SERVICE IMPROVEMENT FRAMEWORK › media › 1757 › 140730-service-improve… · Improvement Objectives, past and comparative performance, customer satisfaction, risks, and needs

SERVICE

IMPROVEMENT

FRAMEWORK

DOCUMENT CONTROL

VERSION 1.1

DATE MODIFIED 30 May 2014

DOCUMENT CONTROLLER EWAN MCWILLIAMS

STATUS DRAFT

TABLE OF CONTENTS

Introduction ............................................................................................................................................ 1

The General Duty to Improve .................................................................................................................. 3

Improvement Objectives ......................................................................................................................... 4

Improvement Information ....................................................................................................................... 5

Collaboration ........................................................................................................................................... 6

Accountability for Improvement ............................................................................................................. 8

Performance Management Framework .................................................................................................. 9

Service Plan ........................................................................................................................................... 10

Risk Register .......................................................................................................................................... 16

Programme and Project Management .................................................................................................. 17

Financial Plan ......................................................................................................................................... 18

Performance Report .............................................................................................................................. 19

Appendix I: Statutory Requirements .................................................................................................... 20

General Duty to Improve ....................................................................................................................... 21

Improvement Objectives ....................................................................................................................... 22

Improvement Information ..................................................................................................................... 23

Collaboration ......................................................................................................................................... 24

Accountability for Improvement ........................................................................................................... 25

Appendix II: Assessment, Regulation and Inspection ........................................................................... 26

Corporate Assessment .......................................................................................................................... 27

Performance Assessment ...................................................................................................................... 28

Merthyr Tydfil Council Performance Management Framework 1

INTRODUCTION

As a council, we focus on ensuring that we develop a culture of high expectation and accountability,

which will be underpinned by:

A culture of clearly stated and embedded values and beliefs

A robust performance culture across the organisation and with partners

Self-evaluation informing the planning and performance management processes

Data and information provided to enable well informed challenge of performance

The most important challenges facing the local authority being identified and addressed

Service monitoring and evaluation in terms of improved outcomes and value for money

Effective member scrutiny

A definition of what success looks like in the future

Sharing our vision with staff and people in Merthyr Tydfil

The purpose of the document is to explain the Service Improvement Framework (SIF) and set out the

role of self-evaluation. In addition, this document will:

Assist in developing a robust performance culture across the organisation and with partners

Explain the importance of data and information to inform Corporate and Service Planning and

to enable well informed challenge of performance

Reinforce the need for services to be monitored and evaluated in terms of improved

outcomes and value for money rather just than inputs and outputs

Ensure that the most important challenges facing the Council are identified and addressed

Identify strategic and organisational priorities to help plan delivery against needs

The SIF is relevant to all staff and councillors as it outlines the key approaches and expectations in

delivering the framework, and disciplines in undertaking any self-evaluation.

The process and approach to self-evaluation forms a core part of this framework. Self-evaluation is

designed to help everyone in the organisation consider the impact of external factors, monitor

performance against the outcomes and performance measures that have been set, and identify

appropriate ways to improve and develop.

The whole purpose of self-evaluation is to provide the understanding and evidence needed to make

the best possible plans for the future. Self-evaluation is the main opportunity for senior managers

and staff to honestly and objectively consider and document service performance, and provide their

professional expertise to identify scope and options for service improvement, service

change/rationalisation and savings. It should also provide greater clarity about what services are

aiming to achieve and why.


BACKGROUND INFORMATION

THE GENERAL DUTY TO IMPROVE

IMPROVEMENT OBJECTIVES

IMPROVEMENT INFORMATION

COLLABORATION

ACCOUNTABILITY FOR IMPROVEMENT


THE GENERAL DUTY TO IMPROVE

Merthyr Tydfil County Borough Council discharges its duty to improve through a set of plans outlined

in figure 1. At the highest level, The Single Integrated Plan sets out the strategic priorities for Merthyr

Tydfil and includes details of joint activity that will be completed by public bodies (including the

council), the third sector, and private sector partners to support those priorities. This represents a

new approach to partnership working in Merthyr Tydfil. It replaces the four previous plans that we

had to produce in partnership: Community Plan, Health, Social Care and Wellbeing Strategy, Children

and Young People’s Plan, and the Community Safety Plan. The Local Service Board (LSB) brings

together our public service leaders and is responsible for leading and overseeing its delivery.

These strategic priorities help inform the development of the council's Corporate Plan and each

Service Plan. All of the outcomes that the council hopes to achieve, or to contribute to, are included

in the Service Plans. Those outcomes, which explicitly contribute to the council’s Improvement

Objectives, also appear in the Corporate Plan. The council is required to publish progress against

priorities on an annual basis, which takes the form of an Annual Performance Report published

annually in October.

The Service Plan represents the principal building block in this Service Improvement Framework. They

identify the outcomes for each service. In order to develop outcomes, services take account of

Improvement Objectives, past and comparative performance, customer satisfaction, risks, and needs

analysis. The process and guidance for developing outcomes and associated outcome measures,

performance measures and improvement activities are included in the "Performance Management

Framework" section. This section outlines the council’s current Improvement Objectives and the

process for developing new Improvement Objectives.

The Single Integrated Plan

The Corporate Plan

Service Plans

Figure 1: The hierarchical structure of plans in Merthyr Tydfil County Borough Council



To identify our Improvement Objectives the council follows a process of information gathering, data

analysis, consultation, and engagement. This research information helps the council understand the

needs of our communities, and forms the basis to draft the Improvement Objectives.

The draft Improvement Objectives are presented to and discussed with Elected Members, as well as

consulted upon by the public. The final Improvement Objectives, as agreed by Council, will feature in

the Corporate Plan and form the basis of the Corporate Priorities. The Corporate Priorities will focus

on outcomes that require council-wide coordination and focus on major strategic change. The

Corporate Plan will continue to manage the outcomes relating to the council's Improvement

Objectives.

The Corporate Plan is a key document for the council because it presents those Improvement

Objectives with an appropriate structure and focus to ensure clarity of meaning and what we will

measure to determine our success. The Corporate Plan will run for a defined period. However, we

will review the plan on an annual basis to ensure that it continues to reflect the needs of our

communities.

The Service Plans support the Corporate Plan. Our Service Plans contain service outcomes, which

represent the key of council functions, and that focus on delivering improvements for our

communities. The Service Plan provides the structure to manage service outcomes, with each

outcome delivered by single services or jointly by a group of services working together.

IMPROVEMENT OBJECTIVES 2012 – 2017

Priority Area 1 – Raising standards of attainment

Priority Area 2 – Employability

Priority Area 3 – Economic development

Priority Area 4 – Active lifestyles

Priority Area 5 – Promoting independence

Priority Area 6 – Meeting the needs of vulnerable children

Priority Area 7 – A sustainable environment



Improvement information is utilised in the development of our plans. This information provides the

authors of a plan with a better understanding of the communities and environment that will be

influenced. Due consideration of appropriate and robust information will allow the creation of higher

quality plans, with a clearer perspective on progress reporting.

The council references a range of statistical information for its performance management, much of

which includes nationally published statistical information. The council sources published statistics

from databases like:

• STATSWALES

• BENCHMARKING WALES

• NOMIS

• OFFICE OF NATIONAL STATISICS

• MY LOCAL SCHOOL

• DEPARTMENT FOR EDUCATION

• SCOTTISH GOVERNMENT STATISTICS

The council also considers additional information like published research papers and technical

documents to support the development and performance reporting of plans.

Council Information Sources include:

• Performance information from statutory measures

• Performance information from non-statutory and local measures

• Resident satisfaction survey data

• Customer contact centre data

• Service usage data

• Service Performance Challenge process outputs

• Scrutiny outputs

• Audit, regulatory and inspection findings

• Levels of accreditation to recognised assessment schemes

• Intelligence relating to a need for a project or programme

• Intelligence relating to a need for a new, or more innovative, means of service delivery

https://statswales.wales.gov.uk/Catalogue/

http://www.benchmarkingwales.net/IAS/launch/

http://www.nomisweb.co.uk/

http://www.ons.gov.uk/ons/index.html

http://mylocalschool.wales.gov.uk/

http://www.education.gov.uk/

http://www.scotland.gov.uk/Topics/Statistics


COLLABORATION

WELSH GOVERNMENT

The Local Authority works closely with the Welsh Government to align aspects of their work to the

Welsh Government's strategic priorities and provide an outcome-focused approach to local and

national performance management.

The Welsh Government seeks to establish clear agreement between local and national government to

support the delivery of the Programme for Government. The support for this programme presents a

real commitment from local authorities to deliver positive improvements for people's life in Wales, as

measured by the impact government is actually having.

The support for this programme takes the form of an Agreement, represented as a framework with a

demonstrable link to the Welsh Government’s overall priorities across the public sector, the

Programme for Government. Although the Agreement covers those areas that are within local

government’s responsibility to deliver, they also recognise the critical role of local authorities in

providing local leadership through their community-planning role as well as working in collaboration

with others.

The Agreement should:

Provide an outcome-focused approach to local and national performance management, that

is clearly aligned to the Welsh Government’s Programme for Government but retain a local

focus

Set a more effective accountability framework by incentivising improvement and the delivery

of quality local outcomes

Streamline and strengthen relationships between the Welsh Government and local

government, reducing the administrative overhead and facilitating the delivery of efficiency

savings

The Agreements link to a pro-rata grant, which will be paid to an authority according to the level to

which it has achieved the outcomes in its Agreement.

OUTCOME AGREEMENT

The Welsh Government Outcome Agreement Programme is split into two parts: Outcomes and

Corporate Governance. The local authority is only required to prepare a document that details their

commitment to the “Outcomes”, which consists of a selection of outcomes taken from the

Programme for Government, with the associated output and outcome measures.

The local authority will need to choose five themes under this component, rather than the ten themes

contained within previous Outcome Agreements. As with the previous Outcome Agreements, each

outcome will be assessed to determine if it is fully successful, partially successful, or unsuccessful by

the Minister for Local Government and Government Business at the end-of-year assessment.


The local authority will be required to structure their agreements around the Results Based

Accountability approach and to populate the most outcome-focused reporting section, using the

tracking indicators taken from the Programme for Government, and supplementing these with any

relevant outcome indicators from Single Integrated Plans, or other relevant council plans.

The second component would be based on standards of corporate governance as reported by the

Auditor General for Wales. The Welsh Government will consider whether:

a. The Auditor General for Wales has made any statutory recommendations to the Welsh

Ministers to provide assistance to the authority through improvement assessment letters or

reports following any special inspections; or

b. The Auditor General for Wales has made any statutory recommendations to the Welsh

Ministers to give direction to the authority through improvement assessment letters or

reports following any special inspections; or

c. The Local Authority has already had some, or all, of its corporate governance functions

removed from the Authority, i.e. the authority is already subject to statutory intervention.

OUTCOME AGREEMENTS: 2013/14 – 2015/16

Raising standards of attainment

Ensuring people receive the help they need to live fulfilled lives

Improving early years' experience

Improving the health and educational outcomes of children, young people and families living

in poverty

Living within environmental limits and acting on climate change

LOCAL SERVICE BOARD

The council is a key partner in Merthyr's Local Service Board (LSB) with the other members, including:

South and Mid Wales Fire and Rescue Service

Welsh Government

Health Board

Police

The LSB has developed a strategic plan (The Single Integrated Plan) that fulfils the following statutory

functions:

The Community Strategy

The Health, Social Care and Wellbeing Strategy

The Children and Young People’s Strategy

The Community Safety Strategy

LOCAL AUTHORITIES IN WALES

As a local authority, we must consider whether the exercise of any of our powers of collaboration will

assist us to discharge our duties for continuous improvement. This provides the scope to choose

when to collaborate with partner local authorities or external organisations to support continuous

improvement for the citizens of Wales.



Merthyr Tydfil County Borough Council has the following mechanisms to assure accountability for

improvement:

Cabinet

Performance Scrutiny

Service Performance Challenge

Public Accountability

Cabinet: Cabinet receive a performance report on the Corporate Plan. They use this report to make

recommendations and request further investigation or enquiry where necessary. The performance

report contains exceptions, which specify key areas of concern against the council’s Improvement

Objectives. Cabinet Members are accountable for the successful delivery of outcomes at a Corporate

Plan and Service Plan level. Each Cabinet Member has a portfolio. These portfolios align to the

council’s senior management structure, and reflect the key priorities for the council as laid out in the

Corporate Plan.

Performance Scrutiny: The Performance Scrutiny Committee also receives the performance report on

the Corporate Plan. From the report, they identify potential areas for further scrutiny. In addition,

Members of the Performance Scrutiny Committee align with council services, and they monitor

performance against Service Plans.

Service Performance Challenge: Key Elected Members and senior officers provide a challenge to each

service’s performance in an annual Service Performance Challenge. This meeting examines a range of

information, coordinated and presented in the following papers:

Service Self-Assessment

Collaborative Service Performance Report

Needs and Demands Assessment

Public Accountability: The council produces an annual delivery document that provides the public

with information about its intended plans and activity. It also produces an Annual Performance

Report that provides the public with information about the council’s performance in the previous

year, including how we performed in comparison to other local authorities in Wales.


PERFORMANCE MANAGEMENT FRAMEWORK

Service Plan

Risk Register

Programme and Project Management

Financial Plan

Performance Report


SERVICE PLAN

LINK to Service Plan Template

When developing a Service Plan it is important to follow the service planning steps and use the

service plan template to capture the information in a coherent manner. This will enable a service to

gather all the relevant information to create a structured service plan and associated performance

management framework.

IDENTIFYING THE COMMUNITY

The first discussion for a service is to consider the communities for whom they are working. A

"community" can vary depending upon the type of service. To assist services with the identification of

a community there are general proposals for a number of ways to categorise types of community.

This categorisation process can assist a service when thinking about the scope of community with

whom they are working.

a. Communities of location: A community of location is geographically based, ranging from

small-scale local neighbourhoods, towns, cities, to regions, nations, and global communities.

b. Communities of need or identity: A community of need or identity also relates to culture, and

can encompass ethnic group, religious, frail aged or disabled persons etc… to name a few.

c. Communities of organisation: A community of organisation refers to the kind of human

structures established to coordinate a range of informal family and friend networks to more

formal structures like economic enterprises, professional associations, and political decision-

making bodies, national or international in scale.

d. Communities of interest: A community of interest is a gathering of people assembled around

a topic of common interest. Its members take part in the community to exchange

information, to obtain answers to personal questions or problems, to improve their

understanding of a subject, to share common passions or to play.

A "community" can be nested; one community can contain another, for example, a geographic

community may contain a number of ethnic communities. The aim of this step is to consider the

communities we are working for, and to consider the kind of service outcomes that they would wish

to see from their perspective.

DEVELOPING SERVICE OUTCOMES

In order to develop a service outcome the service must understand what an outcome is. We define

an outcome as "the benefit experienced by the community". An outcome represents the desired

result from improving the wellbeing of the communities we serve. The best outcomes reflect this

desired result from the perspective of the community. In addition, consider outcomes within the

wider frameworks of equalities and sustainability.


In order to define a desired result in terms of an outcome the service should consider any feedback

received from community engagement. An example of potential service outcomes defined from the

community perspective includes:

The population of Merthyr Tydfil will be healthier

Young people will be better educated

DEVELOP OUTCOME MEASURES AND PERFORMANCE MEASURES

An outcome is not in itself a measure, so in order to be accountable and to assess whether we are

achieving the desired outcome we use indicators and performance measures. This enables the

service to quantify achievement and measure change.

Outcome Measures: Outcome Measures provide an "indication" of whether an outcome is being

successfully delivered. The council is not necessarily in control of outcome measures, in the same

way that it cannot usually completely control the delivery of on outcome in isolation.

Performance Measures: Performance Measures "measure" the effectiveness of something the service

does to contribute to delivering an outcome. The council, and its services, are therefore responsible

for delivery against performance measures.

When a service identifies an indicator or performance measure for inclusion in their service plan, they

should define this measure by completing the measures template. The measures template seeks to

clarify the key information to ensure that indicators and performance measures developed by a

service are reasonably robust.

MEASURE TEMPLATE

This is our blank measure template (table 1) with supporting guidance for each section. In order to

complete the guidance for a measure, rewrite the guidance text with appropriate wording for the

measure identified.

Table 1 the measure template guide

Domain Thematic descriptor

Reference Unique reference code

Title The wording of the actual measure

Guidance Detailed definition and guidance

Calculation Data items and formula to calculate the measure

Data Source Identified data sources

Frequency Identify the frequency of data collection

Excellence Identified according to corporate methodology

Intervention Identified according to corporate methodology


WHAT DOES BASELINE PERFORMANCE TELL US?

It is important to look at current, past and comparative performance to develop a baseline for each

measure. A service should also consider the prediction of future performance using historic local and

national datasets. Consideration of future performance projections can provide an added dimension

to a performance report.

It is helpful to plot performance on a graph. This can help present all the necessary data in context

and make it easier to identify current trends, or to consider action to change future performance

expectations. Change can mean increasing the rate of improvement where it has been too slow, or

reversing a current trend of decline.

SETTING THE THRESHOLDS

The purpose of identifying thresholds using comparative data is to enable the council to understand

performance in context. This allows the council to understand how good the current position is

compared to those within the cohort of comparators, rather than simply allowing the council to say

whether they managed to meet an arbitrary "target".

The expectation is for each service to make an informed judgement for each outcome measure or

performance measure to decide which thresholds to apply. However, the council identifies a default

position to guide services, and to provide a starting point for discussion. An explanation of the default

position is in table 2, and potential adjustments to the default position in table 3.

The council's position is that current performance in the upper quartile should not necessarily lead to

selection of adjustment 1 (table 3). Deviation from the default position is essentially a policy

question.

Intervention Level: The intervention level is crucial as it identifies when the position will become

"unsatisfactory". Interventions therefore, need to be set at the level where some kind of intervention

would be required to alter the direction of travel. At this point, the indicator or performance measure

would generate a RED Status.

Excellence Threshold: The excellence threshold should be set at the point where we define the

position as "excellent". For national indicators/performance measures, this may equate to the

expected threshold for top quartile performance. The intention of the excellence threshold is not to

state where we may reasonable expect to be at the end of the current financial year, but to state

where we would have to be in order to say that we had achieved "excellence". At this point, the

indicator or performance measure would generate a GREEN Status.

The difference between the excellence threshold and the intervention level will automatically divide

into two sections based on quartiles 2 and 3 to enable us to understand where the status is neither

"excellent" nor "unsatisfactory". Essentially, anything above the intervention is acceptable. Where

the current position is below the excellence threshold, but closer to the excellence threshold than the

intervention, this would generate a YELLOW Status, which we would define as "good". When the

position is below the excellence threshold, but closer to the intervention than the excellence

threshold, this would generate an ORANGE Status, which we would define as "acceptable".


The natural consequence of setting the threshold for "excellence" is that we will have fewer indicators

and performance measures with a GREEN status. However, this is perfectly acceptable as it may not

be possible, or even desirable, to strive for excellence in all service areas in the short or medium term.

However, this system does provide a more consistent and robust framework as we will always know

what the status is telling us about the current position.

Each service will make a judgement for each indicator or performance measure to decide which

thresholds to apply. The council has identified its default position for these thresholds, which is

outlined in table 2. These thresholds reflect the default transition points between the positions of

"excellent" and "unsatisfactory". The default position is that being in the top quarter of councils in

Wales is "excellent", and that being in the bottom half of councils in Wales is "unsatisfactory".

DEFAULT THRESHOLDS

The council default methodology identifies excellent as the upper quartile within the cohort of

comparators, and unsatisfactory as quartile 4, with quartiles 2 and 3 making the difference between

excellent and intervention levels.

Table 2 the default methodology for thresholds

THRESHOLD ADJUSTMENTS

This presents an adjustment for situations where our position is consistently in the top quartile and

we desire further improvement. Alternatively, this adjustment is useful where the upper quartile

threshold in the benchmarking group is still poor when we consider comparators from further afield

(for example, private sector providers, UK, European or other countries).

Table 3 the adjustment one methodology guide

Careful consideration is required when identifying excellence thresholds and intervention levels for

each indicator or performance measure. Elected Members, senior managers and external regulators

need assurance that this process is robust in order to trust the subsequent status in performance

reports. Services should consider past performance and benchmarking data when identifying the

excellence threshold and intervention level positions.

Quartile 1 Excellent

Quartile 2 Good

Quartile 3 Acceptable

Quartile 4 Unsatisfactory

Best in Benchmark Group Excellent

Quartile 1 Good

Quartile 2 Acceptable

Quartile 3 and 4 Unsatisfactory


COLOURS

Table 4 a summary of the performance status for each colour

Figure two below presents a graphical example showing the story of a performance measure where

the target and interventions have been set according the definitions above for the Default Thresholds

(table 2).

Figure 2 presents an example outcome measure when applying the default methodology for performance analysis, which clearly highlights the position of Merthyr Tydfil, the range of data, and the projections of future performance for all other local authorities in Wales.

WHAT IS THE STORY BEHIND THE BASELINE?

Looking at the baseline information and future predicted trend, we can consider the story or history

of performance, asking questions like:

What do we think has happened, or is currently happening, to cause this baseline

performance?

This is useful information in determining what to do and how much we can do to alter the current

trend.

0

10

20

30

40

50

60

70

80

90

100

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

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17

%

Quartile 1

Quartile 2

Quartile 3

Quartile 4

Merthyr Tydfil

Performance Status Definition

Green The current position is excellent

Yellow The current position is good

Orange The current position is acceptable

Red The current position is a unsatisfactory


DISCUSS WHO DO WE NEED TO WORK WITH AND WHO ARE OUR PARTNERS?

In considering current performance, we need to consider who else has responsibility for improving

this outcome. It is at this point that we need to consider whether there would be tangible benefits in

working collaboratively, either internally or externally, to secure cost and service efficiencies.

EXPLORE WHAT WILL WORK TO DO THINGS BETTER

This step is about considering the projects and actions that need be undertaken to secure the

achievement of the outcome. Benchmarking information and the adoption of good practice should

be considered.

The final step is to pull together the outcomes, outcome measures, performance measures, and

improvement projects using the service plan template to form the Service Plan.


RISK REGISTER

LINK to Service Risk Register Template

LINK to Risk Management Guidance

The council's Risk Management Policy sets out the objectives and principles of our risk management

framework. The policy is designed to ensure that sound risk management practices are in place,

including processes to identify, assess, and manage risk on an ongoing basis. Understanding the risks

we face, and managing them appropriately, aids effective decision-making and contributes to the

achievement of our objectives. Risk management is not about eliminating risk and should not be

confused with being risk averse.

A "risk" is an uncertain event or set of events that will have an effect on the achievement of

outcomes. A RISK is "an event that, should it occur, would impact our ability to successfully achieve our

objectives, measured by a combination of the likelihood of occurrence and the magnitude of impact".

Often issues that have arisen are confused with risks. An ISSUE refers to "the consequences of an

event that has already occurred and management mitigation actions are underway or planned".

The Wales Programme for Improvement (WPI) requires all local authorities in Wales to secure

continuous improvement by taking a more proactive role in the delivery of their functions at strategic

and operational level. The production of a service based Risk Register and a Corporate Risk Register

are one of the main elements of the WPI requirements.

All council services have a Service Risk Register and each register is managed on a Microsoft Excel

Spreadsheet. Each service manages their risk register on this spreadsheet and is responsible for their

upkeep. Amendments to a risk register can occur at any time, with new risks added when identified.

The Service Performance Challenge process enables the council to challenge services about risk, and

supports the identification of new or emerging risks.

Where a service identifies a risk that is above high, this may need to be escalated to the Corporate

Executive Team, the service should inform the Corporate Risk Manager who will determine its validity

for inclusion in the Corporate Risk Register and associated report.

The Corporate Risk Register is a concentrated risk register, highlighting strategic and high-level risks

from council Service Risk Registers and from discussions with the Corporate Executive Team (CET). A

regular review of the Corporate Risk Register takes place within CET.

Projects also have a risk register, and risks arising from an individual project can escalate to the

Corporate Risk Register. This escalation process will come from the Corporate Programme Office,

who will coordinate an update of the Corporate Risk Register with the Corporate Improvement Team.


PROGRAMME AND PROJECT MANAGEMENT

LINK to Project Management Guidance

A Project Management Framework (PMF) that has been developed by Merthyr Tydfil County Borough

Council to provide a robust consistent approach to managing projects. It is to be used by officers

within the council to manage and deliver a project throughout its lifecycle, from start-up, to planning

and delivery, through to project closure.

The Council has a Project Management Framework with the purpose of providing a standardised

approach to specify, approve and implementing corporate projects. This approach follows a four

stage process:

Project Selection

Project Approval

Project Delivery

Project Closure

Each outcome also has "improvement activities", which are projects and actions designed to

contribute to the delivery of the outcome. We monitor the delivery of these activities by providing a

"delivery confidence". The table below highlights the same four colours used with a "delivery

confidence" defined as:

Status Delivery Confidence Definition

Green Successful delivery appears likely with no major outstanding issues to threaten delivery

Yellow Successful delivery appears probable but issues exists requiring management attention

Orange Successful delivery is in doubt with major risks or issues apparent in a number of key areas

Red Successful delivery appears to be unachievable

http://cms1/Intranet/Corporate+Info/Project+Management/


FINANCIAL PLAN

It is important for the council to look at its finances for more than one year ahead. This allows the

council to plan properly and account for savings, inflation, service changes, and changes in income.

Merthyr Tydfil County Borough Council does this through its Medium Term Financial Plan (MTFP).

The MTFP looks at the coming three years and estimates what might happen to the council during

that time and what might that mean for its finances. The MTFP follows closely the plans put forward

by services and corporately during the service planning and corporate planning processes.

MEDIUM TERM FINANCIAL PLAN

The Medium Term Financial Plan is a document that provides a review of the overall financial position

for the current year, and an overview of the prospects for the following two years. The MTFP will:

Identify what cost increases there might be in services, staff costs and supplies and services

generally

Set out estimated future levels of Government funding and the likely impact on Council Tax

Identify the potential levels of savings required

Identify any risks to the achievement of the plan

Although difficult to forecast, the MTFP allows a broad view of the council's financial future. The

MTFP is not intended to be a detailed explanation of all council services or their budgets, but to

provide an overview and context for decision-making.


PERFORMANCE REPORT

LINK to Performance Report Template

Performance analysis and reporting from an outcome perspective will involve understanding the story

behind the outcome. The structure of an outcome, following this performance management

framework, has two distinct characteristics.

The first characteristic is the relationship between outcomes and indicators. The indicators

provide the indication of the successful delivery of an outcome, with performance reported in

this context.

The second characteristic is the relationship between performance measures and

improvement activity. Performance measures and activity highlight the effectiveness of a

service in contributing to the success of the outcome.

There is a subtle difference between each distinct characteristic, but they combine to inform

a suitable an analysis of progress for an outcome. The performance report will need to

reference appropriate information and evidence on the status of the indicators, performance

measures, and improvement activity to help illustrate aggregate progress for an outcome.

In order to arrive at an aggregate status for an outcome the service will interpret the individual status

of indicators, performance measures, and improvement activity, combined with any other available

information to make an informed judgement.

When performance for a measure falls below the intervention level, the service will follow the

exceptions reporting procedure, and gather appropriate information for scrutiny purposes.


APPENDIX I: STATUTORY REQUIREMENTS

GENERAL DUTY TO IMPROVE



COLLABORATION



GENERAL DUTY TO IMPROVE

LINK to Wales Programme for Improvement

Under section 2 of the Local Government (Wales) Measure 2009, authorities are under a general duty

to "make arrangements to secure continuous improvement in the exercise of [their] functions". In

discharging this duty, an authority must have regard to the need to improve the exercise of its

functions, in terms of:

1. Making progress towards an authority’s strategic objectives (as set out in its community strategy),

especially in terms of:

a) The social well-being of the area

b) The economic well-being of the area

c) The environmental well-being of the area

d) The long-term objectives of the area, contributing to the achievement of sustainable

development in the United Kingdom

2. Improving service quality

3. Improving service availability

4. Fairness, especially in reducing inequality in accessing or benefiting from services, or improving

the wellbeing of disadvantaged groups

5. Exercising functions in ways that contribute to the sustainable development of an area

6. Improving the efficiency of services and functions

7. Innovation and change, which contributes to any of the above objectives

In the terms above, the guidance states that "efficiency" may be shown "if fewer resources are utilised

while maintaining provision of quality services".

If an authority chooses to alter the manner by which a service is provided (such as integrating

services), it will not only be demonstrating efficiency but improved sustainability as well.

"Innovation" relates to changes to service design and delivery methods that are intended to yield

improvement (the tangible effects of this may not be realised in the same year but in subsequent

years).

The guidance states that "for an authority to successfully discharge its general duty it should

incorporate the seven aspects of improvement into all of its decision-making processes and its

assessments of functions and services".

http://www.wlga.gov.uk/download.php?id=4624&l=1

http://www.legislation.gov.uk/mwa/2009/2/contents



The guidance states that authorities need to determine their Improvement Objectives for the

forthcoming year and in setting these, an authority will need to consider how they will best protect

and enhance sustainable community wellbeing. However, it also recognises the authority’s role in

reconciling competing needs and aspirations of different individuals and sections of the community.

In setting their Improvement Objectives, authorities need to take account of a wide range of

evidence, including their Community Strategy; Improvement Plan; statutory partnership priorities;

performance data; audit reports; analysis of performance compared with previous years and in

comparison with others; consultation findings from the previous year; national and international

priorities; and the global context.

It is recommended that before setting its improvement objectives, an authority should consult

citizens and stakeholders; local businesses; statutory and other community planning partners; other

authorities (especially where any proposed improvement objectives may have an impact upon them);

and other bodies with whom collaborative working is taking place or is being planned.



The guidance states that authorities should look to use a much wider "basket of evidence" to assess

the performance of their services and the impact they are having on the outcomes for citizens and

communities. This may include the following:

Performance indicators (whether statutory, standard or local)

Satisfaction data, such as citizen surveys, views of users’, tenants’ or citizens’ panels or juries

(including the National Survey for Wales)

The number and nature of calls to contact centres or other points of contact with citizens

Service usage levels

The outcomes of service assessments and peer reviews

The outputs from an authority’s scrutiny process

Audit, regulatory and inspection findings

Levels of accreditation to recognised assessment schemes

Intelligence relating to a need for a project or programme

Intelligence relating to a need for a new, or more innovative, means of service delivery

Local authorities are now required to use improvement information that they collect to compare their

performance with their own historical performance in previous financial years, and with other

authorities who provide similar services.


COLLABORATION

Section 9 of the Local Government (Wales) Measure 2009 provides authorities with the power to

collaborate in order to secure continuous improvement, meet improvement objectives, and/or meet

specified performance standards. Under this power, an authority can:

Provide financial assistance

Enter into arrangements or agreements

Co-operate with or facilitate or co-ordinate the activities of another person

Exercise functions on behalf of another person

Provide staff, goods, services or accommodation

Authorities are not restricted in terms of who they may collaborate with (other UK

authorities, third sector, charitable and businesses based in the UK and/or abroad).

Section 12 of the Measure requires authorities to consider whether such collaboration would assist in

the discharge of their improvement duties. If so, they must seek to exercise that power. Sharing

experiences and indicator information is likely to fall within these provisions.

http://www.legislation.gov.uk/mwa/2009/2/contents



An authority must make arrangements for the publication of an assessment of performance during

the financial year, and for the publication of a description of the authority's plans for discharging its

duties under sections 2(1), 3(2), and 8(7) in a financial year together with its plans for subsequent

years.

The first stage in this process involves the publication of a plan for discharging its duties under

sections 2(1), 3(2), and 8(7). This first stage of reporting should cover an authority’s plan for that

year, including:

A general statement outlining the nature the authority’s improvement objectives for the year

An explanation of why those Improvement Objectives were chosen, and the outcomes that

communities should expect if they are achieved

A statement on the process followed for consultation on the improvement objectives, and

any issues that arose from the consultation

The evidence (including but by no means limited to performance indicators and targets) that

the authority has set for itself in order to monitor its delivery of its improvement objectives

Information on how communities or stakeholders may propose new improvement objectives

during the year

This information is to be published as soon as reasonably practical after the start of the financial year.

The second stage involves reporting past performance, which needs to be published before 31

October in the financial year preceding that which the information relates. This performance report

will account for current, historic, and collaborative performance.

Neither the measure nor the guidance requires authorities to publish information in a particular way

or in a particular format. However, authorities should have regard to making them as accessible to

citizens and stakeholders as possible. The guidance states that a summary version may be produced

for wider public engagement and authorities should ensure that the citizens and communities they

serve are aware of the existence of the plan and summary.


APPENDIX II: ASSESSMENT, REGULATION AND INSPECTION

CORPORATE ASSESSMENT

PERFORMANCE ASSESSMENT


CORPORATE ASSESSMENT

To determine whether Merthyr Tydfil County Council will fulfil the requirements of part 1 of the

Measure the Wales Audit Office (WAO) will undertake an annual Corporate Assessment of Merthyr

Tydfil.

The Corporate Assessment is a forward-looking assessment of an authority’s likelihood to comply with

its duty to make arrangements to secure continuous improvement. This includes consideration of the

authority’s published Improvement Plan.

The Auditor General’s report is likely to be published between April and June (depending on when the

authority finalises their Improvement Plan) and will state whether they believe the authority is likely

to comply with the statutory duty to make arrangements to secure continuous improvement during

the current financial year.

The Auditor General may also comment on whether the authority is likely to comply in subsequent

years.


PERFORMANCE ASSESSMENT

To determine whether Merthyr Tydfil County Borough Council will fulfil the requirements of part 1 of

the Measure the WAO will undertake an annual Performance Assessment of Merthyr Tydfil.

The Performance Assessment is a retrospective assessment of whether an authority has achieved its

planned improvements in order to inform a view as to the authority’s record of accomplishment of

improvement.

This will include consideration of the authority’s own published assessment of performance and the

findings from any work undertaken by the WAO.

The performance assessment will be reported in the Auditor General’s Annual Improvement Report

(which will be published by 30 November each year). It will undertake authority-wide reviews of

relevant governance and management arrangements, supplemented where necessary by reviews of

specific functions and activities.

Where appropriate, the assessment will involve gathering and reviewing information from members

of the public and other stakeholders, as well as information from within the authority.

The Auditor General may also in some circumstances carry out Special Inspections, for example,

where an authority may fail to comply with the requirements of the measure.

Documents

SERVICE IMPROVEMENT FRAMEWORK › media › 1757 › 140730-service-improve… · Improvement Objectives, past and comparative performance, customer satisfaction, risks, and needs