Performance Contracts for Senior Public Officials in Malta The Recent Experience

Some Background Long-established tradition of a non-political, career Public Service Recent Public Service Reform The Top Management structure Appointments on contractual terms for 3 Career officers to retain tenure in a substantive grade

Top Management Structure Permanent Secretaries – One for each Ministry Directors General Directors Assistant Director In place as from 1993

The “Core Management Team” The Permanent Secretary as the CEO of the respective Ministry A number of Directors responsible for key management areas, e.g. Policy Development, Programme Implementation, Corporate Service, Finance and EU Affairs Together they form what could be defined as the ‘Core Management Team’ of the Ministry

Common high level objectives Shared vision Common, linked, cascading performance targets Shared responsibility

Key features of the system Senior management positions on the basis of renewable performance agreements When their term expires, incumbents must compete for their positions along with new applicants Agreements provide for annual target-setting, performance appraisal and ratings External appointments are not possible

Positions versus substantive grade Appointments to positions on 3 years contracts Appointees retain tenure in their substantive grade Six years (two terms) in a higher position entitles an appointee to rise a step higher in substantive grade Non-renewal of the performance agreement usually means demotion.

Performance planning Performance plans agreed between the manager and his/her superior officer Objectives and tasks required to be performed during the year Goals and targets would relate to Government’s and the relative Ministry’s policies and initiatives Cascading, decentralised approach used

Cascading Planning Process Performance targets for Permanent Secretaries set by the Principal Permanent Secretary Performance targets for Directors General and ‘Core Management Team’ set by respective Permanent Secretary Directors General set the performance targets for subordinate Directors A Cascading process where strategic objectives are translated into more focused operational and measurable goals

Structure of Performance Plan Tasks deriving from core Government objectives These targets are set centrally Other tasks - General management Ministry-specific targets These targets would relate to the specific Ministry Non-plan assignments - To be filled in retrospectively, to take account of significant tasks which were not included in the original plan.

Performance Assessment – The Review Actual Performance is reviewed against plan on the basis of a self- assessment by the officer being reviewed Reviewed Officer would report whether he had achieved the set targets and, if not or partly achieved, strong justification is required An overall performance grading is then awarded by the reviewing officer after discussion with the manager being reviewed Five different gradings: unsatisfactory; satisfactory, commendable, superior and exceptional Maximum award equal to 15% of basic salary Ministry’s awards have also to be approved by the Principal Permanent Secretary

Performance Assessment – The Review The list of Assessment Criteria includes: (a) Achievements (b) Management Performance (c) Personal Qualities or Competencies In case of disagreement the reviewed Manager may make written representations to the Senior Reviewing Officer .

Performance Assessment – The Ratings Exceptional………….13 - 15% Superior……………….8 – 12% Commendable……….4 - 7% Satisfactory…………..1 – 3% Unsatisfactory………..0%

Performance Based Contract What’s in it for the individual…. Career Development: A Superior Assessment is seen as increasing the prospects of career development and promotion Motivation & Commitment: A Superior Assessment rating would also be expected to boost motivation, commitment and performance Bonus Award Equal to a maximum of 15% of basic pay

Performance Based Contract What’s in it for the organisation: Tighter chain of command – cascading objectives & goals Emphasis on forward planning - and measurable targets Performance & accountability - based on achievability of set targets Non-performers can be dealt with - in a transparent, above- board manner

How effective is the System? A positive experience Transformed the demographic profile of the top management class High Fliers have a faster track up the career ladder Encourages a culture of Performance Competitive Selection ensures as much as possible the identification of the better qualified

Some Considerations.... However - It is often difficult to draw a direct, objective link between individual performance and achievement of set targets Achieving results depends also on the availability of adequate resources - One’s effort and ability may not be enough There must be always room for judgement

Thank You email: anthony.j.vella@gov.mt