestly assess how long it will take within your organisation . </li></ul>Month 1 Month 2 Months 3-6 Months 6-9 Planning Evaluation & Analysis of Performance Management Systems Identification of Preferred system(s) Organisational Assessment Evaluation & Action Planning Development of Action Plans Assessment/ Accreditation Stage
You will need to involve the following people within your organisation to implement a performance management system Working as a team provides an opportunity to share and challenge perceptions – at least one from each area <ul><li>Board Members </li></ul><ul><li>Chair </li></ul><ul><li>Treasurer </li></ul><ul><li>Trustees </li></ul>Chief Executive Officer / Senior Manager Operational Staff Finance Officer Project Staff Administration Staff Volunteering Staff
It is essential that you review the needs of those outside of the organisation to… Stakeholders Current Funders Other VCS Groups End Users Statutory Bodies Does this group have preferred/recognised systems? Can you find support? Benchmarking needs? What are other VCS groups doing? What support can you get for this? Can you find a mentor? Is there a preferred system? Can you identify areas for support? Feedback? Thoughts? Changes? Perceptions of Service? Does this group have preferred systems? Brainstorm others?
Choosing a system – key thoughts <ul><li>There are numerous performance management or quality management systems available today </li></ul><ul><li>It is important that you internally assess what system you feel you need and consult with key stakeholders too – access to existing or new funding streams may be predicated upon the attainment of a particular standard or system </li></ul><ul><li>You must involve all levels of your organisation in this decision to ensure full buy in </li></ul><ul><li>It may mean that as an organisation you will need more than 1 system depending upon your organisations’ scope of work </li></ul><ul><li>Take sufficient time to undertake a proper assessment of what you need </li></ul><ul><ul><li>Internally </li></ul></ul><ul><ul><li>Externally </li></ul></ul><ul><ul><li>Now </li></ul></ul><ul><ul><li>In the future (e.g. service expansion/new areas of service delivery). </li></ul></ul>
Which System? The following table highlights the main systems in use within the VCS. This is not exhaustive and you must ensure that your work with key stakeholders identifies others which may be essential in your field of work. www.qualityfoundation.co.uk Links into the British Quality Foundation/ TQM Groundwork North Northampton use the Business Excellence Model. European Foundation in Quality Management. British Quality Foundation. Predominantly in use within the private sector since 1992. Self assessment process based on 9 categories Self Assessment process. 3 year accreditation period. Cost = c £1,500. EQFM Excellence Model [email_address] 0845 609 0901 Standard system for publicly funded organisations. High use in voluntary sector (commissioned based work contracts). Some funders may stipulate this standard as a requirement of contractual work. 10 category areas. Standard system which is externally assessed. 3 year timeline for re-assessment. Networking opportunities for accredited organisations. Cost = c£1,500.00 Charter Mark Link Details System
Which System? Notes Detail System High use in LIO’s throughout the County. [email_address] 020 7713 5722 Practical Quality Assurance System for Small Organisations. Firm favourite within the VCS and many of its funders. Internal self assessment at present – looking to introduce external accreditation next year. Based on 12 categories. Cost = £73.15 PQASSO CEMC currently using for information. Predominantly in use within the private sector. Based on a performance management system with key categories. Categories of focus. External assessment with a 3 year time line. Cost = c.£1,500.00 (mainly accreditation process) ISO9000 www.iipuk.co.uk [email_address] 020 7467 1900 Improving organisational standards through people. Four areas (commitment, planning, action and evaluation). Managed by the Learning and Skills Council awarded by Investors in People UK. External assessment with a 3 year timeline. Cost =c £1,500.00 (mainly accreditation process) Investors in People
Which System? Notes/Reference Detail System www.socialauditnetwork.org.uk A system designed to audit the impact corporate social responsibility in the corporate sector. Some relevance to voluntary sector, may useful to look at values and impact (social, economic & environmental). Self assessment tool Cost = £40.00 (audit manual and CD Rom) (May be of more use as an internal tool/PR marketing tool) Social Audit Requirement for organisations with a contract with Community Legal Services. 3 QM Areas: - information - general help - specialist help www.legalservices.gov.uk Designed for organisations giving legal information and advice to the public. Audited processes against set down quality standards. Manual for each standard. Externally audited process. 3 year time line Cost = part of contract with CLS. Community Legal Services Quality Mark (CLS) Possible for small/embryonic VSC groups. www.bvsc.org 0121 678 8808 Based on PQASSO designed for organisations with very small staff numbers (paid/voluntary). Self assessment tool designed by Birmingham CVS. Nine quality areas. Cost = £25.00 Quality First
Which System? Be clear and assess both what you need internally and externally before choosing a system! Ground Work North Northamptonshire applying Sept 2006. Environmental standards/quality system. ISO14001/ BS5888 NVC, South Northants, Daventry, ENVA all have in place subject to status. Groundwork North Northants applying Sept 2006. Specialist requirement for Volunteer Centres as part of the Volunteering England Network. External assessment. 3 year time period. Volunteering England NVC have this in place. wwww.readingroom.lsc.gov.uk Adult Services Guide. Essential for acquiring any commissioned based work with the Learning and Skills Council. Quality system with nine categories Renewal period 3 years. Cost = c.£1,700.00 Matrix Learning Skills Council Reference Detail Specialist Examples
Beginning your assessment – how do you assess where you are against your chosen standard or system? <ul><li>Identify a team of people that will work with you on implementing your system </li></ul><ul><li>Get together and review the categories/standards – make sure you understand the system </li></ul><ul><li>Identify areas of possible support – e.g. Local Infrastructure Organisations, or other organisations who may be able to support you e.g. local organisations that have just gone through this process </li></ul><ul><li>Create a plan of action for your assessment </li></ul><ul><li>Create and use an Action Log as you go through each standard or category area, identifying clear owners for tasks </li></ul><ul><li>As much as you can you need to be objective and honest with your status and findings from the review </li></ul><ul><li>The following tables highlight some of the documents you will need for your review. </li></ul>
Suggested documents you will need (1) Financial management Financial processes in place Review Current budget Issues, barriers, opportunities and concerns Review operational and strategic issues Copies of last 12 months minutes from Board Meetings Strengths and weaknesses Issues & opportunities Engagement of Board members Assessment of current governance structures Key individuals & gaps Current Board or Management Committee Structure Understanding key roles etc Who to engage in the review Overview of organisation Current organisational structure Job Descriptions/Specifications Strengths and weaknesses Issues & opportunities Assessment of recent financial performance Last 3 years audited accounts (or what is possible) Background assessment Check cause Check focus/ standard/system To understand scope, remit and purpose of organisation Constitution or Governing rules Notes Action Document(s)
Suggested documents you will need (2) <ul><li>You may have other documents to add to this list e.g. completed client questionnaires. </li></ul><ul><li>Ensure that you take the opportunity to make maximum use of this review. </li></ul>Attainment of business goals SWOT Review Evaluation methods? Management Information methods? Current Business Plan Overview of management and control structures Understand processes and formal performance management techniques Information on Quality Assurance System Evaluation of how organisation presents itself externally Assessment of current communication activity Information on marketing and PR for organisation Skills and resource assessment Opportunities and risks Assessment against categories Assessment of current projects and activities Outputs and Outcomes Information and Review against services offered Begin evaluation Assess which potential system(s) To understand current funders To assess needs re PMS Review of funding streams Notes Action Document(s)
What happens if these documents can not be found? <ul><li>These documents (and others) will be key to demonstrating solid planning and monitoring systems, if you do not have them in place you may have to create them. </li></ul><ul><li>It is recommended that the Management Committee and Senior Staff of the organisation seek to create these documents, linking in with key operational staff at relevant points. </li></ul><ul><li>These documents must be in place in order to provide an assessment of goals and outputs against the identified quality standards </li></ul><ul><li>And </li></ul><ul><li>They will help you make appropriate decisions around which performance management system(s) to implement in the future. </li></ul>Take the time to plan and create these documents or update them if you need to – find support e.g. from Local Infrastructure Organisations to support you if needed.
The evaluation should allow you to understand <ul><li>The purpose, goals and outcomes of the organisation </li></ul><ul><li>Who your current funders are (and what systems they may prefer) </li></ul><ul><li>What your current financial management systems are (& performance) </li></ul><ul><li>Your activity against your organisation’s constitution and goals (make amends if necessary) </li></ul><ul><li>Areas for service development/progress </li></ul><ul><li>Your progress and level of exposure against activity areas and standard/system requirements </li></ul><ul><li>Your governance processes </li></ul><ul><li>Which system is most appropriate to your organisation </li></ul><ul><li>What you need to do to pass/get accredited </li></ul>Be honest with your findings & discuss them with your stakeholder group!
Assessing your Funders and their Performance Management Needs? Traded Income (by area) Events Members & Supporters Big givers Companies Trusts Local Government Central Government Status Resources Needed Standard required? Outcomes Project Area Source
Once you have identified which system to implement you need to <ul><li>Understand the system </li></ul><ul><li>Understand the financial requirements of the system and budget accordingly </li></ul><ul><li>Understand the categories/areas within the system </li></ul><ul><li>Identify the process of evaluation and review within each category </li></ul><ul><li>Identify the approach to obtaining the standard within the organisation, considering workflow and capacity within your organisation </li></ul><ul><li>Create an SMART action plan for implementing achieving the system, with key goals that are </li></ul><ul><ul><li>Specific </li></ul></ul><ul><ul><li>Measurable </li></ul></ul><ul><ul><li>Achievable </li></ul></ul><ul><ul><li>Realistic </li></ul></ul><ul><ul><li>Timebound </li></ul></ul><ul><li>Communicate plan of work and intention to the full team within your organisation </li></ul>
Suggested Action Plan- Generic Template Following your review you should be able to start to list key actions and outputs to move your organisation forward – the generic template is to be used to share at every level of the organisation. *be sure that this communicated and owned Reference key issues or outputs required Be realistic Be clear about individual actions Notes By Whom* By When Action
Action Plan – Per Category Area This table should allow you to list against each category area what needs to be achieved to meet the standard’s requirements. Notes By Whom By When Action
Assessing Progress <ul><li>Depending upon the system you will need to both self assess and evidence the procedures, policies and tasks you have in place to deliver against identified outputs </li></ul><ul><li>It is recommended that you involve different levels of staff, volunteers, service users (where appropriate) and Trustees in this assessment so that you can get a broad view of progress made for each category area </li></ul><ul><li>Make a log of where you have fully met criteria and use the action planning template for areas where specific actions are required </li></ul><ul><li>Allocate clear owners for improvement tasks </li></ul><ul><li>Review progress on an agreed and regular basis. </li></ul>Create a timeline for final assessment Monitor progress & work towards it!
Use your work to date to <ul><li>Improve your business and strategic planning work </li></ul><ul><li>Identify opportunities for development </li></ul><ul><ul><li>List supporting actions and tasks </li></ul></ul><ul><ul><li>Give owners </li></ul></ul><ul><ul><li>Monitor </li></ul></ul><ul><li>Involve the full organisation </li></ul><ul><li>Continually monitor and review progress </li></ul>
Organisational Learning Cycle Organisational Review Building & Understanding models Agreed Strategy Integrated Action Ross & Segal 2002 Reflection Theorizing & Planning Next Steps Integrated Action