CABINET – 7 AUGUST 2024 PORTFOLIO: LEADERS / ALL

INTRODUCTION OF A PERFORMANCE MANAGEMENT FRAMEWORK / CONSIDERATION OF A RELATED MOTION REFERRED BY COUNCIL

1. RECOMMENDATIONS

1.1 It is recommended that Cabinet approve the Performance Management Framework.

1.2 It is recommended that Cabinet consider the response to the related motion referred by Council, outlined throughout section 8 of the report, including the comments of the Resources and Transformation O&S panel, and make recommendations to Council.

2. EXECUTIVE SUMMARY

2.1     Our new Corporate Plan 2024-2028 was approved at Full Council on April 8, 2024.  This set our key priorities, commitments, and measures over the four-year life of the plan.  As part of the delivery of the Corporate Plan, we said it would be underpinned by a suitable and proportionate Performance Management Framework that will monitor progress.

2.2     This report introduces the New Forest District Council Performance Management Framework.  The framework, in Appendix 1, explains how it will work, how strategic measures will cascade throughout the organisation and how staff at every level will contribute and come together to ensure we deliver on the commitments of the Corporate Plan.  

3. INTRODUCTION & PURPOSE

3.1     Our Corporate Plan 2024-2028 lays out a vision for New Forest District Council.  It sets the priorities, commitments, and Key Performance Indicators (KPIs) that will operate over the four years of the plan.  It is important there is strong and robust governance in place to ensure we stay on track and can realise the ambitions set out in the plan.  The Performance Management Framework is the tool that monitors the progress towards these ambitions and sets out the rules, practices, reporting methods and cycles, and accountability needed to achieve them. 

3.2     Performance management is a vital tool in understanding the way the organisation works, provides an opportunity for scrutiny, and identifies the areas which are performing well and intervene with corrective actions where areas are not performing as expected.  This framework has been developed to ensure everyone is working to deliver our Corporate Plan and other key strategies, which will shape the way we work by informing service plans as well as team and individual goals.

3.3     The adoption of the framework is the next step in a shift towards a performance-based focus across the organisation.  It will help us ensure that our staff work together as one council, sharing knowledge and expertise across services and always adopt our key values and in all aspects of their work.

3.4     We should consider the framework alongside other key organisational factors such as Finance, Risk and our Transformation Programme – ‘Future New Forest’, which may influence what we do and how we deliver changes, and in a controlled and managed way.

4. THE NFDC PERFORMANCE MANAGEMENT FRAMEWORK

4.1     The Performance Management Framework is how progress towards the delivery of the commitments made in the Corporate Plan will be monitored, while also considering broader service objectives. 

4.2     The framework pulls together performance monitoring functions from across all services into a single thread of activity that weaves down through the organisation and ensures delivery at every level.  It is a structured approach that ensures appropriate, clear, and planned KPIs which align with the Corporate Plan are in place and are delivered with focus and dedication.

4.3     The diagram illustrates how the framework will drive activity, which is layered as follows:

Tier	Description	Monitors	Impact
Strategic	Large scale strategic drivers including, the Corporate Plan and ‘Future New Forest’ Transformation Programme	Corporate Dashboard, progress against KPIs, as agreed in the Corporate Plan.	Ensures delivery on our commitments and promotes effective scrutiny of progress towards delivery of key measures. It provides an opportunity to mitigate and intervene when things are not progressing as planned.
Operational	Operating plans and policies.  Service plans, policies and procedures. Budget plans, risk, statutory duties.	Service dashboards, progress against KPIs, to include any relevant measures agreed in the Corporate Plan. Improvement plans, including any as directed by the ‘Future New Forest’ transformation programme.	The documents described link the strategic and front-line tiers and will drive the change, governing how we do things and will describe the activity needed to achieve goals at an operational level.
Front Line	Service delivery	Our staff will benefit from regular 121s and appraisals, with suitable measures that will be shaped by the Strategic and Operational level planning.	Teams and individuals will work in prescribed ways, with appropriate discretion and changed behaviours, focus on excellent performance and delivering change.

4.4     Those responsible for delivery will be clear of their roles and established monitors.  Those accountable will seek insight and assurances that performance is as expected.  Careful monitoring and scrutiny of progress towards key objectives, promotes continuous improvement through learning and deployment of corrective actions where necessary.

Figure 1 Performance Management Framework

4.5     We have developed key performance indicators (KPIs) that are focused, clear and align with the priories of the Corporate Plan.  The KPIs are owned and will be monitored within the relevant service area.

5. REPORTING

5.1     The dashboards, at every level will contain clear and unambiguous KPIs with targets.  A handbook of NFDC definitions will be made available to all via SharePoint.  Reporting is a collaborative business-based activity, provided by performance colleagues, driven by responsible officers and presented to those accountable.

5.2     All measures will be RAG rated (Red, Amber, Green) according to the performance against target.

• Green – On target or above target

• Amber – Below and up to 10% deviation from the lower threshold of the target

• Red – Over 10% deviation from the lower threshold of the target

5.3     In some cases, the standard thresholds will not be appropriate.  In such instances, services will provide the most appropriate threshold to apply.

5.4     Accompanying text will give context which will aid readers to understand the story behind

the KPIs.

Good performance – we will:

• Highlight our successes

• Continue to learn from them

• Feed into governance and reporting mechanisms

Poor performance – we will:

• Show learning

• Ascertain any factors which could have contributed to the poor performance

• Take remedial actions to address poor performance

• Explain when we expect these remedial actions to take effect.

5.5     The definition and targets have been developed with responsible officers.  As part of the accountability, and to ensure there is appropriate challenge in the target setting, EMT will undertake a final review of targets following panel and cabinet feedback.

6. REPORTING CYCLES

6.1     The Corporate Dashboard will be prepared as each quarter ends (July, October, January and April) for all measures where data has become available.  Data will be collated, and services will be asked for any commentary as set out in the section above.

	Forum	Activity
1	Executive Management Team (EMT)	The dashboard will be presented. EMT will review the dashboard and pose questions for the services.  EMT will request additional commentary and analysis.
1	Leadership Team Meeting	The dashboard will be presented. Leadership team will consider the dashboard, EMT comments and provide further narrative and analysis.
2	Overview and Scrutiny Panels	The dashboard will be submitted for review and scrutiny at panels. Members may require further information from Officers and make recommendations for any subsequent activity.
3	Cabinet	The dashboard will be submitted for review. Cabinet will consider all comments received, assign further action and ultimately approve the dashboard.
4	Publication	The dashboard will be published on newforest.gov.uk.

7. ACCOUNTABILITY AND CULTURE

7.1     The Performance Management Framework is not only about strategies and reporting KPIs, but it also ensures we move forward and grow as one council.  Success requires a culture of continuous improvement and a performance-based approach to realising our strategic goals and key values.

7.2     We recognise the success of the framework is dependent upon everyone in our organisation working towards a set of agreed goals.  All staff will therefore contribute to its success, and everyone will have a role to play in delivering the Corporate Plan.

7.3     The strategic direction will cascade throughout the organisation, ensuring appropriate measures are in place at every level.  Ultimately, this will mean staff have goals and objectives that are linked to the strategic drivers of the council.

7.4     Our elected members, residents, partners, and staff all contributed to the development of our Corporate Plan and we will continue to be accountable to them throughout its lifespan. 

7.5     The Corporate Plan introduces our new values.  These underpin the council's vision and priorities by shaping our behaviours and the way we work.  Our leadership team will direct and steer the development that helps us to grow.

8. MOTION REFERRED BY THE COUNCIL

8.1     At the Council meeting of 13 May 2024, Cllr Richards moved the following motion:-

“This Council notes that:-

1. The Leader’s foreword to the Corporate Plan states that ‘As a well-established community leader, the Council has long recognised the strong heritage and a world-class environment we operate within, and work to protect and enhance.  Tackling climate and environmental challenges is key to ensure that the special nature of the New Forest can be enjoyed by future generations.’

2. Two of the four values of this Council are Ambition (We will be ambitious for our people and our place, embracing innovation and best practice) and Fairness (We will act fairly, honestly, and openly in all that we do).

3.     The first priority of this Council’s Future New Forest transformation programme is “Putting our customers at the heart of what we do”.

4.     This Council voted in October 2021 to declare a ‘Climate and Nature Emergency’.

5.     This Council’s Corporate Plan 2024 – 2028 does not include measurable targets and a mechanism to report progress against such targets to our residents.

6.     High performing organisations relish being measured as it allows them to demonstrate their outstanding performance.

7.     That in the draft consultation version of the Corporate Plan, a measurement of “Overall emissions from council activity (Kg of CO2)” was included.

This Council resolves that:-

1.     In order to be ambitious, transparent and put our customers at the heart of what we do SMART (Specific, Measurable, Achievable, Relevant and Timebound) targets should be published alongside the Corporate Plan for each item under the “It will be measured by” sections as soon as these targets have been agreed.

2.     The mechanisms for reporting against the targets, and publishing progress on a minimum of an annual basis, will be set out alongside the targets.

3.     The targets for Place Priority 2 “Protecting our climate, coast, and natural world” will be amended to include a measurement of “Overall emissions from council activity (Kg of CO2)” during this financial year and a target to then reduce these emissions agreed for each subsequent year of the corporate plan period, being reported against and published in line with point 2 above.”

8.2     The motion was seconded by Cllr Parker and referred to the Resources and Transformation Overview and Scrutiny Panel for consideration.  As the motion affects an approved plan of the Council, namely the Corporate Plan, Cabinet will also review the motion through the onward consideration of this report.  A draft amended motion is set out below for the Panel and Cabinet’s onward consideration, which takes into account the technical view of Council officers and the arrangements that are already in place for target setting and monitoring of measures through the Climate Change and Nature Emergency (CC&NE) Annual Report.

This Council notes that:-

1. The Leader’s foreword to the Corporate Plan states that ‘As a well-established community leader, the Council has long recognised the strong heritage and a world-class environment we operate within, and work to protect and enhance.  Tackling climate and environmental challenges is key to ensure that the special nature of the New Forest can be enjoyed by future generations.’

2. Two of the four values of this Council are Ambition (We will be ambitious for our people and our place, embracing innovation and best practice) and Fairness (We will act fairly, honestly, and openly in all that we do).

3. The first priority of this Council’s Future New Forest transformation programme is “Putting our customers at the heart of what we do”.

4. This Council voted in October 2021 to declare a ‘Climate Change and Nature Emergency’.

5. This Council’s Corporate Plan 2024 – 2028 does not include measurable targets and a mechanism to report progress against such targets to our residents.

6. High performing organisations relish being measured as it allows them to demonstrate their outstanding performance.

7. That in the draft consultation version of the Corporate Plan, a measurement of “Overall emissions from council activity (Kg of CO2)” was included.

This Council resolves that:-

1. In delivering our Corporate Plan 2024-2028, this Council stated that the plan would be underpinned by a suitable and proportionate Performance Management Framework that details the reporting regime for progress monitoring.  This is now developed alongside a formal published set of KPIs, with targets (Appendix 2, 2024-2028 List of KPIs).  Clear KPI definitions have been agreed with accountable officers (Appendix 3, NFDC handbook of definitions).

2. The mechanisms for reporting against the targets, and publishing progress on a minimum of an annual basis, is set out in the Performance Management Framework and accompanying list of KPIs.

3. With respect to Place Priority 2 “Protecting our climate, coast, and natural world”, and the consideration of the measure, “Overall emissions from council activity (Kg of CO2)”, this motion is not supported

a) The overall emissions resulting from council activity will continue to be reported through the Climate Change and Nature Emergency (CC&NE) Annual Report. This report details the implementation and governance of activities resulting from the CC&NE Strategy and Action Plan and outlines the scope of emissions targets, performance measures and monitoring arrangements.

b) The resourcing implications of any additional targets and measures are not currently known or allocated.

c) Cabinet recognise the value in more fully understanding this area and proposed to establish a Task and Finish group for 12 months, to consider this measure within the context of the Council's Climate Change and Nature Emergency Strategy and Action Plans. This will include consideration of adopted targets measures, scope, resource implications and prioritisation.

d) Should the CC&NE Task and Finish group make recommendations for additional Climate Change and a Nature Emergency targets or measures to be adopted, these should reside within the CC&NE Action Plan as opposed to the Corporate Plan list of KPIs.

9. GOVERNANCE AND APPROVAL PROCESS

9.1     The Performance Management Framework was presented to the Senior Leadership Team on May 7, 2024, with comments invited.  It was presented to the Resources and Transformation Overview and Scrutiny Panel on 25 July 2024.  All members were invited to share comments through this panel.  Panel comments are added to this covering report in section 15.  The framework is now presented to Cabinet for approval.

10. RESOURCE IMPLICATIONS

10.1   There are no new resource implications being introduced arising from this report in the immediate.  The framework will instil approaches to deliver our priorities utilising existing resources. It is possible that there are additional future resourcing implications to support the embedding of the framework.

11. FINANCIAL IMPLICATIONS

11.1 A clear focus of the framework is to set in place the enablers for delivering on our Corporate Plan and Future New Forest ambitions.  This includes a continued focus on objectives, values and our responsibilities, including financial.  Any direct costs arising from the production of the framework are kept to a minimum.

11.2   The embedding of our performance led culture will support our Transformation in delivering lean and efficient processes.  This will result in financial benefits that will be tracked as part of our Future New Forest benefits realisation programme.

12. CRIME AND DISORDER & DATA PROTECTION IMPLICATIONS

12.1   There are no Crime and Disorder or Data Protection implications arising directly from this report.

13. ENVIRONMENTAL IMPLICATIONS

13.1   The Performance Management Framework will act as a supporting mechanism for delivering our commitments to tackling environmental challenges and seek to be environmentally sustainable.  It will take our commitments and support these as tangible objectives that we can deliver in order to preserve our unique place.

14. EQUALITY AND DIVERSITY IMPLICATIONS

14.1   Fundamentals from The Performance Management Framework, which ask all staff to contribute towards delivery of statutory and corporate priorities, will be applied to all staff across the organisation uniformly.

15. OVERVIEW AND SCRUTINY PANEL COMMENTS

15.1   The Performance Management Framework was presented to the Resources and Transformation Overview and Scrutiny Panel on the 25 July 2024 with all members having been asked to input through this panel.

15.2   Performance Management Framework

15.3   Some panel members raised additional key performance indicators that they would have liked to have seen as part of the corporate plan KPIs. These included:

· Housing waiting list numbers

· Universal Credit claimants

· Complaint numbers

15.4   Officers committed to consider the suggestions at a service level and clarified that some of these indicators are already reported through different mechanisms.  Members also suggested measurement of performance on issues such as Parish / Town council engagement, customer satisfaction on new waste collection arrangements, crime, and homelessness, which officers undertook to consider where these were not duplicated elsewhere.

15.5   The panel’s recommendations for the Performance Management Framework were agreed.

15.6   Motion referred by Council

15.7   The motion was considered and discussed by members.  There was broad agreement that the work in developing the key performance indicators has been thorough and the Performance Management Framework would provide the necessary visibility and accountability to the KPIs.

15.8   Officers clarified what would be covered in the Task and Finish group, its purpose and outputs in considering emissions measures that could be tracked through the Climate Change and Nature Emergency action plan. Some members expressed a future aspiration to identify the Council’s total emissions, but given this would require significant resources, it was noted that the Task and Finish group would need to take a view on this as part of establishing the scope of its work.

15.9   The panel noted the updated recommendation to the proposed motion and approved this to be referred back to Council through Cabinet.

16. PORTFOLIO HOLDER COMMENTS

16.1   I welcome our new Performance Management Framework. This framework sets out how the commitments made in our corporate plan will be delivered. I'm encouraged by the extensive work that has taken place to ensure we have clarity around our agreed key performance indicators and how the Performance Management Framework will put in place the governance arrangements for reporting.

16.2   The appropriate vehicle for the setting, measuring and reporting of climate measures, is the Climate Change and Nature Emergency (CC&NE) Annual Report and action plan.

16.3   The proposed task and finish group is an opportunity for a cross section of members to engage positively on this agenda, to deepen understanding of the issues, and ensure that careful consideration is given to the scope of reporting, and the associated resource implications for the Council.

For Further Information Please Contact:                           Background Papers:

Saqib Yasin                                                                             Appendices

Performance and Insight Manager                                         1. Performance Management

Performance                                                                              Framework

Tel: 023 8028 5495                                                                 2. 2024-2028 List of KPIs

Email: saqib.yasin@nfdc.gov.uk                                            3. NFDC handbook of definitions

Rebecca Drummond

Assistant Director

Transformation

Tel: 023 8028 5080

E Mail: rebecca.drummond@nfdc.gov.uk