How To Manage Performance

Transcription

1 A guide for executive managers Organisational performance management is your approach working?

2 Contents The performance environment 3 Purpose of these guides 4 Executive Managers - you play a critical role in leading your agency s performance 7 The performance dashboard: view from the flight deck 8 The performance culture: bringing the organisation with you 10 The performance dividend: invest early and reap the compound rewards 12 The State of Queensland (Public Service Commission) Published by the Public Service Commission, October 2009, 53 Albert Street, Brisbane Qld The Queensland Government supports and encourages the dissemination and exchange of information. However, copyright protects this document. The State of Queensland has no objection to this material being reproduced, made available online or electronically but only if it is recognised as the owner of the copyright and this material remains unaltered. Copyright enquiries about this publication should be directed to the Public Service Commission, by to feedback@psc.qld.gov.au or in writing to PO Box 15190, City East Qld Public Service Commission

3 The performance environment The Queensland Government s Performance Management Framework (PMF) is designed to help agencies manage their performance to deliver better outcomes for the community. A suite of resources and methodologies are already available which support the PMF and the legislative and policy aspects of organisational performance management in Queensland: Guidelines supporting the Performance Management Framework ( Better Practice Guides and Performance Management System Audits prepared by Queensland Audit Office ( The Financial Accountability Handbook ( to support the Financial Accountability Act 2009 and related regulations and standards ( A guide for executive managers 3

4 Purpose of these guides These guides complement the previously mentioned resources, yet are also very different to traditional public sector materials. The guides recognise best practice principles for organisational performance management, rather than being prescriptive or replicating detailed methodologies. The guides focus on the human element of organisational performance management and the issues of leadership, organisational culture and engagement which help agencies achieve results. They are different because they are fundamentally about people driving organisational performance. The guides are written in a style that directly addresses the reader. They attempt to demystify the performance language and provide a fresh take on a subject that many find dry and uninviting. They focus on practical ideas and principles-based how to guidance that you can apply in your own organisational context, to better manage your agency s performance. The issues dealt within the guides are not exhaustive. However, based on feedback gathered in developing them, they reflect some of the most challenging aspects of managing organisational performance. Depending on your own experiences, parts of the guides may resonate with you more than others. The guides deal with these issues head-on and aim to help bridge the gap between what we all know is good practice, and what actually happens in practice on the ground. The guides acknowledge the importance of practices, processes and systems in managing agency performance, but it is people who can make the real difference in delivering services and organisational success. Your leadership, commitment and ability to motivate people along the performance journey are absolutely critical. 4 Public Service Commission

5 These three groups play a key role in driving organisational performance There is a tailored guide for each of the following three target audiences: Executive Managers (including CES, SES and other senior officers). Performance Practitioners (including strategic planners, strategic policy makers, financial management and budgeting staff, human resources practitioners, and divisional and corporate services staff who provide performance information to Executive Managers and Managers, and in Annual Reports and other published documents). Managers (including line, program and project managers). These three groups play a key role in driving organisational performance management. Their respective roles and inter-dependencies are shown below. Executive Managers Leading a high performance culture in Government Leading business direction and being accountable for achieving performance results for the Queensland community Being a role model - walk the performance management talk Managers Leading a high performance culture in everyday activities Being accountable for resources and service delivery Collaborating and sharing information across agency and Government Accountable for performance leadership, management and advice Performance Practitioners Making organisational performance management easier and more effective Providing linkages for people, information and processes across Government and the community A guide for executive managers 5

6 Please invest time to read all three of the guides and share them within your organisation: to remind yourself and others of the principles and practices which support good organisational performance management to better understand the needs and priorities of the other target audiences as a learning tool for your team to identify and implement simple performance related improvements with your team as an induction resource for new starters. Everyone has a part to play in managing organisational performance. Work together to enable high performing teams that will: make better business decisions based on evidence and experience plan and deliver more responsive, efficient and effective services and outcomes for your customers and the community identify, implement and share improved work practices overcome challenges and achieve success together. The guides have been developed in consultation with representatives of each target audience. This guide is targeted to Executive Managers. 6 Public Service Commission

7 Executive Managers - you play a critical role in leading your agency s performance You set the strategic agenda for your business. You are also responsible for allocating resources, managing priorities and administering programs that will achieve your organisation s goals and support the relevant Minister to achieve Ministerial Charter of Goals objectives. Increasingly you are required to lead service planning and manage performance at a whole-of-government and agency-wide level, across organisational barriers. Your demonstrated commitment to this way of doing business, and reporting on agency performance, will be critical to your organisation successfully delivering services and embracing reform. You have a responsibility to model and maintain a high performance culture within your agency and across government, based on regular conversations about performance, and valuing and using performance information. Your leadership and commitment to organisational performance management is critical to building a performance culture in your agency, and across government. A guide for executive managers 7

8 The performance dashboard: view from the flight deck Measure what you need to manage and then follow up with action An effective performance management approach engages your people and provides information that can be used to manage your business and plan for its future. Dashboards visually represent critical performance information so you can quickly spot trends and issues. A dashboard should include: a limited number of performance indicators which reflect the breadth of your organisation s strategic objectives and priorities, and key organisational and operational service outcomes a balance of performance indicators such as:»» quantitative and qualitative indicators»»»»»»»» lead and lag indicators (lead indicators can be used to predict future results, whilst lag indicators provide a history of performance) financial (e.g. cost) and non-financial (e.g. timeliness and customer) indicators short-term and long-term indicators corporate responsibility indicators, such as social, economic and environmental performance. aspirational/stretch targets to drive continuous improvement. Don t define success based on what you can easily achieve provision for trend analysis, key commentary (explanations and exceptionbased text) and planned corrective actions annual milestones to support longer-term targets, so progress and achievability can be tracked and corrective actions taken where appropriate details of data limitations to help ensure you don t misuse or overuse data. 8 Public Service Commission

9 Dashboards need to be consistent and comparable over time and must also be updated in response to environmental changes. So you may need to: Add contemporary or contentious issues to the dashboard to help monitor important or sensitive matters. Spring clean your dashboard at least once a year to ensure all your performance indicators are still strategically and operationally relevant. information + analysis + conversation = better decisions and outcomes You need to make sure your people are giving you performance solutions, based on sufficient and credible analysis, which outline the performance implications and recommend corrective actions for you to discuss and endorse. Use your performance dashboard to lead conversations focusing on: How well are we progressing? Are we going to meet or better the targets? Does the data tell the full story? What are the potential risks to performance and how do we best manage them? Do we need to take corrective action and if so, how and by when? Do we continue to invest in this program/service/project/activity? How can we do business/deliver our services better? A guide for executive managers 9

10 The performance culture: bringing the organisation with you Ask yourself: What message does your performance management approach send to your people? Are you creating the right environment and culture to enable your people to be frank about real performance? Do you act on the performance information you receive? Embed your performance approach and get your people connected and committed The best organisational performance management approaches are embedded in everyday business practices and have the commitment of people at all organisational levels. Leading by example in managing business performance is the most powerful message you can send to your people about the value you place on this. Connect with people at different levels of your organisation, and especially at the frontline. This motivates your people to provide you with the best available quality information, analysis and solutions. This helps make performance management more real for them. It also helps align the performance dashboards used at different organisational levels. Some practical strategies for encouraging your people to sign up for organisational performance management are: 1. Focus on what constitutes performance. Don t keep changing the goal posts. Be clear up front about what is to be achieved and how you intend your organisation to get there. Communicate performance objectives and expectations vertically (from CEOs to the front-line) and horizontally (across policy, program and corporate services areas). 2. Promote consistency and alignment in processes. Develop processes and standards for collecting, reporting and using performance information. Align/streamline data collection and reporting processes wherever possible. 10 Public Service Commission

11 3. Understand the linkages between your agency and the bigger picture. Identify how your agency s work links with State and Federal performance priorities and, where possible, harmonise and streamline your data collection and reporting activities. 4. Create an environment that values performance information. Ask for and use performance information as part of a broader commitment to evidence-based decision-making. 5. Walk the collective talk. Be a team player and don t undermine the collective decisions. 6. Get the ratio right. Reporting performance is secondary to driving performance. Allocate space and time to understanding and acting on the issue. 7. Build integrity into your performance management system. Accept bad news performance information to promote a system that provides frank and fearless advice to you, other executive managers and government, based on the known facts. Back the people who are prepared to do this for you. Don t shoot the messenger. Be visible about your strategic vision and commitment. 8. Use regular management and staff forums to discuss business priorities and performance expectations. Shift from measurement and compliance reporting to having conversations about performance with a focus on decision-making. A guide for executive managers 11

12 The performance dividend: invest early and reap the compound rewards There is never a perfect time to revisit your performance management approach. It s easy to get stuck in a holding pattern, waiting for the next financial year, the next system upgrade, the next consultancy report, the next... Start now with what you have, improve as you go Don t be put off by the scale of the issues at hand. Performance management is a journey of continuous improvement. Perfect data and systems do not exist, so use the information and systems you have and work to improve them over time. Develop improvements in consultation with your Performance Practitioners, utilising the expertise and skills of your Managers and their teams. How do you reposition and add value to the approach you use now? Communicate with people regarding your vision for performance management and your commitment to embedding effective organisational performance management. Understand key services/processes and related performance linkages within your agency, and across agencies for the whole-of-government targets that your organisation contributes to. Invest in relationships and strategies to help you successfully deliver and report on priority service outcomes. Test and confirm your business performance information needs. Request only what will inform your decision-making make sure what you receive is usable and used. Stop reporting data that is no longer needed or that people no longer pay attention to. Challenge the use of information provided as part of reporting. Keep your reporting real and relevant to your business decision-making needs. Encourage your team to stand back, identify gaps in your current organisational performance management approach and prioritise areas for improvement. Develop and commit to longer-term strategies to enable more integrated performance management systems, to better inform future business and performance planning. 12 Public Service Commission

13 Be rewarded by building a high performance culture with your team So what s in it for you? By investing in a better approach to organisational performance management, you can: Make better business decisions based on evidence and experience. Plan and deliver more responsive, efficient and effective services and outcomes for your customers and the community. Promote a culture of learning and improvement to increase innovation. Build a high performance culture within your team, in your agency and across government. Aspire to do business better and make it happen. Your leadership is critical to bring your people along on the journey to success with you. A guide for executive managers 13

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