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Council Special Meeting Agenda |
5 November 2020 |
This matter has been determined to be of a significant nature and approval has been given to refer this report to the Council as a late item.
ITEM: 6.3
SUBJECT: Chief Executive Officer Annual Performance Appraisal Policy
AUTHOR: Acting Manager, People and Culture
DATE: 26 October 2020
Executive Summary
Section 12 (4)(d) of the Local Government Act 2009 sets out that the Mayor is responsible for conducting a performance appraisal of the Chief Executive Officer (CEO), at least annually, in the way that is decided by the local government, including as a member of a committee, for example.
As part of work on the Business Transformation Program including the development of the Good Governance Policy and Guide, a CEO Annual Performance Appraisal Policy was drafted.
This draft policy has been reviewed, including comparison to other South East Queensland council policies. As the conduct of the performance appraisal of the CEO is a special responsibility of the Mayor, the Mayor has been consulted on the draft policy.
The draft policy sets out roles and responsibilities of the Mayor, council, a proposed Advisory Panel and the CEO, as well as others, in the conduct of the annual performance appraisal.
Recommendation/s
A. That Council consider and resolve to adopt the Chief Executive Officer Annual Performance Appraisal Policy that sets out the way in which the performance appraisal is to be conducted.
B. That Council resolve to establish an Advisory Panel chaired by the Mayor with a minimum of two (2) councillors as members, to assist the Mayor in the conduct of the CEO’s performance appraisal each financial year.
RELATED PARTIES
There was no identification or declaration of any actual or perceived conflicts of interest in the preparation of this report.
Advance Ipswich Theme
Listening, leading and financial management
Purpose of Report/Background
Under the Local Government Act 2009 (the Act) Part 5 Division 1 section 194 council is responsible for the appointment of the CEO. Section 12 (4)(d) of the Act provides the Mayor with the extra responsibility of: conducting a performance appraisal of the chief executive officer, at least annually, in the way that is decided by the local government (including as a member of a committee, for example). Section 13 (3) of the Act sets out the responsibilities of the CEO.
During work on good governance in the Business Transformation Program in 2019 a policy was drafted for the CEO Annual Performance Appraisal. This policy has been the base for review and finalisation of the draft policy (Attachment 1) now recommended to council.
In finalising this draft policy, consideration was given to the policies of neighbouring large South-East Queensland councils. The Local Government Managers Association (LGMA) CEO Performance Management Guide was also considered.
The draft policy sets out roles and responsibilities of the Mayor, council, a proposed Advisory Panel and the CEO, as well as others, in the conduct of the annual performance appraisal.
The policy proposes that an Advisory Panel is established to support the Mayor in the conduct of the CEO’s performance appraisal each financial year. It is proposed that the Advisory Panel (Panel) is established with a minimum of two (2) councillors as members. The Panel will not be a formal standing committee of council.
The draft policy includes provision that the Mayor may engage a qualified and experienced facilitator to assist the Panel in the conduct of the review as required. At the Office of the Mayor’s request quotes have been sought from external providers with qualifications and experience in the appraisal of CEO performance. A preferred supplier was assessed and selected from quotes received with significant experience in the appraisal of local government CEO performance. This supplier is available to support the Mayor and the Advisory Panel as required.
It is noted as best practice in council’s Good Governance Guide approved by council (the Interim Administrator) on 25 February 2020, that an advisory committee is established with an independent chair providing an objective assessment on, in this case, performance matters. The Guide suggests that the advisory committee may also in future make determinations regarding chief executive officer remuneration, contract extensions and renewals as required.
Having considered the Guide, it is recommended in the policy that the Mayor chairs the Advisory Panel with support from the external expert provider that has been procured.
As set out in the policy the Mayor, with the support of the Panel, will reach agreement with the CEO on the annual performance objectives and key performance indicators. The Advisory Panel, chaired by the Mayor, will conduct the performance appraisal including a mid-point review in January and an end of financial year review in July.
The Mayor is responsible, with support of the Advisory Panel, for preparing and submitting a confidential report to the Governance and Transparency Committee on the appraisal, including any matters associated with possible remuneration review, with the report discussed and the result resolved at a full meeting of the council.
The General Manager, Corporate Services and Manager, People and Culture will support the Mayor and the Advisory Panel in their roles, as required, including by providing supporting documentation including the CEO’s role description and the organisation’s Leadership Charter (Attachment 2).
Legal/Policy Basis
This report and its recommendations are consistent with the following legislative provisions:
Local Government Act 2009
RISK MANAGEMENT IMPLICATIONS
Leadership of the council is fundamentally important. 2020 has been and remains a pivotal year in council moving forward with high quality leadership of the organisation to continue to serve the Ipswich community and to seek to rebuild trust and confidence of the workforce and the community. The CEO’s performance in serving the council and leading the organisation is vital. A quality, robust and fair performance appraisal is an important responsibility of the Mayor and council. Hence, the associated risks are sought to be managed by the construct of the recommended CEO Annual Performance Appraisal Policy.
Financial/RESOURCE IMPLICATIONS
There is modest budget provision within the People and Culture Branch, Corporate Services Department to support the costs of external facilitation expertise for the Mayor and the Advisory Panel. A procurement process has been undertaken and a suitable provider with qualifications and expertise in CEO performance appraisal has been secured.
COMMUNITY and OTHER CONSULTATION
The Mayor, Mayor’s Chief of Staff, Chief Executive Officer and the General Manager, Corporate Services have been consulted regarding the draft policy and comments have been incorporated.
Conclusion
The policy found as Attachment 1 to this report is recommended to council for resolution to adopt. Council resolution is also sought for the establishment of an Advisory Panel chaired by the Mayor with a minimum of two (2) councillors as members.
Attachments and Confidential Background Papers
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1. |
Draft CEO Annual Performance Appraisal Policy ⇩ |
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2. |
Leadership Charter ⇩ |
Nick Sheehan
Acting Manager, People and Culture
I concur with the recommendations contained in this report.
Sonia Cooper
General Manager Corporate Services
“Together, we proudly enhance the quality of life for our community”
