Performance Management Framework


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Performance Management Framework

  1. 1. Performance Management Framework Procedures for measuring and managing performance in Lewisham July 2008 1
  2. 2. Contents Page 1 Introduction 3 2 What is Performance Management? 3 3 Why have a Performance Management Framework? 4 4 Our Performance Management Framework, Data 4 Quality Policy and Target Setting Guidance 4.1 Target Setting 5 4.2 Data Quality 5 5 Annual Business Cycle 6 6 Lewisham’s Performance Management Framework 6 6.1 Aspirations 7 6.2 Directorate Strategies 7 6.3 Annual Service Plans 8 6.4 Local Area Agreement Targets 8 6.5 Best Value Performance Indicators/National Indicator Set 8 7 Ownership, Accountability & Performance Review 9 7.1 Lewisham Strategic Partnership 9 7.2 The Mayor Cabinet Members and Scrutiny Bodies 9 7.3 Officers 9 7.4 Frontline staff 10 8 PerformancePlus the Performance Management System 10 Appendix A Performance Management Framework Data/Reporting Flow Appendix B Performance Management Cycle 2
  3. 3. London Borough of Lewisham Performance Management Framework July 2008 1. Introduction Local Government has been instrumental in delivering a step change in the quality of services that are being provided to its residents, and in embracing new structures and regimes for service delivery. Key to service improvement has been a robust performance management framework tied into its strategic vision and aims, along with independent external validations of its performance through the Comprehensive Performance Assessment (the harder test) (CPA) (to be changed to the Comprehensive Area Assessment CAA), the Joint Area Review (JAR), and CSCI and Ofsted inspections. In the quest for service improvement local government and its partners have established Local Strategic Partnerships and Local Area Agreements to co- ordinate their efforts to deliver improvements. These methods of closer working with partners have now been recognised in the revised Comprehensive Area Assessments (CAA) that will be undertaken by the Audit Commission to measure continued service improvement . The revised assessment framework reinforces the importance of robust performance frameworks, not just within the Council but within its partner organisations as well, and structures that support joint working. The Council’s corporate priorities set out what contribution the Council will make towards delivery of the Community Strategy priorities. These Council priorities focus on the needs of local people and are geared towards ensuring that, in delivering services, the Council focuses on its citizens, functions coherently, is transparent and responds to changing needs and demands.1 The Corporate Priorities are delivered through the work of the Council’s directorates, most of whom work with partners to achieve their targets 2. What is Performance Management? The purpose of performance management is to deliver better outcomes and improved quality of life for those people who live, work and learn in Lewisham. Performance information indicates how well the Council and its partners are performing against their strategic aims and objectives. Performance management involves taking action in response to actual performance in order to make outcomes better than they would otherwise be.2 In 1 “Corporate Strategy 2008-2011 ” 2 From “What is performance management”, 3
  4. 4. order to know what actions to take, performance has to be continually monitored, using measures/indicators that assess the performance against predetermined criteria. Performance management tools and techniques can then be applied to drive service improvement and deliver better outcomes for local people. 3. Why have a Performance Management Framework? Good guidance suggests that frameworks need to be built around community and corporate priorities. Priorities should be cascaded down, through directorates, services areas and teams to an individual level through the service planning process. The key elements of performance management have been summarised as five building blocks in Choosing the Right Fabric: A framework for Performance Information3 as: Bold aspirations to stretch and motivate the organisation A coherent set of performance measures and targets to translate the aspirations into a set of specific metrics against which performance and progress can be measured Ownership and accountability to ensure that individuals, partners and organisations who are best placed to ensure delivery of targets have real ownership for doing so Rigorous performance review to ensure that continuously improving performance is delivered in line with expectations Reinforcement to motivate individuals to deliver the targeted performance 4. Our Performance Management Framework, Data Quality Policy and Target Setting Guidance. Our performance management framework ensures effective arrangements exist that integrate business planning, service review and financial management systems to enable managers to make informed decisions and improve services. Integration of service and financial planning is key to ensuring that performance management results in actual improvement. Our performance management framework ensures we provide regular performance management information to senior management, councillors and, through publication on our website, to our residents. The Management Report is produced monthly for the Executive Management Team and quarterly for Mayor and Cabinet. This report is published on the Council’s official website. The Management Report indicates how well the Council is performing against each of its corporate priorities. The purpose of the Management Report is to report on a monthly basis, achievement against targets, on service and project delivery and on management control of risks and finance. 3 Choosing the Right Fabric: A framework for Performance Information, March 2001 4
  5. 5. Each month a full account of what is being done, what has been achieved and what areas require additional management attention to ensure that future achievements will be made. 4.1 Target Setting Each year, performance is benchmarked with other Councils and targets are set to ensure continuous improvement. In addition to the national Local Area Agreement targets, Lewisham also uses local indicators to measure performance more holistically. Targets form an essential part of the performance process. Lewisham has developed comprehensive target setting guidance. Performance indicators are used by the Mayor, Cabinet and senior managers to measure progress in service delivery. September - December Jan - Mar Apr - Jun Gather outturn data, Targets cleared by Review Performance Service sets 3 year and any national HoS and DMT and Indicators to be targets to reach next benchmarking, fed into PM System measured to ensure quartile or achieve a historical data or and Corporate fit for purpose % improvement establish a baseline Plan Assess current performance level and trend as frequently as possible Whole Year: April - March 4.2 Data Quality Lewisham has drawn up a Corporate Data Quality & Control Policy which sits alongside Lewisham’s corporate performance management framework and identifies the accountability for data quality throughout the organisation. It outlines Lewisham’s approach to improving data quality across the Council to improve service outcomes. This Policy is issued to managers and staff via the Intranet and will be revised and updated each year to achieve continuous improvement reflecting learning from good practice and experience. The Corporate Data Quality & Control Policy provides the framework to support performance improvement in data quality and identifies our data quality objectives, management arrangements and the accountability for data quality throughout the organisation. Data Quality is the responsibility of every member of staff whether entering, extracting or analysing data from our own information systems or that of our partners. The policy feeds into the overall performance management and service priorities of service areas, Directorates and the Council. Data Quality risk areas are regularly monitored and reported to the Strategic Performance and Improvement Group (SPIG). This policy is published on the Council’s intranet. 5. Annual Business Cycle Using the business cycle the organisation is able to link political and corporate 5
  6. 6. planning with the budget round. The timing of service reviews has also been amended to ensure the outcome of reviews are reflected in the budget for the forthcoming year. Table 1. annual business cycle 6. Lewisham’s Performance Management Framework This document uses the building blocks outlined in paragraph 3 to describe Lewisham's performance management framework. This framework is continually being updated in line with good practice. The Council’s performance management reporting flow is illustrated in Appendix A and the performance management cycle is illustrated in Appendix B. The following paragraphs describe how each aspect of the data and reporting flow diagram contributes to managing performance. 6.1 Aspirations The Council has bold aspirations which have been derived from the needs and concerns of its stakeholders, and has developed a clear and shared sense of direction which will lead to the achievement of its aspirations. 6
  7. 7. 6.2 Measures and Targets Having established what the Council is aspiring to achieve, the next step is to translate these aspirations into measures and targets against which performance can be measured. The process through which the Directorates work to achieve Lewisham’s vision and the Corporate Priorities is known as the Service Planning Process. This includes the development of a Strategy for each Directorate and individual Service Plans for each Service Area. This process enables strategic priorities to be addressed by each directorate, at service level and through individual staff objectives and targets. The service planning process also ensures that resources are allocated to achieve the priorities. The framework has three levels: • Multi-agency – working with partners and other agencies • Strategic – vision, priorities and values informing service objectives • Operational – service objectives and plans The framework provides a clear link between strategic documents agreed by the Mayor and elected members and, by way of the Directorate Strategies and annual service plans, the aims of, and services provided by, directorates down to the roles of individual staff. 6.2 Directorate Strategies The Council is structured into five directorates:- Children and Young People Community Services Customer Services Regeneration 7
  8. 8. Resources Each of the Directorates has a strategy which covers a period of three years, (currently 2006-09). These documents link together the Directorate’s strategic priorities, its budget decisions, and performance measurement to corporate priorities. 6.3 Annual Service Plans The annual service plans inform operational management/action planning and the Performance Evaluation System. Where the work of a service is linked to the delivery of a major strategic plan, these plans in many cases act as the individual service plan and it is for this reason that the Planning Framework illustrates major strategic plans as either feeding directly into the Corporate Priorities, Directorate Strategy or a Service Plan. The service planning process begins with each service area reviewing their performance and key challenges for the year ahead, possibly using one of a range of self-assessment tools. The intention is to ensure that service plans are developed in a way that is better informed by an honest appraisal of known strengths and areas for improvement. Service plans provide an action plan for the year ahead with performance indicators and targets to measure performance against the activities in the action plan. They also include an equalities assessment, Value for Money (VfM) profiles and risk register. 6.4 Local Area Agreement Targets The Local Area Agreement between Lewisham and central Government bodies is based on a wide range of indicators. Targets have been established to measure performance in all the LAA areas. The Lewisham Strategic Partnership is responsible for providing an overview of the process and play a key role in monitoring performance. Six existing partnership bodies, the Children and Young Peoples Strategic Partnership, Adult Strategic Partnership, Economic Development and Enterprise Board, Safer Lewisham Partnership, Stronger Communities Partnership and Sustainable Development Partnership, which correspond to the LAA priority blocks, will monitor plans and associated activities that will ensure action is taken to deliver on each indicator. 6.5 Best Value Performance Indicators/ National Indicator Set Since 1992, all local authorities have been required to measure performance in accordance with nationally agreed performance indicators from a number of assessment frameworks and auditing bodies. These frameworks and indicators have been updated and amalgamated into a new set to be collected from 2008/09. These cover the range of services provided by local authorities and are linked to Public Service Agreement targets set by Central Government 8
  9. 9. Departments. Data collection arrangements for individual services are defined and managed/audited by either the relevant inspection body, the Chartered Institute for Public Finance and Accounting (CIPFA) and/or the Audit Commission. 7 Ownership, Accountability & Performance Review 7.1 Lewisham Strategic Partnership (LSP) Lewisham Strategic Partnership (LSP) brings together representatives from the public, private, voluntary and community sectors. The partners on the LSP work together to deliver improvements in the social, economic and environmental wellbeing of all those who live, work and study in the borough. The LSP is at the centre of existing partnerships and provides a strategic umbrella for policy developments and performance monitoring to ensure that all partners and partnerships are working towards the same goals. The LSP is responsible for monitoring the implementation of the Sustainable Community Strategy and the Neighbourhood Renewal Strategy. It manages this through regular meetings every two months, as well as six bodies that monitor work in different strategic areas: • Safer Lewisham Partnership • Children and Young Peoples Strategic Partnership • Adult Strategic Partnership • Economic Development and Enterprise • Stronger Communities Partnership • Sustainable Development Partnership 7.2 The Mayor, Cabinet Members and Scrutiny Bodies In addition to his work as part of the LSP, the Mayor takes personal responsibility for the performance of Council services. Advised by a cabinet of members who advise on the work of each of the five directorates, as well as champions for the cross-cutting themes of older people and community safety, regular performance information is considered on a quarterly basis. A range of scrutiny bodies also meet and work through a published programme of business that includes review of mayor and officer decisions. 7.3 Officers There is a clear performance management structure to manage performance, set targets and make necessary service changes to affect improvements where necessary. The Executive Management Team (EMT) which includes the Chief Executive and Executive Directors from each of the five Directorates receive monthly reports setting out headline exceptions of good and poor performance from a range of key indicators. The basket of indicators is reviewed regularly. Each Directorate also manages performance at Directorate Management Team meetings, also on a monthly basis. 9
  10. 10. In addition, there is a corporate policy and partnerships unit and divisions in each directorate that take responsibility for policy and performance. The heads of each division meet with officers from the corporate unit at a Strategy Performance and Improvement Group (SPIG). This body considers the strategic approach to policy and performance issues and provides the Mayor with strategic options to improve performance. Staff from performance units in each directorate also meet regularly at a Corporate Performance Management Group and associated working group sessions. Work focuses on the practical day-to-day issues of collecting information, data quality, service performance and managing the senior officer monitoring process. 7.4 Frontline Staff Performance data is mostly owned and managed by frontline staff, either through recorded data on a supporting database or another robust system of measurement. Lewisham also supports a range of user satisfaction surveys, seeking the views of both residents and service users in both the planning of services and inspections, that, where necessary, are supported by an external polling company such as MORI. Some data is provided by other external agencies such as the Primary Care Trust (PCT), the Metropolitan Police, etc. 8. PerformancePlus the Performance Management System The whole performance system is supported by a range of performance officers who ensure that systems are in place to collect the data and check for accuracy and completeness. These officers may be located within the frontline service, the Directorate or at the corporate centre, but all meet regularly to ensure consistency of approach and sharing of best practice. The Council has implemented a new performance management system to further improve our performance management arrangements. PerformancePlus (P+) software has been introduced internally. P+ is a data management tool that allows us to manage performance, risk, projects and finance in one place. It delivers a consistent approach to monitoring and managing risk and performance across the Council and allows service areas to be more involved in driving performance improvement. P+ is a “one-stop-shop” where everyone is able to browse performance and drill down to the level that they need [from Council structure to data entry]. The focus will expand to multi-agency arrangements, enabling the Council and partners to share performance information, reduce processing time and better inform performance management action planning and service improvement across the local partnership. July 2008 10
  11. 11. Appendix A Performance Management Framework Data/Reporting Flow Target Setting Guidlines Data Quality Policy Target setting And Monitoring Scrutiny & EMT Mayor and Cabinet Corporate Strategy Council Departmental Management Teams LAA Thematic Partnerships Directorate Strategies Sustainable Community Strategy Stronger Communities Partnership Safer Lewisham & Partnership Annual Service Plans Children and Young People Strategic Partnership Adult Strategic LSP Partner Service Plans Partner Partnership Board organisations management teams Economic Development and Enterprise Local Area Agreement Sustainable Development Partnership
  12. 12. Appendix B Performance Management Sustainable Community Strategy Cycle Directorate Strategies Annual Service Plans Partner Service Plans Local Area Agreements Plan - based on current performance, prioritise what needs to be done, identify actions that need to be taken and plan for improvement using appropriate measures and targets Plan Do - make sure the proper systems and processes are in place to support improvement, take appropriate action, manage risk and help people to achieve better performance Service delivery targets, Service Revise Do methods, Vision, aims and objectives delivery resources etc Revise - use the lessons learned from the review to change what we do so that future action is more efficient and effective Review Review - understand the impact of our actions, review performance, speak to users and stakeholders about their experience of performance Service Teams Monitoring and reporting to; DMT, EMT, LAA Thematic Partnerships LSP Board Scrutiny Committee Mayor and Cabinet GOL