Performance Management

TOOLKIT FOR ORGANISATIONS WISHING TO REVIEW

THE POTENTIAL OF PERFORMANCE MANAGEMENT SYSTEMS

WITHIN THEIR ORGANISATION

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

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.

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.

Getting Ready

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.

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 6-9Planning

Evaluation&

Analysisof

PerformanceManagement

Systems

Identificationof

Preferred system(s)OrganisationalAssessmentEvaluation& Action Planning

Developmentof Action

Plans

Assessment/Accreditation

Stage

You will need to involve the following people within your organisation to implement a performance management

systemBoard Members

-Chair-Treasurer-Trustees

Chief ExecutiveOfficer / Senior Manager

Operational Staff Finance Officer Project Staff

Administration Staff Volunteering Staff

Working as a team provides an opportunity to share and challenge perceptions – at least one from each area

It is essential that you review the needs of those outside ofthe organisation to…

StakeholdersCurrentFunders

Other VCSGroups

End Users

Statutory Bodies

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?

Feedback?Thoughts?Changes?Perceptions of Service?

Does this group have preferred systems?

Brainstorm others?

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).

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.

System Details Link

Charter Mark Standard system for publicly funded organisations. High use in voluntary sector (commissioned based work contracts). Some funders may stipulate this standard as a requirement of contractual work.

10 category areas.Standard system which is externally assessed.3 year timeline for re-assessment.Networking opportunities for accredited

organisations.Cost = c£1,500.00

[email protected] 609 0901

EQFM Excellence Model European Foundation in Quality Management.British Quality Foundation.Predominantly in use within the private sector

since 1992.Self assessment process based on 9 categoriesSelf Assessment process.3 year accreditation period.Cost = c £1,500.

www.qualityfoundation.co.ukLinks into the British Quality

Foundation/ TQM

Groundwork North Northampton use the Business Excellence Model.

Which System?

System Detail Notes

Investors in People Improving organisational standards through people.Four areas (commitment, planning, action and evaluation).Managed by the Learning and Skills Council awarded by Investors in People UK.External assessment with a 3 year timeline.Cost =c £1,500.00 (mainly accreditation process)

[email protected] 7467 1900

ISO9000 Predominantly in use within the private sector.Based on a performance management system with key categories.Categories of focus.External assessment with a 3 year time line.Cost = c.£1,500.00 (mainly accreditation process)

CEMC currently using for information.

PQASSO Practical Quality Assurance System for Small Organisations.Firm favourite within the VCS and many of its funders.Internal self assessment at present – looking to introduce external accreditation next year.Based on 12 categories.Cost = £73.15

High use in LIO’s throughout the [email protected] 7713 5722

Which System?

System Detail Notes/Reference

Quality First Based on PQASSO designed for organisations with very small staff numbers (paid/voluntary).Self assessment tool designed by Birmingham CVS.Nine quality areas.Cost = £25.00

Possible for small/embryonic VSC groups.www.bvsc.org0121 678 8808

Community Legal Services Quality Mark (CLS)

Designed for organisations giving legal information and advice to the public.Audited processes against set down quality standards.Manual for each standard.Externally audited process.3 year time lineCost = part of contract with CLS.

Requirement for organisations with a contract with Community Legal Services.3 QM Areas:- information- general help- specialist helpwww.legalservices.gov.uk

Social Audit A system designed to audit the impact corporate social responsibility in the corporate sector.Some relevance to voluntary sector, may useful to look at values and impact (social, economic & environmental).Self assessment toolCost = £40.00 (audit manual and CD Rom)(May be of more use as an internal tool/PR marketing tool)

www.socialauditnetwork.org.uk

Which System?

Specialist Examples Detail Reference

Matrix Learning Skills Council

Essential for acquiring any commissioned based work with the Learning and Skills Council.Quality system with nine categoriesRenewal period 3 years.Cost = c.£1,700.00

NVC have this in place.wwww.readingroom.lsc.gov.ukAdult Services Guide.

ISO14001/BS5888

Environmental standards/quality system. Ground Work North Northamptonshire applying Sept 2006.

Volunteering England Specialist requirement for Volunteer Centres as part of the Volunteering England Network.External assessment.3 year time period.

NVC, South Northants, Daventry, ENVA all have in place subject to status.Groundwork North Northants applying Sept 2006.

Be clear and assess both what you need internally andexternally before choosing a system!

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.

Suggested documents you will need (1)

Document(s) Action Notes

Constitution or Governing rules To understand scope, remit and purpose of organisation

Background assessment

Check cause

Check focus/ standard/system

Last 3 years audited accounts (or what is possible)

Assessment of recent financial performance

Strengths and weaknesses

Issues & opportunities

Current organisational structure

Job Descriptions/Specifications

Overview of organisation Understanding key roles etc

Who to engage in the review

Current Board or Management Committee Structure

Assessment of current governance structures

Key individuals & gaps

Strengths and weaknesses

Issues & opportunities

Engagement of Board members

Copies of last 12 months minutes from Board Meetings

Review operational and strategic issues

Issues, barriers, opportunities and concerns

Current budget Review Financial management

Financial processes in place

Suggested documents you will need (2)

Document(s) Action Notes

Review of funding streams To understand current funders

To assess needs re PMS

Begin evaluation

Assess which potential system(s)

Information and Review against services offered

Assessment of current projects and activities

Outputs and Outcomes

Skills and resource assessment

Opportunities and risks

Assessment against categories

Information on marketing and PR for organisation

Assessment of current communication activity

Evaluation of how organisation presents itself externally

Information on Quality Assurance System

Understand processes and formal performance management techniques

Overview of management and control structures

Current Business Plan Review

Evaluation methods?

Management Information methods?

Attainment of business goals

SWOT

•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.

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 documentsor update them if you need to – find support e.g.

from Local Infrastructure Organisations to support you if needed.

Take the time to plan and create these documentsor update them if you need to – find support e.g.

from Local Infrastructure Organisations to support you if needed.

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 withyour stakeholder group!

Be honest with your findings & discuss them withyour stakeholder group!

Assessing your Funders and their Performance Management Needs?

Source Project Area

Outcomes Standard required?

Resources

Needed

Status

Central Government

Local Government

Trusts

Companies

Big givers

Members &

Supporters

Events

Traded Income (by area)

Moving Forward

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

Suggested Action Plan- Generic Template

Action By When

By Whom*

Notes

Be clear about individual actions Be realistic

Reference key issues or outputs required

Following your review you should be able to start to list keyactions 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

Action Plan – Per Category Area

Action By When

By Whom Notes

This table should allow you to list against each category area what needs to be achieved to meet the standard’s requirements.

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 assessmentMonitor progress & work towards it!

Create a timeline for final assessmentMonitor progress & work towards it!

Reflection Documents

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

Organisational Learning Cycle

Reflection

Theorizing& PlanningNext Steps

IntegratedAction

OrganisationalReview

Building & Understanding models

AgreedStrategy

IntegratedAction

Ross & Segal 2002