ceo performance review panel · 3/9/2017 · 6.1. 2016-17 ceo performance target update that the...

CEO PERFORMANCE REVIEW PANEL

NOTICE OF MEETING

To: Presiding Member Cr Jan Loveday Members Mayor Bill Spragg Cr Jan-Claire Wisdom Cr Ian Bailey Ms Paula Davies, Independent Member

Notice is hereby given pursuant to the provisions under Section 87 of the Local Government Act 1999 that the next meeting of the CEO Performance Review Panel will be held on:

Thursday 9 March 2017 3.00pm

63 Mt Barker Road Stirling A copy of the Agenda for this meeting is supplied under Section 88 of the Act. Meetings of the Council and Committees are open to the public and interested members of the community are welcome to attend.

Andrew Aitken Chief Executive Officer

CEO PERFORMANCE REVIEW PANEL

AGENDA FOR MEETING Thursday 9 March 2017

3.00pm 63 Mt Barker Road Stirling

ORDER OF BUSINESS

Council Vision Nurturing our unique place and people Council Mission Delivering activities and services which build a resilient community, sustain our built and natural

environment and promote a vibrant economy

1. COMMENCEMENT

2. APOLOGIES/LEAVE OF ABSENCE

2.1 Apology

Apologies were received from ………….

2.2 Leave of Absence

2.3 Absent

3. MINUTES OF PREVIOUS MEETINGS

CEO Performance Review Panel – 19 October 2016 Recommendation That the minutes of the CEO Performance Review Panel meeting held on 19 October 2016 as supplied, be confirmed as an accurate record of the proceedings of that meeting.

CEO Performance Review Panel 9 March 2017

4. DELEGATION OF AUTHORITY The CEO Performance Review Panel operates in accordance with the relevant sections of the Local Government Act 1999, and its Terms of Reference.

5. DECLARATION OF CONFLICT OF INTEREST BY MEMBERS OF COUNCIL

6. OFFICER REPORTS – DECISION ITEMS

6.1. 2016-17 CEO Performance Target Update That the Panel resolves that the report be received and noted.

6.2. Process Discussion - CEO Performance Review Process 2017 That the CEO Performance Review Panel recommends to Council to undertake the 2017 CEO Performance Review process using an [internal review process / external consultant].

6.3. CEO Performance Review Panel meeting dates That the schedule of CEO Performance Review Panel meetings, as contained in Appendix 1, be adopted.

7. OFFICER REPORTS – INFORMATION ITEMS Nil

8. CONFIDENTIAL ITEMS

9. NEXT MEETING

The next CEO Performance Review Panel meeting will be held on a date to be determined at 63 Mount Barker Road, Stirling.

10. CLOSE MEETING

8.1 CEO Employment Agreement

ADELAIDE HILLS COUNCIL CEO PERFORMANCE REVIEW PANEL

Thursday 9 March 2017 AGENDA BUSINESS ITEM

Item: 6.1 Originating Officer: Andrew Aitken, Chief Executive Officer Subject: 2016-17 CEO Performance Targets Update For: Decision

SUMMARY

The role of the CEO Performance Review Panel includes reviewing the performance of the CEO, in particular the performance against the Performance Targets and to undertake a review of the CEO’s Targets to ensure they remain relevant, achievable and aligned to Council’s strategic objectives. This report provides an update on activities against the Chief Executive Officer’s Targets.

RECOMMENDATION

That the Panel resolves:

1. That the report be received and noted.

1. GOVERNANCE Strategic Management Plan

Goal Organisational Sustainability Key Issue Governance We diligently adhere to legislative requirements to ensure public accountability and exceed these requirements where possible. Legal Implications The CEO Performance Review Panel is a Section 41 Committee of Council under the Local Government Act 1999. This report summarises progress against the established and agreed Performance Targets for 2016-17, and forms part of the performance review process to ensure the CEO is provided with a fair and consistent performance review process that would stand up under scrutiny.

Adelaide Hills Council – CEO Performance Review Panel Meeting 9 March 2017 2016-17 CEO Performance Targets Update

Risk Management Implications The CEO Performance Targets update is an important control in managing the risks of: Deficient CEO performance review practices result in a lack of accountability and loss of stakeholder confidence.

Inherent Risk Residual Risk Target Risk

Medium (3C) Medium (3D) Medium (3D)

Note: there are many other controls that also assist in managing this risk.

Non-achievement of CEO KPIs result in loss of community benefit and/or opportunities and/or stakeholder confidence.


High (3B) Medium (3D) Medium (3C)


Financial and Resource Implications There are no financial or resource implications in reporting on projects against the CEO Targets. Customer Service and Community/Cultural Implications There is a community expectation that the CEO will manage the organisation’s human, financial and physical resources to ensure the best outcomes for the community. There is a community expectation that the CEO is accountable to and performs against the agreed Targets. Environmental Implications Not applicable. Community Engagement/Consultation Not applicable.

2. BACKGROUND As part of the 2016 performance review process, 2016-17 Performance Targets were established for the CEO and adopted by Council on 22 November 2016.

Adelaide Hills Council – CEO Performance Review Panel Meeting 9 March 2017 2016-17 CEO Performance Targets Update

3. ANALYSIS

This item enables an interim analysis of the suite of existing Performance Targets with a view to reviewing priorities and existing timeframes of individual Targets. It also provides opportunity for the CEO to update the CEO Performance Review Panel on the progress against the Targets to date and identify any issues for consideration.

4. OPTIONS

1. That the report be received and noted. 2. That the Panel makes alternative/additional recommendations to Council relating to

the current suite of Performance Targets.

5. APPENDICES

1. CEO Target Update – Advisory Plan Review 2. CEO Target Update – Rolling Works Program 3. CEO Target Update – Corporate Plan Update 4. CEO Target Update – Arts & Cultural Hub 5. CEO Target Update – Digital Footprint 6. CEO Target Update – Emergency Management 7. CEO Target Update – Service Standards Review 8. CEO Target Update – Online Program Maintenance 9. CEO Performance Targets 2016-2017

Appendix 1 Advisory Plan Review

Project Plan – Advisory Plan Review 2017

1. Project Details

Project Name: Review Section 41 Committee and Advisory Group structures to promote the achievement of the Strategic Plan

Why:

With the adoption of the new Strategic Plan and a number of legislative changes associated with the Local Government (Accountability and Governance) Amendment Act 2015 and more recently the Local Government (General) Variation Regulations 2016, it is an opportune time to review the current structure and function of S41Committees and Advisory Groups to determine whether they facilitate the achievement of the goals and strategies in the Strategic Plan, assist Council in discharging its roles and responsibilities under the Local Government Act 1999 and promote good governance.

Scope: What’s In/Out

What’s In Review of the relevant legislative references, terms of reference, legislative compliance audit results, meeting procedures and associated policies and guidelines for the Committees, Groups and Informal Gatherings to identify obligations and alignment with Strategic Plan goals and strategies. Workshop/survey Council and Council Committee Members, Advisory Group Members and Senior Staff on the functions of the respective body and its effectiveness in assisting Council to achieve its role. Draft of revised terms of reference, meeting procedures and associated guidelines. What’s Out Recruitment activity associated with any changes to the S41 Committees or Advisory Groups

Timeframe/Deadline April 2017

Appendix 2 Rolling Works Program

Project Plan – Rolling Works Program

1. Project Details

Project Name: Develop a rolling forward plan for three years of the key projects/initiatives to be undertaken in support of the Strategic Plan

Why:

At present the ability to deliver projects and programs that are outside of the current year’s approved budget is hampered by a lack of an endorsed program in subsequent years. By establishing a rolling three year program it is anticipated that this will enable a greater level of certainty in the delivery of Council works and services and also provide the capability for improved works planning prior to the years projects are to be undertaken or services delivered.


In: The program is to extend to all operating and capital initiatives that require a level of certainty to support scheduling of resources within the three year time horizon. The program will draw from the recently endorsed Strategic Plan as well as other key strategies and plans as previously endorsed by Council (i.e. Sport and Rec, Ageing in Place, Trails Strategy, etc). The rolling three year program will be developed to align to the targets set within the current Long Term Financial Plan (LTFP) and where possible identify potential changes required to the next review of the LTFP. Out: It excludes operating expenditure considered to be ‘business as usual’.

Timeframe/Deadline Adoption as part of the Annual Business Plan in June 2017

Appendix 3 Corporate Plan Update

Project Plan – Corporate Plan Update

1. Project Details

Project Name: Review and update the Corporate Plan to retain a focus on leadership and people development, customers, systems, innovation and measurable improvement.

Why:

Existing corporate plan finishes at the end of 2016. A new progressive plan to support the new Strategic Plan and to continue the cultural development of the organisation is required. This will retain a focus on continuously improving in the 5 Enabler criteria within the EFQM framework.


In Review of the existing corporate plan Identifying initiatives under each criteria Corporate Values will be included in the plan Out Replicating initiatives within the Strategic Plan Scoping initiatives intended for the Corporate Plan Developing or reviewing internal policies or procedures

Timeframe/Deadline 31 May 2017

Appendix 4 Arts & Cultural Hub

Project Plan – Arts and Cultural Hub 2017

1. Project Details

Project Name: Develop a plan to create arts and culture hubs across Council.

Why:

Describes the broad area(s) of concern for the team and the reason for doing it. Why is this project worth doing? Why is it important to do it now? How does it fit with Strategic or Corporate Plans? We recognise the value of arts and cultural development in creating vibrant places to live, work and do business. This also plays an important role in attracting visitors and tourism that leads to economic benefits. Whilst Council has supported Arts Cultural Development through a range of initiatives there has, to date, not been a strategic and comprehensive approach to this. In August 2011 Brecknock Consulting undertook an “Arts and Cultural Audit” that identified some strategies in this regard, some of which have been actioned. The position of Community and Cultural Development Officer has been created. Council is currently developing a Heritage Arts and Cultural hub at the Old Woollen Mill in Lobethal (Strategic Plan Goal 2 Strategy 2.4). It is timely to consider how this hub will support Arts and Cultural development across the Adelaide Hills widley and identify if further hubs (or alternatives) are required.


What’s In

Arts and culture in the areas of visual arts, written arts, performance and music based arts.

Individual artists, performers and practitioners

Galleries and venues for the delivery of the arts

Arts focused groups and networks

What’s Out

Hobby based arts and crafts

History and heritage based cultural development

School based activity

Activity and stakeholders outside of Adelaide Hills Council area

Timeframe/Deadline October 2017

Appendix 5 Digital Footprint

Project Plan – Digital Footprint

1. Project Details

Project Name: Explore options for increasing Council’s digital footprint and facilitating public internet access in townships.

Why:

As more and more of our day to day lives shift online and emerging technologies quickly become the new normal, our community expect to be able to interact, engage and do council business in the digital world. In areas of connectivity challenges, council can step in to provide access options for community members who may otherwise be excluded from the digital world. This project will explore and report on opportunities available to council to achieve these outcomes. The project also aligns closely with the Strategic Plan – Explore goal;

4.2 We will explore the opportunities that emerging technologies present to people living, working, visiting or doing business in our district. 4.3 We will offer greater access to services and realise business efficiencies through online services


In: Exploring and reporting on opportunities available to council related to expanding our digital footprint, including online service provision, and exploiting emerging and trending technologies. This includes exploring opportunities across AHC, working with other council’s, local business, state government departments and other agencies. Exploring opportunities to facilitate public internet access in townships and remote meeting attendance. We will consult with the community, review existing data on our current usage trends, consult with business and provide reporting on the best options to achieve this. Out: As this project is focused on exploring opportunities, the recommendations will form part of the ongoing corporate, strategic and budget plans moving forward. This project will not deliver the recommended outcomes, but will provide the evidence and best options for AHC to plan and excel into the future.

Timeframe/Deadline Must be completed in time to enable inclusion of budget bids into 2017/18 program.

Appendix 6 Emergency Management

Project Plan – Emergency Management

1. Project Details

Project Name: Update AHC’s emergency management arrangements into a consolidated all hazards Emergency Management Plan

Why:

Adelaide Hills Council is exposed to a number of natural and manmade hazards that place Council and the community at significant risk. Notably, bushfires, extreme weather events and other hazards, can lead to personal injury, death, property loss, legal action, capacity limitations on providing community services and decline/loss of community confidence. These consequences can range from minor too extreme at local, regional and state significance. Council needs to continue to ensure that effective prevention, preparedness, response and recovery plans are in place. Having such plans in place would be an expectation of the community and other levels of government.


Development of a high level stage 1 Emergency Management Plan that encompasses the Prevention, Preparedness, Response and Recovery (PPRR) framework that will be used to guide Council’s activities in relation to emergency management. The plan will be linked to Business Continuity Planning and the Corporate Risk Register. Ongoing, stage 2 of the plan will need to be populated with detail responses to risks associated with each hazard assisted by use of National Emergency Management Risk Assessment Guidelines where relevant. The plan is not to guide community activities/responses in the PPRR spectrum and does not include activities or services provided by other external organisations (e.g. CFS & SES), or which are outside of Council’s responsibilities as defined in the Local Government Act 1999.

Timeframe/Deadline September 2017

Appendix 7 Service Standards Review

Project Plan – Service Standards Review

1. Project Details

Project Name: Service Standards Review

Why:

Our current service standards were created in June 2014 and reporting was implemented in the first half of the 14/15 financial year – in line with strategic and corporate plan objective at the time. The standards now need to be reviewed as two years of reporting has highlighted areas were the standards suite does not reflect service delivery priorities or realistic performance timeframes and targets. As part of the CEO’s performance review, the Council has endorsed that a review of the service standards takes place: “Review and update the composition of Tier 1 Service Standards in consultation with (and supported by) Council”


In: - Review of Tier 1 service standards including service specific standards and cross-organisational standards Out: - Tier 2 and 3 service standards Related: - Implementation of changes to reporting. This is also impacted by the CRM Upgrade which has improved reporting functionality against service delivery. Implementation of these changes is covered in the CRM Upgrade Project Plan.

Timeframe/Deadline 31 March 2017

Appendix 8 Online Program Maintenance

Project Plan – Online Program Maintenance 2017

1. Project Details

Project Name: Establish and promote an on-line schedule of programmed maintenance.

Why:

An online schedule of programmed maintenance will provide an easily accessible and real time schedule so that the Community and Staff will be informed of upcoming works across the Council Region.


An online, regularly updated schedule of programmed maintenance activities across the Adelaide Hills Council. This will Include Open Spaces and Civil Services related programmed maintenance works. This will not include specific dates for service at particular locations with the areas, but will the timeframe across which work is to be undertaken in a particular area. A planned approach to the Web presence and Social Media promotion will also form part of the project (And we will explore the potential for other forms such as rates insert/Hills Voice inclusion).

Timeframe/Deadline (Start) December 2016 – (Finish) July 2017

Appendix 9 CEO Performance Targets 2016 - 2017

CEO PERFORMANCE TARGETS

CEO KPI Update Issued: 25/10/16 Review: Feb 2017

Electronic version on the Intranet is the controlled version Printed copies are considered uncontrolled. Before using a printed copy, verify that it is the current version.

Page 1 of 2

Governance Responsible Officer Update

1. Review Section 41 committee and Advisory Group structures to promote the achievement of the Strategic Plan

Lachlan Miller The Council and Administration’s leadership groups have conducted preliminary workshops on the effectiveness and efficiency of the current s41 and Advisory Group arrangements and the consideration of alternative structures. The CEOPRP and Audit Committee have reviewed their terms of reference for input to the review. The next steps are to analyse the input to date to prepare draft structural options for further workshopping.

Strategic Planning

2. Develop a rolling forward plan for three years of the key projects/initiatives to be undertaken in support of the Strategic Plan and budget/LTFP.

Terry Crackett Work has commenced on the development of the 2017/18 Annual Business Plan with sessions having been held with Council on the updated LTFP and Budget Timetable. The system to capture budget bids for both capital and operating have been modified to enable the identification of three years of proposed works that flow from the Strategic Plan and other endorsed Strategies / Plans (i.e. Sport and Recreation Plan, Economic Development Strategy, Trails Strategy, etc.). Planning sessions have been held with all senior staff to identify works to be captured within the system, and a workshop was held with Council on 1 March 2017 to run through the proposed approach.

People and Organisational Culture

3. Review and update the Corporate Plan to retain a focus on leadership and people development, customers, systems, innovation and measurable improvement.

Megan Sutherland The project plan has been completed and initial discussions have commenced internally with CEO, key staff and the Executive Leadership Team. The team is being finalised and will meet shortly to further develop the plan. The new plan will remain focussed on Leadership, People, Customers, Systems and Processes categories. Items will also be included from other levels of leadership through feedback from Strategic Plan implementation work.

Stakeholder Management and Communities

4. Develop a plan to create arts and culture hubs across Council.

David Waters The scope of the KPI has been refined to include the following objectives: Define what Arts Culture is for Council

Identify and map existing hubs, venues, networks, groups and individuals to inform future planning

Identify strategies to support and / or add value to these stakeholders and resources

Work is underway on the first two points, with the third point being addressed in response. Still on track for October completion.

CEO PERFORMANCE TARGETS

CEO KPI Update Issued: 25/10/16 Review: Feb 2017

Electronic version on the Intranet is the controlled version Printed copies are considered uncontrolled. Before using a printed copy, verify that it is the current version.

Page 2 of 2

5. Explore options for increasing

Council’s digital footprint and facilitating public internet access in townships.

Terry Crackett A project team of key staff within Council has been established. This team has developed an engagement plan to seek feedback from the AHC Community on “Public Internet access in Townships” and “Digital Service Delivery”. Work is now progressing with Engagement HQ Online Software to create and capture feedback. This feedback will be used to shape the options paper that will be provided to Council.

6. Update AHC’s emergency management arrangements into a consolidated Emergency Management Plan.

Lachlan Miller Workshop sessions on the revised State Emergency Management Plan, zone and local arrangements have been conducted with Council Members and the Administration leadership group. The latter has also undertaken brainstorming of the potential contents of the EMP based on the lessons from the recent storm/flood events. Benchmarking of EMP and BCP arrangements with the LGA and neighbouring councils is underway.

Customer Service and Experience

7. Review and update the composition of Tier 1 Service Standards in consultation with (and supported by) Council.

David Waters The existing Service Standards were reviewed in a workshop with Council Members in February 2017. Staff members are presently working with that input to develop a first-cut of revised Service Standards for further discussion at a workshop in March 2017. Still on track for completion in April 2017.

8. Establish and promote an on-line schedule of programmed maintenance.

Peter Bice Work is underway on developing an on-line schedule for programmed maintenance which encapsulates a broad range of our maintenance activities across the region. We are currently benchmarking with other Councils in terms of approach, with particular regard for dealing with unplanned delays, such as severe inclement weather.



Item: 6.2 Originating Officer: Megan Sutherland, Executive Manager Organisational Development Subject: Process Discussion - CEO Performance Review Process 2017 For: Decision

SUMMARY

The CEO Performance Review Panel must agree on the process to undertake the review of the CEO’s performance for 2017. The Panel may decide on undertaking the performance review internally or using an external consultant. RECOMMENDATION That the Panel resolves: 1. That the report be received and noted

2. That the CEO Performance Review Panel recommends to Council to undertake the 2017 CEO Performance Review process using an [internal review process / external consultant].

1. GOVERNANCE

Strategic Management Plan

Goal Organisational Sustainability Key Issue Governance We diligently adhere to legislative requirements to ensure public accountability and exceed these requirements where possible. Legal Implications The CEO Performance Review Panel is a Section 41 Committee of Council under the Local Government Act 1999 (LG Act). The regular review of the CEO’s performance needs to be undertaken appropriately to ensure the CEO is provided with a fair and consistent approach to performance reviews. The process needs to stand up under scrutiny, as the process, review tool and outcomes of the review directly affect decisions made in relation to the CEO, his performance, remuneration and employment contract.

Adelaide Hills Council CEO Performance Review Panel 9 March 2017 Process Discussion – CEO Performance Review 2017

Risk Management Implications Undertaking regular review of the CEO’s performance is an important control mitigating the risk of: Deficient CEO performance review practices result in a lack of accountability and loss of stakeholder confidence in the organisation.




Non-achievement of CEO KPIs result in loss of community benefit and/or opportunities and/or stakeholder confidence in the organisation.



Note: there are many other controls that also assist in managing this risk. Financial and Resource Implications Costs associated with using an external consultant to undertake the CEO Review process are covered within the draft budget. Customer Service and Community/Cultural Implications There is an expectation that the performance of the CEO is reviewed in a sound, fair and comprehensive manner. Environmental Implications Not applicable. Community Engagement/Consultation Not applicable.

2. BACKGROUND For the past four years, the CEO’s annual performance has been reviewed using an external consultant to undertake a comprehensive review process. This has included a ‘360 degree’ review tool completed by Council Members, direct reports and managers (the 2016 review did not include managers). The assessment sought feedback on the completion of the identified KPI’s, key responsibilities from the position description and personal attributes.

Reports were provided to the CEO, and a one-on-one debrief on those results with the consultant was held. The report was also provided to the CEO Performance Review Panel for review and a copy presented to the Council Members. A debrief by the consultant summarising the report outcomes was provided to both the Panel and Council Members at the relevant Panel meeting and Council workshop.

The final report and recommendations from the Panel to the Council, including any increases to the CEO’s Total Employment Cost package, have formed the final stage of the process.


The CEO’s current 5 year Employment Agreement expires on 30 September 2017 (the ‘Expiry Date’).

Clause 13 of the Agreement provides for a performance review process with the following key features:

The CEO will undergo no less than one annual performance review

The review will be conducted by a Performance Review Panel appointed by the Council

The Panel will assess the CEO’s performance by reference to the Personal Evaluation System (PES) measured against the CEO’s Duties as outlined in the Agreement, position description and any other factors considered relevant by the panel. Additionally, the Panel will evaluate the extent to which the CEO has discharged the CEO’s goals, objectives, responsibilities and duties as outlined in the position description.

The performance review will review the CEO’s position description and any key performance indicators through the PES.

A written report shall be compiled with respect to the performance review and a copy provided to the CEO. The report shall set out any particular aspects of the CEO’s performance that require improvement, together with reasonable timeframes within which the Panel expects those areas of performance to be improved to a specified standard.

The Council must provide whatever counselling, advice and assistance are reasonably necessary to enable the CEO to improve his performance during that period.

At the conclusion of the timeframes identified above, the CEO will either:

o be informed that performance has improved to the satisfaction of the Council and that no further action will be taken; or

o be provided with further written notice, providing final warning that unless the CEO’s performance improves in the same stipulated areas, once again within a timeframe, the Council will terminate the agreement in accordance with the termination provisions contained therein.

The CEO’s PES must be reviewed and, if necessary, amended by agreement within two months after each performance review.

The PES, as contained in the Agreement, is the system by which the CEO’s performance is assessed in accordance with the following rating scale:

Rating 1 – CEO’s performance did not meet expectation

Rating 2 – CEO’s performance was below expectation

Rating 3 – CEO’s performance met expectation

Rating 4 – CEO’s performance was above expectation

Rating 5 – CEO’s performance exceeded expectation


Clause 1 of the Agreement sets out the definition including:

Competent Performance means the achievement by the CEO of a performance equal to or better than Rating 3 as identified in the Personal Evaluation System.

3. ANALYSIS

The processes undertaken over the past four years have been extensive, taking several months to complete. Report findings over these four years have clearly shown the CEO’s consistently competent performance in the role both as a person and leader, as well as indicating his ability to meet the identified KPI’s. Each year the CEO Performance Review Reports have shown the CEO has met and at times exceeded expectations. The survey findings provided in the report take on several facets, providing feedback on performance in the overall role (meeting position description requirements and personal attributes required to undertake the role), meeting performance targets and personal development opportunities. For the coming year, the Panel must decide on whether to use an internal or external CEO Performance Review process. An external process would require the engagement of a consultant. Establishing the process would require the use of a tool to assess the CEO against the position description and performance target completion. The tool would be agreed between the CEO and Panel. It is recommended that the schedule to complete this piece of work would be within 6 weeks. If this process is chosen, the survey tool will need to be agreed, covering the position description and targets. The report would be discussed through the Panel and the final report and recommendation taken to Council. Report Format-External Process It is proposed that the following components are included in the survey tool and final report if an external consultant is contracted.

Survey Tool Report

Position requirements Individual rating for the following groups CEO, Council Members and Executive Leadership Team

KPIs Overall table of results / graphed data

Leadership behaviours/competencies A summary of results and what they mean

To provide general feedback on strengths A summary of the strengths and areas for improvement

To provide general feedback on possible improvements

Highest rates and lowest rates findings

It is important that confidentiality of respondents is maintained. A final report on the survey findings would be provided for Council record.

In this process, the Presiding Member (Cr Jan Loveday) and Executive Manager Organisational Development, Megan Sutherland would meet with the successful consultant to discuss the schedule of work, survey and report (generally).


An internal process would require the use of a tool to assess the CEO against the position description and performance target completion. The tool would be agreed between the CEO and Panel. It is recommended the schedule to complete this piece of work would be within 4 weeks. If this process is chosen, the Panel, in consultation with the CEO, will need to decide the approach to be taken, for example Panel Members completing the review with the CEO compared with surveying other parties (Council Members and relevant employees). The report will be discussed through the Panel and the final report and recommendation taken to Council. There is a potential conflict with a member of the administration coordinating the performance review of the CEO. These risks would need to be managed if this approach is undertaken. Report Format-Internal Process It is proposed that the following components would be included in the process if undertaken internally.

Survey Tool Report

Position requirements Individual rating for the following groups CEO, Council Members and Executive Leadership Team

KPIs Overall table of results

Leadership behaviours/competencies

It is important that confidentiality of respondents is maintained. A final report on the survey findings would be provided for Council record.

If undertaking an internal process, the issue of confidentiality and anonomity may be a concern for some respondents and this would have to be effectively managed.

4. OPTIONS 1. That the Panel agrees to undertake a review using an internal process. 2. That the Panel agrees to undertake a review using an external consultant.



Item: 6.3 Originating Officer: Megan Sutherland, Executive Manager Organisational Development Subject: CEO Performance Review Panel Meeting Schedule For: Decision

SUMMARY

The role of the CEO Performance Review Panel includes reviewing the performance of the CEO, in particular, the performance against the annual Performance Targets and to undertake a review of the CEO’s Performance Targets to ensure they remain relevant, achievable and aligned to Council’s strategic objectives. The agreement of the year’s meeting dates enables required work to be undertaken in preparation for the CEO Performance Review Panel meetings.

RECOMMENDATION

That the Panel resolves:

1. That the report be received and noted.

2. That the schedule of CEO Performance Review Panel meetings, as contained in Appendix 1, be adopted.

1. GOVERNANCE

Strategic Management Plan

Goal Organisational Sustainability Key Issue Governance We diligently adhere to legislative requirements to ensure public accountability and exceed these requirements where possible. Legal Implications The CEO Performance Review Panel is a Section 41 Committee of Council under the Local Government Act 1999 (the Act). The regular review of the CEO’s performance needs to be undertaken appropriately to ensure the CEO is provided with a fair and consistent approach to performance reviews. The process needs to stand up under scrutiny, as the process, review tool and outcomes of

Adelaide Hills Council – CEO Performance Review Panel Meeting 9 March 2017 CEO PRP Meeting Schedule

the review directly affect decisions made in relation to the CEO, his performance, remuneration and employment agreement. Section 87 of the Act set out the provisions for the calling and timing of Council Committee meetings. Section 88 of the Act set out the provisons relating to public notice of Council Committee meetings. Risk Management Implications Regular CEO PRP meetings are an important control in managing the risks of: Deficient CEO performance review practices result in a lack of accountability and loss of stakeholder confidence.




Non-achievement of CEO KPIs result in loss of community benefit and/or opportunities and/or stakeholder confidence.




Financial and Resource Implications The costs associated with the operations of the CEOPRP are contained in the current budget.

Customer Service and Community/Cultural Implications There is an expectation that the requirements of the Terms of Reference will be adhered to and the CEO Performance Review Panel will have nominated meetings to prepare for, undertake and report on the process. Environmental Implications Not applicable. Community Engagement/Consultation As a s41 committee the schedule of meetings will be posted on Council’;s website and meetings are open to the public unless the provisions of s90 (Meetings to be held in public except in special circumstances) apply to specific agenda items

Adelaide Hills Council – CEO Performance Review Panel Meeting 9 March 2017 CEO PRP Meeting Schedule

2. BACKGROUND Establishing the CEO Performance Review Panel meetings for 2017 enables the required planning to be undertaken by the Administration in preparation for the meetings.

Setting meeting dates enables Panel Members to prioritise the meetings or notify in advance if they will be unable to attend. Setting the schedule enables Council to meet its legislative obligations under s87 and 88 of the Act.

All s41 Commmitees and Advisory Groups is currently underway and, while there is potential for changes to the status of the Panel, the proposed schedule is predicated on the Panel remaining in its current form

3. ANALYSIS

The meeting schedule (Appendix 1) is proposed from discussions with the CEO Performance Review Panel Presiding Member, the CEO, the Executive Manager Governance and Risk and the Executive Manager Organisational Development. A full schedule of timeframes will be established for the review process decided upon (internal or external). It is envisaged, based on past processes, that the meetings identified in this report will fit within the overall review process schedule. The meeting proposed for 31 May 2017 has been identified so the Panel and the CEO can propose new Performance Targets for 2017-2018, aligning them with the financial year. Discussion on the Performance Targets is proposed for the Council Workshop on 6 June 2017, with a final report and recommendations to Council on 27 June 2017.

4. OPTIONS 1. That the Panel accept the proposed meeting schedule for 2017.

2. That the Panel change or amend the proposed meeting schedule for 2017.

3. That the Panel agree to a different meeting schedule for 2017.

5. APPENDIX

1. 2017 CEO Performance Review Panel Meeting Schedule

Appendix 1 CEO Performance Review Panel Meeting Schedule

2017 CEO PERFORMANCE REVIEW PANEL MEETING SCHEDULE

Target date Subject Process/actions/comments

Thurs 9 March 2017, 3-5pm CEO PRP meeting (formal public meeting)

Update from CEO on Performance Targets

Consider process to be undertaken this year (internal or external)

Discuss draft CEO Performance Review Panel Meeting Schedule for 2017

CEO Employment Agreement

Wed 31 May 2017, 9-11am CEO PRP meeting (formal public meeting)


Discuss proposed targets for July 2017-June 2018 (keeping in mind overlap of Targets with current targets not due until end Oct 2017)

Wed 7 June 2017 Council Workshop Discuss proposed targets for July 2017-June 2018 (financial year alignment) (report required to Council for decision)

Tues 27 June 2017 Report to Council Proposed 2017-2018 Performance Targets

Wed 5 July 2017, 9-11am CEO PRP meeting (formal public meeting)


Discuss and agree review process and structure (internal or external)

Wed 6 September 2017, 9-11am

CEO PRP meeting (formal public meeting)


Informal review update

Wed 8 November 2017, 9-11am

CEO PRP meeting (formal public meeting)


Review outcomes and recommendation to council

Salary and remuneration review


Thursday 9 March 2017 CONFIDENTIAL AGENDA BUSINESS ITEM

Item: 8.1 Originating Officer: Andrew Aitken, Chief Executive Officer Subject: CONFIDENTIAL - CEO Employment Agreement For: Decision

1. CEO Employment Agreement – Exclusion of the Public

Pursuant to section 90(2) of the Local Government Act 1999 the CEO Performance Review Panel (the Panel) orders that all members of the public, except:

Executive Manager Governance & Risk, Lachlan Miller

Executive Manager Organisational Development, Megan Sutherland

be excluded from attendance at the meeting for Agenda Item 8.1: CEO Employment

Agreement in confidence.

The Panel is satisfied that it is necessary that the public, with the exception of Council

staff in attendance as specified in (a) above, be excluded to enable Council to consider

the report at the meeting on the following grounds:

Section 90(3) (a) of the Local Government Act 1999, the information to be received,

discussed or considered in relation to this Agenda Item is Information the disclosure of

which would involve the unreasonable disclosure of information concerning the personal

affairs of any person (living or dead);

Accordingly, on this basis the principle that meetings of the Council Committee should be

conducted in a place open to the public has been outweighed by the need to keep the

information and discussion confidential.

Adelaide Hills Council CEO Performance Review Panel 9 March 2017 CEO Employment Agreement

3. CEO Employment Agreement – Period of Confidentiality Subject to the CEO, or his delegate, disclosing information or any document (in whole or in part) for the purpose of implementing Council’s decision(s) in this matter in the performance of the duties and responsibilities of office, Council, having considered Agenda Item 8.1 in confidence under sections 90(2) and 90(3)(a) of the Local Government Act 1999, resolves that an order be made under the provisions of sections 91(7) and (9) of the Local Government Act 1999 that the report, related attachments and the minutes of Council and the discussion and considerations of the subject matter be retained in confidence until 30 June 2018.

Pursuant to section 91(9)(c) of the Local Government Act 1999, that Council delegates the power to revoke the confidentiality order either partially or in full to the Chief Executive Officer.

Appendix 1 Proposed Employment Agreement

ceo performance review panel · 3/9/2017 · 6.1. 2016-17 ceo performance target update that the...

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