Performance Management Frameworks (and some other stuff)

1
Performance Management Frameworks (and some other
stuff)

• Don Mackay
• Manager Good Practice and Policy, SOLGM
• SOLGM Financial Management Seminar
• Wellington 16 October 2006

2
Overview

• Heads-up on proposed joint project on Performance
  Management Frameworks
• Countdown to 2009 the LTCCP debrief Survey and
  what happens next
• Other projects on FMWP Work programme

3
Performance Management Frameworks

• Why?
• LGA2002
• LTCCP designed as an integrated planning
  framework
• Experience and feedback 2006-16 LTCCPs
• OAG feedback from audit process
• much good stuff but does the plan as a whole
  tell a coherent story?
• Key challenge for 2009 the LTCCP as a more
  integrated package

4
Performance Management Frameworks

• LTCCP a top down and a bottom up process
• bottom up reliable information to inform top
  down decision-makers and the public
• top down - the flow of logic from outcomes to
  day to day operations
• Ideal process - information flows up and then
  decisions cascade down again, plan reads as
  coherent flow from outcomes downwards
• 2006 observed (often) the top and bottom bolted
  together in middle

5
Performance Management Frameworks

• (Perhaps) not surprising
• Existing industry structures (FMWP, NAMS) to
  provide forum and guidance relating to financial
  and asset information (Jigsaw NAMS products)
• Established authoritative professional standards
  about how to do it
• The more tractable end of the beast, with
  identifiable scope for gains
• Intregration / Top down Perspective
• No existing LG industry structure / forum
• Not the stronghold of an established profession
• New, difficult and unclear

6
The Ideal Pt 1 transparent logical flow in plan
Wellbeing vires test
Community outcomes strategic choices and
trade-offs
Rationale for activities how the activity
contributes to wellbeing/outcomes
Service levels attributes the service
influences/provides
Measures how the impact on attributes will be
assessed
Targets the level of performance sought
7
The Ideal Pt 2 transparent logical flow from
plan to reports

• The Planned Effect The Reporting Mirror

Well-being and Community outcomes (s. 10(b) 91)
Monitoring the achievement of community outcomes
(s.92)
How council contributes to community outcomes
(including through key documents and processes),
rationale for contribution of GOAs to
community outcomes and any negative effects on
well-being (Sched 10, 1(c) (d) 2 (1)(b) (c)
How GOAs contribute to community outcomes the
results of measurement taken each year toward
outcomes and how they Identify effects on
well-being (Sched 10, 15 (a-d) )
GOA estimates for each year of the LTCCP of
intended service levels including performance
measures and targets to allow meaningful
assessment. (Sched 10 2 (1) (c) 2 (2) (a) )
Actual service levels achieved Compared to
intended and reasons for variations (Sched 10,15
(e) )
8
Performance Management Frameworks

• Nature of the Challenge
• Moving beyond getting the input (financial
  asset etc) information right
• Integration technically correct input
  information necessary but not sufficient, about
  how it fits together
• Ownership no discipline (finance, asset
  management, policy) owns whole problem of has
  access to whole solution

9
Performance Management Frameworks

• Considered by FMWP at 18 August Meeting
• Demands sector response c.f. every man for
  himself
• Sector response requires integration / common
  view across bodies representing different
  disciplines
• What to do? And How to do it?

10
Performance Management Frameworks

• Proposed joint scoping group
• SOLGM (FMWP and Policy, Strategic Planners)
• NAMS,
• LGNZ,
• DIA,
• RMA Planners (NZPI approached)
• with OAG support
• Start scoping asap
• Identify best product, timeframes, resourcing
  issues.
• Volunteers / offers of assistance welcomed

11
Countdown to 2009

• Survey of the 2006 LTCCP experience
• Aims
• Identify good practice priorities
• Identify policy issues
• LGC Review an opportunity
• What does the sector think should change
• Lead-time to develop well reasoned and persuasive
  arguments

12
Countdown to 2009

• Separate questionnaires
• Chief Executives
• Finance Managers
• Asset Managers
• Policy people
• 188 responses
• 45 for each questionnaire
• 61 local authorities represented

13
Countdown to 2009

• Analysis of Results complete
• Two dates and venues booked for Seminars
• Rotorua 20 November
• Christchurch 29 November
• Aims
• Report back results
• Highlight key findings
• Debate way forward, next steps priorities

14
Other Things

• FMWP Work Programme also includes
• Guidance on accounting for development
  contributions (not sufficiently advanced for
  seminar programme)
• Guidance on IFRS Restatement issues, and LTCCP
  amendment issues (in seminar programme)
• Subgroup of FMWP to monitor and advise on
  accounting standards issues volunteers?