PAPER B

RESOURCES SELECT COMMITTEE-7JUNE 2004

QUARTERLY PERFORMANCE MANAGEMENT REPORT 4

REPORT OF THE PORTFOLIO HOLDER

REASON FOR SELECT COMMITTEE CONSIDERATION

This Quarterly Performance Management Report is for the period 1^st January to 31^st March 2004 and is for the Resources portfolio. This fourth report for 2004/05 was considered at the Council’s Executive on the 2^nd June 2004.

ACTION REQUIRED BY THE SELECT COMMITTEE

1. To receive the Quarterly Performance Management Report insofar as it relates to the Resources Portfolio Holder’s responsibilities

2. To consider if additional information is required from the Portfolio Holder detailing specific actions to improve performance for the four performance targets set out in paragraph 5

3. Determine whether further information is required from the Portfolio Holder on the two long-term Areas to Watch detailing scope of concern, background and proposals to improve as set out in paragraph 6

4. To determine whether to add or amend the work programme of the Select Committee in light of the Quarterly Performance Management Report and any additional information received.

BACKGROUND

1. This Report for Quarter 4 summarises performance for the responsibilities under the Portfolio Holder for Resources for the quarter ended 31^st March 2004. Some information is estimated and it should be appreciated that budget information is not for the full financial year 2004/05, due to possible amendments as part of the closedown procedures.

2. This quarter also includes achievements and ongoing activities from the Annual

Action Statement and the CPA Improvement Plan. Ongoing and in progress actions

and activities will be carried forward to the Annual Action Statement for 2004/05.

3. Feedback from the previous Resources Select Committee when the Quarterly Performance Management Report for quarter 3 was discussed have been taken on board including:

· Additional report on the total operating cost of full-time equivalent employees-to be submitted to the Committee within the next two months

· Additional report on vandalism to Council buildings-this is being recommended to the Executive meeting on the 2^nd June to receive as part of the Quarterly Performance Management Report 4 and it is proposed the same report is submitted to the Select Committee for consideration

· Format and presentation comments will be included in the first Performance Management Report for 2005/06

4. Significant progress has been made throughout the year on targets and

activities within the Portfolio Holder’s responsibilities. These include exceeding

targets for the number of Members and staff undertaking training activities(page

10) and the many Corporate Actions that have been achieved in the Annual Action

Statement and the Comprehensive Performance Assessment action plan (page 12

and 13). These include the introduction of the Council’s Performance

Management framework, completing a comprehensive Equalities training

programme and implementing a People Management Strategy.

5. However, there are concerns on the following performance indicators:

· Number of working days/shifts lost due to sickness for which there is a marginal increase on last year(page 8 and 10)

· Number of complaints received across the Authority which has increased by nearly 20 above the target (page 10)

· The number of types of electronic interactions as a percentage of those that are legally permissible for electronic delivery (page 10)

6. In addition, there are two Areas to Watch that have been reported in all four Quarterly Performance Management Reports to the Council’s Executive that are the responsibility of this Select Committee’s Portfolio Holder:

· Vandalism to Council-owned buildings (page 8)

· The number of staff absences due to sickness (page 8)-this is a key Comprehensive Performance Assessment indicator

RELEVANT PLANS, POLICIES, STRATEGIES AND PERFORMANCE INDICATORS

Best Value Performance Plan 2002/03

Annual Action Statement 2002/03

Quarterly Performance Management Report 4

CONSULTATION PROCESS

Heads of Service and their staff have supplied the information within the Quarterly Performance Management Report, with Directors being fully consulted on the content.

External consultation has not been necessary for this report as it is concerned with internal financial management arrangements.

FINANCIAL, LEGAL, CRIME AND DISORDER IMPLICATIONS

The report itself does not have any financial implications. However, if Members make decisions regarding services identified in this report, these may have financial implications.

It is a requirement of the Local Government Act 1999 to deliver best value in service delivery of which an effective performance management system is a significant part.

APPENDICES ATTACHED

Appendix 1 Quarterly Performance Management Report 4

BACKGROUND PAPERS USED IN THE PREPARATION OF THIS REPORT

Annual Action Statement 2003/04

Comprehensive Performance Assessment Action Plan

Quarterly Performance Management Reports 1, 2 and 3

Contact Point : Heidi Marshall, Principal Policy Officer, 823250 [email protected]

JOHN BENTLEY

Head of Policy and Communications

APPENDIX 1

ISLE OF WIGHT COUNCIL

QUARTERLY PERFORMANCE MANAGEMENT REPORT

SELECT COMMITTEE REPORT - RESOURCES

FOURTH QUARTER – 1^ST JANUARY TO 31^ST MARCH 2004

Quarterly Performance Management Report

Select Committee Report - Resources

Quarter 4 January – March 2004

Contents

Section 1 : Summary Page 3 - 4

1.1 Performance Summary:

· Performance Indicators – KPI’s & PSA Targets

1.2 Priority Improvement Areas Page 4

1.3 Best Value Reviews Page 4

Section 2 : Performance Management & Assessment Page 5

Including information on the following areas

· Key Achievements for the Quarter Page 6

· Areas to Watch and action to be taken Page 7

· Updates on Areas to Watch reported in Q1 – Q2 – Q3 Page 7 - 9

· Performance Management Indicators – KPI’s & PSA Targets Page 10 - 11

Section 3 : Corporate Actions Page 12 - 14

Summary report of those key actions achieved and those that are on-going, as of the 31^st March 2004.

Section 4 : Finance Report Page 14

Revenue & Capital Report

SECTION 1 : Summary - Quarterly Performance Management Report - Q4 (January to March 2004)

Performance Summary :–

1.1 Performance Indicators

Summary provides information for all of the Performance Indicator Targets by Portfolio for the past year 2003-04

The first table presents those Performance Indicators that refer to the Select Committee. There are 15 indicators :

• Key PI Quarterly Basket - (6 key performance indicators)
• Public Service Agreement - (1 targets)
• Annual Action Statement - (8 targets not covered elsewhere)

Performance Indicators by Type

	No. of Indicators	Target Achieved	Not Achieved/ ON-GOING INTO 2004-05	Information Not Provided	DELETED INDICATORS
KPI Basket Targets · Performance Management & Resources	6	3	3	-	-
Public Service Agreement Targets · Performance Management & Resources	1	0	0	1	-
Annual Action Statement Targets · Performance Management & Resources	8	4	4	-	-
TOTAL	15	7 (46.7%)	7 (46.7%)	1 (6.6%)	-

Table 2 provides a snapshot of all of the 58 performance indicators and presents these against the relevant corporate objective.

Performance Indicators by Corporate Objective

Corporate Objective	No. of Indicators	Target Achieved	Not Achieved/ ON-GOING INTO 2004-05	Information Not Provided	DELETED INDICATORS
Improving health, housing and quality of life for all	9	2 (22%)	7 (78%)	0 (0%)	-
Encouraging job creation & prosperity	5	4 (80%)	1 (20%)	0 (0%)	-
Raising education standards and promoting lifelong learning	8	6 (75%)	2 (25%)	0 (0%)	-
Creating safe & crime-free communities	8	6 (75%)	2 (25%)	0 (0%)	-
Improving public transport and the highways infrastructure	7	2 (28.6%)	3 (42.8%)	0 (0%)	2 (28.6%) KPI 19-20
Protecting the Island’s physical environment	6	6 (100%)	0 (0%)	0 (0%)	-
IWC Corporate Health	15	7 (46.6%)	7 (46.6%)	1 (6.7%)	-
TOTAL	58	33 (56.9%)	22 (37.9%)	1 (1.7%)	2 (3.5%)

1.2 Priority Improvement Areas - Not applicable to the Service Area in 2003-04

1.3 Best Value Reviews

Current Best Value Reviews

· Procurement

The Action Plan has been finalised and is now going through the committee approval process.

SECTION 2 : PERFORMANCE MANAGEMENT & ASSESSMENT – BY PORTFOLIO

This section of the report shows the progress and achievements that have been made in each of the Portfolio’s of the Council. The report records and demonstrates:

• The key achievements for the Quarter
• The identified Areas to Watch and the agreed action to be taken
• Updates on the previously recorded Areas to Watch from Quarters 1, 2 & 3
• Performance Management Information - updates on the Key Performance Indicators (KPI’s) and PSA targets

How are targets judged?

Has the Target been achieved?:

- will be ‘yes’ if the year end target has been met/achieved. (This applies to most targets, some may work differently).

- will be ‘no’ if the target has not been achieved

The comments box can be used by services to explain data. Some targets compare themselves with the same quarter a year ago to eliminate effects of seasonality.

Level of performance against previous quarter:

• will be ‘higher’ if the level of performance is 10% or more higher than previous quarter ì
• will be ‘no change’ if the level of performance is within 10% either way of previous quarter è

· will be ‘lower’ if the level of performance is 10% or more lower than previous quarter î

Assessment of Performance for the Year

Compares the actual performance to the Target for year end:

J Indicates that the target is achieved or exceeded

L Indicates that the target is not achieved

Year end Actual

This figure is expressed as either:

· the cumulative Total for the year - (Q1+Q2+Q3+Q4)

· or, the Average for the year – (Q1+Q2+Q3+Q4) divided by 4

2.1 PORTFOLIO: Performance Management & Resources

CORPORATE OBJECTIVES: Making it Happen

KEY ACHIEVEMENTS QUARTER 4

Portfolio – Performance Management & Resources

Corporate Objectives - Making it Happen

• Successful healthy workforce programme for staff – over 300 participated in range of activities. Number of successful staff clubs also established (Book Club, Theatre & Cinema Groups, T’ai Chi, etc)

• Training programme for Select Committee Members agreed and started through South East Employers.

• Changes to Call-In notification revised and proforma for work plans agreed by Co-ordinating committee. Recognition that the size of committee should be reduced and recommendations made to Full Council.

• Procurement Best Value reviews Action Plans complete.

• Electronic case Management System implemented in Legal team – end of a 2 year project on time and within budget will deliver immediate efficiencies and improvement in service

• Concluded litigation with Care homes, removing significant potential liability.

• Agreed first partnering contracts to deliver part of the Education capital building programme –In place March 2004

• Delivery of 4 & 5 St. James street project – to provide front line accommodation for family solutions team

• Review of H&S training arrangements, tendering of contract and subsequent lifting of improvement notice

• Implementation of basic DIP system in planning. All new planning applications are now being scanned into the system on receipt.

• Council web site enhanced to provide personal services via the ‘My Portal’ function. This allows users to specify which information they want on their own home page including planning applications and road works by ward.

• Council web site was rated amongst the top 20 local authority websites in the country by the Society of IT Managers (the rank order of the top 20 is not given) and was rated as transactional (the highest type).

Areas to Watch	Action taken / to be taken
Risk of qualification / amendment of 2003/4 BVPI’s	Close monitoring of situation. Directors have stressed the responsibility of heads of services for their respective areas. Further workshops to be held with PI co-ordinators and the Audit Commission
Relocation of Register Office to Northwood House	New project group initiated; stop/go decision due in May/June subject to identifying revenue funding/borrowing; approval of trustees required
Implementation of Total Land Charges (“TLC+”) - new local land charges software	Applying Prince 2 methodology variation/exceptions agreed; allocation of resources by supplier and in house team agreed; new go live date will take place in May following negotiations with the software supplier.
Concern had been expressed previously about the lack of progress on implementing the Procurement Strategy	There does now appear to be some gathering momentum in implementing the strategy marked by: the near completion of the Best Value Review, the development of a ‘Gateway ‘ review process for strategic procurements and further progress on the e-procurement project.
Application by Service and Line Managers of HR policies in relation to sickness absence and flexible working	On-going monitoring of sickness absence figures and identification of poor performing service areas through quarterly reports to DMT’s
Need to consider potential impact changes to pension regulations on ability to manage ‘rightsizing’, the older worker and careers of younger employees	Clear vision/direction effectively communicated to employees. Good people management and employee involvement.
ICT business continuity / disaster recovery	Directors / Executive to be aware and to take into account during decision making processes
Business process re-engineering	Directors / Executive to continue support for GAGS and the business process re-engineering work that is currently underway

QUARTER 4 - AREAS TO WATCH

AREAS TO WATCH – UPDATES FROM THE PREVIOUS QUARTERS

	AREA TO WATCH	ACTION TAKEN	PREVIOUS QUARTERLY UPDATE	NEW UPDATE QUARTER 4
Q2 Q3 Q4	Variable success in achieving Member commitment to BV Reviews – as measured by attendance at Appraisal Groups.	Improve communication by using the most appropriate method for individual Members, coupled with an initiative to reduce the number of Members on each Select Committee, thus freeing up their time	Ongoing issue to benchmark against other local authorities	Issues may change in the light of possible re-organisation.
Q2 Q3 Q4	Delays in funding the Land and Property Gazetteer and the CRM project will mean that these projects miss their planned implementation dates.	Full Council to take into account at its meeting on the 15^th October.	Gazetteer project is on hold following Full Council decision not to fund the project at present. CRM project has been downsized as an interim solution following Full Council decision not to fund the full project at present	The first phase of the CRM system has now been implemented and is working well. The underlying hardware will need to be upgraded in due course to meet the originally specified business continuity requirements. The Gazetteer project is still on hold but is now being reviewed pending clarification of the funding position.
Q1 Q2 Q3 Q4	Crime & Disorder – in relation to vandalism to council buildings	Crime & Disorder task group co-ordinating a multi agency approach to crime & disorder	Monitor trends & liase with task groups & police	Vandalism on the Island is continually highlighted as high risk and spend is increasing in this area. It is not isolated to one area of the Island, therefore controlling vandalism is difficult.
Q1 Q2 Q3 Q4	The number of staff absences due to sickness	Monitoring of data and application of Council policies and procedures in respect of attendance management	New regime being put in place to monitor managers’ performance in terms of absence reporting procedure in an attempt to improve the speed of information update. Also widening managers’ on-line access to sickness reports. This quarters figures up on last two as would be expected as historically November and December have higher levels of absence.	See page 10 - KPI 26 for updates and comments.
Q3	Major power supply issues to the County Hall site identified. Which if not responded to will prevent the ICT Department from completing current and future projects	An urgent capital bid (c£300-£350k) will be submitted as soon as the full scope of the problem and solution is known.		A solution to the problem was identified and funding made available. The first phase of work was completed successfully and the final phase is scheduled to be completed by mid year.
Q3	Demand on the ICT Department currently exceeds capacity in the areas of - Database Management, Risk Management, Staff Training, Information Management and Project Support	Directors / Executive to be aware and to take into account during decision making processes The ICT Department is balancing its workload as best it can within the resources available.		The department has an exceptional workload at present due to the number of ICT and organisational change projects in progress.
Q3 Q4	Risk of qualification / amendment of significant number of BVPI’s next year	Internal quality assurance exercise to be undertaken.		Directors Group has approved proposals to reduce risks. Close monitoring of situation. Directors have stressed the responsibility of heads of services for their respective areas. Further workshops to be held with PI co-ordinators and the Audit Commission
Q3 Q4	Staff capacity constraints, in the Corporate Policy Team is limiting the ability to tackle key corporate issues	Further reorganisation proposals to be developed to enhance staff capacity		In March 2004 the Executive recommended the transfer of the Best Value Team to the Corporate Policy Team, to form a Corporate Projects Team. However, following a debate in Full Council in April (2004) it has been determined that the Best Value Team shall remain with Select Committee Support, but they will contribute to the Corporate Change and Improvement Agenda. Concerns remain, however, about the Corporate capacity to deliver the improvements required before the next CPA assessment in 2005.
Q3	Implementation of the People Management Strategy	The People Management Strategy is a key CPA indicator and requires adequate funding to implement and progress the programme.		Priorities within People Management Strategy action plan are being implemented

PERFORMANCE MANAGEMENT INFORMATION – KEY PERFORMANCE INDICATORS

KPI Description	Actual 2002 / 3	Q1 Apr-Jun 2003	Q2 July-Sep 2003	Q3 Oct-Dec 2003	Q4 Jan-Mar 2004	Target 2003 / 04	Performance assessment for the year Year end Actual	Comments
		Performance against the previous Quarter				Target Achieved
26. Number of working days/shifts per employee (full time equivalent) lost due to sickness absence this quarter	9	1.62 revised (1.41)	1.98 revised (1.14)	3.04 revised (1.87)	3.08 data input so far	7.25	L Total = 9.3	Marginal increase compared to 2002-03. Continued monitoring and awareness raising with line managers.
			î	î	î	No
27. Number of Complaints across the Authority (48 or less per quarter)	198	47 (48)	67	52 (59)	43	192 or less per year	L Total = 209 52 per quarter	The final total represents an increase on 2002/2003’s total figure of 187. Although close to this year’s target it is suggested that the small increase on the previous year total can be accounted for by the take up of online accessibility to the process and a close monitoring of returns.
			î	ì	ì	No
28. The number of staff undertaking one or more training activities this quarter (via IWC training Services) as a % of the total workforce	45%	24.3%	23.4%	20.44%	34.08%	47%	J Total Training for the year = 66.62% (1,523 staff)	Additional information has been received from HR – late or delayed training returns from directorates mean that the quarterly returns are inaccurate. Total Training for the year = 66.62% (1,523 staff)
			è	î	ì	No
29. The number of members undertaking one or more training activities this quarter (out of all 48 members).	37 (77%)	31 (64.6%)	17 (35%)	32 (66.67%)	30 62.5%	38 (80%)	J Total Training for the year = 87.5% (42 Members)	Additional information has been received from HR – late or delayed training returns from Members mean that the quarterly returns are inaccurate. Total Training for the year = 87.5% (42 Members)
			î	ì	è	No
30. The number of types of interactions that are enabled for electronic delivery as a percentage of the types of interactions that are legally permissible for electronic delivery.	16.37%	17%	17%	20%	23.46%	40%	L Total = 23.46%	Progress has not been as rapid as hoped, mainly due to competing priorities with GAGS. However resources have been identified and are going to be ring-fenced for 2004/05 with the aim of achieving the 100% target set by government for 31/12/2005
			è	ì	ì	No

31. The total operating cost (TOC) of IWC property per employee.	£930 per employee	£312.71	£210.37	£180.64	£234.13	£275 per quarter	J	The IWC was under the 2003/04 target by £40.54
			ì	ì	î	Yes

31. The total operating cost (TOC) of IWC property per employee.	£930 per employee	£312.71	£210.37	£180.64	£234.13	£275 per quarter	Average = £234.46
			ì	ì	î	Yes

PROGRESS TOWARDS PSA TARGETS

Corporate Objective	PSA Target	PSA Target Summary	Q1 Data	Q2 Data	Q3 Data	Q4 Data	Year Target	Comments
							Target Achieved
Making It Happen	12. Cost Effectiveness	To improve the cost-effectiveness Council-wide. 7.5% cost efficiency savings by 2006	Data not available as a quarterly indicator, a year end return will be provided and recorded against Q4					This indicator will be worked out once Performance Indicator and financial information are available which is not expected before the end of May 2004.

SECTION 3 : CORPORATE ACTIONS

Significant progress has been made on the Corporate Actions, which includes the Comprehensive Performance Assessment (CPA) Improvement Plan, Annual Action Statement Actions and Actions in response to the District Audit Letter. This section of the Report records the highlights some of the key actions that have been achieved by the 31^st March 2004 and those that are on-going through 2004-05. A full listing of all of the Corporate Actions that are on-going and to be carried forward through 2004-05 will be available for viewing on the Council’s Intranet at the following link: direction/performance/quarterly performance management reports/

CPA Improvement Plan Actions

Achievements

• A basket of Key performance Indicators focused on outcomes has been developed and are reported quarterly to the Executive and Directors Group. The Corporate Performance Management system is used to identify the remedial management action needed and to help set budget priorities for the Council.
• A formal consultation process has been adopted with the Local Strategic partnership, re –setting Service Plan priorities by 2003.
• The Council has developed a Consultation Strategy.
• Race Equality Training has been drafted and is being delivered.
• A Staff Survey has been completed to understand staff feelings and opinions.
• Training for all Members under the Modern Member Programme.
• Risk management training for key members and senior officers has been delivered.
• A GAGS project team has been appointed to develop the project plan.
• External challenges have been included in every Best Value Review.
• A new tracking procedure has been incorporated to map all Select Committee decisions and recommendations.

Not Achieved by 31^st March and to be carried forward into 2004-05

• Set up a new computerised Risk Register.
• Define a Customer-Centred vision of the organisation.

Annual Action Statement Actions by Directorate

CORPORATE SERVICES

Achievements

• Delivery of key regeneration programmes.
• Complete the development of the Island’s Area Investment Framework (AIF)
• Establish the Green Island Awards Scheme.
• Implement and Annual Planning Cycle – including the adoption of a revised Service Planning and budget prioritisation process to ensure that resources support the delivery of corporate objectives.
• Implement a Corporate Performance Management Framework to support the Corporate Plan, Annual Action Plan, Service Plans and other key strategic and operational plans and establish tracking mechanisms.
• Implement an agreed People Management Strategy for the Council and Corporate Training Plan.
• Deliver an agreed programme of Best Value reviews and implement the Improvement Plans.
• Establish a formal “Officer Register of Interests” to support improved public confidence in the Council.
• Prepare a co-ordinated Investment Strategy for the Council (including ICT, capital programme, asset management, etc)

Not achieved by the 31^st March and to be carried forward into 2004-05

• Implement an “Island Brand” marketing strategy.
• Adopt supplementary Planning Guidance on Crime and Design, in partnership with Hampshire Constabulary.
• Implement a co-ordinated Consultation Strategy to better assess public satisfaction with Council services and enhance their contribution to service development and delivery.
• Implement the Healthy Workforce Strategy and reduce current levels of sickness absence.
• Review the effectiveness of the new political structures.
• Implement “Great Access to Great Services” Strategy to improve customer service activities across the Council.
• Deliver the Implementing Electronic Government 2 (IEG2) Strategy, with a particular focus upon increasing the level of services available on-line.
• Deliver the Risk Management Strategy and adopt the Procurement Strategy to ensure a more rigorous approach to market testing, contract packaging and value for money (including investigation of proposals for the central purchasing of core office supplies)

Actions in response to the District Audit Letter

Achievements

• Business Management Group has been established to oversee the development of the Performance Management System.
• The initial Strategic Management Team development programme has been completed.
• A review of the complaints process and the use to which the information is put has been completed.
• Personal Performance Reviews now include discussions of the relevant Public Service Agreements (PSA) Targets, CPA, Corporate Plan and Island Futures Targets.
• The first cycle of the Budget Prioritisation Framework is complete.
• The Capital Strategy and the Asset Management Plan are now in place.

Not achieved by the 31^st March and to be carried forward into 2004-05

• The external audit – review of the equalities scheme.
• Review the Council’s approach to responding allegations of fraud and corruption, as well as the way in which the Council pro-actively seeks to identify potential fraud.

SECTION 4 : FINANCE REPORT

4.1 : Revenue Budget Monitor by Portfolio – to the 31^st of March 2004

Resources – Making It Happen
Corporate Services Directorate	Responsibility for Coroner’s budget now transferred to Consumer Protection – remaining budget on target.
Legal & Democratic Services	Despite the possibility of an under-recovery of income throughout the financial year, by the year end the Land Charges income budget had achieved its target.
Financial & Business Services	Budget on target at year end.
Information Communications Technology	A number of ICT projects, particularly those related to delivery of E-government, are funded partly from reserves and Government grants. There are ongoing funding implications of those projects, and it is essential to ensure that base budgets are in place to allow the continuing development of the approved projects; in addition, there are a number of proposed developments for which funding streams will also have to be identified if further progress is to be made.
Human Resources & Training	The budget for the Health and Safety training programme for managers has not been fully committed in 2003-04; however plans are in place to fulfil the programme in 2004-05.
Policy & Communications	On target – however, budget pressures are being funded from one-off resources carried forward from previous years – the continuation of such measures is unlikely to available in future years.
Best Value & Select Committee Support	On target. Slight variation from budget funded from Best Value Reserve.
Property Services	On target at year end.
Building Maintenance	On target at year end.
Crime & Disorder	Unused budget for 2-year PSA Pump Priming to be carried over to 2004-05.

4.2 : Capital Expenditure

A list of capital spending against budget in 2003-04 on a summarised version for the services provided by this Select Committee is available by clicking on the following link:

http://wightnet2000.iow.gov.uk/directorates/finance/finance_business_services/images/OldYearExecComCapitalByCommitteeReport.pdf

Fuller details, on a project by project basis, are also available on the Financial Services intranet pages.