Performance Management Framework 2009/10 (word)

PERFORMANCE MANAGEMENT FRAMEWORK

2009/10

Tamworth Borough Council

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TAMWORTH’S PERFORMANCE MANAGEMENT FRAMEWORK

CONTENTS

FOREWORD BY THE COUNCIL LEADER & CHIEF EXECUTIVE........................31 INTRODUCTION......................................................................................42 THE PERFORMANCE MANAGEMENT FRAMEWORK.................................5

2.1 What is the PMF?.............................................................................52.2 How does the PMF work?.................................................................52.3 The 24 Month Cycle.........................................................................6

2.3.1 Definition..................................................................................62.3.2 Operation..................................................................................8

2.4 Accountability Framework.............................................................112.5 Constituent Parts of the PMF – see Appendix 1.............................122.6 Participants and other Mechanisms in the PMF Process – see Appendix 2..............................................................................................12

3 MONITORING OF PMF ACTIVITIES.........................................................124 IMPROVEMENT OF PMF........................................................................12APPENDIX 1 – CONSTITUENT PARTS OF PMF..............................................13

1.1 Review of previous year's performance........................................131.2 Democratic engagement...............................................................131.3 Public Consultation on Objectives.................................................151.4 Budget consultation......................................................................151.5 Vision & Corporate Priorities.........................................................171.6 Sustainable Community Strategy & Local Area Agreement..........181.7 Corporate Plan & Improvement Plan.............................................181.8 Directorate Business Plans and Category Reporting.....................181.9 Business Plans and the Single Equalities Scheme.........................191.10 Service Plans.................................................................................191.11 Provisional Items for Business & Service Plans.............................191.12 Risk Management..........................................................................191.13 Budget and Medium Term Financial Strategy...............................191.14 Detailed Service Planning from Budget Allocations.......................221.15 Training and Development Programme........................................22

1.15.1 Member development.............................................................221.15.2 Officer development...............................................................23

1.16 Financial Performance Review......................................................231.17 Council Tax Leaflet........................................................................231.18 Statement of Accounts..................................................................241.19 Budget Carry Forward Exercise.....................................................241.20 Financial Forecasts........................................................................241.21 Performance Indicators.................................................................251.22 Annual Review...............................................................................251.23 Public/Stakeholder Consultation....................................................25

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1.24 Community Empowerment............................................................261.25 Personal Development Reviews (PDRs).........................................271.26 Performance Reviews....................................................................27

1.26.1 Quarterly Healthcheck & Monthly Performance Review.........271.26.2 Actions & Performance Indicators within the Business Plan. . .271.26.3 Risk Management...................................................................271.26.4 Business Plan Reports.............................................................28

1.27 Communication of Progress..........................................................28APPENDIX 2 – PARTICIPANTS AND OTHER MECHANISMS IN THE PMF PROCESS....................................................................................................29

2.1 Local Strategic Partnership – ‘Tamworth Together’.......................292.2 Full Council....................................................................................292.3 Cabinet..........................................................................................302.4 Scrutiny Committees.....................................................................312.5 Other Member Committees...........................................................312.6 Executive Management Team & Budget Review Group................312.7 Corporate Management Team.......................................................312.8 Directorate Management Teams...................................................322.9 Performance Forum.......................................................................322.10 Internal Audit.................................................................................322.11 Value for Money Working Group....................................................322.12 Diversity & Equalities Group.........................................................322.13 Council Employees and Case Studies............................................332.14 Steps to Success – approach to projects.......................................332.15 Assessments.................................................................................33

2.15.1 CPA/CAA..................................................................................332.15.2 Service Inspections.................................................................342.15.3 Annual Audit & Inspection Letter............................................34

2.16 Forward Plan.................................................................................342.17 Performance Management System...............................................35

APPENDIX 3 – PERFORMANCE MANAGEMENT SYSTEM...............................363.1 Business Plan template.....................................................................36

APPENDIX 4 – RISK MANAGEMENT OF PERFORMANCE MANAGEMENT FRAMEWORK..............................................................................................37DOCUMENT CONTROL................................................................................37

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FOREWORD BY THE COUNCIL LEADER & CHIEF EXECUTIVE

We need to ensure that the council provides the best possible leadership for our residents and services for everyone. Council Members and Officers are personally committed to these principal outcomes.

The Performance Management Framework is a key means to these ends; recognising not only the importance of performance management in itself, but also how imperative it is that individuals take responsibility for the decisions and actions which will make improvement possible.

Councillor Bruce Boughton,Leader

David Weatherley,Chief Executive

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1 INTRODUCTION

The implementation of Tamworth Borough Council’s performance management framework (PMF) is part of a journey towards a performance culture at the authority; a journey which will support the achievement of efficiencies in everything the authority undertakes.

It is not sufficient merely to collect and report performance data, however systematically; it needs to be the right data in the right format at the right time for the right purposes; and that data needs to be communicated such that decisions about any required changes can be made proactively at the most appropriate level of the organisation in a timely manner.

Most immediately, the PMF engenders effective performance management where:

Ownership is devolved, and yet at the same time Interdependencies of objectives are mapped and understood; There is a sound case for decisions and consequent actions, based

on demonstrable facts and accurate information

The PMF commenced in July 2007.

As guidance, this document provides a summary of the essential elements of the framework: what it is in principle, how it works and how the council can see whether it is working.

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2 THE PERFORMANCE MANAGEMENT FRAMEWORK

2.1 What is the PMF?

The PMF is a strategic process which ensures that the various elements of the council’s performance assurance & control are planned and occur in a coherent & consistent manner for best benefit to all stakeholders.

2.2 How does the PMF work?

The Performance Management Framework comprises activities in a continuous sequence of 24 month cycles, which commence every 12 months and hence overlap. The first 12 months of a cycle are concerned with defining the council’s vision, plans and budgets to commence April the next year and operate for the second 12 months of the cycle.

PMF Cycles

To distinguish one cycle from another, animal names are used; e.g. April 2008 to March 2010 is the BAT cycle. April 2009 to March 2011 is the CAT

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cycle. In this way, the organisation can be clear about which cycle it is working within at any time.

Various participants and mechanisms are at work in each cycle’s activities. Specific participants are accountable for the activities and their outcomes – creating an accountability framework for the authority’s performance management.

2.3 The 24 Month Cycle

The PMF definition and operation activities occur at particular points during the 24 month cycle, with owners, as indicated in the tables below.

2.3.1 Definition

PMF_CAT 01 Definition (April) Item OwnerReview of previous year's performance Assistant Chief ExecutiveIdentify Members priorities for the April of next year (Manifesto)

Leader

Provisional business planningCorporate Directors. Assistant Directors

PMF_ CAT 02 Definition (May) Item OwnerReview of previous year's performance Assistant Chief Executive

Democratic engagement (Election)Democratic Services Manager, Corporate PR & Consultation Manager


PMF_ CAT 03 Definition (June) Item OwnerReview of previous year's performance Assistant Chief Executive

Budget / potential objectives consultationDirector of Resources / Corporate PR & Consultation Manager


PMF_ CAT 04 Definition (July) Item OwnerReview of previous year's performance Assistant Chief Executive



PMF_ CAT 05 Definition (August) Item Owner

Democratic engagementDemocratic Services Manager, Corporate PR & Consultation Manager

Budget / potential objectives consultation Director of Resources / Corporate PR &

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Consultation ManagerGrowth items / budget policy changes Corporate Directors


PMF_ CAT 06 Definition (September) Item Owner



Review/revise Vision & Corporate objectives Leader / Chief Executive


PMF_CAT 07 Definition (October) Item OwnerDevelopment of Corporate Plan (inc. Improvement Plan)

Assistant Chief Executive

Draft Corporate Plan and scorecard (commencing April) issued and published to councillors, managers, employees

Assistant Chief Executive

Input to Sustainable Community Strategy Corporate Director – Community & Environment

PMF_CAT 08 Definition (November) Item OwnerDepartmental strategic business planning for April of next year

Corporate Directors / Assistant Directors

Input to Sustainable Community Strategy Corporate Director – Community & Environment

PMF_CAT 09 Definition (December) Item OwnerBudget & medium term financial strategy Director of Resources

Input to Sustainable Community StrategyCorporate Director – Community & Environment

PMF_CAT 10 Definition (January) Item OwnerDetailed departmental planning from budget allocations

Assistant Directors

PDRs (CMT) Assistant Chief Executive

PMF_CAT 11 Definition (February) Item OwnerDetailed departmental planning from budget allocations

Assistant Directors

PDRs (DD/AD) Assistant Chief Executive

Budget before Full CouncilCorporate Director - Resources

PMF_CAT 12 Definition (March) Item OwnerDetailed departmental planning from budget allocations

Assistant Directors

PDRs (All) Assistant Chief Executive

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Finalised Corporate Plan & Business Plans active on Covalent system

Head of Performance & Corporate Relations

2.3.2 Operation

PMF_CAT 13 Operation (April) Item OwnerAnnual Review development (using review of past year’s performance)



Public/stakeholder consultationCorporate PR & Consultation Manager

Monthly performance reviews Assistant Chief ExecutiveFinancial forecasts Resources Director

Communication of progressCorporate PR & Consultation Manager

Accounts closed Director of ResourcesPerformance Indicator results for previous year collected


PMF_CAT 14 Operation (May) Item Owner

Annual Review developmentHead of Performance & Corporate Relations

Publication of Corporate Plan Assistant Chief Executive



Monthly performance reviews Assistant Chief ExecutiveFinancial forecasts Director of ResourcesAccounts closed Director of ResourcesTraining and Development programme agreed Assistant Chief Executive


Performance Indicator results for previous year collected


PMF_CAT 15 Operation (June) Item Owner




Monthly performance reviews Assistant Chief ExecutiveFinancial performance review Director of ResourcesFinancial forecasts Director of Resources


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Performance Indicator results for previous year collected


PMF_CAT 16 Operation (July) Item Owner



Monthly performance reviews Assistant Chief ExecutiveFinancial performance review Director of ResourcesFinancial forecasts Director of Resources


PMF_CAT 17 Operation (August) Item Owner

Annual Review development / approvalHead of Performance & Corporate Relations


Monthly performance reviews Assistant Chief ExecutiveFinancial forecasts Director of Resources


PMF_CAT 18 Operation (September) Item OwnerAnnual Review at Full Council Assistant Chief Executive




PMF_CAT 19 Operation (October) Item Owner

Annual Report published (if not September)Head of Performance & Corporate Relations




PMF_CAT 20 Operation (November) Item Owner




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PMF_CAT 21 Operation (December) Item Owner




PMF_CAT 22 Operation (January) Item Owner



Council tax leaflet (33%) Director of ResourcesMonthly performance reviews Assistant Chief ExecutiveFinancial forecasts Director of Resources


PMF_CAT 23 Operation (February) Item Owner





PMF_CAT 24 Operation (March) Item Owner





2.4 Accountability Framework

BODY ACCOUNTABLE FOR ACCOUNTABLE TOLocal Strategic Partnership(Tamworth Together)

Delivery of the Sustainable Community Strategy

Central Government (through borough council)

Local Delivery Plan of Staffordshire LAA

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BODY ACCOUNTABLE FOR ACCOUNTABLE TOStaffordshire LAA

Tamworth Borough Council (Full Council)

State of Borough Debate Borough residents

Cabinet Council Vision, Priorities & Resources

Borough residents

Scrutiny Committees Scrutiny of Council decisions & actions

Borough residents

Regulatory Committees Specific regulations (e.g. Planning & Licensing consents)

Borough residents / Central Government

Corporate Management Team

Corporate Plan & Summary Performance against its objectives

Members & Borough residents

Corporate Communications

Members & Employees

Directorate Management Teams

Business Plan & Summary Performance against its objectives

Members, Director, Corporate Management Team, Borough residents

Directorate communications

Directorate employees

Service Units (Managers) Service Plan & detailed performance against its objectives

Directorate Management Team, service users

Service level communications

Service users, employees

Managers Personal Development Reviews

Supervising director/manager, employees

Staff communications Supervising director/manager, employees

All Employees Personal performance & contribution to corporate priorities

Supervising member/director/manager, service users

2.5 Constituent Parts of the PMF – see Appendix 1

2.6 Participants and other Mechanisms in the PMF Process – see Appendix 2

3 MONITORING OF PMF ACTIVITIES

The agreed schedule for PMF activities is maintained on the Covalent Performance Management System.

Completion of the constituent parts of the PMF during each 24 month cycle is reported to CMT monthly using a bespoke report on Covalent.

4 IMPROVEMENT OF PMF

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The effectiveness of the PMF itself is assessed annually by the Corporate Management Team. This can be done with reference to the PMF’s objectives, that:

Ownership is devolved, and yet at the same time Interdependencies of objectives are mapped and understood; Decisions are based on facts, and consequently Actions are changed through use of information

The purpose, process, structure and contents of the PMF will similarly be subject to annual review by Corporate Management Team. Through this, the challenges indicated throughout this document can be prioritised and improvement projects mandated.

In these ways, the PMF can be developed over time.

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APPENDIX 1 – CONSTITUENT PARTS OF PMF

The principal parts of the PMF which occur within each cycle are detailed below.

1.1 Review of previous year's performance

Contained within the Corporate Plan and Annual Review.

1.2 Democratic engagement

Democratic engagement explores how to strengthen relations and dialogue between the council, representatives and citizens and how to harness new ways of engaging. It includes:

Public attendance at council and committee meetingso Questions asked at council and scrutiny committees. Available at all

ordinary meetings approximately every 6 weeks. o Representation at meetings through local councilloro Access to committee reports and background papers and minutes of

meetings. (Via Internet or through Democratic Services) The right of members of the public to consultation on major decisions

and decisions affecting their communityo Statutory and non-statutory consultation

Councillors’ surgeries Council representation on outside bodies

o Two-way process. Approximately 30 outside bodies – a review of these is to be undertaken shortly.

Voter turnout at local elections o Municipal elections occur every 3 years out of 4. Parliamentary and

European elections occur as and when. Council and public attendance at PACT (Police & Communities

Together) meetings; community associations; residents’ groups Devolution of decision-making Membership of local political groups Deliberative democratic engagement activity

o Targeting specific areas of the community for views (geographically; sociologically; hard to reach groups)

o Citizens Panelso Area/Ward committeeso User panelso Pro-active use of the media

E-democracy (to be developed)o E-Panelso E-Petitionso Councillors’ Web Pages

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It is important because Democratic engagement is a fundamental part of the role of a local

authority It provides a range of benefits for effective service delivery and the

positive reputation of the authority The Local Government & Public Involvement in Health Act 2007

introduced a more regulated approach to democratic engagement and the role of members

It plays an integral role in fostering individual rights, social inclusion and social cohesion

Getting involved in democracy and the decision making process has the potential to improve individuals’ quality of life

It has the potential to improve public perception of local authorities and other public bodies

Public service providers need to know the expectations of their customers. Local communities are better at dealing with their own problems and so it is important for the democratic connection to take place

Local Government & Public Involvement in Health Act 2007 and other government advice and legislation places the legislative pressure and need for engagement. (The duty to inform, consult and involve).

Challenges Engaging members who are playing an active and conscious role in

engagement activities. Identifying projects where democratic engagement is required or where

it could beneficial to planning processes. Recognising and harnessing the information gathered from current and

ongoing engagement whether this be formal or informal Identifying a ‘purpose’ for engagement activities so that outcomes can

be planned and evaluated. How far do we want to take democratic engagement/participation? –

Communities can be seen as a threat to local elected representatives; an abrogation of the fundamental role of a local councillor – How far should we go down the road of devolving our decision-making processes?

Citizens do not always see the links between members’ activity in the wards and the council’s decision-making process. Bridging that gap is an important challenge.

The alternative to democratic engagement will not be an unengaged public but a public with its own agenda and an understandable hostility to decision-making processes which appear to ignore them. The council is then perceived to be ‘the problem’ or part of the problem.

1.3 Public Consultation on Objectives

The seeking of stakeholder views on the council’s corporate objectives.

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This could be in the form of consultation on proposed objectives or progress towards objectives or engagement of stakeholders in the development of objectives.

The Local Government & Public Involvement in Health Act 2007 introduced increased duties on local authorities to involve citizens and stakeholders in meaningful engagement on objectives and service delivery

Stakeholder consultation should be an integral part of strategic and operational planning processes to ensure that the direction taken by the authority is meeting identified local needs.

Consultation takes many forms, with the majority occurring within individual services. The council undertakes an annual consultation called Tamworth Listens, which centres around the budget. Another consultation, with residents, the Place Survey, is mandated by Government - This looks at perceptions of the outcomes of services offered within the council’s area, but not necessarily directly provided by the council.

Challenges

Insufficient dedicated Consultation resources Danger of consultation fatigue with local stakeholders Engagement on objectives can be hard to measure Engagement is not currently part of the planning framework to any real

degree (although this is now being actively addressed).

1.4 Budget consultation

There are consultation processes feeding into the budget and medium term financial strategy for General Fund, the Housing Revenue Account and the Capital Programme.

Legislation requires that Councils carry out consultation regarding the budget with key stakeholders.

The Constitution requires the Cabinet to publish initial proposals for the budget for the Scrutiny Committees to consider, having first canvassed the views of local stakeholders. Details of the consultation process also have to be made available on the Council’s web page and published in the press.

Phase one of the consultations is focused around Tamworth Listens and feedback from general financial issues/service issues affecting the authority.

Phase two is focused on obtaining views/feedback from focus groups on draft budget proposals (including corporate priorities, planned policy

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changes, issues arising from Tamworth Listens and other budget consultation feedback).

Feedback from phase two of the consultation is included within a revised draft budget for consideration by Cabinet and Scrutiny Committees.

The consultation process includes:

Feedback from the Tamworth Listens process; Specialist Group partnerships / consultations (Focus group meetings and

questionnaires); An Internet questionnaire.

The consultees are to be asked to respond in the following areas:

a) To comment on proposed level of Council Tax increase;b) In light of limited funding (Government Grant), demands of central &

local initiatives and constraints on council tax increases (due to Government capping controls), what would be consultees priorities for service delivery in view of funding pressures and could they identify improvements and areas for targeted savings;

c) To rank the Council’s Corporate Priorities d) To provide views on inflationary increases in car parking and other fees

& charges;e) Issues around the draft budget implications of proposed policy changes

and Government legislation with options on their preferences.

Consultation regarding the Housing Revenue Account will be focused around information supplied from tenant’s federation/focus groups.

The key dates / milestones are as follows:

Activity Deadline

Agreement of the consultation process by Cabinet August

Feedback from existing consultation exercises (financial issues)

August

Consultation events (including Tamworth Listens)August /September

State of Tamworth DebateSeptember

Draft Top Level Budget Review – Incorporating consultation & policy changes / technical Adjustments – budget impact ; for Consultation (P2)

September

Production of draft report on the budget and medium term financial plan following feedback on policy changes and phase one of the consultation.

Mid October

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Focus groups, website & press coverage including issues around proposed policy changes and impact of government legislation (Phase 2)

September/ October

Consultation feedback reports received October

Consultation feedback reported to CMT / BRG and Cabinet

October /November

Draft budget report to Joint Scrutiny Committee December

Draft Final budget reports considered by Cabinet for recommendation to the Joint Scrutiny Committee.

January

Specific budget consultation involves Members (Scrutiny Committees), Trade Unions1, the Business & Voluntary Sectors, the Public and Council Housing Tenants.

1.5 Vision & Corporate Priorities

Each year, the Executive Management Team consider the results of ongoing democratic engagement, budget consultation and other public consultation activity, and establish whether the council’s vision for its corporate offering is appropriate. If necessary, the vision will be amended at this point.

The vision is usually focused at a point several years into the future. Shorter term priorities and objectives are also established to support attainment of this.

Changes to the council’s vision and priorities are ratified by Full Council as part of the Corporate Plan.

IssuesPolitical sensitivities created by the requirement to elect one third of members to the council each year does not support long term planning. Revisions to priorities tend to be too frequent and thus progress against them is hard to determine from year to year.

1.6 Sustainable Community Strategy & Local Area Agreement

The Sustainable Community Strategy (SCS) describes the vision for Tamworth decided by public, private and community/voluntary sector agencies based on their understanding of the needs of Tamworth’s diverse communities.

Integral to the SCS is Tamworth’s contribution to Staffordshire’s Local Area Agreement (LAA). While the SCS provides a summary view of Tamworth’s

1 Trades Union representatives declined the opportunity in 2008

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priorities over the coming years and how they might be accomplished, the Local Area Agreement has specific action plans, known as delivery plans, to produce particular local outcomes.

Both SCS and LAA Delivery Plans are owned by the Local Strategic Partnership, with the borough council acting as the ‘accountable body’ for legal purposes.

1.7 Corporate Plan & Improvement Plan

The Corporate Plan describes in high level terms what the authority intends for the coming period (typically 1, 3, 5 years or longer) and how it will accomplish this. It comprises statutory and regulatory obligations as well as other local issues.

The Corporate Plan begins with a Vision for the future and a number of Priorities, broken down by Corporate Objectives.

Additionally, the Corporate Plan has underpinning themes – which serve as guiding values for the authority’s activities.

In turn, each Corporate Objective and Theme is achieved by completing significant tasks and measured by performance indicators.

Particular improvements may be managed through specific improvement action plans, but these are regarded as part of the whole Corporate Plan rather than something separate.

1.8 Directorate Business Plans and Category Reporting

Directorate Business plans are integral to the Corporate Plan. They recognise outputs and the actions needed to produce them, and associated performance indicators. They also recognise the outcomes which these activities are contributing to. They are bound together in a consistent format through

A standard template - suitable for the conversion to COVALENT - which shows how each directorate’s high level business plan contributes to the Corporate Priorities.

Categorisation of each output by a standard set of corporate outcomes

Through category reporting, we are therefore able to report how the directorates are contributing to the Corporate Plan, individually and together. This provides improved opportunities for learning by all areas of the organisation and potential efficiencies for the organisation as a whole.

Directorate business plans likewise have plans for improvement within them.

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1.9 Business Plans and the Single Equalities Scheme

All business plans will contain targets to help achieve the Corporate Diversity & Equalities Action Plan aligned to the council’s Single Equalities Scheme.

1.10 Service Plans

Each section of the organisation should have its own service plan or be reflected in the plan of an overarching section. Each service plan should be managed on the performance management system, COVALENT.

1.11 Provisional Items for Business & Service Plans

As part of the definition phase of the PMF cycle, managers can identify provisional activities and outcomes for the following year of operation. The identification of growth items and budget policy changes required by end of August facilitates much of this. But there are also items which may have no budget implication and should still be reflected in the next year’s business plans.

All such proposals should be captured on Covalent in a Provisional business plan document for CMT attention. Once approved, they are then made active within the formal business plan when that commences the following April.

1.12 Risk Management

Risk management is part of the corporate/business planning process. Risk plans are created on the corporate risk management system (COVALENT) and monitored as part of normal performance management.

1.13 Budget and Medium Term Financial Strategy

Budgets are required to plan for forthcoming activities in meeting the objectives of the Council as a whole. Legally, the Council is required to set its budget and the associated Council Tax by 11th March each year. Typically, such budgets support business plans for the coming 12 months.

June/July

July / August

July /

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Review / Revise & agree Budget Process

Prepare 5-Year budget forecast

Revenue Budget Preparation

Capital Programme /Policy Changes & Targets

issued for Managers consideration / input

Budget Consultation process agreed

http://www.tamworth.gov.uk/jobs_and_careers/equalities_scheme.aspx

http://www.tamworth.gov.uk/jobs_and_careers/equalities_scheme.aspx

August

September

October

November

December

January

February

February

Flowchart of Budget / MTFS Process

The budget represents the council’s plans in financial terms and acts as a method of measuring performance against the achievement of these objectives.

The budgets for the next financial year are compiled in the ‘budget process’ that runs mainly from September to March each year (some preparatory work / forecasts are prepared from June/July).

Day to day responsibility for setting budgets and financial performance monitoring may be delegated to appropriate line managers/senior officers, as appropriate.

A brief summary of the stages involved in the budget process are as follows:

Review / Formulation of Budget Process

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Capital Bids considered/Policy Changes

Responses (reflecting changes in policy etc)

reviewed and accepted or rejected

Technical Adjustments (with managers input) - Committee decisions, inflation estimated pay

awards & recharges etc.

Focus groups review budget proposals, Corp.

priorities including savings, Growth,

provisional Council Tax & fees & charges

Budget Consultation feedback, base budget & policy

changes included

Draft Budget recommendations to Scrutiny Committees

Draft RSG/Housing Determinations

received & included

Scrutiny Committees

Final Budget Compiled

Council Approval

Following a review of the previous year’s process, the outline process to be followed is formulated / agreed by the Budget Review Group (BRG) and Cabinet.

Consideration of Policy ChangesPlanned changes to services (provisionally approved during the previous budget process) are issued for confirmation. Budget Managers are also required to consider the need for any new growth items and targets for budget savings. They will be aware of the objectives of the Council as a whole within the Corporate Plan and should therefore be looking to incorporate changes or additions into their future plans.

Capital ProgrammeManagers are asked to review provisionally approved schemes (within the 5 year capital programme) and submit new / revised capital appraisal forms for consideration, and prioritisation within available resources, by BRG.

Budget ConsultationBRG / Cabinet consider and approve the consultation programme which will inform the forthcoming budget discussions/decisions. Consultation usually involves Members (Scrutiny Committees), Trade Unions, the Business and Voluntary Sectors, the Public and council housing tenants.

Formulation of Budget Forecast & Base BudgetsManagers should identify any minor changes in expenditure or income or highlight other areas of concern with the Directorate Accountant prior to the finalisation of the base budget working papers. Regular review / monitoring during the year assists in this process.

Compilation of Overall budget figuresOnce all the budget working papers have been prepared, an overall net expenditure figure for the Council can be assessed in terms of affordability and whether funding for these levels of expenditure is available. It may be that Managers would be required to identify savings in their budgets, dependant on guidance from Senior Managers and Members.

Final budget Approved by the Council in FebruaryThe final budgets are approved by Members at the Cabinet meeting, usually in February. No further amendments can be made after this point. The full Council approves the budget at its meeting in February.

Significant milestones in the process are planned as:1. 5-year forecast to CMT/BRG in October;2. Consultation process – results to CMT/BRG in October;3. Consultation feedback, base budget and technical adjustments to

Cabinet in November;4. Cabinet proposals to a joint Scrutiny Committee (Budget) in

December & January;5. Provisional RSG settlement assessment and HRA Determination

implications to CMT/BRG in December;6. Final Budget and Medium Term Plan reports to Cabinet in February;7. Budgets set at Council in February.

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1.14 Detailed Service Planning from Budget Allocations

Once the Corporate Plan is established and headline annual budget allocations to each service have been allocated, (typically by calendar year end) the services can plan in more detail.

1.15 Training and Development Programme

1.15.1 Member development

The Council is operating in a constantly changing environment, requiring Elected Members and a workforce that is flexible and responsive to change. The Government’s Modernisation agenda presents us with an extremely challenging and demanding programme.

It broadly outlines details of the skills and knowledge councillors need to perform their different roles and provides an indication of how they may carry them out effectively. It is not intended to be exhaustive or prescriptive but provides a prompt for both new and existing Members to identify areas where they may need support.

All members can use the programme, either Individually for personal reflection or their own needs; By member teams to identify what might be useful for a committee or

interest group; or With support from officers to prioritise training and development needs.

It is also designed so that Officers can use it as a basis for training needs analysis (a way of identifying the development needs of individuals) with the creation of personal development plans.

1.15.2 Officer development

Personal Development Reviews (PDRs) are an essential way to formally review an individual’s progress in their job role on a regular basis. They provides the opportunity to discuss progress made over the review period, to set work objectives for the next year and most importantly to identify, discuss and mutually agree areas for development to enable the employee to achieve their objectives.

PDRs form the vital link between an individual and the achievement of team, directorate and corporate priorities, outcomes and objectives. The process ensures that each employee has a clear understanding of how his or her role fits into the organisation as a whole and emphasises that they play an important part in ensuring that these objectives are met. The process also contributes to successful implementation of key strategies throughout the Council.

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1.16 Financial Performance Review

There is a detailed review of the final financial outturn position each year (during the final stages of the annual statement of accounts closedown process – June/July) in order to determine whether there are any implications for the budget setting process. These are summarised and presented to CMT / Members.

An exception report is presented to CMT/Members in August. It is used to highlight the significant items which either may require a proposed policy change or may impact on the medium term financial strategy - the selection criteria is an outturn variance of +/- £5K, excluding recharges and capital charges.

1.17 Council Tax Leaflet

The Council has a statutory requirement to publish specified information to local stakeholders and the wider community with its Council Tax demands. Thus the council uses its council tax leaflet to communicate its budget, council tax and other statutorily required information from Tamworth Borough Council, Staffordshire County Council, Staffordshire Police and the Stoke-on-Trent & Staffordshire Fire & Rescue Authority.

A working group, with representatives from all relevant authorities, meets to consider the issues involved and lead the project.

The specified information is prepared in February using the draft budget proposals and confirmed when the budget is approved by Council in February each year.

A copy of the draft leaflet is presented to CMT for approval in February each year.

Staffordshire County Council compile and print the joint leaflet to our specification using the information supplied (approx. 30,000 leaflets are printed).

The leaflets are distributed with the annual Council Tax demand notices in March each year.

1.18 Statement of Accounts

One of the main ways a local authority communicates its financial performance to local stakeholders and the wider community is through its published financial statements.

The Council has a Statutory requirement to prepare auditable accounts - the Accounts and Audit Regulations 2003 require that the statement of accounts be approved by Council by 30th June each year.

The Statement of Accounts is presented to Cabinet in early/mid June for endorsement for it to be presented to a full Council meeting in late June.

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1.19 Budget Carry Forward Exercise

At the end of each financial year, revenue reserves may be established to carry forward unused budget funding from one year to the next. As part of the normal procedures budget managers are requested to complete reserve requests – subject to laid down rules contained within the Revenue Reserves Policy.

As part of the normal year end procedures, budget managers are requested to give consideration to the creation of Temporary Reserves that may be required at 31st March.

1.20 Financial Forecasts

Financial forecasts are arrangements the Council has for monitoring performance against budgets, taking corrective action where appropriate, and reporting the results to senior officers and members.

A detailed review of the monthly spend, commitments and accruals to the budget position is carried out each month in order to ensure robust budget management and highlight significant/material issues to Management / Members.

A projected outturn for the financial year for each service is also prepared which enables a forecast of year end balances for the General Fund, HRA & capital slippage/re-profiling.

An exception report is used to highlight the significant items which may require action.

Accurate financial monitoring reports are prepared for all budget holders within 5 working days of the month end – including information on profiled budgets, year to date spend, accruals and commitments

Budget monitoring is: Predictive - as for each monthly report a projected outturn for the year

together with year end balances forecasts are prepared; Prepared on an exception basis, highlighting significant variances for

consideration/scrutiny; Reported alongside operational performance indicators within the

monthly financial performance monitoring report; Informed by the Risk assessment requirements of the Risk Management

strategy

1.21 Performance Indicators

The council maintains a standard set of national indicators and local indicators on the Covalent system. These performance measures contribute to our understanding of our corporate health, success as a community leader and as a service provider in the area.

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Some indicators are quantitative (output) measures. There are an increasing number of qualitative outcome and perception indicators.

1.22 Annual Review

It is good governance to publish the council’s performance results and intentions. An Annual Review is produced bespoke to the council’s requirements.

1.23 Public/Stakeholder Consultation

The Local Government & Public Involvement in Health Act 2007 introduced increased duties on local authorities to involve citizens and stakeholders in meaningful engagement on objectives and service delivery.

Stakeholder consultation should be an integral part of strategic and operational planning processes to ensure that the direction taken by the authority is meeting identified local needs.

Engagement/consultation is often more effective when there is a specific objective or information goal to be achieved.

In addition to budget consultation and democratic engagement activities, consultation happens throughout the year with the public and stakeholders. There are a large number of formal and informal engagement/consultation routes e.g. focus groups, surveys and questionnaires, public meetings, outreach projects etc. This consultation is usually sponsored by departments – perhaps testing the market for a new or changed offering; informing the public about services and future plans, policies and services; seeking views on policies and services. It also involves participation and partnership where issues and needs are jointly discussed and assessed and joint or devolved decisions made.

Challenges

Ensuring that results are fed into planning processes and used by members and management.

Defining terms such as engagement, consultation and participation and their respective roles

Identifying the information needs/objectives required to drive engagement

Maintaining a co-ordinated approach to engagement that prevents duplication and stakeholder consultation fatigue

Clarity is needed on whether this does/should include service/customer evaluation

Ensuring that both formal and informal consultation and engagement are included into any performance or reporting framework.

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1.24 Community Empowerment

The council has adopted a framework for community engagement which respects a spectrum of activities:

LOW > > > > > > > > > > > > > > > > Empowerment > > > > > > > > > > > > > > > > HIGH

Information Giving Consultation Community Involvement

Capacity-Building Collaboration

Central to all levels of Engagement.

Asking for views and opinions to identify key local issues or decide on a course of action

Involving people in the decision-making process

Enabling groups and individuals to become involved in projects

Working closely together in partnership – sharing rewards and responsibility

E.G. Newsletter, leaflet, website

E.G. questionnaire, survey

E.G. a public meeting

E.G. through learning, skills and administrative support

E.G. ‘bending’ resources to deliver locally agreed plans

LOW > > > > > > > Need for Support and Community Development > > > > > > > > > HIGH

This model is new to the authority. Its success will be monitored over time by as it is used:

Measured benefit to Community Development Officers Feedback to LSP Stronger Communities Group – as the framework’s

owners An annual review and consequent feedback

1.25 Personal Development Reviews (PDRs)

Once the Corporate Plan is (re)established in December, CMT should have their PDR with Cabinet. Successive cascades of PDRs should follow, with all staff having their PDR by the following April.

Interim PDRs should then follow, helping line managers to supervise progress.

1.26 Performance Reviews

1.26.1 Quarterly Healthcheck & Monthly Performance Review

A healthcheck report to Cabinet is produced in 3 parts.

The first looks at performance of actions and indicators showing:o proven delivery of outcomeso present performance levelso comparative improvement of achievement.It does not deal with past performance or future prospects for improvement.

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The second is a summary of the progress against expected the PMF activities in the current cycle.

The third part of the report specifically concerns financial matters.

In future, the health check may contain a section on Corporate Risks.

The quarterly format of report is produced monthly for CMT. In this, customer feedback and change opportunities from the Tell Us process is soon to be reported.

1.26.2 Actions & Performance Indicators within the Business Plan

By use of the convenient template, all significant actions and indicators in business plans are documented on the COVALENT performance management system.

Using COVALENT, they can be appropriately assigned, administrated and supervised.

1.26.3 Risk Management

As with actions and indicators, risks are assigned, administrated and supervised on the Covalent system, from which monitoring reports can be generated.

1.26.4 Business Plan Reports

A number of styles of report can be produced from the COVALENT system. Each of these can then be edited by other products such as MS Word and embedded elsewhere without the need for recreation of raw data.

1.27 Communication of Progress

Information is provided to identified stakeholder groups on progress towards targets (short term communication) and the corporate objectives and vision (medium to long term communication).

Such communication forms part of our accountability to stakeholders. It helps demonstrate the added value of policies and services delivered by the council and its key role as a place shaper for the local area. It can increase levels of support for policies and services and increase levels of stakeholder engagement and involvement.

Issues:

There is a lack of co-ordination of such communications. Some are managed through corporate campaigns, but others are produced by individual sections in isolation, with the potential for duplication and confusion of information.

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A Corporate Communications Plan is required to co-ordinate our communications better, corporately and ensure more efficiencies – without disempowering individual sections needlessly.

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APPENDIX 2 – PARTICIPANTS AND OTHER MECHANISMS IN THE PMF PROCESS

While the 24 month schedule described above is useful for PMF monitoring purposes, it should be remembered that the successful operation of the PMF depends upon people, systems and processes. It is people’s actions and decisions which produce the outputs and outcomes monitored throughout the PMF cycle. The roles of these participants and other mechanisms need to be understood.

2.1 Local Strategic Partnership – ‘Tamworth Together’

Tamworth Together, Tamworth’s Local Strategic Partnership (LSP) brings together at a local level the different parts of the public, private, community and voluntary sectors; allowing different initiatives and services to support one another so that they can work together more effectively.

The advent of Local Area Agreements (LAAs) has given greater impetus to Tamworth Together; as the District Delivery Board for the LAA, it has become explicitly responsible for tangible, measurable community outcomes.

2.2 Full Council

Council consists of all 30 members and is responsible for the functions outlined in Article 4 of the Council’s Constitution. Broadly these include the Policy Framework; the Budget; Housing Land Transfer and other constitutional matters and political management arrangements.

Annual meeting held in May to appoint the Mayor and Leader Ordinary and Extraordinary meetings to conduct business as required

by the Constitution. Ordinary meetings held approximately every 6 weeks)

State of Tamworth debate meeting as required by the Constitution. Held in September each year.

Single Issue debate meetings as required by the Council Constitution

It is important because: It is the major policy formulating body of the Council and debating

forum for matters of concern to the local community Allows citizens to participate in Council’s question time and provides

opportunities for members of the executive to be questioned It has the potential to be a powerful politically representative body

charged with ensuring good governance of the local community It is an important way of reconnecting local government with the public

it represents and serves

Challenges

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Could Council be a forum for enabling other agencies to debate important issues alongside members? We have single issue debates at council meetings but these need to be more engaging with other agencies and partners and have definitive outcomes.

In order to develop and give expression to the community leadership role, we need to consider new forms of events and meetings of the council

How do we ensure/do we want to ensure that council meetings are less controlled by standing orders and more inclusive

Need to address behaviour and conduct of members in council meetings

Are our existing procedures adequate to allow council to be the main setting for holding the executive to account.

The role of the Mayor at council meetings. Should we have a separate Chairman/speaker. Should the Mayor’s role be solely for civic purposes?

2.3 Cabinet

Consists of Leader and 4 Portfolio holders (currently Community Cohesion, Economic Development & Enterprise, Public Health & Wellbeing, Quality of Life & Corporate Governance). The members do not have to represent the balance of political parties in the Council.

Carries out all of the local authority’s functions which are not the responsibility of any other part of the council. The Executive is able to make day-to-day decisions as long as these are in line with the Council's budget and policies. If it wishes to make a decision which is outside the budget or policy framework, this must be referred to the full council.

All decisions taken by the Cabinet (or Executive) are open to scrutiny and call-in by the Council’s scrutiny committees) Some decisions that are urgent or are included in the Scheme of Delegation may be taken by officers in consultation with the relevant portfolio holder

Meetings are held every 3 weeks

It is important because: It is the main decision-making body of the council Its decision-making processes are open and transparent; open for

members of the public to attend; It has the potential for its members to demonstrate community

leadership through reasoned and informed decisions Under the former committee regime it was often unclear who took

decisions. The Cabinet system provides clarity with respect to decision-making.

Challenges How should Cabinet be more accountable? Should its accountability be

widened to enable full council to hold it to account more widely? Should it have a public question time?

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How to make Cabinet members more directly accessible to backbenchers. An initiative is about to be implemented whereby Cabinet members will hold regular surgeries at a fixed time and place to enable backbenchers to ask questions.

The proposals relating to changes in executive arrangements contained in the Local Government & Public Involvement in Health Act 2007

2.4 Scrutiny Committees

The council has 2 Scrutiny Committees: Corporate and Community & Wellbeing.

Each committee meets every 6 weeks (approximately) in the evening.

The committees: Review and scrutinise decisions made by Cabinet in connection with the

discharge of any council function Report and recommend to full Council and Cabinet and or any policy,

joint or area committee in connection with the discharge of any functions

Consider any matter affecting the borough Exercise the right to call in for reconsideration decisions made but not

yet implemented by Cabinet and or any policy or area committee

2.5 Other Member Committees

Planning Standards Audit & Governance Appointments & Staffing Chief Officer Conduct Cabinet (Grants) Sub

2.6 Executive Management Team & Budget Review Group

In 2007, Cabinet & Corporate Management Team established themselves as one, strategic decision making body for the authority, the Executive Management Team (EMT). It decides the vision and corporate priorities for the authority which will be developed by officers into the Corporate Plan.

The Budget Review Group (BRG) is an informal sitting of the EMT, used to clarify budgetary matters before entering the formal (public) area of Cabinet.

2.7 Corporate Management Team

The Corporate Management Team is the governing officer team of the authority, comprising Chief Executive, Assistant Chief Executive & Corporate Directors. It oversees the performance of the authority against

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the corporate plan and decides items to go forward for consideration by Cabinet.

The CMT meeting is expanded each fortnight to include Deputy and Assistant Directors. Other officers attend by invitation, when there is an item relevant to them on the agenda.

2.8 Directorate Management Teams

Assistant Directors (or their equivalents) meet as a management team in each directorate. They establish service plans to enable operational management of their parts of the corporate plan and oversee the performance against the corporate plan through these. They decide items to go forward for consideration by CMT.

2.9 Performance Forum

Each month, CMT, Deputy & Assistant Directors and other officers meet to discuss performance related matters of corporate importance. The forum provides an opportunity to consider the organisation’s successes as well as its areas for improvement; an opportunity for learning and sharing of information across the organisation.

2.10 Internal Audit

Internal Audit is an assurance function that primarily provides an independent and objective opinion to the organisation on the control environment comprising risk management, control and governance by evaluating its effectiveness in achieving the organisation’s objectives. It objectively examines, evaluates and reports on the adequacy of the control environment as a contribution to the proper, economic, efficient and effective use of resources.

2.11 Value for Money Working Group

The Value for Money Working Group was established with the remit to embed a culture of value for money throughout the Council, and to share best practice between service areas. The group co-ordinates work undertaken on benchmarking and procurement, and assists with the compilation of annual efficiency/NI 179 returns and the Use of Resources assessments. It has Corporate Management Team representation in the Corporate Director Resources, and includes members of staff from all areas of the Authority.

2.12 Diversity & Equalities Group

An officer group established to help the council respond to the requirements of the Local Government Equality Standard Framework, and (according to its strapline) ‘mak[e] equality real in in Tamworth’. The Group is supported by 2 elected Member representatives. It meets monthly.

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2.13 Council Employees and Case Studies

As indicated in the accountability framework, council employees, either as individuals or as team members have an important part to play in the PMF.

Individuals and their teams are accountable to service users and can influence the performance of the council at any time (typically through discussions with immediate management) by suggesting, for example, improved working practices, more appropriate measurements, etc.

The Personal Development Review (PDR) process makes explicit two-way links between an individual’s activity and Corporate Priorities

The Council encourages employees to record case studies of activities. These case studies can be used to evidence the council’s performance against all manner of assessments, and are useful to help share experiences and learning.

2.14 Steps to Success – approach to projects

'Steps to Success' is the Council's approved approach to projects which can accommodate the likely reality that the experience in project activities of those involved varies from none at all to expert.

The approach should be adopted by all projects at Tamworth. It comprises five flexible steps which turn someone’s ‘good idea’ into purposeful action. The steps are:

1. Mandate; 2. Terms of Reference; 3. Plan, Resources & Management; 4. Implementation; 5. Closure & Review

2.15 Assessments

The Council actively engages in processes of external and internal assessment as part of its approach to improvement.

2.15.1 CPA/CAA

The Council had a Comprehensive Performance Assessment (CPA) by the Audit Commission in 2003/4 and is now undergoing Comprehensive Area Agreement (CAA).

CPA looked at the council’s historical performance and capacity to improve.

CAA will have two main elements, which will inform each other: an area assessment that looks at how well local public services

are delivering better results for local people in local priorities, such as health, economic prospects and community safety, and how likely they are to improve in the future; and

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organisational assessments of individual public bodies, such as the Council

2.15.2 Service Inspections

Although the Best Value requirement to inspect services has ceased, discrete service inspections, such as of the Strategic Housing function, continue.

The scope of these inspections, however, extends well beyond the individual service; acknowledging the interdependence of services and the corporate body. A corporate rather than a merely service based response to the inspections is required – As such, service inspections are of interest and benefit to the entire authority.

One downside of this is that, if the frequency of these individual service inspections is too great, the council cannot corporately respond to criticisms quickly enough; the same criticisms are made but to no added benefit.

2.15.3 Annual Audit & Inspection Letter

The council’s external auditors, the Audit Commission, publish a summary report of the council’s performance in December each year. In essence, it is a report on our performance management framework and its outputs. Key contents are

A report of any external assessment – such as CPA or service inspections

Fulfilment of statutory requirements – such as the now defunct Best Value Performance Plan

The council’s adjudged ‘direction of travel’ The council’s financial performance – its value for money self

assessment and a judgement on ‘use of resources’

2.16 Forward Plan

The Council's Forward Plan consists of all of the key decisions the Cabinet (and in certain cases the Council) intends to take during the 4 month period specified on the Plan. It also contains all decisions Cabinet intends to take whether key or not.

It is a statutory document published every month with any outstanding matters contained in the previous Forward Plan being included in the latest Forward Plan.

All key decisions expected to be made by Cabinet must also contain details of consultations proposed to be carried out and a list of documents/background papers that have been relied upon in producing the report.

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Full details of the Forward Plan must be published annually in a newspaper circulating in the area of the council.

It is important because: It is a valuable business planning tool for officers, cabinet members and

scrutiny committees. It enables members of the public to see what decisions are proposed to

be taken by the Council and to attend meetings when they are being discussed

ChallengesWhilst the Forward Plan legally only has to contain key decisions over a four month period, it currently contains all decisions to be taken by the Executive and wherever possible in excess of four months. The challenge is to make the Forward Plan a more comprehensive document by ensuring that all stakeholders provide accurate and timely information. The Plan will also include long term decisions well in excess of the four month period to assist scrutiny committees in formulating their work programmes.

2.17 Performance Management System

In September 2006, the Council introduced an externally hosted, web-based performance management system, called Covalent.

Covalent strengthens the implementation of the performance management framework by enabling efficient monitoring of progress against corporate priorities.

Covalent acts as a single repository for all performance information such as priorities, outcomes, objectives, performance indicators, risks and business plans. This allows for improvement, efficiency and consistency in performance monitoring and reporting.

COVALENT enables the creation, monitoring and reporting of Performance Indicators, Actions (with sub actions and milestones) and risk registers.

The performance information stored in Covalent can be viewed by everyone in the Council (the system does allow for restriction on what can be viewed where confidentiality is an issue). This allows for improved transparency in performance monitoring.

The ability to view certain information on Covalent via the internet is currently being developed.

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APPENDIX 3 – PERFORMANCE MANAGEMENT SYSTEM

3.1 Business Plan template

Available on the council’s intranet for officer and member use.

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APPENDIX 4 – RISK MANAGEMENT OF PERFORMANCE MANAGEMENT FRAMEWORK

The risk register for the PMF is available on Covalent and subject to periodic review.

DOCUMENT CONTROL

V20090701 All sections reviewed

For the latest version of this document, please refer to the internet: http://www.tamworth.gov.uk/council_and_democracy/performance.aspx

End of document

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http://www.tamworth.gov.uk/council_and_democracy/performance.aspx

http://www.tamworth.gov.uk/council_and_democracy/performance.aspx

Performance Management Framework 2009/10 (word)

Business

performance reviews

financial performance

improvement of pmf

actions performance

business service plans

risk management

pmf process

pmf work