This Report will be made public on Report Number C/ To: Cabinet Date: 30 July 2014 Status: Director: Non key decision Jeremy Chambers, Central Services Cabinet Member: Cllr David Monk, Leader of the Council SUBJECT: CORPORATE PERFORMANCE MANAGEMENT FRAMEWORK SUMMARY: This report presents an updated version of the council s corporate performance management framework (PMF) for approval by Members. The council s PMF has been updated following a review by internal audit and forms part of the council s Annual Government Statement action plan for 2014-15. The revised PMF also reflects the requirement that Members and the public are kept well informed regarding how the council is performing. This includes the progress that the council is making in delivering the council s corporate priorities, as set out in the Corporate Plan 2013-18. REASONS FOR RECOMMENDATIONS: Cabinet is asked to agree the recommendations set out below because:- a) The council s corporate performance management framework needs to be updated to address issued raised by Internal Audit; b) Updating the council s PMF is one of the actions in the council s Annual Governance Statement Action Plan 2014-15; c) The council s PMF needs to be updated to reflect changes made by central Government in the performance management regime for local authorities; d) The council s PMF needs to focus predominantly on the corporate priorities of the organisation, as set out in the Corporate Plan 2014-15. RECOMMENDATIONS: 1. To receive and note Report C/ 2. To approve the corporate performance management framework 3. To approve the performance reporting arrangements for Members 1
1. OVERVIEW 1.1 This report presents the updated corporate performance management framework (PMF) and an indicative timetable for performance reporting to Members, for approval by Cabinet. The work on the corporate PMF has taken into account the findings of an internal audit review of the council s performance management arrangements, the publication of the Corporate Plan 2013-18 and changes to the council s internal processes and structures. 2. BACKGROUND 2.1 The council has reviewed and updated its corporate performance management framework for a number of reasons. 2.2 Firstly, the action plan for the Annual Governance Statement 2014-15 contains the commitment to develop a regime of monitoring performance that is fit for purpose and reflects the priorities of the organisation. This framework is due to be put in place by August 2014. 2.3 Secondly, an internal audit review of the council s corporate risk management arrangements concluded that management can place a Reasonable Assurance on the system of internal controls which are proposed to be implemented. The main issue arising from the review was that the council s performance management framework needed to be revisited and revised to ensure that it was sufficient to effectively manage the performance of the Council s services. 2.3 Recommendations for improvement have been incorporated into the new arrangements set out in the updated PMF. These recommendations include: The updated PMF being formally approved by CMT and Cabinet; Regularly publish performance data on the council s website; Confirming the performance reporting arrangements for CMT, Cabinet and Overview and Scrutiny; Putting in place an agreed regime for reporting the performance of different council services, which is achievable and fit-for-purpose; and Ensuring areas of poor performance that have been identified are properly monitored to ensure they have been resolved. 2.4 Thirdly, there have been ongoing conversations between the Corporate Management Team (CMT), Heads of Service and Cabinet Members to ensure that the council s performance management arrangements reflect: The council s strategic priorities, as articulated in the Corporate Plan 2013-18. Improves the capacity of the organisation to effectively manage its performance at a corporate and service level. Ensures effective performance reporting to both the senior management team and elected Members. 2.5 Fourthly, the Coalition Government has introduced a number of significant changes to the performance management arrangements for local 2
authorities in England, which need to be reflected in the council s PMF. These changes include the end of the inspection regime (the Comprehensive Area Assessment), the abolition of the Audit Commission and removing the requirement to report on national performance indicators. The onus has shifted towards (i) council s being responsible for managing their own performance; and (ii) local accountability with councils making more information available to the public to let local people hold local authorities to account. 2.5 Finally, the performance management framework needs to reflect changes to the way the council operates in terms of its internal processes and structures. 3. CORPORATE PERFORMANCE MANAGEMENT FRAMEWORK 3.1 The revised corporate PMF is presented in Appendix A. The document comprises: Information on the frameworks used by the council to manage performance; The different roles and responsibilities within the organisation for managing performance; and Details of the individual components of the PMF and how they operate in practice. 3.2 Structures and processes The council manages performance according to the following principles of plan do monitor review. Plan Do Monitor Review Description Establish the objectives and expected outcomes from a service, and identify the relevant performance metrics Deliver the service or project while collecting data for analysis and reporting. Study the results and compare against the targets or objectives. Determine where to apply changes that will improve the delivery of the service or process. Examples Corporate Plan Medium-term Financial Strategy Service Plans Individual/team work plans Action plans Project Plans Performance reporting to CMT and Members Progress reports to Project Boards Scrutiny Project evaluation Appraisals 3.3 The council also manages its performance according to a golden thread, which ensures that the council s vision for the district is cascaded throughout the origination by developing complimentary action plans and objectives. This means that each member of staff understands the context of their work and ensures that their work contributes to the delivery of the council s corporate priorities. 3
3.4 Roles and Responsibilities The corporate PMF sets out the different roles played by: Cabinet Resources Scrutiny Committee Community Overview Committee Audit and Standards Committee Corporate Management Team Operational Management Team Heads of Service Policy and Engagement Team Contract Managers Project Managers Council employees Residents 3.5 Key components of the PMF The corporate PMF includes information on the following: Corporate Plan Service Planning Performance Reporting Personal Performance Reviews Customer Services Budget Management Risk Management Contract Management Project Management Data Quality 4. REPORTING TO MEMBERS 4.1 The council s performance management framework includes a revised performance reporting arrangement for both CMT and Members. It is based on a balanced scorecard approach, which provides a comprehensive overview of all the key aspects of organisational performance. 4.2 Cabinet is asked to approve the indicative reporting arrangement for members (Appendix B of the PMF document), which covers the five principal aspects of the balanced scorecard approach: Reporting progress in delivering the council s priorities, as set out in the Corporate Plan; The financial performance of the organisation including ensuring there are effective financial planning and budget monitoring arrangements in place; The experience of customers including the quality of council service, complaints and performance against the council s customer service standards; 4
The council s internal processes to ensure that work is being managed effectively; and Organisational development to ensure that the council has the capacity to deliver its services and corporate priorities. 4.3 It is proposed to report on all the different elements / components of the overall performance framework to Members at least once a year. However, the frequency of reporting will vary depending on the particular aspect of performance. For example, it is proposed to report progress in delivering the corporate plan objectives every six months (given the forward looking and long-term nature of the commitments. In contrast, the council will continue with its quarterly financial monitoring reports. 5. RISK MANAGEMENT ISSUES 5.1 A summary of the perceived risks follows:- Perceived Risk Seriousness Likelihood Preventative The council does not have the appropriate performance management arrangements in place The council does not manage performance effectively, which results in poor service standards or failure to deliver its corporate priorities High Low Formally adopting the council s PMF and performance reporting timetable will ensure the council has appropriate governance arrangements in place. High Medium A regular performance reporting regime will help mitigate this risk. 6. LEGAL/FINANCIAL AND OTHER CONTROLS/POLICY MATTERS 6.1 Legal Officer s Comments (EC) There are no legal issues arising out of this report. 6.2 Finance Officer s Comments (OCW) The report by itself has no financial implications but effective financial management forms part of the council s overall PMF. 6.3 Diversities and Equalities Implications (MM) There are no specific diversities and equalities implications arising from this report. Periodic reporting of the council s progress in delivering its equality objectives and publication of the annual Equality and Diversity report form part of the council s wider PMF. 7. CONTACT OFFICER AND BACKGROUND DOCUMENTS Councillors with any questions arising out of this report should contact the following officer prior to the meeting: Matthew Mellor, Policy and Engagement Manager Tel: 01303 853 413, email: matthew.mellor@shepway.gov.uk 5
Rob Jackson, Policy and Performance Officer Tel: 01303 853 416, email: rob.jackson@shepway.gov.uk The following background documents have been relied upon in the preparation of this report: none Appendices Appendix A Corporate Performance Management Framework 6