reading 1 - performance development framework

7/23/2019 Reading 1 - Performance Development Framework

1/12

PerformanceDevelopment

FrameworkNSW Public Sector


2/12

Foreword 1

What is the Performance Development Framework? 2

Who does the Framework apply to? 4

What frameworks are available for managing for performance? 4

Who is responsible for managing for performance? 5

Appendix A: Mandatory performance objectives of executives managing budgets 7

Appendix B: Mandatory performance objectives for everyone managing people 9

Contents

Publication and contact details

Perormance Developmen Framework

Sae o New Souh Wales hrough heNSW Public Service Commission, 2014

This work is copyrigh. Apar rom any usepermited under Copyright Act 1968, no par maybe reproduced wihou prior writen permissionrom he NSW Public Service Commission.

NSW Public Service Commission

Level 14, Bligh House4-6 Bligh SreeSydney NSW 2000Ausralia

Telephone: +61 2 9272 6000

Email: [email protected]/perormanceMarch 2014

Supporting resources

Managing or Perormance: Guide or managers

Managing or Perormance: Guide or employees

Managing or Perormance: Guide or human resources

Available a: www.psc.nsw.gov.au/perormance


3/12

NSW PUBLIC SECTOR PERFORMANCE DEVELOPMENT FRAMEWORK 1

The Framework (mandaory elemens) and

he suie o supporing reerence guides andools (non-mandaory) are he resul o 12

monhs o collaboraive effor by deparmenal

represenaives and he Public Service

Commission. The Frameworks developmen

process was rigorous and incorporaed eedback

rom a wide range o sakeholders.

The Framework represens a shif aimed

a improving he culure in he secor o

manage and develop workorce capabiliies

and perormance. I aims o raise he bar or

perormance managemen and drive coninuousimprovemen o achieve bes pracice.

The Public Service Commission will review

he Framework regularly o suppor ongoing

improvemens in perormance managemen

across he secor and o ensure i is aligned wih

urher workorce managemen reorms.

However, legislaive provisions and a ramework

alone will no change culure. Changes require

every employee o undersand ha managing

or perormance is abou collaboraion and

shared responsibiliy o opimise perormance.

By improving perormance, we can increase

produciviy and ensure all o us are engaged

and enhusiasic abou he work we do.

Graeme Head

Commissioner

One of the Public Service Commissions

imperatives is to build a high-performance culture in the NSW public

sector, where the capabilities of the

workforce are aligned with performance

and organisational objectives.

Good perormance developmen is abou

managing all aspecs o employees

perormance consisenly, equiably and

ransparenly. A key par o his process

is ensuring ha here is open and hones

communicaion beween employees and heirmanagers abou perormance agains defined

capabiliies and perormance indicaors.

The public secor has long been required

o implemen perormance managemen

sysems, bu has sruggled o mainain hese

sysems afer iniial implemenaion. This was

highlighed in he resuls o he 2012 People

Mater Employee Survey, which old us ha

he good pracice o perormance conversaion

beween employees and heir managers is no

consisen across he secor.

In 2012, he NSW Governmen enaced

legislaion requiring he heads o public

secor agencies o develop and implemen

perormance managemen sysems or heir

saff. Under his legislaion, I am also required

o issue guidelines on he essenial elemens

o perormance managemen sysems. This

provision has been brough orward ino

he new Government Sector Employment Act

2013 which is expeced o commence in lae

2013. The NSW Public Secor PerormanceDevelopmen Framework provides hese

guidelines.

Foreword


4/12

2 NSW PUBLIC SECTOR PERFORMANCE DEVELOPMENT FRAMEWORK

Figure 1: Components of the Performance Development Framework

1 Secion 67 o he Government Sector Employment Act 2013.

What is the PerformanceDevelopment Framework?

According to legislation1, all public sector

agencies must have a performance

management system that meets essential

elements and guidelines set by the Public

Service Commissioner.

The NSW Public Secor Perormance Developmen

Framework conains hese guidelines and ses he

approach or managing all aspecs o employee

perormance in he NSW public secor.

The Framework consiss o six componens ha

develop employee capabiliies and link individual

and eam effors and perormance wih he

objecives and perormance o heir organisaions.

Each o he six componens has essenial

elemens ha define he mandaory benchmarks

or agency perormance managemen sysems.

These are se ou in Table 1.


5/12


Component Essential elements

CYCLICAL

CONTINUOUS

Set and clarifyexpectations

Collaboraive processbeween manager andemployee o se perormanceexpecaions and clariy hemon an ongoing basis.

Each employee has an up-o-dae descripion o heir role,including required capabiliies and responsibiliies, linkedo he organisaions sraegy.

All employees undersand he public secor values, hecapabiliies required o hem in heir roles, and hedeliverables or which hey are accounable.

All employees are aware o he codes o conduc, policies,procedures and sandards hey are expeced o observe.

All new employees (in he secor or he eam) undergo areview process ha includes inormal and ormal reviews.

Monitor

Ongoing join evaluaion oprogress owards achievingwork goals and expecaions,involving regular wo-wayeedback.

All employees have regular opporuniies o discuss heirwork wih heir manager and receive inormal eedback onheir perormance (eiher individually or as a eam).

All employees have he opporuniy o provide inormal andormal eedback (hrough a srucured assessmen mehod)o heir manager.

Plan and review

Collaboraive processbeween managerand employee o plan

perormance, linked ocorporae objecives, wihperiodic reviews o progressowards achieving work goals.

All employees have an annual ormal perormance agreemenwih heir manager ha ses ou individual perormanceobjecives linked o corporae objecives as well as hecapabiliies hey are required o demonsrae in heir role.

Perormance agreemens or all execuives who havefinancial accounabiliy include mandaory perormanceobjecives se ou in Appendix A.

Perormance agreemens or all employees who haveresponsibiliy or managing people include mandaoryperormance objecives se ou in Appendix B.

All employees have a ormal perormance review a leasonce a year.

Formal perormance reviews are o inorm all assessmensor incremenal salary progression; paymen o increasesdeermined by he Sauory and Oher Officers RemuneraionTribunal (SOORT); and any conrac renewal.

Develop

Collaboraive processo ideniy and developemployees capabiliies wihperiodic reviews o progress.

Developmen plans are based on he capabiliies required

in he role, he employees exising capabiliies, and his/herperormance objecives and/or career goals.

Progress agains developmen plans is ormally reviewed aleas once a year.

Recognise

Regular pracice orecognising employee efforsand excellen perormanceoucomes and achievemens.

Agencies have guidelines in place o help managersappropriaely recognise employees a he local level.

EVE

NT-

DRIVEN

Resolve unsatisfactoryperformance

Process o addressingemployee unsaisacoryperormance.

Managers promply work wih he employee o undersandand resolve insances or paterns o unsaisacoryperormance.

Table 1: Components and essential elements of the NSW Public Sector Performance Development

Framework


6/12


Who does the Framework apply to?

The Framework applies to all employees

in the NSW public sector.

Agencies may vary is applicaion o casual

and emporary employees who are employed

or less han hree monhs2. However, i does

no apply o:

sae-owned corporaions

employees o labour hire agencies

2 The pracical applicaion o he Framework o casual and emporary saff will vary depending on he role and lengh o employmen.Se and clariy expecaions, monior and recognise good perormance apply as a minimum, regardless o role or lengh o employmen.Oher essenial elemens apply or longer periods o employmen, e.g. hree monhs or more.

3

These provisions will ake precedence over he Framework. However, i is preerable or hese arrangemens o broadly align wih heFramework over ime.4 The Capabiliy Framework describes core capabiliies expeced o all public secor employees, as well as oher common capabiliies ha only

apply o some roles. For example, people leadership capabiliies or roles ha include supervisory responsibiliies.

The Performance Development

Framework provides a holistic approach

to developing employee performance,

based on capabilities.

Capabiliies are he knowledge, skills, and

abiliies ha mus be demonsraed by

public secor employees o perorm heir

roles effecively.

Each o he six componens o he Perormance

Developmen Framework shown in Figure 1

ses ou imporan pracices ha connec,

align and develop employees capabiliies o

achieve organisaional and secor resuls.

They aim o build a shared undersanding

o wha organisaional, eam and individualsuccess look like, and how i can be achieved

and mainained.

This shared undersanding is achieved

hrough ongoing wo-way perormance

discussions beween managers and employees.

These discussions help boh managers and

employees o undersand heir respecive roles

and responsibiliies, he sandards expeced

o hem and how o develop he capabiliies

required or success.

The Public Service Commission will regularly

review he Framework o suppor ongoing

improvemens in perormance managemen

across he secor and o align wih urher

workorce managemen reorms, including he

redeveloped cross-secor NSW Public Secor

Capabiliy Framework4.

The wo Frameworks will provide imporan

plaorms or developing employee perormance

in he secor.

While each componen o he Perormance

Developmen Framework is closely linked,

hey are no designed o be applied sequenially.

Insead, hey each serve a purpose and are

applied individually, or in combinaion,

depending on he siuaion.

What frameworks are available formanaging for performance?

non-governmen employees, such as

employees o organisaions conracedo provide services o or on behal o a

governmen agency

employees in specialis classificaions

who are also covered by perormance

managemen provisions enshrined in an

award, agreemen, piece o legislaion or

some oher insrumen3.


7/12


The Performance Development Framework

recognises that good organisationalperformance is the result of the combined

efforts and achievements of a highly

capable workforce. As illustrated by

Figure 2, every employee plays an

important role in helping to achieve

organisation and state-wide objectives

and outcomes.

Direcors-General and agency heads are legally

required o develop and implemen perormancemanagemen sysems or heir saff. The Public

Service Commissioner is legally required o

issue guidelines on he essenial elemens o

perormance managemen sysems in agencies.

Direcors-General are required o ensure ha

all agencies wihin heir deparmen mee, or

have plans in place o acively work owards, he

essenial elemens described in he Framework.

Who is responsible for managingfor performance?

Figure 2: How individual objectives feed into state-wide strategies

In addiion o heir people managemen

accounabiliies, execuives are responsible orlinking perormance managemen sysems wih

organisaional planning, sysems and processes.

They are also responsible or engaging and

developing he workorce o heir organisaion

o achieve oucomes and leading by example in

using he Framework.

Managers are responsible or:

seting clear perormance objecives

building capabiliy o ensure organisaional

objecives are me building capabiliy o ensure coninual

developmen and success

monioring perormance

providing regular and ongoing eedback o

develop and mainain perormance

collaboraing wihin and across work unis


8/12


seeking and receiving eedback rom heir

manager or senior execuive and heiremployees, o drive heir own developmen

having srucured conversaions wih

employees abou heir perormance,

developmen needs and career aspiraions

honesly and openly addressing

underperormance.

Perormance agreemens or all execuives who

have financial accounabiliy mus include

mandaory perormance objecives se ou in

Appendix A. These objecives are par o arange o measures approved by Governmen o

significanly improve financial managemen in

he NSW public secor.

Perormance agreemens or all employees who

have responsibiliy or managing people mus

include mandaory perormance objecives se

ou in Appendix B. These objecives, ocused

on people and capabiliy managemen, are one

o a number o public secor reorm iniiaives

aimed a improving workorce managemen

across he secor.

All employees are responsible or:

developing heir own perormance o meeexpecaions and achieve heir objecives

acively conribuing in all aspecs o

perormance managemen

having open and hones conversaions wih

managers and colleagues

providing eedback o managers

openly receiving eedback

proacively driving heir own developmen

wih he suppor o heir managers.


9/12


Appendix A:

Mandatory performance objectives of executives

managing budgets

Financial management

Director-General Chief ExecutiveOfficer

Chief FinancialOfficer

Executive-levelbudget holding

operationalmanagers

Budgetcompliance operating

The Cluser hasoperaed wihinis approved necos o serviceslimi, wihouany negaiveimpac acrosshe orwardesimaes.

The Agency hasoperaed wihinis approved necos o serviceslimi, wihouany negaiveimpac acrosshe orwardesimaes.

The Cluser/AgencyCFO has providedappropriaeinormaion andadvice o heir DG/CEO o ensure hahe Cluser/Agencyoperaed wihin isapproved ne coso services limi,wihou any negaive

impac across heorward esimaes.

The Execuivemanagerhas operaedwihin his/her operaingbudge(budgeedexpenses and,where relevan,revenues).

Budgetcompliance capital

The Clusercapial programhas beendelivered wihinapproved capialexpendiureauhorisaionlimis.

The Agencycapial programhas beendelivered wihinapproved capialexpendiureauhorisaionlimis.

The Cluser/AgencyCFO has providedappropriaeinormaion andadvice o heir DG/CEO o ensure hahe Cluser/Agencycapial programhas been delivered

wihin approvedcapial expendiureauhorisaion limis.

The Execuivemanager hasoperaed wihinhis/her capialbudge.

Budgetcompliance employeeexpenses

The Cluser hasoperaed wihinis approvedLabour ExpenseCap.

The Agency hasoperaed wihinis approvedLabour ExpenseCap.

The Cluser/AgencyCFO has providedappropriaeinormaion andadvice o heir DG/CEO o ensure hahe Cluser/Agencyhas operaed wihin

is approved LabourExpense Cap.

The Execuivemanager hasoperaed wihinhis/her labourexpense budge.


10/12


Director-General Chief ExecutiveOfficer Chief FinancialOfficer Executive-levelbudget holdingoperationalmanagers

Delivery ofsavings

The Clusersavingsmeasuresincorporaedino he Budgeare supporedby rigorous

implemenaionplans.

The Agencysavingsmeasuresincorporaedino he Budgeare supporedby rigorous

implemenaionplans.

The Cluser/AgencyCFO has providedappropriaeinormaion &advice o he DG/CEO o ensure hasavings measures

incorporaed ino heBudge are supporedby rigorousimplemenaionplans.

The Execuivemanager hasincorporaedrigorousimplemenaionplans inohe Budge o

achieve savingsmeasures.

Managementreporting

The Agency hasconsisenlyprovidedaccuraefinancial reurnso Treasury

in accordancewih specifieddeadlines.

The Agency hasconsisenlyprovidedaccuraefinancial reurnso Treasury

in accordancewih specifieddeadlines.

The Agency hasconsisenly providedaccurae financialreurns o Treasuryin accordance wihspecified deadlines.

N/A

Statutoryreporting

The Agencyhas providedannual financialaccouns o audiin accordancewih specifieddeadlines andaccouns are

signed off byhe Audior-General wihouqualificaion.

The Agencyhas providedannual financialaccouns o audiin accordancewih specifieddeadlines andaccouns are

signed off byhe Audior-General wihouqualificaion.

The Agency hasprovided annualfinancial accouns oaudi in accordancewih specifieddeadlines andaccouns are signedoff by he Audior-

General wihouqualificaion.

N/A


11/12


People andcapabilityobjectives

Director-General Chief ExecutiveOfficer

Executive Operationalmanager

Managingforperformance

The Agency hasa perormancemanagemenrameworkin place hais linked ohe corporaeplanning sysem.

The Agency hasa perormancemanagemenrameworkin place hais linked ohe corporaeplanning sysem.

All employeesin he divisionhave a currenperormanceagreemen hais clearly linkedo organisaionalobjecives andis reviewedannually.

All employees in hebusiness uni have acurren perormanceagreemen hais clearly linkedo organisaionalobjecives and isreviewed annually.

Workforce

planning anddevelopment

The Agency

has a sraegic,sysemaicapproach o alignis workorcecapabiliy andcapaciy wih heorganisaionscurren anduure prioriiesand objecives.

The Agency

has a sraegic,sysemaicapproach o alignis workorcecapabiliy andcapaciy wih heorganisaionscurren anduure prioriiesand objecives.

The division

implemenssraegies o alignis workorcecapabiliy andcapaciy wih heorganisaionscurren anduure prioriiesand objecives.

The business

uni implemenssraegies o align isworkorce capabiliyand capaciy wihhe organisaionscurren and uureprioriies andobjecives.

Appendix B:

Mandatory performance objectives for everyone

managing people

People and capability management


12/12

reading 1 - performance development framework

Documents