TOOLKIT FOR ORGANISATIONS WISHING TO REVIEW THE POTENTIAL OF PERFORMANCE MANAGEMENT SYSTEMS WITHIN THEIR ORGANISATION

1. TOOLKIT FOR ORGANISATIONS WISHING TO REVIEW THE POTENTIAL OF PERFORMANCE MANAGEMENT SYSTEMS WITHIN THEIR ORGANISATION

2. Contents • Introduction to the Project • Getting Ready • Assessment Documents • Funding Overview • Moving Forward • Budgeting (Income and Outgoing) • Sustainability • Action Planning • Strategic Overview • Organisational Learning Cycle check and amend at the end

3. Introduction to the Project • SUSTAIN Consultancy was asked by NCompass to • Identify the progress to date within the county of Northamptonshire regarding the use and development of Performance Management Systems (PMS) within the Local Infrastructure Organisations (LIOs) • Identify the issues and barriers found in supporting and implementing PMS with front line agencies • Externally benchmark the performance management systems available within the UK, and assess their relevance for front line VCS organisations • Create a toolkit for the LIOs to use to support the development of this work • The following presentation is the template for the toolkit which will be developed and issued to the LIOs within Northamptonshire.

4. Presentation Outputs • This presentation has been designed as a toolkit • It is intended to support Voluntary and Community Sector organisations (VCS) when reviewing the potential for implementing Performance Management Systems • It is intended to be used by Infrastructure Agencies (supporting VCS organisations) or directly by VCS agencies themselves • It seeks to provide a step-by-step process for individuals or groups wishing to implement performance management systems • It provides narratives and techniques • It is designed to be interactive • Planning and scoping out the potential of a performance management system or quality management system process within each organisation should take between 2-3 months depending upon the status of the organisation and will need to involve every level of an organisation.

5. Getting Ready

6. Why bother with a Performance Management System? • Many organisations within the VCS say that they have a difficult enough time managing their daily workload let alone focus on implementing a quality standard or a performance management system!! BUT • There is increasing external pressure on voluntary and community sector groups to have strong, robust management systems in place • Many funders are now specifically looking to grant aid or commission work within the VCS to organisations with acknowledged performance/ quality management systems/standards • Implementing a performance management system SHOULD provide an opportunity to streamline processes and tasks and improve the efficiency of an organisation’s work • Used properly such systems are a STRONG management tool • There are myriad quality or performance management systems out there; some are generic others are specialist focusing upon a particular sector or area of work.

7. Evaluation & Analysis of Performance Management Systems Identification of Preferred system(s) Organisational Assessment Evaluation & Action Planning Development of Action Plans Assessment/ Accreditation Stage Planning How long is this going to take? The following is suggested as an indicative timeline but you will need to honestly assess how long it will take within your organisation. Month 1 Month 2 Months 3-6 Months 6-9

8. You will need to involve the following people within your organisation to implement a performance management system Working as a team provides an opportunity to share and challenge perceptions – at least one from each area

9. It is essential that you review the needs of those outside ofthe organisation to… Statutory Bodies Does this group have preferred systems? Brainstorm others? Stakeholders Feedback? Thoughts? Changes? Perceptions of Service? Current Funders End Users Other VCS Groups Does this group have preferred/recognised systems? Can you find support? Benchmarking needs? What are other VCS groups doing?What support can you get for this? Can you find a mentor? Is there a preferred system? Can you identify areas for support?

10. Choosing a system – key thoughts • There are numerous performance management or quality management systems available today • It is important that you internally assess what system you feel you need and consult with key stakeholders too – access to existing or new funding streams may be predicated upon the attainment of a particular standard or system • You must involve all levels of your organisation in this decision to ensure full buy in • It may mean that as an organisation you will need more than 1 system depending upon your organisations’ scope of work • Take sufficient time to undertake a proper assessment of what you need • Internally • Externally • Now • In the future (e.g. service expansion/new areas of service delivery).

11. Which System? The following table highlights the main systems in use within the VCS. This is not exhaustive and you must ensure that your work with key stakeholders identifies others which may be essential in your field of work.

12. Which System?

13. Which System?

14. Which System? Be clear and assess both what you need internally and externally before choosing a system!

15. Beginning your assessment – how do you assess where you are against your chosen standard or system? • Identify a team of people that will work with you on implementing your system • Get together and review the categories/standards – make sure you understand the system • Identify areas of possible support – e.g. Local Infrastructure Organisations, or other organisations who may be able to support you e.g. local organisations that have just gone through this process • Create a plan of action for your assessment • Create and use an Action Log as you go through each standard or category area, identifying clear owners for tasks • As much as you can you need to be objective and honest with your status and findings from the review • The following tables highlight some of the documents you will need for your review.

16. Suggested documents you will need (1)

17. Suggested documents you will need (2) • You may have other documents to add to this list e.g. completed client questionnaires. • Ensure that you take the opportunity to make maximum use of this review.

18. What happens if these documents can not befound? • These documents (and others) will be key to demonstrating solid planning and monitoring systems, if you do not have them in place you may have to create them. • It is recommended that the Management Committee and Senior Staff of the organisation seek to create these documents, linking in with key operational staff at relevant points. • These documents must be in place in order to provide an assessment of goals and outputs against the identified quality standards And • They will help you make appropriate decisions around which performance management system(s) to implement in the future. Take the time to plan and create these documents or update them if you need to – find support e.g. from Local Infrastructure Organisations to support you if needed.

19. The evaluation should allow you to understand • The purpose, goals and outcomes of the organisation • Who your current funders are (and what systems they may prefer) • What your current financial management systems are (& performance) • Your activity against your organisation’s constitution and goals (make amends if necessary) • Areas for service development/progress • Your progress and level of exposure against activity areas and standard/system requirements • Your governance processes • Which system is most appropriate to your organisation • What you need to do to pass/get accredited Be honest with your findings & discuss them with your stakeholder group!

20. Assessing your Funders and their Performance Management Needs?

21. Moving Forward

22. Once you have identified which system to implement you need to • Understand the system • Understand the financial requirements of the system and budget accordingly • Understand the categories/areas within the system • Identify the process of evaluation and review within each category • Identify the approach to obtaining the standard within the organisation, considering workflow and capacity within your organisation • Create an SMART action plan for implementing achieving the system, with key goals that are • Specific • Measurable • Achievable • Realistic • Timebound • Communicate plan of work and intention to the full team within your organisation

23. Suggested Action Plan- Generic Template Following your review you should be able to start to list key actions and outputs to move your organisation forward – the generic template is to be used to share at every level of the organisation. *be sure that this communicated and owned

24. Action Plan – Per Category Area This table should allow you to list against each category area what needs to be achieved to meet the standard’s requirements.

25. Assessing Progress • Depending upon the system you will need to both self assess and evidence the procedures, policies and tasks you have in place to deliver against identified outputs • It is recommended that you involve different levels of staff, volunteers, service users (where appropriate) and Trustees in this assessment so that you can get a broad view of progress made for each category area • Make a log of where you have fully met criteria and use the action planning template for areas where specific actions are required • Allocate clear owners for improvement tasks • Review progress on an agreed and regular basis. Create a timeline for final assessment Monitor progress & work towards it!

26. Reflection Documents

27. Use your work to date to • Improve your business and strategic planning work • Identify opportunities for development • List supporting actions and tasks • Give owners • Monitor • Involve the full organisation • Continually monitor and review progress

28. Organisational Learning Cycle Organisational Review Integrated Action Building & Understanding models Ross & Segal 2002 Agreed Strategy