Unit 8: Performance Management Systems
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1 Unit 8: Performance Management Systems Part 1- Evaluating Performance Management Systems Many parliaments make use of various performance management systems to evaluate their effectiveness as a corporate institution. A number of these tools have proven to be instrumental in gauging performance and improving management capacity. In recent years, the three systems most commonly used in a parliamentary environment are strategic planning, benchmarking, and surveying. 1) Strategic Planning As explained in Unit 5, strategic planning is "a planning process that includes identifying what the organization wants to achieve (its vision, mission and objectives), how it will achieve these goals (the action plans) and how it will measure its success (verifiable indicators)." 1 This definition from the Government of Western Cape, South Africa, clearly enunciates the need to evaluate performance when undertaking corporate planning. Without a performance measurement, an organization cannot determine its level of success or failure and could inadvertently choose to undertake strategic actions or make decisions that do not advance the goals and objectives of the institution. Performance measurements enable the corporate leadership to: Maintain effective oversight over the management of the organization; Ensure transparency and accountability of its operations; and Take (or reassess) appropriate actions and decisions. 1 Western Cape Government, "Definitions for Government Terms" (Online) Available at (Accessed September, 2012). 1
2 In strategic planning, measurement tools are often referred to as key performance indicators (KPI's). They are used to gauge, monitor and manage performance in the interest of reaching the organization s corporate goals and objectives. KPI's assess an organization s effectiveness and determine levels of success or lack thereof. Let us consider and analyze some typical KPI's in a parliamentary strategic plan. We will assume an organizational goal is to build the capacity of the secretariat to meet the needs of the House and its committees for sound information, policy and budgetary analysis. The objective is to improve the research, legislative drafting, and policy and budget analysis skills of parliamentary research and library officials. The performance measures or KPI s could be as follows: 1. Submission and approval of training calendar and budget for staff capacity building; 2. Number of officials trained in research, legislative drafting, and policy and budget analysis; 3. Member and Committee levels of satisfaction on the quality of research, legislative drafting, and policy and budget analysis delivered. These KPI's provide information about performance on a particular goal but cannot meaningfully assess the overall effectiveness of the institution. For example, the KPI's noted above do not address the catalysts that will ensure a sustainable capacity to deliver on the desired goal, such as human resource practices, and other organizational policies and procedures. Informative performance measurement can only be achieved when the institution s all-inclusive set of goals and objectives are assessed in a reasonable, quantifiable, and meaningful way. KPI s are often the object of criticism by auditors. Developing strong indicators is a work in progress as organizations attempt to perfect them over time. Therefore, organizations that wish to measure performance solely using KPI s should proceed with caution, as this method of assessment cannot be viewed as a panacea. 2) Benchmarking 2
3 Benchmarking is a uniform and systematic approach to conducting capacity assessment. It helps to measure an organization relative to others that are similar to it. In a parliamentary context, benchmarking is a structured approach for identifying recognized best practices from other parliaments and parliamentary associations and, if practical or feasible, applying them to your own parliamentary operations, strategies, processes and procedures. AGORA, a leading website "portal" for the parliamentary development community, describes how benchmarking is gaining recognition as a useful resource tool in performance management. "Parliaments are increasingly assessing themselves against international norms and standards as they seek to become more independent, accountable, and responsive, and improve the way they carry out their representative, legislative and oversight functions. Major inter-parliamentary organizations and their partners are working to develop standards and assessment frameworks for democratic parliaments. Such standards can contribute to parliament s own evaluative and reform efforts to strengthen their performance..." 2 Major international inter-parliamentary organizations (see attachment 1) have joined efforts to fashion a level of commonality between their different assessment frameworks. In terms of content, the standards and benchmarks are relatively the same, concentrating mostly on the constitutional roles and responsibilities of parliaments (to legislate, represent constituents and keep the Executive accountable). The corporate management benchmarks that are presented are also very similar in content. However, they are limited and generally focus on the need for permanent, professional staff and protection of the Clerk/Secretary General from undue political pressure. While these benchmarks are significant, they are not sufficiently comprehensive to determine success across the corporate side of the organization. Benchmarking parliamentary management is an on-going challenge. In 2000, the Clerk of the Parliament of Queensland, Australia, commissioned a "benchmarking" study 3 and wrote to all Australian state legislatures seeking their participation. The benchmarking study findings were as follows: 2 About Standards for Democratic Parliaments < 3 Neil Laurie, Clerk of the Parliament, Queensland, Benchmarking, KPI's, Annual Reporting for Parliamentary Departments and the Use of Member Surveys, Paper presented at ANZACATT Professional Development Seminar, January,
4 Not all Parliaments responded; Some indicated concern about confidentiality; States had differing accounting/budgeting arrangements; There were some inconsistencies in the information provided; and There were different perspectives of the purpose and value of the exercise. Attempting to harmonize benchmarks or standards at the international level would be even more challenging due to the distinctiveness of the various parliaments. The benchmarking process can only be as good as the commitment of each parliament to participate. Because of the lack of a comprehensive approach to establishing internationally accepted standards on parliamentary management, legislatures use staff secondments/exchanges, parliamentary conferences and seminars, and parliamentary website portals to seek best practices. 3) Surveys The parliamentary secretariat exists to serve individual Members and the public on a daily basis. Unless their level of satisfaction is gauged, the secretariat risks perpetuating or incurring problems affecting the level of service Members and the public depend on. Surveying key stakeholders (i.e. Members, the public, employees) can give useful feedback on the level and quality of service and support the Institution provides. Client and employee targeted surveys can bring about needed changes in an organization. Likewise, employee feedback can inform about the mood and morale of the workforce set a direction for resolving issues before it is too late. There are several methodologies for carrying out surveys (e.g. face-to-face, questionnaire, telephone, ), which have, all proven to be useful. However, there are also risks to surveys: 4
5 1) Members: In a parliamentary milieu, the response rate to questionnaire surveys is low and usually not answered by those most important for feedback, the leadership and Ministers. 2) Public: For the findings to be useful, a survey should be designed by professionals to ensure it is unbiased and methodologically sound. A large survey sample could incur high costs for the institution. Despite the advent of social media feedback, data has not proven to be representative of the targeted groups. 3) Employees: Consulting employees on levels of service can be a source of motivation but could also be used as a medium to voice grievances. Despite its limitations, surveying stakeholders can provide information that can lead to timely remedial action. "Parliament may be a historic institution, but to remain relevant and healthy in the 21st century, its practices and systems must keep pace with those of the society it serves and, of almost equal importance, must be recognized as doing so." 4 Although the three performance management systems described in this unit bring certain risks and limitations, they are nonetheless excellent tools. If properly implemented, they will help build stronger institutions and enhance public trust and confidence. 4 Jill Anne Joseph, Benchmarking our Legislatures, Canadian Parliamentary review, Autumn, 2010, p.56 5
6 Part 2- Finding a Solution to Assess Management in Parliament (adopting a Management Accountability Framework) The challenge for all parliaments is to bridge the gap between current management capacity and the optimal performance level they aspire to achieve. Good management frameworks can provide solutions. "Having the best people, cutting-edge technology, and time-tested protocols is certainly helpful. But true excellence requires continuous measurement, tracking, and research." 5 In the search for excellence, public sectors all over the world have developed management frameworks by which performance can be measured. For example, the European Union 6, India 7, Kenya 8, New Zealand 9, Canada 10 and United Kingdom 11 have introduced more sophisticated measurements within their government departments and agencies. A comparison of these six examples reveals that they are similar in intent (performance management) and methodology (regular diagnosis of organizational capability). They all provide a management accountability framework from which public institutions can gauge their success. Based on certain elements of sound management, a "parliamentary" management accountability framework (MAF) model has been drafted from international best practices and from the course content. It is an integrated model that sets out ten elements which collectively define "management with a series of indicators and associated measurements to assist you in determining your institution s management maturity, identifying areas of strength and weakness, and establishing a pathway to promote continual management improvement. 5 Todd Strubbe, "Customer Surveys Improve Customer Service", June 27, 2006, (Online) Available at (Accessed September, 2012). 6 European Union, < 7 India, < 8 Kenya, < 9 New Zealand, < 10 Canada, < 11 United Kingdom, < 6
7 The following model is intended to serve as a tool to help you look at management practices and policies and determine that the key elements for sound management are in place in your Parliament. Management Accountability Framework and Indicators 12 (Ten essential elements of sound management and a series of indicators and associated measurements) 1. Values and Ethics Through their actions, institutional corporate leaders continually reinforce the importance of "public interest" values and ethics (e.g. democratic, professional, ethical and people values) Values-based Leadership and Organizational Culture-Institutional leaders embody "public interest" values and ethics and foster a culture of integrity and respect in the Institution Leadership demonstration and promotion of strong institutional values and ethics; Institutional values and ethics infrastructure in place, understood and effective; Intrinsic institutional culture of values and ethics is reflective of the public's expectation and interest. 2. Governance and Strategic Directions The essential conditions autonomy, internal coherence, corporate discipline and alignment to outcomes (vision and strategic goals) are in place to provide effective strategic direction, support to Members, and the delivery of results. 12 (Please note that the text of MAF was modified to align the elements with those relevant to Parliament) Canada, Treasury Board of Canada, "Management Accountability Framework" 2012, (Online) Available at (Accessed September 2012). 7
8 2.1 Autonomy of parliament -A corporate governance that is independent from the executive arm of the State (Institutional and Political Autonomy): The statutory and policy frameworks (Statutes, Standing Orders, policies and procedures) are adapted and amended by Parliament (Financial Autonomy): An all-party committee of Members (i.e. or the Corporate body) has the authority to review and administer Parliament's budget which should not be subject to amendments by the Executive (a Latimer House Principle) (Administrative): The Legislature shall have adequate non-partisan professional staff to support its operations including the operations of its committees. (a CPA benchmark) (Administrative) The Legislature has the capacity to have and manage its own properties and buildings and to be part of contracts 2.2 Effectiveness of the Corporate Management Structure: An integrated corporate system of decision-making enables effective allocation of resources to priorities, alignment of activities to outcomes (Vision and Goals) and management of accountabilities Extent to which roles and responsibilities of the leadership stakeholders (Speaker, Corporate Body and Head of the Parliamentary Service) are clearly defined (Constitution, Statutes, Rules or Policies) Extent to which the decisions and actions are taken in the interest of the public Extent to which the organization s Corporate Governance Structure is aligned to the Institution's Corporate Business Plan and the degree to which it reviews program activity priorities, performance, and resource allocations Extent to which the organization s Corporate Business Plan (i.e. strategic and annual action plans) is aligned to corporate priorities, serves to align sector business plans and resource allocations, and integrates HR, IM/IT, communications and other corporate plans 2.3 Utility of the Corporate Performance Framework-A robust performance framework 8
9 reinforces corporate alignment to outcomes (vision and goals) Quality of the performance measurement framework deliverables, (including expected results, targets and performance indicators, responsibilities, time frames, data sources, and frequencies of data collection) Extent to which the performance measurement framework is used to support organizational decision-making 2.4 Effectiveness of Institution to foster efficiency and effectiveness through ongoing adoption of best practices and continuous improvement-leadership of and commitment to improvements Degree to which organizations are effectively participating in selected horizontal initiatives without risking its institutional autonomy (within Parliament in the case of bicameral Institutions, other parliaments or government departments/agencies) Extent to which the performance measurement framework is based on achieving best practices 3. Policy and Programs Institutional research and analytic capacity is developed and sustained to assure high quality policy options, program design and advice to the corporate body. 3.1 Quality of Analysis in Corporate Body Submissions-The organization puts forward corporate body submissions with realistic options, well-identified risk factors and mitigation strategies, and appropriate context Accuracy and reliability of supporting information in Corporate Body Submissions Quality, adequacy and soundness of analysis (including outcomes, factual analysis, performance history, options, business case, program and project approvals, financial and non-financial performance projections, risk factors and mitigation strategies to 9
10 address audit findings) 4. Results and Performance Relevant information on results (internal, service and program) is gathered and used to make departmental decisions, and public reporting is balanced, transparent, and easy to understand. 4.1 Quality and Use of Evaluation-Evaluation is valued by the Head of Parliamentary Service and is used to inform expenditure and policy decision-making Quality of evaluations, including focus on value for money and program improvement Neutrality of evaluation function (governance and resources) Evaluation coverage of the organization s programs Use of evaluation in support of decision-making in the organization 4.2 Quality of Performance Reporting- Institutional Annual Corporate Reports are credible, reliable, balanced, and are of high quality Extent to which clear performance expectations (in the Corporate Business Plan) are tracked and reported on in the Institutional Annual Corporate Report. Extent to which the Institutional Annual Corporate Reports sets performance in context, is balanced and reports on lessons learned 5. Learning, Innovation and Change Management The organization anticipates and plans organizational change, promotes organizational learning, and systematically assesses results to facilitate continuous improvement and innovation. 5.1 Managing Organizational Change- Organizational change management is defined as a concerted, planned effort to increase organizational effectiveness 10
11 Presence of an organizational change plan and the capacity to seek opportunities for improvement Extent to which the organization is engaged when undertaking change management, and change processes are clear and well understood Extent to which the organization can assess change and demonstrate results, and the level of commitment of senior management 6. Risk Management The executive team clearly defines the corporate context and practices for managing organizational and strategic risks proactively. 6.1 Effectiveness of Corporate Risk Management- Risk is a factor in corporate decisionmaking processes and management Senior management directs, participates in and provides oversight of the organization s Risk Management approach Organization is implementing its Risk Management approach Risk Management explicitly informs corporate decision-making, planning and reporting 7. People The department has the people, work environment and focus on building capacity and leadership to assure its success and a confident future. 7.1 Extent to which the Workplace is Fair, Enabling, Healthy and Safe- A workplace that is fair, enabling, and healthy and safe in order to provide the best services to Members Extent to which the workplace exhibits fair employment and workplace practices and 11
12 effective labor relations Extent to which the workplace exhibits clear direction, collaboration, respect and support for employee diversity and personal circumstances in order to enable them to fulfill their mandate Extent to which the workplace is a healthy and safe physical and psychological environment 7.2 Extent to which the Workforce is Productive, Principled, Sustainable and Adaptable-A workforce that is productive, principled, sustainable and adaptable in order to provide the best services to its citizens A committed workforce with the size, mix of skills and the diversity of backgrounds to competently perform its duties Extent to which the workforce is reflective of the country's population, and performs its duties guided by the values and ethics in the public's interest Extent to which the workforce is versatile, innovative and engages in continuous learning 8. Stewardship The departmental control regime (assets, money, people, services, etc.) is integrated and effective, and its underlying principles are clear to all staff. 8.1 Effectiveness of Information Management (note: for info only...to be covered in subsequent module) ---Information Management (IM) supports the Institution's business strategy. The statutory and regulatory requirements, of the Access to Information and Privacy Acts, if applicable to Parliaments, have been met. 12
13 Corporate governance for information management Management of information and records to meet program and service outcomes, operational needs and accountabilities Statutory and regulatory requirements of the Privacy Act are met (including sound management practices with respect to the handling and protection of personal information and consistent public reporting on the administration of the Act) If applicable to Parliament, statutory and regulatory requirements of the Access to Information Act are met (including consistent public reporting on the administration of the Act) 8.2 Effectiveness of Information Technology Management (note: for info. only... to be covered in subsequent module) ---Information Technology (IT) supports the organization s business strategy and government-wide objectives LEADERSHIP: Designation of a senior official to ensure that information technology supports the organization's business strategy and government-wide objectives and participation in setting government-wide strategic directions for information technology PLANNING: Alignment of information technology plans with the overall the strategic directions for information technology and that information technology governance structures are integrated with the corporate governance structure and define appropriate decision rights VALUE: Organizational use common or shared IT assets and services to avoid duplication, when such assets and services are available and appropriate, and performance measurement tools and the use of metrics to guide departmental management of information technology towards improved efficiency, effectiveness and innovation 13
14 8.3 Effectiveness of Asset Management Procurement- Effective Lifecycle Asset Management supports the organization s business strategy and delivery of programs and services Evidence Procurement Management founded in an effective regime for planning, decision making and governance A real property management framework supportive of timely, informed real property management decisions A materiel management framework supportive of timely, informed materiel management decisions 8.4 Effective Procurement-A balanced approach to effective, efficient and economical procurement contributes to valuable program delivery An institution-wide procurement governance and oversight structure Ability to satisfy operational requirements through procurement 8.5 Effectiveness of Financial Management and Control-Timely and accurate financial reporting; compliance with authorities; and accountability for the effective control of public resources Evidence Compliance with financial legislative authorities and policies Quality, timeliness and accuracy of reporting for the Public Accounts Strength of financial management capacity Quality of organizational financial statements and progress towards realizing audited financial statements Quality of internal financial reporting Organizational initiatives in financial management completed or underway 14
15 8.6 Effectiveness of Internal Audit Function-The organization has an effective internal audit function that is founded on rigorous risk-based planning, sound reporting, demonstrable results and appropriate governance and level of resources/capacity An Internal Audit governance structure is in place, and monitored progress is achieved Internal Audit planning, assurance engagement, reporting and follow-up processes/practices are in place Internal Audit Human Resources/Capacity are appropriate to requirements Expected results for the Internal Audit function are established, measured, and used by Senior Management 8.7 Effective Management of Security -Security and business continuity contribute to the effectiveness of government by safeguarding employees, information, and assets Extent to which a parliamentary security program is established and managed based on best practices, to ensure the co- ordination of all policy functions and implementation of policy requirements. Extent to which an Information Technology (IT) security program is established and managed, to ensure that sensitive information and IT systems are adequately protected. 9. Client-focused Service Services are designed and delivered based on members needs and expectations and continuously evolve in response to their feedback. 9.1 Members-focused Service-High quality service promotes members confidence in the secretariat service, produces high levels of client satisfaction, demonstrates value for money to taxpayers and contributes to Members fulfilling their constitutional duties 15
16 Extent to which management is engaged in the overall management of service delivery and of service-related priorities with clear and well-established management processes and demonstrated results Members views/needs are considered when developing new services, programs or policies 10. Accountability Accountabilities for results are clearly assigned and consistent with resources, and delegations are appropriate to capabilities Alignment of Accountability Instruments Clarity of assignment of responsibilities and accountabilities throughout the Institution Extent to which the achievement of financial and operating results is embedded in performance appraisals (agreements) Extent to which managers are properly trained on their authorities and delegations. Extent to which the Head of Services demonstrates an understanding of, and exercises appropriate use of, delegated authorities within the organi 16
17 Part 3- Your Final Assignment - applying the framework to your parliament You will also find a rating template (see attachment 2) to assist you in determining your institution s highpoints and challenges. This assessment exercise is provided for your own personal use. The results will remain private and shall not be released. Through the assessment, you will be asked to extrapolated vulnerable management sectors in your Assembly and make recommendations for improvement based on your learning. As you carry out this exercise, you will review the principles and elements of "good governance" and assess their applicability to your own Parliament. You will also consider ways to improve parliamentary corporate management to better serve Members in fulfilling their constitutional obligations. (Attachment 1) Comparative Table of Benchmarks/Standards 13 (Parliamentary Corporate Management) 13 Lisa von Trapp, UNDP, Democratic Governance Group, Benchmarks and Self-Assessment Frameworks for Democratic Parliaments, March 2010 Brussels/N -57. (Note: text ew York,pp. 47 modified) Online, available at < (Accessed September 2012). 17
18 Frameworks and Major Actors CPA Latimer House Benchmarks 14 Principles NDI Standards APF Criteria* 17 (* unofficial translation of criteria below) The Legislature shall provide adequate resources and facilities for party groups pursuant to a clear and transparent formula that does not unduly advantage the majority party The legislature shall provide adequate resources and facilities for party groups pursuant to a clear and transparent formula that does not unduly advantage the majority party Parliament shall provide in an equitable way, adequate resources and facilities for party groups The Legislature shall have an adequate non-partisan professional staff to support its operations including the operations of its committees The administrative management of Parliament shall be based on a permanent, professional, nonpartisan to support the operations of various departments The Legislature, 4. Parliaments should be The legislature, Parliament shall, 14 Commonwealth Parliamentary Association (CPA)- "Recommended Benchmarks for Democratic Legislatures", 2006, (Online) Available at (Accessed September 2012) 15 Commonwealth, "Latimer House Principles", 1996, (Online) Available at (Accessed September 2012). 16 National Democratic Institute for International Affairs (NDIIA), "Toward the Development of International Standards for the Functioning of Democratic Legislatures", 2007, (Online) Available at (Accessed September 2012). 17 Assemblée parlementaire de la Francophonie (APF), "La réalité démocratique des Parlements: Quels critères d'évaluation?", 2009, (Online) Available at (Accessed September 2012). 18
19 rather than the serviced by a rather than the independently of the executive branch, shall professional staff, executive branch, shall executive, have control control the independent of the control its staff. of parliamentary parliamentary service regular public service. services and determine and determine the the conditions of terms of employment. recruitment and employment of staff The service staff of Parliament shall be impartial and demonstrate a duty of discretion in the exercise of its functions The representation of women must be ensured at all levels of the hierarchy of the parliamentary administration The Legislature 5.12 The legislature The service staff shall draw and maintain shall draw and maintain of Parliament shall be a clear distinction a clear distinction clearly distinguished between partisan and between partisan and from political staff non-partisan staff. non-partisan staff. (people at the exclusive service of a parliamentarian or a political group) Members and staff 5. Adequate resources of the Legislature shall to government and non- have access to sufficient government 19
20 research, library, and ICT facilities. backbenchers should be provided to improve parliamentary input and should include provision for: a) training of new members; b) secretarial, office, library and research facilities; drafting assistance including private members' bills The Legislature shall have adequate resources to recruit staff sufficient to fulfill its responsibilities. The rates of pay shall be broadly comparable to those in the public service The legislature shall have adequate resources to hire staff sufficient to fulfill its responsibilities. Nonpartisan staff shall be recruited and promoted on the basis of merit and equal opportunity Parliament shall have the resources to recruit personnel corresponding to its needs The salary scale of personnel shall be commensurate to that of the Public Service The Legislature shall not discriminate in its recruitment of staff on the basis of race, ethnicity, religion, gender, disability, or, in the case of non-partisan staff, party affiliation The legislature shall not discriminate in its hiring of any staff on the basis of race, ethnicity, religion, gender, or physical ability. Additionally, it shall not discriminate in its hiring of non-partisan staff on the basis of 20
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