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Performance Management Process for Senior Executives
The Administration Committee recommends the adoption of the following report (July 2, 1999) from the Chief Administrative Officer; and, further, that the Chief Administrative Officer be requested to submit a report to Council forwarding comments, if any, after the annual performance evaluations:
Purpose:
This report outlines the performance management process for the senior executives of the City of Toronto. This process applies to the: Chief Administrative Officer, City Auditor, and Commissioners.
Financial Implications and Impact Statement:
There are no financial implications arising from the recommendations in this report.
Recommendations:
It is recommended that:
(i) the performance management process for the Chief Administrative Officer and the City Auditor outlined in this report be approved;
(2) the matter of pay for performance referenced in the employment contracts of the Chief Administrative Officer, the City Auditor, and Commissioners be reviewed in the fall when Council considers Hay Management Consultants’ compensation program for excluded staff; and
(3) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
Council Reference :
On May 13 and 14, 1998, Council approved the Corporate Management Framework, establishing a framework for performance management which includes Council’s performance in delivering a strategic vision, program performance tied to multi-year business planning, financial performance tied to annual operating plans and budgets, and individual staff performance within the overall framework.
What is Performance Management?
Performance Management establishes a shared understanding of what is to be achieved and how it is to be achieved; it is a way of managing people that increases the probability of achieving success. It is a continuous cycle of four phases:
(1) Planning Performance: The first step is setting out the expected accomplishments and how these goals/objectives will be met. The objectives are set in the context of the corporate strategic goals and business plan objectives.
(2) Coaching Performance: Reinforcing and supporting staff efforts in pursuit of achieving the planned objectives.
(3) Reviewing Performance: Jointly assessing performance against expectations. Evaluating successes and failures of the year, learning from them and preparing for the next year. Identification of performance development activities and planning for these activities.
(4) Rewarding Performance: Involves rewarding desired outcomes through a combination of rewards and recognition.
Discussion:
The following outlines the proposed performance management process for the Chief Administrative Officer and City Auditor, the two executive positions which report directly to Council.
Chief Administrative Officer (CAO):
The CAO is the most senior City executive. The CAO is hired by and reports directly to Council. It is proposed that the performance of the CAO be reviewed formally on an annual basis by a small committee of council composed of the Mayor, Deputy Mayor, and current and previous Chairs of the Administration Committee. This committee would be assisted by an internal human resource expert. The process would proceed as follows:
(i) The CAO prepares a written review of achievements over the past year.
(ii) The CAO proposes goals/objectives for the subsequent year.
(iii) The committee considers achievements, obtains input/comments from the Chairs of the other standing committees and other members of Council as appropriate, and meets with the CAO to evaluate accomplishments, documenting the assessment.
(iv) The Mayor, Deputy Mayor and Chairs of the Administration Committee and the CAO discuss and agree upon goals/objectives for the subsequent year, confirming details in writing. These goals/objectives form the basis for the next annual review.
(v) Based on the performance review and consistent with Council approved corporate guidelines, the Mayor, Deputy Mayor and Chairs of the Administration Committee determine the amount of performance pay. (Note: This step to be applicable following Council consideration of a performance based pay program for non-union staff.)
(vi) The Mayor, Deputy Mayor and Chairs of the Administration Committee submit a report highlighting the evaluation of achievements and agreed upon goals/objectives to the Policy and Finance Committee for the information of Council.
(vii) The Mayor, Deputy Mayor and current Chair, Administration Committee provide interim (informal) feedback to the CAO semi-annually on the goals/objectives and required adjustments based on changed circumstances, at a meeting specifically scheduled for this purpose. The input/comments from the Chairs of the other standing committees and other members of Council will be requested prior to the meeting.
City Auditor:
Council directed that this position report directly to Council. An annual performance management process is proposed as follows:
(i) City Auditor prepares a written review of achievements over the past year.
(ii) City Auditor proposes goals/objectives (consistent with the approved Audit Workplan) for the subsequent year.
(iii) Audit Committee, Chair of the Administration Committee and the CAO consider achievements and meet with the City Auditor to evaluate accomplishments, documenting the assessment. CAO provides input during the review and in the setting of future goals/objectives related to the Auditor’s contribution to the overall objectives of the Administration. Assistance will be provided by an external human resource expert.
(iv) Audit Committee, Chair of the Administration Committee, CAO and City Auditor discuss and agree upon goals/objectives for the subsequent year, confirming details in writing to be reviewed at the end of the next appraisal period.
(v) Based on the performance appraisal and consistent with Council approved corporate guidelines, Audit Committee and Chair of the Administration Committee in consultation with the CAO, determine the performance pay. (Note: This step to be applicable following Council consideration of a performance based pay program for non-union staff.)
(vi) Audit Committee, Chair of the Administration Committee and the CAO provide interim (informal) feedback to the City Auditor semi-annually, at a meeting specifically scheduled for this purpose.
Performance Review of Commissioners:
The performance of Commissioners will be reviewed formally by the CAO on an annual basis and based on the performance appraisal and consistent with Council approved corporate guidelines, appropriate performance pay will be determined.
The CAO’s performance management process for Commissioners consists of the following steps:
(i) Commissioner prepares for the CAO a written review of achievements over the past year.
(ii) Commissioner proposes goals/objectives for the subsequent year. CAO considers achievements and meets with Commissioner to evaluate accomplishments, documenting the assessment.
(iii) CAO and Commissioner discuss and agree upon goals/objectives, confirming details in writing to be reviewed at the end of the next appraisal period.
(iv) CAO discusses the evaluation of achievements and agreed upon goals/objectives with the Mayor, Deputy Mayor, Chair, Administration Committee and Chair of the appropriate standing committee.
(v) Based on the performance appraisal and consistent with Council approved corporate guidelines, CAO determines the performance pay. (Note: This step to be applicable following Council consideration of a performance based pay program for non-union staff.)
(vi) CAO provides interim (informal) feedback to the Commissioner on a semi-annual basis, obtaining input/comments from the Mayor, Deputy Mayor, Chair, Administration Committee and appropriate standing committee Chair.
Conclusion:
The proposed performance management process will support fair and equitable treatment, enhance communications related to expectations, promote positive and constructive feedback, focus on coaching and development and motivate success. This process provides Council with the direct assurance it requires that its most senior staff are meeting the overall strategic Council and corporate goals and leading the organization in the directions set by Council. In turn, the senior staff and, as a result, all other staff of the organization receive clear communications regarding the value of high performance and the commitment of the organization to support, enhance and recognize staff efforts.
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