Introduction to performance management - Davy Jones

1. Introduction to performance management - Davy Jones Governance International is a non-profit organisation specialising in spreading good practice across public services internationally, especially in Europe.

2. Preparing to do battle The thrill of victory The agonyof defeat A day in the life of a performance manager..

3. Definitions of performance management • “Performance management is what an organisation does to realise its aspirations” • “What you do to improve and maintain good performance” • “Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner” • It is NOT a particular system or IT product • It should NOT be an add-on, something imposed on an organisation or people • Simply, it is good management

4. Beware “one size fits all” solutions • Each country is unique • Each has a specific constitutional, legal and policy framework • Performance management in each country needs to reflect that particular context • English local public services have been most highly centralised in Europe • Let’s look at English public services… • And then look at what we have learned…

5. Education Mainly public a) Health services b) Police and probation services c) Social security and tax Privatised Water, gas and electricity Schools Local public services in England Councils provide... Others provide…. Refuse collection and street cleaning Social services Housing and benefits Libraries Planning

6. Centralised local public services Financially 75% approx council expenditure comes from central Government25% approx only comes from local taxation Legally Until 2000, local councils could only do what particular laws allowed them to do

7. EXTERNAL AUDIT PERFORMANCE INDICATORS GOVERNMENT INTERVENTION INSPECTION How local services are controlled TOWN HALL £180bn

8. What have we learned? • Highly centralised system stifles local innovation and creates a lack of “ownership” by local agencies & staff • Government departmentalism obstructs local agencies working in partnership on local issues • Obsession with targets, indicators and inspections can lead to focus on process (“tick box”) not outcomes • Performance management most successful where public agencies use it because it helps them do their jobs better

9. Vision/ leadership Focus on outcomes Organisational culture - it’s everybody’s job Accountability for results Citizen engagement Performance management characteristics

10. Vision and leadership • Understanding national context and policies • Understanding and consulting local communities - demographics, segmentation users and non-users • Articulating a local vision and strategy • Developing a plan(s) to deliver that strategy • Leading by example from the top • Taking the organisation & staff with you

11. Focus on outcomes • The key focus should be on improving the quality of life and services for local citizens • Partnership working is the key - very few important local issues are solved by one agency working alone • Day to day service planning and finances must be linked to focus on outcomes • Processes and the organisation’s own interests are secondary to this goal

12. Engaging citizens and politicians • Listening to citizens, service users, partner organisations and politicians is key - juggle the information to make choices • How can you know whether your priorities are the right ones if you have not consulted local citizens? • How can you know whether services are good unless you have asked users (& non-users)?

13. Accountability for results • Commitment from managers at every level and from politicians to results/outcomes essential • Aligning processes and systems to achieve those results - removing obstacles • Allowing managers to devise best way to achieve results • Clarify responsibility for achieving the results • Planning and performance measurement should be seen as “normal” and helpful

14. Organisational culture-it’s everyone’s job • Aiming at good performance and focus on outcomes for citizens should permeate the whole organisation from top to bottom • Performance management is not just something for specialists • Performance management should not be seen as imposed by outsiders - Government, officials, politicians, managers • Performance management is everyone’s job!

15. Performance Management Framework Formulate strategy Reviewperformanceand policies Set objectives,standardsand targets Monitorperformance Using PIs Continuous Service Improvement Develop action plans Resources, staff & budgetalignment

16. Definitions of performance measurement • “Performance measurement is the use of statistical evidence to determine progress toward specific defined organizational objectives” • “Performance measurement indicates how well an organisation is performing against its aims and objectives” • Lots of systems exist to do this • Lots of organisations exist to sell them to you ! • Find a system that works for you

17. Why measure? • What gets measured gets done • If you don’t measure results, you can’t tell success from 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’t recognise failure, you can’t correct it • If you can demonstrate results, • you can win public support Osborne & Gaebler, Reinventing Government

18. Good performance measurement is.. • Focused: on the organisation’s objectives and aims • Appropriate: to and useful for those using it • Balanced: able to give a complete picture • Robust: can survive organisational/staff changes • Integrated: is part of the business/service planning • Cost Effective: balances the benefits with the costs • “Measure what you value, don’t just value what you measure”

19. Performance information Resources Inputs Outputs Outcomes Economy Efficiency Effectiveness Value for money

20. “SMART” targets • Targets are the commitments made in advance to reach a stated level of service • Specific: ideally to achieve something specific • Measurable: a clear definition and way of measuring it • Achievable: but also involving an element of challenge • Relevant: linked to the organisation’s objectives • Timely: have a clear timeframe for achievement

21. Strengths of PIs • Shining a light on performance • highlighting variations • tracking performance trends • stimulate public debate

22. PIs necessarybut notsufficient forjudgement PIs have limitations too... • Some things hard to measure • Perverse incentive danger • Only the what not the why

23. What makes a good PI ? • Relevant • No perverse incentives • Well defined • Attributable • Comparable • Timely • Reliable • Cost effective

24. Summary • Performance management essential to help your organisation to reach its goals • Performance measurement is key to assess how well you are doing • No system is perfect or works for everyone • Win the “battle for hearts and minds” - show why performance management is everyone’s job • It’s about the quality of life and outcomes for local citizens • It’s about partnership working, citizen engagement and good management

25. Contact Davy Jones davy.jones@govint.org www.govint.org 07932 616843

26. Group exercise • Break up into pairs for a short exercise on PIs ! • Each of you should define an outcome of your organisation and then set aPI related to this outcome • Ask your partner to do the SMART test and to check the quality of your PI • Discuss with your partner whether your agency can “control” the achievement of this PI or whether you need to work with other agencies to achieve it