CORPORATE PERFORMANCE MANAGEMENT GUIDELINE

-001 CORPORATE PERFORMANCE MANAGEMENT GUIDELINE

-001 TABLE OF CONTENTS 1 Introduction... 3 1.1 Scope... 3 1.2 Purpose... 3 2 Performance Management Framework Overview... 4 3 Performance Management Framework... 5 3.1 Performance Management Framework Elements... 6 3.1.1 Annual Report... 6 3.1.2 Quarterly Performance Report... 6 3.1.3 Customer Satisfaction Survey... 7 3.2 Financial Reporting... 8 3.2.1 Obligations... 8 3.2.2 Council s Financial Performance Reporting... 8 3.3 Individual Performance and Development... 9 3.3.1 Description... 9 3.3.2 Performance Management Processes... 9 4 Responsibilities... 10 4.1 Council... 10 4.2 Chief Executive Officer... 10 4.3 General Managers... 11 4.4 Group Managers... 11 4.5 Service Managers and Senior Advisors... 12 4.6 Financial Control Group... 12 4.7 All Staff... 13 4.8 Corporate Planning, Performance & Risk Group... 13 4.9 People and Change Group... 13 4.10 Internal Audit... 14 5 Reference Documents... 14 6 Document Control... 14

-001 1 Introduction 1.1 Scope This guideline applies to all areas across Redland City Council, including all staff, management and councillors. 1.2 Purpose The purpose of this guideline is to detail Council s performance management framework and its underlying principles to support management of the performance of the organisation, each department, group and individual in a holistic manner. This framework ensures a clear link between community needs, corporate strategic direction and priorities, policy, and day to day activities. It is designed to promote commitment to Council s vision by ensuring that all areas of the organisation are working towards clear, measurable goals that are aligned with the vision and that the roles and responsibilities of all staff, management and Councillors in the process are clearly defined. Thus, it is strongly integrated with our Community, Corporate and Operational Plans and the Annual Budget. This approach enhances accountability to the community and other stakeholders by reporting performance and progress towards achieving our stated plans and targets on a regular, clear and transparent basis. Most importantly, Councillors, the Chief Executive Officer and General Managers need an effective system of performance management to be in place to enable them to meet their corporate governance obligations. The Framework is therefore designed to ensure that organisational leadership has the information required to monitor and evaluate whether the organisation is focussed on, and meeting, our stated strategic priorities and objectives. This includes processes to ensure that where any significant departures from planned performance occur, they are detected promptly and referred to the responsible officer for action. The Council s performance is evaluated from a number of key perspectives and a wide range of measures are used with the objective of providing a balanced assessment of our performance. The Corporate Planning, Performance and Risk Group s role is to manage the performance management framework and system. This includes continuing to improve the systems and processes that assist Council s leadership to meet its obligations and to continue to grow and build a performance oriented culture.

-001 2 Performance Management Framework Overview The following diagram illustrates Council s Performance Management Framework, viewed through four performance levels, namely corporate, operational/service level and individual: PERFORMANCE REPORTING TO COUNCIL & COMMUNITY Community Plan Corporate Plan Operational Plan Core Services Strategic Measures Annual Report: A detailed review of progress on achievement of Corporate Plan goals. Meets statutory requirements for all financial and nonfinancial information that must be included in the Annual Report including an annual written assessment on progress towards implementing Council s major strategic plans Operational Measures Quarterly Report: Progress against Operational Plan targets Quarterly key performance indicators drawn from all Departments and Groups across the organisaiton Significant business activity reporting (e.g. Redland Waste) Meets statutory requirement for a quarterly assessment of progress towards achieving the Operational Plan and provides significant additional (non-statutory) information on performance to assist Councillors and Management in the allocation of resources Annual Report: Brief summary of Operational Plan and Budget performance. Consolidation of key Quarterly Report data to enable annual overview and comparison with trends Customer Satisfaction Survey Customer Input Biennial Report: Provides community feedback on council s performance across a wide range of service areas INDIVIDUAL PERFORMANCE MANAGEMENT Performance Appraisals Individual Development Plans Individual Measures Quarterly: Informal review against performance goals Annual: Formal performance appraisal (all staff) and assessment of achievements

-001 3 Performance Management Framework Council recognises that a key element of corporate governance for high performing organisations is a sound process for capturing and presenting performance data to internal and external stakeholders. Such data can assist council by identifying areas of concern, highlighting areas of high performance and helping to predict future trends and issues. Redland City Council is required to meet statutory obligations in managing its performance. This includes reporting against the Corporate and Operational Plans, financial reporting and producing an Annual Report as required by the Local Government Act 2009 and the Local Government (Finance, Plans and Reporting) Regulation 2010. This Performance Management Framework enables council to meet those statutory requirements and seeks to go further in the following ways; Ensuring the statutory reporting is of a high standard in terms of the data presented and the analysis provided to assist in the decision making and resource allocation processes Ensuring that additional (non-statutory) information is provided across council s operations to provide transparency to the community and relevant and timely information to Council and senior management to further support decision making and resource allocation The basis of the Performance Management Framework is Council s Community and Corporate Plans. These Plans contain clear outcomes set through strategic priorities, objectives and programs and implementation of this Framework will ensure that Council has clear information to determine whether it s most important strategic plans are being achieved. The information will be presented to Council once each year, recognising that it is not practical to review most strategic objectives more frequently than annually. The Framework also builds linkages from the Community and Corporate Plans to operational, service level and individual performance. This helps to ensure that all programs, projects, major activities, initiatives and decisions are clearly aligned to and consistent with the Community and Corporate Plans. This data will be presented to Council on a quarterly basis to ensure regular reviews of operational performance and provide the opportunity for adjustments where necessary. The Framework also recognises the importance of receiving regular community feedback on overall performance. As such, a comprehensive biennial customer satisfaction survey has been included so council can track trends in key performance areas over time using not only quantitative data but also community input.

-001 3.1 Performance Management Framework Elements 3.1.1 Annual Report In accordance with Section 108 of the Local Government (Finance Plans and Reporting) Regulation, Council has a statutory obligation to prepare an Annual Report each year. The report must be adopted before 30 November in the year after the end of the financial year. Further, in accordance with Section 120 of the Local Government (Finance Plans and Reporting) Regulation, the CEO must present a written assessment of Council s progress towards implementing the Corporate Plan at meetings of the local government held at regular intervals of not more than 1 year. To meet these requirements, and to support regular, transparent reviews of the achievement or otherwise of Council s strategic priorities, a comprehensive review of the Corporate Plan will be included in Council s Annual Report each year. This review will highlight progress against all Corporate Plan outcome areas and assist Council is the allocation of resources to areas where delivery of the Corporate Plan is not progressing as required. In addition, the Annual Report will provide information on a range of areas as required by the Local Government Act 2009, its supporting Regulations and other relevant legislation. This information will include, but is not limited to, the following items; Operations reports for significant business activities (e.g. Redland Waste) Audited annual financial statements The Community Financial Report and relevant measures of financial sustainability Total remuneration packages paid to councillors and senior contract employees Other relevant information about councillors including meetings attended, details of any inappropriate conduct or misconduct, details of complaints made against councillors etc Details relating to administrative action complaints for the year A summary of expenditure for the year on grants to community organisations 3.1.2 Quarterly Performance Report In accordance with Section 122 of the Local Government (Finance Plans and Reporting) Regulation, the CEO has a statutory obligation to prepare a written assessment of council s progress towards implementing the Operational Plan at intervals not greater than three months. Council s quarterly performance report not only deals with this requirement, but contains a thorough review of key operational

-001 targets and service levels with information drawn from all Departments and Groups across the organisation including, but not limited to, information in the following areas; Customer Services Department libraries, human services, customer services, Redlands Performing Arts Centre, capital works program, environmental education, waste management, parks and gardens, roads, footpaths and drainage, commercial services etc Development and Community Standards Department development assessment, vegetation protection, environmental health, development control, animal management, other local laws, building and plumbing etc Corporate Services Department computer network performance, information management, information technology security, workplace health and safety, workplace development, workplace relations, asset management planning, rating and revenue collection, cash flow management, earnings before interest, tax and depreciation, procurement, facilities management, fleet management etc Governance Department internal audit program, complaints management, community engagement, events management, media and marketing, Internet hits, legal appeals, risk management and insurance, workers compensation, right to information and information privacy etc The quarterly report will also include relevant information on the performance of council s significant business activities in accordance with the adopted performance plans of the business activities. The report is presented to Council, and therefore is available to the community, and identifies areas where council performance is lagging for a particular quarter as well as identifying trends that may require a management response. 3.1.3 Customer Satisfaction Survey Council recognises that whilst relevant quantitative data is essential to provide a clear picture of actual performance across a range of areas, community feedback is also an important element of overall performance management. As such, every two years, Council surveys a cross-section of the community across a range of areas to obtain direct community input on performance. This information augments other data collected and is used in conjunction with that information to inform future planning and resource allocation. Where possible, the survey remains consistent from period to period to enable clear trends to be determined. This information is formally reported through Council so the community has direct access to the results.

-001 3.2 Financial Reporting 3.2.1 Obligations In accordance with sections 98 and 99 of the Local Government (Finance, Plans and Reporting) Regulation 2010, Council has a statutory obligation to prepare an annual budget for the forthcoming financial year and the next two financial years after that. The budget must include statements of financial position, cash flow, income and expenditure and changes in equity and it must be consistent with the Community, Corporate and Operational Plans. In addition to the annual budget, Council is required to prepare the following financial documents; A general purpose financial statement A statement of estimated financial position A community financial report A long-term financial forecast covering a period of at least ten years A long-term asset management plan A monthly financial report 3.2.2 Council s Financial Performance Reporting Council s overall financial position and operating performance is regularly assessed to gauge our financial health as an organisation. The annual budget forms the basis for monitoring our financial performance. Reporting is done to Council, through the Corporate Services and Governance Committee, on a monthly basis using data extracted from the corporate finance system to produce reports. Some key measures are also included in the quarterly Operational Plan report. At the end of each month, managers receive reports from the Financial Services group on the jobs under their control and provide comments on variances against actual budget performance. These are collated by Financial Services to produce overall reports for management and Council. After the first month these will include the previous month s results to show trends. Comprehensive quarterly budget reviews are undertaken involving an assessment of financial performance to date including identification of any areas of over or underexpenditure or revenue variations. Where savings are identified, or the need for additional expenditure on existing projects or new projects is identified, submissions are considered by General Managers, the Executive Leadership Group and Councillors. As a result, an amended budget may be approved by Council. In addition to the monthly and quarterly reporting described above, the following financial performance reporting is undertaken through the year;

-001 The General Purpose Financial Statement, audited by the Auditor-General, is endorsed by Council and included in the Annual Report each year along with the Auditor-Generals audit report relating to the Statement Relevant measures of financial sustainability for the following year and the nine subsequent years are included in the budget put to Council for adoption each year as well as each year s Annual Report. These measures are asset consumption ratio, asset sustainability ratio, interest coverage ratio, net financial liabilities ratio, operating surplus ratio and working capital ratio. The Statement of Estimated Financial Position outlines the financial operations, and financial position, of Council for the previous financial year and is presented at the annual budget meeting each year. The Community Financial Report is included in the Annual Report each year and contains a summary and analysis of Council s financial performance and position for the year in a form that is easily understood by the community. 3.3 Individual Performance and Development 3.3.1 Description The management and assessment of individual performance and development helps to ensure that the organisation meets its overall performance objectives. Individual performance management is carried out to assess the individual s performance against the key accountabilities in their position description and agreed goals from the previous year. Additionally, compliance with Council policy, guidelines and procedures (in particular the Staff Code of Conduct, Workplace Health and Safety and Risk Management principles) and specific legislation is also used to manage the individual s performance. Importantly, individual goals for learning and professional development are agreed upon each year to allow the individual s skills and capabilities to be developed. These will not only further the individual s career goals but also their team s as well as the organisation s objectives. 3.3.2 Performance Management Processes A formal staff performance appraisal process is undertaken annually and provides a formal opportunity to review performance against agreed goals and a forum and opportunity for staff development. Informal quarterly reviews are also encouraged to determine progress against these goals agreed to during the annual appraisal. This allows the incorporation of goals specific to the Operational Plan, new projects, initiatives and activities as appropriate.

-001 The Individual Development Plan is used to develop staff careers or enhance their skills to assist them in their work roles. These voluntary plans enable staff to improve their skills and knowledge and therefore their performance. Appraisal templates for all staff due for performance appraisals are generated by People and Change Group (P&C) and directed to the relevant managers for attention on a monthly basis. P&C follow up to ensure these appraisal documents are completed on time and meet quality standards, and keep copies on confidential files. A more detailed account of these processes can be found in P&C policies, guidelines and procedures. 4 Responsibilities All staff are responsible for managing performance within their span of control, for promoting the application of performance management by contractors, and assisting with the identification of improvement opportunities. The Council, along with various levels of the Operational Leadership Group, also have various specific responsibilities as do the Corporate Planning, Performance and Risk, Corporate Finance, Internal Audit and People and Change Groups. 4.1 Council The Community and Corporate Plans are developed in consultation with the community and set Council s strategic direction. The Operational Plan is the tool used to put the Corporate Plan into effect on an annual basis. Within the context of the Performance Management Framework, Council has a strategic role to monitor the delivery of the Community, Corporate and Operational Plans, and the financial position of Redland Shire Council. Councillors therefore give proper consideration to the regular reports provided to ensure that the organisation delivers against these Plans by achieving operational targets and service standards each year and making progress towards the organisation s goals and visions. The Local Government Act 2009 and supporting Regulations require Councillors to ensure that the organisation meets the needs and expectations of the community within the constraints of our capacity and what the community is prepared to pay for. Financial management therefore goes hand in hand with the other aspects of organisational performance management. 4.2 Chief Executive Officer The CEO has overall responsibility for all aspects of the organisation's performance, both financial and non-financial. A part of the CEO s role is to ensure that the organisation has satisfactory systems and processes in place to manage performance and report performance results. The CEO: Is charged with reporting to Council on the performance of the Corporate and Operational Plan, on an annual and quarterly basis respectively, under the Local Government Act 2009 and supporting Regulations.

-001 Is directly responsible for the performance of the General Managers and the key deliverables from their respective Departments. Is responsible to ensure that decisions of Council are effectively implemented. Must endorse the Community, Corporate and Operational Plans prior to submission to Council for approval. Must ensure that Councillors are promptly made aware of any performance issues that are likely to significantly impact on the community and/or the organisaiton irrespective of whether the performance issue would be identified in a subsequent formal report (e.g. Annual Report, Quarterly Report, Financial Report etc) 4.3 General Managers The General Managers are responsible for each of their Group Managers and the deliverables for their respective Departments. They must ensure that the CEO s decisions are implemented satisfactorily. They have prime responsibility, in the same manner as the CEO, to ensure that systems and processes are in place to manage performance and report performance for their Department. The provision of adequate resources including appropriate staffing to undertake those activities is also their responsibility. They are accountable for financial and non-financial performance. General Managers must ensure that the CEO is promptly made aware of any performance issues that are likely to significantly impact on the community and/or the organisaiton irrespective of whether the performance issue would be identified in a subsequent formal report (e.g. Annual Report, Quarterly Report, Financial Report etc) These responsibilities are more clearly defined in their position description. 4.4 Group Managers The Group Managers have the same responsibilities as the General Managers; however these are limited to the extent of the Group that they manage. They are accountable for financial and non-financial performance. Each Group Manager has an important role to play in identifying measures of performance in the Community, Corporate and Operational Plans and ensuring timely performance data is provided to the Corporate Planning, Performance and Risk Group. Group Managers must ensure that their General Manager is promptly made aware of any performance issues that are likely to significantly impact on the community and/or the organisaiton irrespective of whether the performance issue would be identified in a subsequent formal report (e.g. Annual Report, Quarterly Report, Financial Report etc). These responsibilities are more clearly defined in their position description.

-001 4.5 Service Managers and Senior Advisors This cohort of staff is responsible for the operation of units and/or the provision of specialist advice. They assist the Group Manager to fulfil their obligations and contribute to the development of Community, Corporate and Operational Plans and ensuring timely provision of performance information. Service Managers and Senior Advisors must ensure that their Group Manager is promptly made aware of any performance issues that are likely to significantly impact on the community and/or the organisaiton irrespective of whether the performance issue would be identified in a subsequent formal report (e.g. Annual Report, Quarterly Report, Financial Report etc) 4.6 Financial Control Group The key goal of the Financial Control Group is to improve the effectiveness of the financial management function throughout Council. This Group is responsible for: Providing the opportunity for interdepartmental information sharing on financial matters. Raising financial awareness within the organisation. Providing input on financial policy development. Addressing topical financial issues. Determining solutions for financial procedural problems throughout the organisation, including the budget process. Coordination and identification of corporate implications of quarterly and annual budget requests. Providing the organisation with direction and guidance on financial management issues. Revising all audit reports that have a financial implication and develop treatment plans for process improvement where necessary. Having a common and consistent understanding of financial issues. Acting as a vehicle to drive transformation of the finance function in the organisation. Establishing organisational procedures and processes with respect to financial matters. Reviewing current financial system and other financial products with a view to improving effectiveness. Ensuring that all statutory and non-statutory financial reporting is provided to appropriate standards in terms of quality and timeliness.

-001 4.7 All Staff Identification and implementation of improvements in performance is possible in all aspects of our work and at all levels within the organisation. Staff have an intimate knowledge of systems, processes and customers that enable them to contribute to continuous improvement. Opportunities and recognition for these improvements will be established across the organisation. In conjunction with other People and Change practices these opportunities make for a better working environment and support enhanced staff satisfaction. All staff must ensure that their Supervisor and/or Group Manager is promptly made aware of any performance issues that are likely to significantly impact on the community and/or the organisaiton irrespective of whether the performance issue would be identified in a subsequent formal report (e.g. Annual Report, Quarterly Report, Financial Report etc). 4.8 Corporate Planning, Performance & Risk Group This Group is responsible for: Driving the development, review, and formal updating of the Corporate and Operational Plans including appropriate performance measures. Identifying, monitoring and ensuring compliance with statutory and corporate requirements for performance management and reporting. Developing and reviewing the performance reporting framework. Managing the corporate performance reporting system. Producing the Quarterly Performance Report and contributing to the production of the Annual Report and Biennial Customer Satisfaction Survey Maintaining a database of corporate performance information. Analysing performance data so that trends and issues are highlighted, brought to the attention of management and Council and appropriately explained. Providing advice to management and staff on new and emerging performance management issues. Providing assistance to management and staff in determining appropriate performance measures and targets. 4.9 People and Change Group This Group is responsible for: Establishing and maintaining a staff appraisal process that supports the organisation s performance approach. Assisting and coaching Group Managers in providing development opportunities for staff through the staff performance appraisal system.

-001 Providing a system to assist Group Managers in ensuring staff are appraised annually to identify learning and growth opportunities. Reporting on agreed indicators relating to staff retention, development and performance. Supporting Group Managers to enable staff to achieve their potential as it relates to Redland City Council s success. 4.10 Internal Audit Internal Audit provides the CEO and senior management with assurance that internal control systems are efficient, effective and economically viable and that risk is appropriately addressed so objectives can be met. This includes reporting to the Audit Committee on a quarterly basis and providing independent advice in relation to: Legislative and policy compliance Operational cost-effectiveness and efficiency Reliability of financial and related management information Use of public funds and assets under Council s control Adequacy and accuracy of accounting and computing systems In accordance with these objectives, and in recognition that the robustness of performance data is essential for council s reputation and continuous improvement, Internal Audit undertakes regular reviews of the Corporate Performance Management System (either in whole or in part) as appropriate. For further detail refer to the Internal Audit Charter POL-3009. 5 Reference Documents This Guideline has been developed to support the application or administration of the Corporate Performance Management Policy. 6 Document Control Only the General Manager Governance can approve amendments to this Guideline. Please forward any requests to change the content of this document to the Group Manager Corporate Planning, Performance & Risk. Approved amended documents must be submitted to the Office of the Chief Executive Officer to place the document on the Policy, Guidelines and the Procedures Register.