Corporate Management Framework

 The Strategic Policies and Priorities Committee recommends the adoption of the following report (April 27, 1998) from the Chief Administrative Officer:

 Purpose:

 This report outlines a framework for corporate management plans and introduces the new management processes to be developed.

 Financial Implications:

 There are no financial implications related to the recommendations in this report.

 Recommendations:

 It is recommended that: (1)the corporate management framework outlined in this report be approved;

 (2)the Chief Administrative Officer report to the Strategic Policies and Priorities Committee on terms of reference for a strategic planning process, including Council member involvement and coordination with other major corporate planning initiatives;

 (3)the Chief Administrative Officer report on multi-year program planning;

 (4)the Chief Administrative Officer in conjunction with the Chief Financial Officer report on a revised budget submission format and review process; and

 (5)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

 Background:

 Many sound management practices were in place in the seven former municipalities; however, many of these approaches and systems are not compatible and the new City is now faced with a patchwork of management tools. Managers need the right tools to carry out their responsibilities in an effective and accountable manner, and Council needs assurance that the appropriate systems and processes are in place.

 To achieve consistent management practices across the corporation, common management planning and control processes are required. A framework has been developed to provide a context for the design and development of several related management processes, as outlined below.

 Corporate Management Framework:

 Management processes are established at various levels of the organization to meet different corporate and program management objectives. A hierarchy of management processes will be developed, and will involve input from the departments and key corporate functions. From the broadest to the most specific, these processes include: (I)strategic planning and a vision for the City;

(ii)multi-year program plans with a focus on core programs;

(iii)annual operating plans and budgets; and

(iv)individual performance and accountability.

 A number of elements, while not new management concepts, will receive increased emphasis within the corporation=s management processes. These elements include: a service recipient focus, outcome-based performance indicators and measures, continuous improvement, and accountability. These elements are generally applicable to all management processes at all levels of the organization.

 Components of the Framework: (1)Strategic Plan for the City:

 Recommendation 1 of the Transition Team=s final report proposed that the new City Council should consult with citizens and staff on a mission statement. Mission and vision statements are normally formulated through a strategic planning process. Strategic plans identify a preferred future state, establishing a shared vision and setting direction. They are normally visionary and long term in nature, covering a 10-25 year time horizon. The process for developing a strategic plan is as important as the resulting product, and involves broad community and stakeholder input and consultation.

 The strategic plan for the City of Toronto will function as the overall plan for the future of the City, both for the corporation and for the community that it serves, providing the policy infrastructure for city-building. It guides service delivery and informs other planning processes and priority-setting initiatives. To serve as an effective management tool, the strategic plan also includes high-level indicators of success (e.g., quality of life indicators and general targets regarding population, the economy or service priorities). This permits monitoring of the level of success achieved in implementing the plan.

 Development of the strategic plan itself will occur through a Council-driven process, and the commitment of Councillors will be important to its success. The strategic plan provides a vision of the future of the City, but it will also allow members of Council to look back at what they have accomplished over each term of Council.

 This will be a significant undertaking for the City, and clear terms of reference are essential. The CAO will consult interested members of Council in developing the terms of reference for the strategic plan. Senior staff will also be involved in the development of the terms of reference.

 Other plans of a strategic nature may also be prepared for policy fields or for cross-corporate matters. Such plans are closely related to the City=s strategic plan and may be considered companion documents. Examples include the social plan and the development of environmental strategies. These plans need to be coordinated and integrated with the City's strategic plan. A report on the terms of reference for the strategic planning process will be submitted to the Strategic Policies and Priorities Committee in the near future, and will also address this matter. (2)Multi-year Program Plans

 Multi-year program plans will have a medium-term outlook, with a 3 to 5 or even 10 year horizon depending on the rate of change in the operating environment and the nature of the capital program. Program plans set priorities, define roles and identify how programs implement the strategic plan. Each plan defines units of service, establishes relevant performance measures, identifies targets for service levels, sets objectives regarding service improvements, and broadly identifies anticipated resource and capital investment requirements and timeframes. The focus is on service accomplishments in terms of results or outcomes rather than inputs consumed or products generated. The applicability of alternate service delivery methods would also be reviewed within the context of the program planning process.

 Many of the City's programs and functions had developed plans in the past, some of which were of a one-off nature while others formed part of a recurring planning process. These program plans were often developed for different purposes, with variations in approach and scope ranging from setting goals or clarifying roles to forecasting demand or identifying appropriate service delivery strategies.

 While these planning efforts are all valid, a more structured approach is necessary in order for program planning to form an effective component of the corporate management framework. Therefore, in addition to addressing relevant operational issues, future program plans will also have to satisfy traditional Abusiness planning@ requirements. The CAO will develop and report on a corporate process and specific requirements for multi-year program planning. (3)Annual Operating Plans and Budgets

 All services prepare annual operating budgets, a requirement to secure funds to cover operating expenditures. Different budget presentation formats, contents and processes were in place in the seven former municipalities and an interim process was put in place to facilitate the development of the City's first budget for 1998. It is desirable to re-examine appropriate budget process and submission requirements, within the context of the corporate management framework as well as existing and future financial systems and information management processes.

 Operating plans and budgets will be prepared annually, covering the up-coming fiscal year plus a further one-year outlook or forecast, and will be a requirement for all programs and functions. This is a key step in operationalizing aspects of the multi-year program plans and identifying short-term operating strategies. Operating plans and budgets will establish annual objectives, propose service levels for the coming year and outline planned service improvements. They will also address program performance for the previous fiscal year and identify anticipated program performance in the coming year in relation to indicators and measures defined in the multi-year program plans.

 The CAO in conjunction with the Chief Financial Officer will develop and report on revised requirements for operating plan and budget submissions. A review of Council's budget-setting process will also be included in the report with recommendations for a 1999 process. (4)Performance Development and Appraisal

 The first three components of the corporate management framework were concerned with the direction and the performance of the organization and its core programs. Development and appraisal of individual performance is another, more specific, management process.

 Staff responsibilities should flow from program plans. Just as operating plans and budgets operationalize multi-year program plans, mechanisms are required to allocate objectives for program deliverables to employees. Objectives, workplans and performance contracts may be used to translate annual operating plans and budgets into responsibilities at the staff level. Performance development and appraisal, in turn, provides a process to hold employees accountable for their performance. Performance development and appraisal will encompass a number of relevant employee skills and competencies.

 Conclusions:

 To ensure that the corporation functions as a well-performing organization, a corporate management framework is being established. The framework includes four key management processes which are being developed: a strategic planning process, multi-year program plans, annual operating plans and budgets, and an employee performance development and appraisal process. The CAO will be reporting further on these individual management processes as appropriate.