Managing Performance at Derbyshire Dales District Council

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Managing Performance at Derbyshire Dales District Council

  1. 1. Managing Performance at Derbyshire Dales District Council Module 1: A Practical Handbook
  2. 2. Contents Page 1. Glossary of Acronyms and Other Terms 3 2. What is the purpose of this handbook? 4 3. What is performance management? 4 4. Why performance management? 5 5. What are the characteristics of effective Performance Management? 5 6. Why are the Council’s Aims and Priorities so important? 5 7. What about budgets? 6 8. What are the key building blocks? 6 9. What does this all mean in practice? 7 10. Annual Service and Financial Planning, and Performance Management Cycle 8 11. So what does this mean for you? 9 12. Where can I get more information and help? 13 13. Useful Web Sites 14 Module 2: Derbyshire Dales District Council Corporate Plan 2003-2004 Module 3: Best Value Performance Plan Module 4: Best Value Performance Indicators & Local Performance Indicators: Preparation and Submission Guidance Module 5: Best Value Performance Plan 2003/2004: Service Plan Completion Guidance Module 6: Personal Development Scheme Module 7: A Guide to Carrying Out Best Value Reviews 2003 Best Value Review Checklist 2003 2
  3. 3. 1. Glossary of Acronyms and Other Terms The following acronyms and terms are used frequently at Derbyshire Dales District Council Business Plan Sets out divisional priorities and targets for the year ahead Best Value Performance Indicators BVPI (Statutory measures of performance) BVR Best Value Review BVPP Best Value Performance Plan CPA Comprehensive Performance Assessment FPI Financial Performance Indicator IDeA Improvement and Development Agency KPI Key Performance Indicator LPI Local Performance Indicator LSP Local Strategic Partnership PMF Performance Management Framework Specific Measurable SMART Achievable Realistic Time based 3
  4. 4. 2. What is the purpose of this handbook? Performance Management is a term that we frequently use, but it is also one that is not always understood. Over the last year, Derbyshire Dales District Council has put in place a new Performance Management framework, to assist the development of an already strong performance driven culture across the authority. To maintain and develop this further, it is important that all councillors and employees have an understanding of the principles of performance management, and how these are being applied at Derbyshire Dales District Council. This handbook pulls together, into one user-friendly document, the main mechanisms, approaches and policies used to monitor, report and improve performance. As with all new processes, there is also a language to learn. To help you with this, a glossary of terms has been included. This short guide is a starting point, and throughout, you will be guided to more detailed guidance on various parts of the Council’s Performance Management Framework. 3. What is performance management? There are many definitions of Performance Management, but put simply, it is how the Council and its employees go about achieving their common aims. To effectively manage performance, Members, Chief Officers, Managers and Employees must be able to demonstrate that: • They know what they are aiming for • They know what they must do achieve these aims • They know how to measure progress towards your aims • They are able to detect and take action to solve problems that occur At Derbyshire Dales District Council, effective performance management requires a co- ordinated approach to planning and review, to enable key decision makers, both political and managerial, to take action based on facts about performance. 4
  5. 5. 4. Why performance management? Delivering excellent services to residents and businesses in the Derbyshire Dales is one of the Council’s main priorities, and Effective Performance Management is integral to this. The principles that underpin performance management are: • What gets measured gets done • If you don’t measure results, you can not differentiate between success and failure • If you can’t see success, you can’t reward it • If you can’t reward success, you’re probably rewarding failure • If you can’t see success, you can’t learn from it • If you can demonstrate results, you can win public support Source: ‘Re-inventing Government’ – Osborne & Gaeblar 5. What are the characteristics of effective performance management? The IDeA have identified the following as characteristics for effective Performance Management: • A clear vision and purpose and a focus on outcomes • Commitment to and enthusiasm for realising the community’s aspirations • Effective democratic and community engagement • Robust planning, monitoring and review systems • Strategic and enabling corporate management arrangements Derbyshire Dales District Council’s approach to performance management, displays all of these characteristics, beginning with a clear vision and purpose. 6. Why are the Council’s Aims and Priorities so important? Derbyshire Dales District Council recognises that to be successful, it must be aware of what it is aiming for, and have a clear vision and focus. This is achieved through the Council’s Aims and Priorities, which are set out in the Council’s Corporate Plan (Module 2). The Council has four overarching aims, and these are underpinned by six priorities for the next four years. These are supported by specific service objectives and SMART1 targets, which are reviewed annually. The setting of long term aims and priorities that reflect national and community aspirations is only a start, as these can only be achieved if service and individual employee objectives are aligned to these. 1 Specific, Measurable, Achievable, Realistic, Time based 5
  6. 6. 7. What about budgets? The re-direction of resources to priority areas is a vital part of performance management. This requires co-ordinated planning and review systems to enable Members to agree plans, priorities and standards of service, and facilitate the appropriate distribution of resources. To ensure that resources are targeted towards priority areas, corporate priorities and budget options are developed simultaneously. 8. What are the key building blocks? Aims and Priorities that reflect national and local priorities and stretch and motivate DDDC A coherent set of SMART priorities and targets that reflect both national and local priorities and stretch and motivate DDDC Ownership & Accountability Rigorous Performance Review to ensure individuals who are best placed to to ensure continuously improving ensure delivery of targets take real ownership performance is being delivered in line with of them expectations Reinforcement to motivate individuals to deliver the targeted performance 6
  7. 7. 9. What does this all mean in practice? Community Strategy Sets out the long-term vision for the Derbyshire Dales. Published in March 2003, the strategy will be implemented by the Local Strategic Partnership. Sets out both the long term vision for Derbyshire Corporate Plan Dales District Council and targets for 2003/04 – The Corporate Plan is updated annually Sets out both the long-term vision for Derbyshire Performance Plan Dales District Council, and priorities, individual service plans and budgets for 2003/04. Set out yearly objectives and targets for individual services, which are aligned to the Council’s Service & Financial Plans Corporate Plan, and the resources that are required to deliver these. (Included in the Performance Plan) Set out a five year programme of step change Best Value Action Plans improvements, based on Best Value Reviews of priority areas (Included in the Performance Plan) Set out yearly objectives and targets for Personal Development Plans individual employees, and training requirements to achieve these, which are aligned to the service’s objectives and targets. Quarterly monitoring of BVPIs Chief Officers and Senior Managers monitor & FPIs CPA/Corporate progress against targets and performance in Management Team priority areas monthly. The BVOP monitors and scrutinises progress Best Value Overview Panel against targets and performance in Best Value Action Plans annually and considers and approves corrective action where necessary. The Council’s policy committees monitor and scrutinise progress against targets and performance in priority areas affecting relevant Community & Environment Committee service areas, and consider and approve Partnership & Regeneration Committee corrective action where necessary, quarterly. 7
  8. 8. 10. Derbyshire Dales District Council Annual Service and Financial Planning, & Performance Management Cycle Start of annual service and financial planning cycle April 31st April – deadline for submitting last year’s outturn Local and Best Value Performance Indicators to Policy May Analyst Managers begin to consider emerging priorities June 30th June – deadline for publication of Performance Plan and submission of BVPIs to the Audit Commission July Preparation of the Capital Strategy First report of outturn BVPIs & FPIs* to CPA/CM Team August 1st Quarterly report on BVPIs & FPIs to Policy Committees September Members and CMT meet to discuss Corporate Priorities for the forthcoming year and Budget Options (growth and savings) Preparation of the Revenue Financial Strategy October Managers prepare draft service and financial plans 2nd Quarterly report on BVPIs & FPIs to Policy Committees November Corporate Plan goes before Council December January Summary Performance Information & Draft BVPP Produced February 3rd Quarterly report on BVPIs & FPIs to Policy Committees Council sets the budget and agrees BVPP March Corporate Plan Published April Completion of employee Personal Development Interviews May 4th Quarterly report on BVPIs & FPIs to Policy Committees * From 2004/05, Members and Officers will be able to access FPIs on-line. 8
  9. 9. 11. What does this mean for you? All councillors and employees of Derbyshire Dales District Council are involved in performance management to varying degrees. Personal Development Scheme Between April and May each year, every employee will have a Personal Development Interview. During the interview you will set, in agreement with your supervisor/manager, your objectives and targets, and training needs to achieve these for the next twelve months. These should contribute towards achieving the objectives and targets for your service area for the next twelve months. Service Plans can be found in the Best Value Performance Plan. More detailed guidance on the Personal Development Scheme is available in Module 6. Performance Indicators Performance indicators are the tools of performance measurement, which show how well we are progressing towards achieving our goals. Goals can be expressed as outcomes (for example, whether residents feel that the streets are clean) or outputs (for example, the number of times the streets are swept) and indicators are used as measures of performance in relation to these. As well as measuring our own achievements, performance indicators allow you to assess how well we are doing in comparison to other organisations that use the same indicators. Through comparison with others, and the explanation of differences, the best ways of improving performance and setting realistic targets can be identified. Types of Performance Indicators National indicators • Best Value Performance Indicators give a view of the organisational, financial, managerial and democratic integrity of the Council and the delivery of some specified services. Local indicators • Locally-set performance indicators reflect local priorities and provide key management information for services where there are no national indicators. The government has established five aspects of performance, and indicators should address any one of these five. They are: Strategic objectives Why the service exists and what it hopes to achieve Service delivery outcomes How well the service is being operated in order to achieve its objectives Quality The quality of the services delivered, reflecting users’ experience of services The resources committed to a service and the efficiency with which they are Cost/efficiency turned into outputs Fair access Ease and equality of access to services Financial Performance Indicators • Locally set performance indicator to measure how effectively the Council manages its most significant budgets 9
  10. 10. Annual Reporting of Performance Indicators If you have responsibility for a Local Performance Indicator, Best Value Performance Indicator and/or a Financial Performance Indicator, you have another performance management role. Firstly, you are responsible for understanding the indicators that come under your service area, how the indicator is defined, and what methodology should be used to calculate it. Secondly, you are also responsible for collating the information needed for and the calculation of the indicator. An estimate should be calculated and included in draft service plans in November, and the actual or outturn figure for the financial year should be calculated as soon as possible after the 1st April and included in the final version of the service plan. The statutory deadline for the submission of performance indicators, and the publication of the Best Value Performance Plan, which includes all indicators, is the 30th June. Therefore, all Local Performance Indicators and Best Value Performance Indicators must be available from you, by the 31st April, to enable all calculations to be verified. Guidance on the preparation and submission of performance indicators is available in the Module 4. Performance Monitoring In addition to annual reporting of performance indicators, the District Council monitors performance using Best Value Performance Indicators and Financial Performance Indicators throughout the year. A traffic light system is used, to determine which indicators should be monitored and how often. If an indicator is top quartile (i.e. amongst the top 25% of Councils), above or on target, or is improving dramatically, it is classed as being green and monitored annually by Members and bi-annually by the CMT. If an indicator has fallen from top quartile (i.e. amongst the top 25% of Councils), has fallen below target, or is deteriorating, it is classed as being amber and monitored bi-annually by Members and quarterly by the CMT. For amber Best Value Performance Indicators, managers are required to include a corrective action plan to improve the performance of the indicator, with each update. If an indicator is bottom quartile (i.e. amongst the worst 25% of Councils), is substantially below target, or is deteriorating rapidly, it is classed as being red and monitored quarterly by Members and monthly by the CMT. For red Best Value Performance Indicators, managers are required to include a corrective action plan to improve the performance of the indicator, with each update. The classification of indicators, using outturn data for the previous year, takes place in July and is carried out by the Policy Analyst in conjunction with Heads of Service and the managers responsible for the indicators. Once the indicators have been classified, managers are informed by the Policy Analyst how often they will have to provide updates on their Best Value Performance Indicators and when updates and corrective action plans are required. The Policy Analyst is responsible for preparing performance update reports, in conjunction with the manager responsible for the Best Value Performance Indicator. Updates are reported using the following format, which enables performance trends, comparative information and comments to be presented in a concise and informative format. 10
  11. 11. BV82b Household waste composted Performance Comparisons 3% Quartile Trend Target 2 Actual Target A 2% Better that District Council % Median 1% Comments Current estimate, based on Saturday green waste 1.0% vehicle statistics for April - August 2003, indicate 0.7% that 1% of household waste will be composted. The indicator is therefore exactly on target. It is assumed that leaf-fall collected from streets will be similar to last year. Leaves make up the biggest element of 0.0% 0.0% waste composted. 0% 2000/01 2001/02 2002/03 April - August 03 Best Value Performance Plan – Service Plans Service and Financial Plans are used to manage the performance of service areas, for example, street cleansing, private sector housing and internal audit. These are prepared on a yearly basis, included in the District Council’s Best Value Performance Plan, and have at least two pages of information, including: • A summary of what the service does • How this supports Council Aims and Objectives • Its key objectives for the coming years • Data summarising the level of service provided • A list of the main plans and strategies relating to the service. • Performance indicators (together with targets and achievements) for 2002/2003 • Performance targets for 2003/2004, 2004/2005 and 2005/2006 • Top Quartile figures for BVPIs • An Improvement Action Plan - where a Best Value Review has been completed • Financial statements setting out the budget available More detailed guidance on the completion of Best Value Performance Plan Service Plans is available in Module 5, and the service planning timetable can be found in Section 9 above. 11
  12. 12. Best Value Review Action Plans The implementation and impact of Best Value Review Action Plans are monitored quarterly by the CMT and at least annually by the Best Value Overview Panel. If you are responsible for an action plan, the Policy Analyst will inform you when updates are required. The role of Internal Audit Throughout the year, Internal Audit carries out an audit of all District Council Departments. This audit includes performance management systems, including the collation and reporting of Performance Indicators and the reality checking of Best Value Action Plan updates. Performance Improvement – Suggestion Scheme The District Council’s suggestions scheme is an effective form of employee involvement and organisational development that enables employees, residents and stakeholders to contribute ideas for improving the organisation and the services it provides. Suggestions are made using the pro forma available at District Council offices (Matlock, Ashbourne, Bakewell, Wirksworth) and depots, and returned using the suggestions box at Matlock or the pre-paid envelope provided. The suggestions box scheme is administered by the Policy and Research Team, which ensures that: • All feedback is passed to the relevant officer, and/or relevant organisation, and that people are notified of this. • Where possible, a reply is sent within 10 working days, notifying of progress or outcome. • All feedback is carefully considered by the District Council and used to ensure the highest standards of services are provided. 12
  13. 13. 12. Where can I get more information and help? Action Planning Policy & Research Team Gavin Thompson (ext 1351) Best Value Performance Plan Policy & Research Team Gavin Thompson (ext 1351) Community Strategy Policy & Research Team Peter Corke (ext 1211) Corporate Plan Policy & Research Team Steve Capes (ext 1371) Financial Performance Indicators Finance Manager Phil Colledge (ext 1203) Internal Audit Internal Audit Bill Beckett (ext 1230) Performance Indicators Policy & Research Team Gavin Thompson (ext 1351) Performance Management: Policy & Research Team Gavin Thompson (ext 1351) Performance Monitoring Policy & Research Team Gavin Thompson (ext 1351) Personal Development Scheme Personnel & Management Services John Hopkinson (ext 1364) Service Plans See Service heads or Policy & Research Team Gavin Thompson (ext 1351) Suggestions Box Policy & Research Team Gavin Thompson (ext 1351) Target Setting Policy & Research Team Gavin Thompson (ext 1351) 13
  14. 14. 13. Useful Web Sites Audit Commission www.audit-commission.gov.uk Best Value Performance Indicators www.bvpi.gov.uk Improvement & Development Agency www.idea.gov.uk Office of the Deputy Prime Minister www.odpm.gov.uk Performance Management www.idea.gov.uk 14

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