Performance Management in the UK Civil Service Management Unit Performance Management in the UK Civil Service Paul Roberts Cabinet Office

Outline Who, why and what are we performance managing? Key themes of this presentation Who, why and what are we performance managing? Key components of the UK system Current climate and transformation agenda Linking performance to reward Performance management in the future Lessons learnt Questions Things we’re not doing well – capability reviews, people surveys, staff feedback and engagement

Context – Who? Focus on Performance Management of senior staff Population of c.3800 people Less than 1% of workforce of 550.000 Approx €20 Billion annual pay bill for all staff Moderation of pay agreements by external bodies 2 elements to pay – base pay and flexible reward Not just performance related pay…. Deputy Directors, Directors, Director Generals and Permanent Secretaries all subject to That’s the who

Context – Why ? Limited resources – need to reward high achievers through a fair and transparent process and within a budgetary envelope Need to develop and reward good performance and identify and tackle poor performance Enhance a sense of corporate behaviours through a standardised system Best practice seen to drive organisational performance across the piece

Context – What? Delivery of business objectives Delivery of capability objectives Delivery of diversity objectives Delivery of corporate objectives Our people, our leadership, our successes and our raison d’être!

Key Components Annual objective setting around 4 criteria Alignment with business needs and objectives Personal development objectives Open and honest dialogue with staff Reliance on feedback – 360° feedback SMART Year end appraisal drawing on feedback and output and making pay/bonus recommendations External review process for moderation Specific, Measurable, Agreed, Realistic, Time Bound

Today’s Climate Transformation of Governmental Services Challenges to develop new skills and behaviours and drive up service improvements Leadership Response to cross-cutting issues Capability Reviews Efficiency and Relocation Programmes Expect to do more for less….

Attitudes and Behaviours

Attitudes and Behaviours

Translating Performance into Reward Relative appraisal system against peers Bonus awards reward excellent performance during the year 6.5% of pay bill in 2005/2006 Top 25% received 10-13% of salary as a bonus Base pay rewards job challenge, competence and market value Look at variability of bonus payments across departments to increase flexible packages

Future developments New performance management guidance for 2007/2008 Explicit definition of what effective performance management can achieve and what is expected Response to capability reviews, staff surveys Clear objectives that reflect multi-faceted agendas and business needs 100%, 0%, 0% - Developing corporate behaviours and rewarding them Tackle poor performance Revise our pay strategy Get the basics right!

Lessons Learnt (or why we’re fixing it!) We’re not all that good at it! Performance / people management needs to be embedded as part of the day job It’s not just down to HR Staff perceptions do not match up with SCS own assessments Need to reflect step changes in behaviours Need to commit to the process and engagement at senior levels Peer reviews show up performance systems that do not suit the needs of the business Honest dialogue not hap