STRATEGIC COMMISSIONING & PERFORMANCE MANAGEMENT

CONTENTS

• Developing a Performance Management Culture
• A Performance Management System
• Strategic Commissioning
• Frameworks for Organising Information
• Performance Indicators
• Current Position in Harrow

CHANGING APPROACHES - (adapted from slide produced by FPM management from C. Handy - Understanding Organisations)

TRUST ME I AM A PROFESSIONAL - Professional trained to a high level and then left to use own judgement in the delivery of the service.

PROVE IT – LET ME SEE THE EVIDENCE - Managerial culture - working with clear, explicit processes to achieve measurable results against explicit targets

OBJECTIVES OF PERFORMANCE MANAGEMENT

• Improved Services
• Improved Accountability

IMPROVED SERVICES

• Continuous improvement
• Best Value
• Top 25%
• Comparing performance improves performance

ACCOUNTABILITY

• General public
• Services users and carers
• Your manager
• Local Council members – individuals, executive and scrutiny
• Central Government

DEVELOPING A PERFORMANCE MANAGEMENT SYSTEM

• Step 1 – What are we trying to achieve?
• A Commissioning Strategy will outline this

STRATEGIC COMMISSIONING PROCESS

Stage 1: IDENTIFY KEY STAKEHOLDERS & DECIDE HOW THEY WILL BE INVOLVED
Stage 2: ANALYSE NEEDS & BE CLEAR ABOUT NATIONAL PRIORITIES
Stage 3: MAP SERVICES & ANALYSE FINANCE & ACTIVITY DATA
Stage 4: AGREE STRATEGIC AIMS, OBJECTIVES & PERFORMANCE TARGETS
Stage 5: DEVELOP COMMISSIONING PRIORITIES
Stage 6: PROCUREMENT & PURCHASING PLANS
Stage 7: PRODUCE IMPLEMENTATION PLANS

LINKING STRATEGIC COMMISSIONING & PERFORMANCE MANAGEMENT

• The Commissioning Strategy is the driver
• This is illustrated in the next slide which also outlines a Performance Management System

A PERFORMANCE MANAGEMENT SYSTEM

LINKING THE COMMISSIONING STRATEGY AND SERVICE PLANNING

WHY MEASURE PERFORMANCE?
(FROM AUDIT COMMISSION – The principles of performance measurement.)

• What gets measured gets done
• If you don’t measure results, you can’t tell success from failure
• If you can’t see success, you can’t reward it
• If you can’t reward success, you could be rewarding failure

WHY MEASURE PERFORMANCE?
(FROM AUDIT COMMISSION – The principles of performance measurement.)

• If you can’t see success, you can’t learn from it
• If you can’t recognise failure, you can’t correct it
• If you can demonstrate results, you can win public support

PERFORMANCE INDICATORS

• Indications – happening or not happening
• Suggest certain types of performance taking place
• Signals
• Need targets
• A “basket” of indicators – national and local

LINKING COMMISSIONING STRATEGY & PERFORMANCE MANAGEMENT

• Stage 4 of the strategic commissioning framework – setting strategic aims, objectives and performance targets
• These will be key PIs for senior managers
• Use national and local indicators
• Other managers may use different indicators which will focus more on operational practice

EXAMPLE - OBJECTIVES, INDICATORS & TARGETS

Objective	Key Performance Indicators	Targets 04 05 06

SOME FRAMEWORKS TO HELP YOU

• Balanced Scorecard
• The 5 Es
• Using DOH PAF Domains

BALANCED SCORECARD
(Kaplan & Norton)

FINANCIAL PERSPECTIVE
INTERNAL BUSINESS PROCESSES
CUSTOMER PERSPECTIVE
INNOVATION AND LEARNING

ANOTHER VERSION OF A BALANCED SCORECARD
MAKE SURE PERFORMANCE INDICATORS ARE BALANCED COVERING  EACH OF THESE AREAS

Financial
Safety of Vulnerable Children and Adults
Human Resources
Quality of Services

The 5 Es:

ECONOMY
EQUITY
EXCELLENCE
EFFICIENCY
EFFECTIVENESS

PAF DOMAINS
(With additions)

Fair Access	Prompt response, equity & consistency
Cost & Efficiency	VFM – input & outputs
National Priorities	PAF Indicators
Quality	User and carer perspective
Effectiveness	Outcomes

REMEMBER

• Quantitative measures and qualitative measures
• Inputs, outputs and outcomes
• Outcomes – what changes – making a difference

INPUTS,OUTPUTS & OUTCOMES

Inputs	Outputs	Outcomes
What goes into providing the service	Measure of activity that has taken place	The impact of the services on the lives of service users. The difference made
Economy	Efficiency = volume of outputs divided by cost of inputs	Effectiveness

More than the Statutory PIs

• “….. a superficial reliance on the statutory performance indicators and other hard data is not advisable. A range of sources of information needs to be used and “reality checks” made to test the evidence and evaluate the outcomes.”

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