The Dorset Council framework uses an exceptions-based escalation approach and a set of core KPIs for each council service area. Items which are flagging as off-target or as a cause for concern are discussed at the relevant performance meeting, then escalated to higher level meetings for higher-level decisions as required.
This also applies to items which are showing exceptionally good results or are flagged as significantly exceeding expectations.
This process enables the hundreds of metrics and measures which are monitored on a day-to-day basis across the many and varied parts of the organisation to be considered and discussed in monthly governance forums at different and relevant levels of the organisation.
The reporting, by exception and escalation approach, ensures that the most important or relevant performance information is used for decision-making during monthly management meetings.
Figure 2 shows the performance pyramid model we use, and illustrates the different types of measures used at the different levels of the organisational hierarchy.
Figure 2: the performance pyramid
The base of the performance pyramid is populated with the many hundreds of operational measures used on a daily basis to manage specific service activities. This is referred to here as low-level operational information.
When taken together these measures provide a picture for managers of how well various parts of the service are performing and represent the council’s management information.
This then informs the next level-up in the pyramid – the service measures. These are the higher-level metrics referred to as KPIs which are used to demonstrate how well the service is performing against its service objectives. It is from this level upwards that the centralised performance approach finds its focus.
The service level KPIs provide a decision-making basis for leaders to assess progress in delivering service plans. Where items are deemed as off-track or under-performing, a combination of operational metrics can provide further information to show which areas of the service are moving the KPIs off-track.
The top of the pyramid is populated with strategic measures. These relate to the overall performance of the council as determined by its strategic objectives, desired outcomes and council/corporate plan.
These high-level metrics allow strategic decision-makers and the Senior Leadership Team to understand which functions or services within the organisation are moving the overall organisation off-track. These measures will also inform strategy and policy at the highest level and feed into an assessment of whether the council is meeting its policy objectives and outcomes as dictated by the council plan.
This approach enables a consistent approach to risk identification and assessment, enables scrutiny and provides assurance to service, strategic and member leads.