Meeting: Council - 07 December 2017 Name of item: Chief Executive Officer s Key Performance Indicators For 2017/18

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1 Item: 14.2 Meeting: Council - 07 December 2017 Name of item: Chief Executive Officer s Key Performance Indicators For 2017/18 Author: Date of report: 17 November 2017 Document number: Bill Lee - General Manager Strategic Planning and Policy (Acting) A Purpose of the report The purpose of the report is to for Council to endorse and adopt the Chief Executive Officer s (CEO) Key Performance Indicators (KPIs) for the 2017/18 financial year. Executive summary When the Chief Executive Officer s KPIs are endorsed and adopted by Council, the CEO can then start reporting against them to Council. The CEO KPIs flow out from the CEO as the employer of Council staff and the organisation is aligned to them. The KPIs were workshopped with the Governance Committee on 22 November Recommendation That Council adopts the Chief Executive Officer s Key Performance Indicators for 2017/18 1) Background Council sets the KPIs for its employee, the CEO, usually annually. The CEO was requested to work with the Strategic Leadership Team to develop the KPIs. These were then discussed with elected members. Following this discussion, the KPI were remodelled under the headings of Governance Excellence, Cultural Excellence and Operational Excellence as requested by Elected Members. Two further KPIs were developed under the Governance Excellence that sought to align the management of the CEO as well as aligning staff and governance around significant projects. The Chair of the Governance Committee requested that the KPIs be workshopped with them on 22 November 2017, before going to the Council Meeting, 7 December ) Discussion and options Post the Governance workshop, the Chief Executive Officer s KPIs will be circulated prior to the Council Meeting, once any amendments, if required, have been made. Considering that we are well into this financial year (2017/18), it is hoped that the adopted KPI remain the basis for the next financial year (2018/19). The KPIs, once adopted, become the basis for reporting the progress of the business to Elected Members. Document number A Page 1 of 3

2 Option 1: Council adopts the CEO KPIs and the organisation aligns itself to deliver on these. The CEO s performance is measured and reported against these KPIs. Option 2: Council does not adopt the CEO KPIs. KPIs continue to be developed. This will impact on the organisation as next Council meeting is 15 February 2018 and KPIs will only be in place for 5 months. Staff recommend Option 1. Reason for the recommendation Council to adopt the Chief Executive Officer s Key Performance Indicators for the 2017/18 financial year 3) Financial implications and budgetary provision There are no financial implications or budgetary provision needed as a result of this report. KPIs are aligned with the 2017/18 Annual Plan. Manager: Shaun Clarke - Chief Executive Officer Attachment 1: Chief Executive Officer KPIs - Document number A Document number A Page 2 of 3

3 Compliance schedule: Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular: 1. A Local authority must, in the course of the decision-making process, a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and b) Assess the options in terms of their advantages and disadvantages; and c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga. 2. This section is subject to Section 79 - Compliance with procedures in relation to decisions. Compliance requirement State the level of significance (high or low) of the issue or proposal as determined by the Council s Significance and Engagement Policy State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision. State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board s views have been sought. State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water. Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences. State the financial implications and where budgetary provisions have been made to support this decision. Chief Financial Officer review. Staff assessment Low significance Council as the employer of the CEO has the mandate to set its expectations via the CEO KPIs District Māori specifically as well as part of community are linked to the delivery of these KPIs. Development of the KPIs was the Strategic Leadership Team who considered the effect on the business and the staff who are part of the organisation Aligns to Annual Plan budgets 2017/18. The Chief Financial Officer has reviewed this report. Document number A Page 3 of 3

4 GOVERNANCE EXCELLENCE # Objective Target Measure CEO-Governance relationships CEO1 Build trust with Elected Members Develop targets with Councillors and Community Board Chairs on a 1:1 System established basis 1:1 meetings achieved monthly Establish a tracking matrix and timeline for agreed issues managegemt Manage relationships through the Communication Protocol. Target is zero breaches Number of breaches. Work through CEO Office to organise pre-site and post site meetings between elected members and operational experts System established Governance support CEO2 Ensure all reports/agenda items to Elected Members are accurate and on time to assist with decision making Adhere to established or agreed schedule of report reviews, closing dates, previews unless elected members call for a late addition or change to an agenda item. Carry out training for reviewers of reports to improve quality and accuracy Tracking matrix developed and implemented in Yr1 to provide benchmark Training established and implemented CULTURAL EXCELLENCE # Objective Target Measure Customer experience CEO3 Lead the building of a customer service culture Achieve a sustainable organisationwide Customer Satisfaction Index - 90% achieved within 5 yrs. 3'% improvement on April 2017 baseline figure of 75% for Yr 1 and then 3% annually to achieve 90% CEO4 Enhance our reputation through effective communcations. Creating great places branding in use. Targeted comms plans in place for all key projects. Ensure the development and implementation of a reputation index. Baseline established by 30/6/18 Employee experience CEO5 Increased employee engagement and satisfaction through the cultural reform programme Develop and maintain effective, quality partnerships that deliver win/win CEO6 Understand the quality of our current partnerships and develop a baseline on which to improve. Increase in employee culture survey results Carry out a fresh stakeholder analysis, with each stakeholder ranked in importance against strategic framework. Establish named account holders for each partnership and measure contact rate. Establish a measurement of partnership quality. Baseline established (per current plan) and follow up survey carried out by 30/6/18. Year 1 creates baseline. Document number A Page 1 of 2

5 Continuous improvement enhances Council's capacity to deliver and perform CEO7 Aligned FNDC culture of continuous improvement and innovation to strategic objectives and priorities Establish a formal process of capturing review survey and audit recommendations into a work plan. Workplan incorporates: - 100% of the urgent items - 100% of the accepted recommendations CEO KPIs developed and signed off before 1 July each year. Lead the district on long term strategic thinking. CEO8 Build organisation to be a strategy led organisation Year 1 - Framework, programme and process for foresight (learning - framing, scanning, forecasting) and evalution developed. Development of a District Strategy including a Spatial Plan -Current state: data mapped -Developing Spatial Plan: Core issues for next 30/50 Years identified and agreed with Council -Engagement: Stakeholder analysis and engagement plan Foresight impacts policy decisions and outcomes - measure and target to be developed during year 1 (e.g. could be: Audit all medium (3-10 year) to long term (10-50 year) strategies, policies and plans for evidence of use and impact of foresight on planning, decision making and action). Year 1: Spatial Plan as part of District Strategy completed for consultation by end of June 2018 OPERATIONAL EXCELLENCE # Objective Target Measure Capital Programme delivered CEO9 Deliver on the commitments made in the Carry Forward FY19 not more than AP + CF +/- ReFlect $40m (being Roading FY18 capital works programme $x 100% $20m and Other $20m) Operational services are managed professionally and prudently CEO10 Deliver and support operations within budget Health and Safety CEO11 Ensure no serious injuries or deaths as a result of Council not mitigating Health and Safety risks that have been identified. Key initiatives CEO12 Report on agreed milestones for key initiatives. Roading Programme delivers 100%, variance +/- 5% Number of projects delivered Variance +/- 5% Nil deaths/serious injuries. Key initiatives: - Asset management system - integration of financials with asset management system - stormwater strategy - information systems strategy - four waters sustainability - delivery on the NTA - resolution & avoidance of abatement notices - Kerikeri WWTP Roading 100% $20m >80% of planned number of projects delivered. Budget (AP) vs Actual variance (exclude noncash items). Year one - establish and agree milestones Document number A Page 2 of 2