CEO PERFORMANCE REVIEW PANEL€¦ · CEO PERFORMANCE TARGETS 2016-2017 CEO KPI Update Issued:...

CEO PERFORMANCE REVIEW PANEL

NOTICE OF MEETING

To: Presiding Member Cr Jan Loveday Members Mayor Bill Spragg Cr Jan-Claire Wisdom Cr Ian Bailey Ms Paula Davies, Independent Member

Notice is hereby given pursuant to the provisions under Section 87 of the Local Government Act 1999 that the next meeting of the CEO Performance Review Panel will be held on:

Wednesday 31 May 2017 9.00am

63 Mt Barker Road Stirling A copy of the Agenda for this meeting is supplied under Section 83 of the Act. Meetings of the Council and Committees are open to the public and interested members of the community are welcome to attend.

Andrew Aitken Chief Executive Officer

CEO PERFORMANCE REVIEW PANEL

AGENDA FOR MEETING Wednesday 31 May 2017

9.00am 63 Mt Barker Road Stirling

ORDER OF BUSINESS

Council Vision Nurturing our unique place and people Council Mission Delivering activities and services which build a resilient community, sustain our built and natural

environment and promote a vibrant economy

1. COMMENCEMENT

2. APOLOGIES/LEAVE OF ABSENCE

2.1 Apology

Apologies were received from ………….

2.2 Leave of Absence

2.3 Absent

3. MINUTES OF PREVIOUS MEETINGS

CEO Performance Review Panel – 9 March 2017 Recommendation That the minutes of the CEO Performance Review Panel meeting held on 9 March 2017, as supplied, be confirmed as an accurate record of the proceedings of that meeting.

CEO Performance Review Panel Wednesday 31 May 2017

4. DELEGATION OF AUTHORITY The CEO Performance Review Panel operates in accordance with the relevant sections of the Local Government Act 1999, and its Terms of Reference.

5. DECLARATION OF CONFLICT OF INTEREST BY MEMBERS OF COUNCIL

6. OFFICER REPORTS – DECISION ITEMS

6.1 Update on CEO Performance Targets

The Panel resolves that the report be received and noted.

6.2 Proposed Targets for July 2017 – June 2018

That the Panel recommends to Council to undertake the 2017 CEO Performance Review using the internal process proposed in Appendix 1.

6.3 Review Process, Structure & Timing

Recommends to Council to adopt the suite of performance targets as presented in Appendix 1 of this report.

7. CONFIDENTIAL ITEMS Nil

8. NEXT MEETING

The next CEO Performance Review Panel meeting will be held on Wednesday 6 July 2017, 9.00am, at 63 Mount Barker Road, Stirling.

9. CLOSE MEETING

ADELAIDE HILLS COUNCIL CEO PERFORMANCE REVIEW PANEL

Wednesday 31 May 2017 AGENDA BUSINESS ITEM

Item: 6.1 Originating Officer: Andrew Aitken, Chief Executive Officer Subject: 2016-17 CEO Performance Targets Update For: Information

SUMMARY

The role of the CEO Performance Review Panel includes reviewing the performance of the CEO, in particular the performance against the Performance Targets and to undertake a review of the CEO’s Targets to ensure they remain relevant, achievable and aligned to Council’s strategic objectives. This report provides an update on activities against the Chief Executive Officer’s 2016/17 Performance Targets.

RECOMMENDATION

That the Panel resolves:

1. That the report be received and noted.

1. GOVERNANCE Strategic Management Plan

Goal Organisational Sustainability Key Issue Governance We diligently adhere to legislative requirements to ensure public accountability and exceed these requirements where possible. Legal Implications The CEO Performance Review Panel is a Section 41 Committee of Council under the Local Government Act 1999. This report summarises progress against the established and agreed Performance Targets for 2016-17, and forms part of the performance review process to ensure the CEO is provided with a fair and consistent performance review process that would stand up under scrutiny.

Adelaide Hills Council – CEO Performance Review Panel Meeting 31 May 2017 2016-17 CEO Performance Targets Update

Risk Management Implications The CEO Performance Targets update is an important control in managing the risks of: Deficient CEO performance review practices result in a lack of accountability and loss of stakeholder confidence.

Inherent Risk Residual Risk Target Risk

Medium (3C) Medium (3D) Medium (3D)

Note: there are many other controls that also assist in managing this risk.

Non-achievement of CEO Performance Targets result in loss of community benefit and/or opportunities and/or stakeholder confidence.


High (3B) Medium (3D) Medium (3C)


Financial and Resource Implications There are no financial or resource implications in reporting on projects against the CEO Performance Targets. Customer Service and Community/Cultural Implications There is a community expectation that the CEO will manage the organisation’s human, financial and physical resources to ensure the best outcomes for the community. There is a community expectation that the CEO is accountable to and performs against the agreed Targets. Environmental Implications Not applicable. Community Engagement/Consultation Not applicable.

2. BACKGROUND As part of the 2016 performance review process, 2016-17 Performance Targets were established for the CEO and adopted by Council on 22 November 2016.

Adelaide Hills Council – CEO Performance Review Panel Meeting 31 May 2017 2016-17 CEO Performance Targets Update

3. ANALYSIS

This item enables an interim analysis of the suite of existing Performance Targets with a view to reviewing priorities and existing timeframes of individual Targets. It also provides opportunity for the CEO to update the CEO Performance Review Panel on the progress against the Targets to date and identify any issues for consideration. There are 8 Performance Targets due by end September 2017. Six are in progress and two have been completed.

4. OPTIONS

1. That the report be received and noted. 2. That the Panel makes alternative/additional recommendations to Council relating to

the current suite of Performance Targets.

5. APPENDIX

1. 2016-2017 CEO Performance Targets

Appendix 1 2016 - 2017 CEO Performance Targets

CEO PERFORMANCE TARGETS 2016-2017

CEO KPI Update Issued: 25/10/16 Review: May 2017

Electronic version on the Intranet is the controlled version Printed copies are considered uncontrolled. Before using a printed copy, verify that it is the current version.

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Governance Responsible Officer Update

1. Review Section 41 committee and Advisory Group structures to promote the achievement of the Strategic Plan

Lachlan Miller IN PROGRESS: The Council and Administration’s leadership groups have conducted preliminary workshops on the effectiveness and efficiency of the current s41 and Advisory Group arrangements and the consideration of alternative structures. The CEO Performance Review Panel and Audit Committee have reviewed their terms of reference for input to the review. The next steps are to analyse the input to date to prepare draft structural options for further workshopping. The project was initially scheduled to be completed in April 2017 however given other competing priorities (specifically Elector Representation Review and associated complaint and decision reviews) the timeframe will need to be revised to August 2017.

Strategic Planning

2. Develop a rolling forward plan for three years of the key projects/initiatives to be undertaken in support of the Strategic Plan and budget/LTFP.

Terry Crackett COMPLETED: A rolling forward plan for three years of key projects / initiatives has now been developed and captured within the draft 2017/18 Annual Business Plan. This plan was established using an enhanced project ‘bids’ system to capture budget initiatives for both capital and operating that enabled the identification of three years of proposed works that have flowed from the Strategic Plan and other endorsed Strategies / Plans (i.e. Sport and Recreation Plan, Economic Development Strategy, Trails Strategy, etc.). Planning sessions were held with all senior staff to identify works to be captured within the system, and a workshop was held with Council on 1 March 2017 to run through the proposed approach that was subsequently applied. Following adoption of the Annual Business Plan for 2017/18 those projects identified for funding within subsequent years will be prioritised to ensure initial allocation. Enhancements to the Long Term Financial Plan will also be undertaken to capture outcomes from the rolling three year program.

People and Organisational Culture

3. Review and update the Corporate Plan to retain a focus on leadership and people development, customers, systems, innovation and measurable improvement.

Megan Sutherland IN PROGRESS: A draft Corporate Plan document has been prepared in consultation with and input from the Executive Leadership Team and Senior Leadership Team. The Corporate Plan Review Team has been meeting, discussing the draft document and ideas, refining the strategies and defining the actions for each key area. The final draft document will be internally progressed and finalised through the Executive Leadership Team.

Stakeholder Management and Communities

4. Develop a plan to create arts and culture hubs across Council.

David Waters IN PROGRESS: Staff are commencing a review of existing arts support throughout the district and will utilise outcomes from the recent community engagement for the creation of an Arts & Heritage Hub at Lobethal. A report on ways the Council can best support the arts and the need for additional hubs, in line with the agreed scope for this goal, is still on track to be provided to the Council in September.

CEO PERFORMANCE TARGETS 2016-2017

CEO KPI Update Issued: 25/10/16 Review: May 2017


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5. Explore options for increasing Council’s digital footprint and facilitating public internet access in townships.

Terry Crackett IN PROGRESS: A cross functional project team has been established and key outcomes for the initiative developed. Preparation of a briefing paper has now commenced that will be presented to a Council Workshop in August 2017. The workshop and briefing paper, with input from Council, will then lead us in a more structured engagement plan with the community to continue to shape and steer our Information and Technology directions.

6. Update AHC’s emergency management arrangements into a consolidated Emergency Management Plan.

Lachlan Miller IN PROGRESS: Workshop sessions on the revised State Emergency Management Plan, zone and local arrangements have been conducted with Council Members and the Administration leadership group. The latter has also undertaken brainstorming of the potential contents of the EMP based on the lessons from the recent storm/flood events. Benchmarking of EMP and BCP arrangements with the LGA and neighbouring councils is underway. There are a number of concurrent emergency management-related projects occurring across the LG sector and these are likely to have an impact on Council’s EMP. The timing of September 2017 for the Phase 1 EMP is still achievable.

Customer Service and Experience

7. Review and update the composition of Tier 1 Service Standards in consultation with (and supported by) Council.

David Waters COMPLETED: Following a series of Council Member Workshops and staff analysis, revised service standards were considered and adopted at the Council Meeting in April 2017. They will become effective on July 1 and reporting will commence from the end of the July – September 2017 quarter.

8. Establish and promote an on-line schedule of programmed maintenance.

Peter Bice IN PROGRESS: Work is underway on developing an on-line schedule for programmed maintenance which encapsulates a broad range of our maintenance activities across the region. We are currently benchmarking with other Councils in terms of approach, with particular regard for dealing with unplanned delays, such as severe inclement weather. A draft program for some civil functions is currently being prepared as a template for other work programs.

ADELAIDE HILLS COUNCIL CEO PERFORMANCE REVIEW PANEL


Item: 6.2 Originating Officer: Megan Sutherland, Executive Manager Organisational Development Subject: Internal Process proposed for CEO Performance Review 2017 For: Decision

SUMMARY

The CEO Performance Review Panel (the Panel) decided to investigate an internal review process to undertake the review of the CEO’s performance for 2017. This report outlines the proposed internal process for the 2017 performance review and indicates the point at which an external review would be recommended. Given the crossover between the current and new Employment Agreements and therefore the same crossover between the performance review processes, it is recommended that an internal process be undertaken for 2017. RECOMMENDATION That the Panel resolves: 1. That the report be received and noted

2. That the Panel recommends to Council to undertake the 2017 CEO performance review using the internal process proposed in Appendix 1.

1. GOVERNANCE

Strategic Management Plan

Goal Organisational Sustainability Key Issue Governance We diligently adhere to legislative requirements to ensure public accountability and exceed these requirements where possible.

Adelaide Hills Council – CEO Performance Review Panel Meeting 31 May 2017 Internal Process proposed for CEO Performance Review 2017

Legal Implications The Panel is a Section 41 Committee of Council under the Local Government Act 1999 (LG Act). The regular review of the CEO’s performance needs to be undertaken appropriately to ensure the CEO is provided with a fair and consistent approach to performance reviews. The process needs to stand up under scrutiny, as the process, review tool and outcomes of the review directly affect decisions made in relation to the CEO, his performance, remuneration and employment agreement. Risk Management Implications Undertaking regular review of the CEO’s performance is an important control mitigating the risk of: Deficient CEO performance review practices result in a lack of accountability and loss of stakeholder confidence in the organisation.




Non-achievement of CEO performance targets result in loss of community benefit and/or opportunities and/or stakeholder confidence in the organisation.


High (3B) Medium (3D) Medium (3C)

Note: there are many other controls that also assist in managing this risk. Financial and Resource Implications Under this proposal, the process would be managed internally, so no additional costs have been identified. If the decision is changed to use an external consultant to undertake the CEO Review process, the cost will be covered within current budget allocations. Customer Service and Community/Cultural Implications There is an expectation that the performance of the CEO is reviewed in a sound and fair manner. Environmental Implications Not applicable. Community Engagement/Consultation Not applicable.


2. BACKGROUND

For the past four years, the CEO’s annual performance review has been undertaken using an external consultant. This process has included a ‘360 degree’ review tool completed by Council Members, the Executive Leadership Team (including direct reports) and managers (the 2016 review did not include managers). The assessment sought feedback on the completion of the identified KPIs, key responsibilities from the position description and personal attributes.

Reports were provided to the CEO and a one-on-one debrief was held with the consultant. The report was also provided to the Panel for review and a copy presented to the Council Members. A debrief by the consultant summarising the report outcomes was provided to both the Panel and Council Members at the relevant Panel meeting and Council workshop.

The final report and recommendations from the Panel to the Council, including any changes to the CEO’s Total Employment Cost package, have formed the final stage of the process. The Panel discussed investigating the use of an an internal review process at its March 2017 meeting. The internal review process proposed will meet the requirements of the Employment Agreement including:

one annual performance review

the review will be conducted by the Panel

the Panel will assess the CEO’s performance, measured against the CEO’s Duties as outlined in the Employment Agreement, position description and any other factors considered relevant by the Panel

the performance review will include any key performance indicators.

3. ANALYSIS The key to undertaking any performance review is to have a joint understanding of what is to take place and particularly with the person under review, in this case the CEO. Reviews should be a ‘no surprise’ process. Regular updates through discussion between the incumbent and their relevant manager on performance provides the information required for the incumbent to understand their level of performance. This also means the incumbent should be aware of whether they are doing well or has some opportunities to improve before the review is undertaken. The annual performance review should therefore be a process that formalises the feedback and confirms the level of achievement against the performance targets and position description requirements. The benefits of evaluating the CEO (Institute of Company Directors) include: • promotion of good CEO and board/Council relations; • clarification of the strategic direction and to ensure that the board/Council and CEO are

moving in the same direction; • provision of early warnings of potential problems; • to focus the CEO’s attention on the CEO’s accountability for performance; • encouragement of the development of the CEO’s skills and attributes.


Consultant driven review processes over the past four years have been extensive and take a couple of months to complete. Report findings have shown the CEO’s consistent competent performance in the role both as a person and leader, as well as indicating his ability to meet the identified KPIs and position descripotion requirements. Each year the CEO Performance Review Reports have shown the CEO has met and at times exceeded expectations. The CEO recently accepted a new Employment Agreement commencing on 1 July 2017. A new set of performance targets will be agreed for completion over the 2017-18 financial year under this Agreement (this is the subject of Agenda Item 6.3). This unique position means there is crossover between the current and new performance targets and therefore also a crossover with the timing of the 2017 and 2018 performance reviews. It is expected the first review under the new Employment Agreement would be undertaken in approximately July 2018. Advantages and disadvantages

Considering this background, the following advantages and disadvantages of an internal vs external review process for 2017 are provided for consideration.

Advantages Disadvantages

Internal Meets the Employment Agreement requirements

Undertakes the review within a more concise timeframe

Provides direct discussion, feedback and direction for the coming year between the Council and CEO

Ensures the timing of reviews is managed fairly due to a new Employment Agreement that now correlates with the financial year

Continues to build trust and confidence between the CEO and Council

Builds on past CEO performance results

All previous participants (Council Members and Executive Leadership Team) will not be directly involved

Is a more subjective process, with less formal analysis (no survey data analysis)

Can be more easily influenced directly by those participating

Report not accepted due to perceived internal bias

Potential conflict of interest for internal administrator

External Meets the Employment Agreement requirements

Provides indepentant data collection and analysis

Enables individual responses from a broader group of participants

It provides feedback and direction for the coming year

Continues to build trust and confidence between the CEO and Council

Builds on past CEO performance results

Process takes longer to undertake

Potentially requires two external reviews within 6-8 months of each other due to a new Employment Agreement that now correlates with the financial year

Increased stress and time impact on the CEO undertaking two reviews in quick concession

Increased cost

Less direct contact between the Panel and CEO


An internal review this year would enable the Panel and Council to directly communicate, review expectations and performance and focus on the setting and achievement of performance targets over the next 12 months. This is an opportunity to continue to build the ‘One Team’ approach at Adelaide Hills Council through this process. External processes generally take between 4-8 weeks to complete. If an external process was undertaken toward the end of 2017 it would mean the CEO may be asked to undertake another external performance review within 6-8 months of the 2017 process. Unless there are specific performance matters to be addressed or other compelling reasons to do so, it is not recommended to undertake two external performance reviews in such quick succession. Annual performance reviews are the human resource management standard. It must also be considered whether it is appropriate for a more comprehensive review to be undertaken by an internal incumbent. A more comprehensive review is likely to include individual Council Member and other staff feedback, data collection, management and analysis. Advice through the Local Government Association training in CEO Performance Reviews cautioned against this process due to the direct and indirect reporting between the CEO and employees. With reference to the advantages and disadvantages, the outcomes of the past reviews, and keeping in mind the requirement to undertake a performance review annually, it is recommended that an internal review process detailed in Attachment 1 be undertaken. This focuses on the 2016-17 performance targets and across the subject matter of the key responsibilities (Attachment 2). It is expected this would be completed in October 2017 with the CEO and either the the Panel or Mayor and Presiding Member of the the Panel. The report would be discussed by the the Panel making a recommendation to the Council. This recommendation is provided on the basis that:

1. It meets the requirements of the Employment Agreement 2. It ensures the timing of the 2017 and 2018 reviews are managed fairly 3. It continues to build trust and confidence between the CEO and Council, and 4. It provides direct feedback and direction for the coming year.

If the Panel decides a more comprehensive review process (discussed above) is needed it is recommended for the decision to be made to appoint an external consultant.

4. OPTIONS 1. That the Panel recommends to Council to undertake the 2017 CEO performance

review using the internal process proposed in this report and delegated to the Panel to undertake. (Recommended).

2. That the Panel recommends to Council to undertake the 2017 CEO performance review using an internal process with variations to that proposed.

3. That the Panel recommends to Council to undertake a review using an external consultant.

5. APPENDIX

1. Proposed Internal CEO Performance Review Process 2. Proposed Internal CEO Performance Review Tool

Appendix 1 Proposed Internal CEO Performance Review Process

CEO PERFORMANCE REVIEW - INTERNAL PROCESS

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The CEO Performance Review Panel (the Panel) is required to undertake a review of the CEO’s performance on an annual basis.

Following on this requirement, an internal review process is being considered by the Panel.

An internal review process is supported by:

1. Past external processes undertaken

2. Consistency of past CEO performance results

3. The need for a review at this time

4. A new Employment Agreement that now correlates with financial years

5. A reduction in the period between reviews (due to the Employment Agreement change).

Internal Review Process

Methodology

This review process is undertaken with self-evaluation and feedback from the Panel. There is an option for feedback from Council Members and direct

reports. This will increase the length of time taken to undertake the review and require more administrative involvement.

The methods of review include:

1. Rating scales – an overall assessment across the subject matter of the 8 key responsibilities

2. Performance Targets - an assessment against the achievement of the performance targets

3. Strengths – feedback on strengths of the CEO

4. Improvements – feedback on areas for the CEO to improve


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Review Options

OPTIONS REVIEWER/S RECOMMENDATION

Performance Targets - Review performance targets to determine achievement outcome

Via discussion with CEO and CEO PRP or Mayor and Presiding Member of CEO PRP

Recommended

Position description – Broadly discuss the position description key responsibilities and determine strengths and specific improvement opportunities overall

Via discussion with CEO and CEO PRP or Mayor and Presiding Member of CEO PRP

Recommended

Position description – each key responsibility area and point under position specification and capability statement

CEO PR Panel and/or Council Members and Executive Leadership Team

Not recommended unless undertaken externally

Process

The proposed process including approximate timeframes, actions and participants is detailed below.

Approximate timeframe Action Participants

Tues 3- Fri 6/10/17 CEO and Panel Members undertake a review of CEO individually using CEO Performance Review

CEO and the Panel

Mon 9- Fri 13/10/17 CEO and the Panel meet to discuss the review tool and feedback CEO and the Panel agree on draft CEO Performance Review outcomes

CEO and the Panel

Wed 18/10/17 Outcome of the Review discussed at workshop with Council Presiding Member of CEO PR Panel and Mayor

Wed 8/11/17 The Panel make’s recommendation to Council on Review outcome CEO PRP meeting

Tues 21/11/17 Confidential Report and recommendation to Council


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Rating scale

Ratings in the tool are undertaken using the rating scale below:

5 Exceptional Performance far exceeded expectations due to exceptionally high quality of work performed in all essential areas of responsibility, resulting in an overall quality of work that was superior

4 Exceeds expectations

Performance consistently exceeded expectations in all essential areas of responsibility, and the quality of work overall was excellent. Annual goals were met.

3 Meets expectations

Performance consistently met expectations in all essential areas of responsibility, at times possibly exceeding expectations, and the quality of work overall was very good. The most critical annual goals were met.

2 Improvement needed

Performance did not consistently meet expectations – performance failed to meet expectations in one or more essential areas of responsibility, and/or most critical goals were not met.

1 Unsatisfactory

Performance was consistently below expectations in most essential areas of responsibility, and/or reasonable progress toward critical goals was not made. Significant improvement is needed in one or more important areas.

Appendix 2 Proposed Internal CEO Performance Review Tool

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CEO PERFORMANCE REVIEW

Employee: Date completed:

Performance Targets

Targets Outcome Achieved Yes / No

Governance Review Section 41 committee and Advisory Group structures to promote the achievement of the Strategic Plan

Strategic Planning Develop a rolling forward plan for three years of the key projects/initiatives to be undertaken in support of the Strategic Plan and budget/LTFP.

People and Organisational Culture Review and update the Corporate Plan to retain a focus on leadership and people development, customers, systems, innovation and measurable improvement

Stakeholder Management and Communities Develop a plan to create arts and culture hubs across Council

Stakeholder Management and Communities Explore options for increasing Council’s digital footprint and facilitating public internet access in townships

Stakeholder Management and Communities Update AHC’s emergency management arrangements into a consolidated Emergency Management Plan

Customer Service and Experience Review and update the composition of Tier 1 Service Standards in consultation with (and supported by) Council

Customer Service and Experience Establish and promote an on-line schedule of programmed maintenance

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CEO PERFORMANCE REVIEW

Rating Scale

5 Exceptional Performance far exceeded expectations due to exceptionally high quality of work performed in all essential areas of responsibility, resulting in an overall quality of work that was superior

4 Exceeds expectations

Performance consistently exceeded expectations in all essential areas of responsibility, and the quality of work overall was excellent. Annual goals were met.

3 Meets expectations

Performance consistently met expectations in all essential areas of responsibility, at times possibly exceeding expectations, and the quality of work overall was very good. The most critical annual goals were met.

2 Improvement needed

Performance did not consistently meet expectations – performance failed to meet expectations in one or more essential areas of responsibility, and/or most critical goals were not met.

1 Unsatisfactory

Performance was consistently below expectations in most essential areas of responsibility, and/or reasonable progress toward critical goals was not made. Significant improvement is needed in one or more important areas.

POSITION DESCRIPTION - KEY RESPONSIBILITIES

Rating

Advice to and Relationship with Council Members

Leadership and Management of Councils Employees

Stakeholder Management and Communication

Financial and Asset Management

Work Health and Safety

Strategic Planning

Human Resources Management

Operational Management, Governance & Major Projects

Strengths Further Development Opportunities

Completed Signed: ....................................................... Presiding Member CEO Performance Review Panel Date:

Completed Signed: ....................................................... Chief Executive Officer Date:

ADELAIDE HILLS COUNCIL CEO PERFORMANCE REVIEW PANEL MEETING


Item: 6.3 Originating Officer: Megan Sutherland, Executive Manager Organisational

Development Subject: Proposed 2017-2018 CEO Performance Targets For: Decision

SUMMARY The Employment Agreement (the Agreement) between Council and the Chief Executive Officer (CEO) provides for a performance review process. The review is to assess the CEO’s performance by reference to the Personal Evaluation System (PES) or other rating scale as agreed, contained in the Employment Agreement, against the CEO’s duties, position description and performance targets. The role of the CEO Performance Review Panel (the Panel) includes reviewing the performance of the CEO; in particular the performance against the KPIs and to undertake a review of the CEO’s KPIs to ensure they remain relevant and aligned to Council’s strategic objectives. The Panel can make a recommendation to Council regarding the suite of performance targets for 2017-2018 which will become the subject of future performance reviews under the Agreement. RECOMMENDATION That the Panel:

1. Receives and notes the report

2. Recommends to Council to adopt the suite of performance targets as presented in Appendix 1 of this report.

1. GOVERNANCE

Strategic Management Plan

Goal Organisational Sustainability Key Issue Governance We diligently adhere to legislative requirements to ensure public accountability and exceed these requirements where possible.

Adelaide Hills Council – CEO Performance Review Panel Meeting 31 May 2017 Proposed 2017-2018 CEO Performance Targets

Legal Implications The CEO Performance Review Panel is a Section 41 of Committee of Council under the Local Government Act 1999. This process needs to be undertaken appropriately to ensure the CEO is provided with a fair and consistent approach to determine appropriate performance targets, as the performance targets are used in the annual performance review process that directly affects decisions made in relation to the CEO, his performance and remuneration discussions. Section 96 (Council to have a chief executive officer) of the Local Government Act 1999 Risk Management Implications Undertaking regular review of the CEO’s performance is an important control mitigating the risk of:

Deficient CEO performance review practices resulting in a lack of accountability and loss of stakeholder confidence in the organisation.




Non-achievement of CEO KPIs result in loss of community benefit and/or opportunities and/or stakeholder confidence in the organisation.


High (3B) Medium (3D) Medium (3D)

Note: there are many other controls that also assist in managing this risk. Financial and Resource Implications Not applicable. Customer Service and Community/Cultural Implications There is a community expectation that the CEO will manage the organisation’s human, financial and physical resources to ensure they are utilised for the best outcomes for the community. Environmental Implications Not applicable.


Community Engagement/Consultation Consultation on the proposed Performance Targets has been undertaken with the CEO and the Executive Leadership Team. Consultation with the Council Members will take place from this recommendation.

2. BACKGROUND CEO Performance Review Panel (the Panel) The Panel was established in May 2013 with the following role:

The CEO Performance Review Panel (the Panel) will provide advice to Council on matters related to the Chief Executive Officer and his performance by;

Reviewing the CEO’s performance over the preceding twelve months, in particular the performance against the Key Performance Indicators (KPIs).

Undertake a review of the CEO’s KPIs to ensure they remain relevant and aligned to Council’s strategic objectives.

Receive and review six monthly updates of the CEO’s performance against the KPIs.

Determining the CEO’s remuneration for the following twelve months.

Consider any other related matters that may arise from the review.

CEO Employment Agreement The CEO has executed a new Employment Agreement on 5 May 2017, with a commencement date of 1 July 2017. Clause 12 of the Agreement contains the provisions for a performance review process with the following key feature regarding performance indicators:

12.4 The performance review will review the CEO’s Position Description and any key performance indictor.

CEO Performance Targets

Preliminary work has been undertaken to develop an appropriate suite of CEO Performance Targets. The Performance Targets have been considered to ensure alignment with Council’s Strategic, Corporate and Annual Business Plans.

The proposed suite of Performance Targets for 2017-2018 are attached at Appendix 1.

3. ANALYSIS The suite of Performance Targets for the CEO are used, along with the Position Description, to review his annual performance.


In making a recommendation to Council on the CEO’s 2017-2018 Performance Targets, the Panel may want to consider the degree to which the suite provides:

an holistic indicator of CEO performance

clarity in terms of what is to be measured (and what success looks like)

how it will be measured. It is also important to ensure the suite of Performance Targets are achievable given the proposed performance targets cover the CEO’s new Employment Agreement commencing 1 June 2017, and the current 2016-2017 Performance Targets continue through to the end of September 2017. This means there is a cross over period between the current and new Performance Targets of 3 months. It is recommended that the Panel, with the CEO, critically analyse the expectations on how many new Performance Targets can realistically be achieved over the 12 month period to ensure the CEO and organisation are being set up for success.

4. OPTIONS The Panel has the following options: 1. To recommend the suite of CEO Performance Targets as presented for the Council’s

consideration. (Recommended)

2. To recommend the suite of CEO Performance Targets as presented with amendments for the Council’s consideration.

3. To recommend to Council an alternative suite of CEO Performance Targets, in consultation and agreement with the CEO.

5. APPENDIX Proposed 2017-2018 CEO Performance Targets

Appendix 1 Proposed 2017-2018 CEO Performance Targets

CEO PERFORMANCE TARGETS 2017-2018 - Draft May 2017

CEO Performance Target Update Issued: Review: May 2017


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Target Responsible Officer 1. Digital Mobility in the Field

Establish and complete a pilot to assess the service impact of utilising mobile devices in the field. Primary areas will include Development Services (compliance), and Works & Services (maintenance).

Marc Salver

2. Age Friendly Plan – Retirement Villages

Provide a recommendation to Council following the Expression Of Interest / Request For Proposal process on the future management model for Adelaide Hills Council’s retirement villages.

Terry Crackett

3. Mentoring & Coaching program

Establish and commence an organisational mentoring and coaching development program.

Megan Sutherland

4. Arts & Culture

Develop and present to Council for endorsement the Business Plan to establish an Arts & Heritage Hub at the Old Woollen Mill site at Lobethal.

David Waters

5. Asset Management Planning (AMP)

Complete an update of all Asset Management Plans to inform the 2018/19 review of the Long Term Financial Plan. This update to include a detailed review of Transport Asset categories and capture of asset information within the Asset Management System.

Peter Bice

6. Corporate Reporting Measurement

Review Council’s corporate reporting approaches and produce a consolidated Corporate Reporting Framework from which to guide regular reporting to management and Council.

Lachlan Miller

CEO PERFORMANCE REVIEW PANEL€¦ · CEO PERFORMANCE TARGETS 2016-2017 CEO KPI Update Issued:...

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