2014-11-11 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                               11 NOVEMBER 2014


   Some KPIs are focused on inputs (e.g. a level of activity such as the number of phone
     calls) while other KPIs are focused on outputs or outcomes (e.g. service assessment
     such as a customer satisfaction rating).
   Theoretically, KPIs can measure almost anything, but not everything needs to be
     measured nor does every measure add value to management decision making.
   In the private sector, KPIs are normally at two levels – 1. Management KPIs that are
     used on a regular basis by managers to monitor and manage day to day issues 2.
     Strategic (or Board) KPIs that monitor the “whole of organisation” performance.

Development of Noosa Council KPIs

A series of KPIs has been developed which provide a range of both management and
strategic measures which will add to the management framework of our Council. The
CEO’s thinking behind the development of these KPIs is as follows:

   It is not worth measuring everything, otherwise more time is spent in measuring than
     actually doing. The intention was to come up with around 10 to 15 strategic measures
     that would be reported to Council on a regular basis. At the management level, the
     intention is to have around 30 KPIs that will be monitored by the Leadership Team on
     a quarterly basis.

   The basis of deciding what to measure has been drawn from the concept of the
     Balanced Scorecard. This management theory was developed by Kaplan and Norton
     and is used extensively in the private sector to improve organisational performance.
     The theory is that if a company has good staff that use good systems and look after
     their customers, then they will achieve good financial outcomes. In the public sector,
     the equation is slightly different as the final goal is not profit. The public sector version
     of the balanced scorecard is as set out below i.e. if we have good staff that use good
     systems and if we manage our finances well then we will achieve good outcomes for
     our community/customers. The KPIs which have been developed are accordingly
     based on the four headings below.




                              Our Systems and
        Our People                                       Our Finances           Our Customers
                                 Processes



   KPIs are really useful in helping to ask the right questions. Why is this long term trend
     in decline? Why are we above the industry benchmark? How can we do this better?
     KPIs do not actually give the answers but they do help in identifying the right
     questions.

   Where relevant, we have adopted a target benchmark for the KPIs. This target
     benchmark is either based on an industry standard (e.g. what a Council of our size
     would expect to achieve) or a target set by the CEO. In some cases, a benchmark is
     not relevant and in those cases, the trend over time will give the best indicator of
     performance.

   The KPIs which have been developed are just the starting point. They will be
     enhanced and improved over time. Any Councillor feedback is appreciated.




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