Developing an effective performance management system

1
Developing an effective performance management
system

• Ross Fraser
• Chief Executive, HouseMark

2
Purpose of a performance management system

• Ensure housing business is run effectively
• Underpin business planning
• Allow rounded assessment of performance
• Facilitate accountability to stakeholders
• Support staff management

3
Importance of data

• Performance measurement is the bedrock of any
  performance management system
• Good quality data is the key
• Local PIs attuned to the specific needs of the
  business
• Sector PIs facilitate performance comparison
• Performance measurement must be anchored in an
  organisations vision and values

4
Defining the vision and values

• What business are we in?
• Why are we in this business?
• What do we want to achieve?
• Defining key elements of our business
• Customers
• Neighbourhoods
• Performance
• People
• Money

5
Vision and values Strategic ObjectivesTrafford
Housing Trust

• Customers involving our customers and meeting
  housing needs
• Neighbourhoods creating neighbourhoods where
  people choose to live
• Performance providing modern homes and
  delivering a first class housing service
• People being an excellent employer
• Money operating a sound business

6
Vision and values Strategic ObjectivesCarrick
Housing

• Customers tenants are the focus of our business
  having a clear and influential role in
  everything we do
• Neighbourhoods we will help to deliver the
  wider strategic goals and aspirations of the
  community
• Performance excellent housing services and
  improved homes are our objective
• People the quality of our business is based on
  the quality of our staff
• Money we need to be an efficient business to
  meet our objectives

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Scorecard links to vision and values
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Role of the balanced scorecard

• Balanced scorecard ensures that each performance
  management is given equal importance
• This is important, given the inter-dependency of
• five key criteria in service delivery
• business departments in delivering each objective

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Critical success factors and KPIs (1)

• Customers
• Understand the needs and aspirations of customers
  
• Visit each local area once a year
• Neighbourhood
• Increase investment in sustaining communities
• Tenant satisfaction with area

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Critical success factors and KPIs (2)

• Performance
• Repairs completed to timescales and standards
  agreed with tenants
• of repairs completed within time limits
• People
• Career Development and Training for all staff
• in training and satisfied
• Money
• Cost effective loan management system
• Gearing and net interest cover

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Involving tenants and boards in performance
management

• Typically, tenants and boards are asked the
  following questions
• Do you agree with the landlords objectives?
• If not, what should change?
• What matters to you and how can we measure it?
• How would you judge the landlords performance?
• Views expressed then modify the nature of the
  performance management system

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Managing staff the golden thread
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Setting targets

• Targets should be SMART
• Targets may be set
• On the basis of past performance trends
• In relation to aims and objectives
• In terms of performance of peer organisations
• With reference to best in class organisations

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Performance Management Systems Critical Success
Factors (1)

• Staff understand how system links to their
  performance
• All staff can interpret performance information
• Senior staff trained in performance management
• Poor performance tackled in a timely manner
• Good performance recorded and rewarded

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Performance Management Systems Critical Success
Factors (2)

• Purpose of KPIs clear to data provider and
  recipient
• Avoid too many KPIs focus on the important
  issues
• Periodic external validation of performance data
• Review working practices and support providers
  regularly
• Staff recruitment, development and training key
  to maximising performance
• Board and senior staff review effectiveness of
  the performance management system each year

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In conclusion

• Performance measurement is only effective in
  terms of performance management
• Performance management only works if it links to
  organisational vision and values
• But if you dont measure performance how do you
  know you are doing well?
• And if you dont compare your performance with
  others how do you know which targets to set?