Performance management plan

Purpose:

The purpose of a performance management plan is to set out the principles and targets for a programme against which it delivers its outputs, outcomes and benefits. The plan defines how these will be measured and any divergence acted upon. The plan contains details of the performance management process, performance measurements and the performance information required to establish and monitor delivery. These are defined as:

Performance management: the activity to set direction, which uses performance information to manage better, demonstrates what has been accomplished and sets actions to improve. Performance metrics should be defined using the SMART test (Specific, Measurable, Attainable, Relevant, Timely).

Performance measurement: periodicity of measuring progress against goals, against target levels of intended accomplishment and against third parties. Measures need to change as progress is made. Measurement criteria should be defined using the FABRIC test (Focused, Appropriate, Balanced, Robust, Integrated, and Cost-effective).

Performance information: the data, its characteristics, quality, sources and contribution to a measure.

Fitness for purpose checklist:

Quality criteria for a performance management plan include:

• Are the objectives, outputs, outcomes or benefits against which to set and monitor performance or achievement of targets clearly defined?
• Can the performance measures that can be assessed against key objectives?
• Are the performance measures clearly defined, together with target values?
• Is the approach for managing performance is complete and does it contain all key elements as a cycle of activities?
• Do the measures and metrics criteria meet pre-defined test of SMART and FABRIC?
• Is the periodicity of measurement clearly defined?
• Have all standards or techniques to be used for measurement are defined?
• Are the sources of performance information of adequate quality?
• Is the proposed performance information reliable and/or independently validated?
• Is the approach to investigation and corrective action to improve unsatisfactory performance clearly defined?
• Is there an outline of the management organisation and process?
• Are the resources to collect and analyse performance information clearly defined?
• Are the roles and responsibilities clearly defined
• Suggested content:
• The key elements of performance management plan will describe a cycle of activities and their outputs:
• Strategy - defining the aims and objectives of the organisation
• Selection of performance measures - identifying the measures which support the quantification of activities over time
• Selection of targets - quantifying the objectives set by management, to be attained at a future date
• Delivery of performance information - providing a good picture of whether an organisation is achieving its objectives
• Reporting information - providing the basis for internal management monitoring and decision-making, and the means by which external accountability is achieved
• Action to improve - taking action to put things right; feeding back achievements into the overall strategy of the organisation. 

Source information:

• Benefits management strategy
• Benefits management profile
• Programme or project brief  

Notes:
Performance management should be an integrated part of a business lifecycle helping an organisation to mature through evolving and changing performance measures, from their definition through to monitoring and review.

Where it is not possible to establish direct 'cause and affect' linkages or precise measures of performance, interim measures such as Key Performance Indicators (KPIs) are often used. These could be trends over time, value to the customer, awareness of product or service.

Further information:

HM Treasury launched a new initiative in March 2001 entitled 'Choosing the right 'FABRIC': A Framework for Performance Information'. This sets out the principles for good performance information agreed between the Treasury, Cabinet Office, National Audit Office, Audit Commission and Office for National Statistics. It is to help to provide the good quality information essential for the public, Parliament and other bodies scrutinising public services and seeking continuing improvement in their delivery. Further details are at  http://www.hm-treasury.gov.uk

See also OGC Briefing: Performance Management