HSC Business Services Organisation Board

Transcription

1 HSC Business Services Organisation Board Performance Management Framework Balanced Scorecard 1. Purpose of this report The purpose of this paper is to present a proposal for the introduction of a balanced scorecard performance management framework for the Business Services Organisation. 2. Background Currently performance in the BSO is managed through various channels. These include reviews of the service delivery plans, SLA s, risk register, human resources and financial systems to name but a few. It is proposed that the BSO should bring these various views of performance into a balanced scorecard approach. The scorecard would become the vehicle to manage performance at corporate and directorate levels, as well as becoming the vehicle to present information at a Board level. 3. Recommendation It is recommended that the Board: Enc Consider, comment and approve the proposed framework 15 October

2 Performance Management Framework A Proposal for A Business Services Organisation a Balanced Scorecard Approach. 1. Introduction The purpose of this paper is to present a proposal for the introduction of a balanced performance management framework for the Business Services Organisation. Following approval it is proposed to begin implementation with immediate effect, accepting that due to information measurement challenges, full implementation will be in line with the 2010/11 planning cycle. 2. Principles of Performance Management Performance Measurement is the process of evaluation against specific objectives, standards or historical data enabling judgement to be made on the relative position or progress towards priorities, services and responsibilities. Performance Management is the process of learning from the measurement and driving change and improvement. Within health and social care, performance management can mean many different things to many different people, and even within an organisation many diverging opinions about performance management exist. It is therefore proposed to clarify the purpose of performance management and to build a performance management system around four key principles. a) Check position any performance management system must allow us to truly reflect the BSO s position at any given time. In many cases previous performance management tools have been based around this premise. Therefore the ability to check position, in many cases in a compliance mode, is a key principle of any new performance management system. 2

3 b) Communicate Position A key failing of many performance management systems is the complexity of reporting and the inability for good or poor performance to be easily communicated to all stakeholders. This is often because of the detail of the measures, or sometimes the sheer volume of items being measured. As a result the organisation struggles to understand performance, and motivation to use the system is reduced. Therefore the ability to communicate the position, in a simple and meaningful way, is a key principle of the new performance management regime. c) Confirm Priorities Simply because it can be measured is no reason to measure it. Therefore a key challenge is to develop a performance management framework which is aligned to the corporate plan and addresses the priorities as defined internally, as well as the many external priorities. Therefore the ability to develop a performance management system based on the measures that matter is a key principle. d) Compel Progress Management, not Measurement, is key to the success of the performance management system. Therefore the system of measurement must be linked to improvement through enabling managers to takes decision which drive the BSO to deliver to its objectives. 3. Different Focuses of Performance Management. Within a Health and Social Care environment there are many potential focuses of performance management for the BSO. These could include National standards and targets Business objectives Organisational performance Service delivery linking to addressing customer requirements Cost effectiveness Quality of Service Individual s performance 3

4 Productivity. In addition the BSO has a very significant role to play in the development of the new model of delivery through the creation of a shared service environment. To this end, a one dimensional view of performance could not be acceptable, yet to try to focus on all the potential areas of performance could dilute the system to an industry of fruitless measurement. To deliver to the challenges it is proposed to implement a Performance Management Framework and System based upon the logic of the Balanced Scorecard. 4. The Proposed Performance Management Framework A balanced scorecard, as first introduced by Kaplan & Norton, is a performance management framework that measures an organisation from four different perspectives; Customer how do our customers see us and rate us Workforce, Learning & Growth can we continue to develop our staff to improve and create value Finance - are we delivering to our financial targets Internal Process are we effective and efficient The clear benefit of the balanced scorecard is that it provides a clear, easy to understand presentation of performance which minimises information overload which clearly focussing on the connection between the short and long term and internal and external factors. Secondly balanced scorecards guard against focusing on one area at the expense of others. The balanced scorecard forces senior management to 4

5 consider all the important operational indicators and lets them see whether improvement in one area has been to the detriment of another. Balanced scorecards are used widely throughout the public, private and voluntary sectors and provide a sound and systematic approach to managing performance. It is proposed that bundles of indicators, based on the four quadrants, would be created to at a corporate BSO level as well as at directorate level. 5. Populating the Framework It is proposed that each service area will be facilitated by the Directorate of Customer Care & Performance to identify key measures against each of the four areas of the scorecard. These key measures will be derived from the key corporate and directorate objectives. This will be supported by work already undertaken through the Service Delivery Plan process, where each area identified high level performance indicators, and by the Service Level Agreement process whereby customers have articulated what they perceive as key indicators. It will also be supported by specific strategies such as Human Resources, Finance and Technology to name but a few. It is expected that the corporate scorecard will be an accumulation of the key indicators articulated in the directorate scorecard, plus those directly relating to the key corporate objectives e.g. corporate financial performance 6. Turning the Framework into a System The framework, as described above, is merely a framework to hang measures upon, and on its own it will not deliver improvement. To that end a system of data collection, monitoring and improvement action must be implemented. 5

6 Data Collection It must be accepted that one of the difficulties in turning the performance framework into a performance management system will be the lack of availability of live information systems. The BSO is a collection of very different services with varying degrees of automated management information collection. The long term strategy must be automate workflow systems and therefore capture management information as a bi product of carrying out work. A separate proposal, outside of the scope of this paper, will be presented discussion how the BSO will utilise that data warehouse capabilities to support the performance agenda. However in the interim period performance information will have to be captured in a range of ways. a. Where electronic systems exist, standard reports will be written and information will be pulled on a pre defined cycle. This is most likely to be on a monthly basis. b. Where manual measurement systems exist, information will continue to be collected and it will be collated corporately through the Customer Care and Performance Directorate. c. Where no measurement systems exist the service area manager will work with staff from the Customer Care and Performance directorate to define the measures and the measurement mechanisms. It is proposed that where possible sampling will be used to reduce the burden of measurement. In addition systems will be established to reduce the burden of measurement. However given the nature of this category it is expected that there will be resources required to enable regular manual measurement Monitoring It is proposed that indictors will be packaged into service specific and corporate scorecards. 6

7 Information will be collated by the Customer Care and Performance Directorate, subject to the availability of timely information, scorecards will be produced. The scorecard will aim to present information from three angles. Firstly information will be trended to provide a picture of improved performance this may be monthly, quarterly on annually depending upon the nature of the specific indicators. Secondly this will be supported by a presentation of how the area is performing against target. The target could be derived from a number of sources including Service Level Agreements and the Service Delivery Plan. Thirdly, where possible and appropriate, benchmarking will be used to present relative performance. A Red, Amber, Green (RAG) status will be used to communicate performance where possible. Performance within the corporate scorecard will be presented monthly at the Senior Management Team meeting. This will form the basis of a team based performance accountability review between Directors and the Chief Executive. Performance within Service and Directorate scorecards will be presented monthly at appropriate forums. These meetings will form the basis of performance accountability meetings between Directors and their teams. The corporate scorecard will be communicated to the BSO Board at Board Meetings and will be placed in a performance section on the BSO website for all stakeholders to review Improvement Action It is expected, given the challenging position that the BSO is in, performance against all targets will not always be positive. In this case it is proposed that the performance meetings will drive a series of actions. Progress against these actions will also be reviewed at the monthly performance meetings. 7

8 Where performance does not meet expectations for three consecutive months it will be expected that a performance improvement plan is established. This plan will detail the key actions to be undertaken within specific timeframes. It is expected that performance improvement plans will not be reviewed as part of the monthly SMT performance meeting but rather on a one to one basis with the Chief Executive. For the system to become reality it is accepted that this is not just a technical systems change but also will require changes in mindset and culture. To support this to happen there is a need to connect this corporate approach to performance management to individual performance reviews. It is proposed that the Customer Care and Performance Directorate works closely with the Human Resources Directorate to ensure that the two systems seamlessly connect the corporate direction with individual performance. 8