CEO PERFORMANCE REVIEW PANEL€¦ · 2016-07-27 · The Terms of Reference (TOR) for the CEO...

CEO PERFORMANCE REVIEW PANEL

NOTICE OF MEETING

To: Presiding Member Cr Jan-Claire Wisdom Members Mayor Bill Spragg Cr Jan Loveday Cr Ian Bailey Ms Paula Davies, Independent Member

Notice is hereby given pursuant to the provisions under Section 87 of the Local Government Act 1999 that the next meeting of the CEO Performance Review Panel will be held on:

Wednesday 27 July 2016 3.00pm

63 Mt Barker Road Stirling A copy of the Agenda for this meeting is supplied under Section 83 of the Act. Meetings of the Council and Committees are open to the public and interested members of the community are welcome to attend.

Andrew Aitken Chief Executive Officer

CEO PERFORMANCE REVIEW PANEL

AGENDA FOR MEETING Wednesday 27 July 2016

3.00pm 63 Mt Barker Road Stirling

ORDER OF BUSINESS

Council Vision Nurturing our unique place and people Council Mission Delivering activities and services which build a resilient community, sustain our built and natural

environment and promote a vibrant economy

1. COMMENCEMENT

2. APOLOGIES/LEAVE OF ABSENCE

2.1 Apology

2.2 Leave of Absence

2.3 Absent

3. MINUTES OF PREVIOUS MEETINGS

3.1. CEO Performance Review Panel – 20 May 2016

4. DELEGATION OF AUTHORITY

The CEO Performance Review Panel operates in accordance with the relevant sections of the Local Government Act 1999, and its Terms of Reference.

CEO Performance Review Panel AGENDA 27 July 2016

5. DECLARATION OF CONFLICT OF INTEREST BY MEMBERS OF COUNCIL

6. OFFICER REPORTS – DECISION ITEMS

6.1. CEO Performance Review Schedule 2016

That the CEO Performance Review Panel agrees to the schedule to undertake the CEO performance review for 2016.

6.2. Review of CEO PRP Terms of Reference

To recommend to Council to adopt the revised CEO Performance Review Panel Terms of Reference as contained in Appendix 1.

7. OFFICER REPORTS – INFORMATION ITEMS Nil

8. CONFIDENTIAL ITEMS

8.1. Appointment of Consultants to undertake the CEO Performance Review

9. NEXT MEETING

The next CEO Performance Review Panel meeting will be held on 19 October 2016, 3.00pm at 63 Mount Barker Road, Stirling.

10. CLOSE MEETING

9 CEO PERFORMANCE REVIEW PANEL COMMITTEE

MINUTES OF MEETING 20 MAY 2016 63 MT BARKER ROAD STIRLING

Presiding Member ___________________________________________________________________

Presiding Member: Cr Jan-Claire Wisdom Members present: Cr Jan Loveday Cr Ian Bailey Ms Paula Davies, Independent Member In attendance: Megan Sutherland Manager Organisational Development Andrea Sargent Manager Governance & Risk Pam Williams Minute Secretary Andrew Aitken Chief Executive Officer (attended for agenda item 6.1)

1 Commencement The meeting commenced at 3.33pm.

2 Apologies Mayor Bill Spragg

3 Previous Minutes

3.1 CEO Performance Review Panel Meeting – 18 November 2015 Moved Cr Jan Loveday S/- Cr Ian Bailey

20

That the minutes of the CEO Performance Review Panel meeting held on 18 November 2015 as supplied, be confirmed as an accurate record of the proceedings of that meeting. Carried Unanimously




4 Delegation of Authority In accordance with the CEO Performance Review Panel Terms of Reference, the Committee has no delegated decision-making powers.

5 Declaration of Interest by Members of the Committee Nil

6 Officer Reports – Decision Items

6.1 2015-2016 CEO Key Performance Indicator Update Moved Paula Davies S/- Jan Loveday

21

1. That the report be received and noted, 2. The completion date of the suite of KPIs to be the end of October 2016.

Carried unanimously

6.2 Process Discussion – CEO Performance Review 2016 Moved Cr Jan Loveday S/- Cr Ian Bailey

22

1. That the report be received and noted. 2. That the CEO Performance Review Panel recommends to Council to undertake the

2016 CEO Review process using an external consultant. 3. That a minimum of three quotes from consultants be sought and a report prepared

for the Panel.

Carried unanimously

6.3 CEO Performance Review Panel – Next meeting date

Moved Paula Davies S/- Cr Ian Bailey

23

That the next CEO Performance Review Panel meeting be held no later than Thursday 28 July 2016 from 3.00pm. Carried unanimously




7 Next Meeting The next ordinary meeting of the CEO Performance Review Panel will be held by Thursday 28 July 2016, from 3.00pm at 63 Mount Barker Road, Stirling.

8 Close Meeting The meeting closed at 4.46pm.

ADELAIDE HILLS COUNCIL CEO PERFORMANCE REVIEW PANEL WEDNESDAY 27 JULY 2016 AGENDA BUSINESS ITEM

Item: 6.1 Originating Officer: Megan Sutherland, Manager Organisational Development Subject: CEO Performance Review Schedule 2016

SUMMARY

The CEO Performance Review Panel must agree on the schedule and timing to undertake the review of the CEO’s performance for 2016. RECOMMENDATION That the Panel resolves: 1. That the report be received and noted

2. That the CEO Performance Review Panel agrees to the schedule to undertake the CEO performance review for 2016.

1. GOVERNANCE

Strategic Management Plan/Council Policy Goal 4 A Recognised Leading Performer Key Issue 4.1 Leadership Key Action 4.1.4 Meet legislative, regulatory and good governance responsibilities and

obligations Legal Implications The CEO Performance Review Panel is a Section 41 Committee of Council under the Local Government Act 1999 (LG Act). Section 99 of the LG Act sets out the role of the Chief Executive Officer. An assessment of performance against these requirements forms part of the CEO Performance Review process. The regular review of the CEO’s performance and the organisation’s needs to be undertaken appropriately to ensure the CEO is provided with a fair, sound and consistent approach to performance reviews and that the process would stand up under scrutiny, as the process, review tool and outcomes of the review directly affect decisions made in relation to the CEO, his performance, remuneration and employment contract.

Adelaide Hills Council CEO Performance Review Panel 27 July 2016 CEO Performance Review Schedule 2016

Risk Management Implications Undertaking regular review of the CEO’s performance is an important control mitigating the risk of:

Deficient CEO performance review practices resulting in a lack of accountability and loss of stakeholder confidence in the organisation.

Inherent Risk Residual Risk Target Risk

Medium (3C) Medium (3D) Medium (3D)

Note: there are many other controls that also assist in managing this risk.

Non-achievement of CEO KPIs result in loss of community benefit and/or opportunities and/or stakeholder confidence in the organisation.


High (3B) Medium (3D) Medium (3D)

Note: there are many other controls that also assist in managing this risk. Financial and Resource Implications Costs associated with using an external consultant to undertake the CEO Review process are covered within the budget. Customer Service and Community/Cultural Implications

There is a community expectation that the performance of the CEO is reviewed in a sound, fair and comprehensive manner. Environmental Implications

Not applicable. Community Engagement/Consultation Not applicable.

2. BACKGROUND

To enable the CEO Performance Review process to be undertaken within set timeframes, it is important that the Panel understands the schedule of work and agrees on the timeframes to undertake the work.

3. ANALYSIS

The process has been reviewed based on the previous years review. The process and schedule have been updated to enable the whole process to be undertaken over a period of 6 weeks.

4. OPTIONS

1. That the Panel agrees to adopt the proposed schedule as tabled. 2. That the Panel agrees to adopt the proposed schedule with changes/additions.

Appendix 1 CEO Performance Review Schedule 2016

Target date Subject Process/actions/comments

27/7/16 3-5pm

CEO PRP meeting

Consider and agree on the CEO Performance Review Schedule for 2016

Discuss and agree on consultant to facilitate review (in confidence)

Review and make recommendation to Council on the CEO Performance Review Panel Terms of Reference

5/8/16 Advise consultants of Panel decision

Manager Organisational Development to advise consultants of decision of Panel and appoint consultant

No later than 26/8/16 Review preparation meeting with successful consultant

Presiding Member (Cr Jan-Claire Wisdom) and Manager Organisational Development (Megan Sutherland) discuss process and requirements with consultant

Discuss the review tool and report format (with CEO and Panel consultation)

Discuss the CEO Workshop and briefing of Council and Senior Leaders

Consultant to discuss the review tool with the CEO prior to finalising

7/9/16 6.30pm

CEO Performance Review Workshop with Council Members and ELT Members – CEO workshop

(CEO and External Consultant attend Council Meeting)

CEO provides a verbal report on performance against the KPIs and position objectives for 2016 to the Council Members and Executive Leadership Team (ELT)

Consultants introduced to Council Members and ELT

Consultants provide brief on review process commencing, process and timeframes

21/9/16 Due date for responses All responses using the review tool due to consultant

21/9/16 CEO feedback CEO to provide feedback on possible KPI’s to consultant

5/10/16 Council Member Workshop

Consultant to run workshop with Council Members on proposed KPI’s

7/10/16 Report completed by Consultant

Results compiled and draft report prepared

12/10/16 CEO Debriefed Consultant discusses and debriefs CEO on draft report

Consultant discusses possible KPIs for 2016/17

Adelaide Hills Council CEO Performance Review Panel 27 July 2016 CEO Performance Review Schedule 2016

Target date Subject Process/actions/comments

14/10/16 CEO provides feedback CEO provides feedback on the draft report and KPIs to the consultant

12/10/16 3-5pm

CEO PRP workshop

Consultant debriefs the Panel on the Performance Review Report, remuneration benchmarking and proposed KPI’s

CEO discusses with panel the draft performance review report

Consider and establish proposed 2016/17 KPIs for CEO (CEO and Consultant attend Panel workshop)

19/10/16 3-5pm

CEO PRP meeting

Final update on CEO KPIs for 2015/16 (October update)

Final report on CEO Performance received

CEO advice on remuneration review expectation and any other related matters

Panel makes decision on remuneration and recommendation to Council

2/11/16 6.30pm (1 hr)

Council Workshop Consultant presents the Performance Review Report to Council and ELT (CEO and Consultant attend Council Workshop)

8/11/16 (Special Meeting of Council requested) (confidential)

Final report to Council on recommendations

Council determines resolution regarding CEO performance and remuneration

Council confirms 2016/17 KPI’s


Item: 6.2 Originating Officer: Megan Sutherland, Manager Organisational Development Subject: Review of Terms of Reference for CEO Performance Review Panel

SUMMARY

The Terms of Reference (TOR) for the CEO Performance Review Panel are due for review each 12 months in accordance with the TOR. The TOR were last reviewed in February 2014. This review included a review of TORs of other South Australian councils for similar committees. The CEO Performance Review Panel will review the TOR and provide a recommendation to Council to adopt the Terms of Reference for this year. The TOR has been reviewed as there are some opportunities to more adequately describe the roles and functions of the Committee and to ensure the TOR remains current and progressive. RECOMMENDATION That the Panel resolves: 1. That the report be received and noted

2. To recommend to Council to adopt the revised CEO Performance Review Panel Terms of Reference as contained in Appendix 1.

1. GOVERNANCE

Strategic Management Plan/Council Policy Goal 4 A Recognised Leading Performer Key Issue 4.1 Leadership Key Action 4.1.4 Meet legislative, regulatory and good governance responsibilities and

obligations Legal Implications The CEO Performance Review Panel is a Section 41 Committee of Council under the Local Government Act 1999 (LG Act). Section 99 of the Local Government Act 1999 sets out the role of the Chief Executive Officer. An assessment of performance against these requirements forms part of the CEO Performance Review process.

Adelaide Hills Council CEO Performance Review Panel 27 July 2016 Review of Terms of Reference for CEO Performance Review Panel

The regular review of the CEO’s performance and the organisation’s needs to be undertaken appropriately to ensure the CEO is provided with a fair and consistent approach to performance reviews and that the process would stand up under scrutiny, as the process, review tool and outcomes of the review directly affect decisions made in relation to the CEO, his performance, remuneration and employment contract. Risk Management Implications Undertaking regular review of the CEO’s performance is an important control mitigating the risk of: Deficient CEO performance review practices resulting in a lack of accountability and loss of stakeholder confidence in the organisation.


Medium (3C) Medium (3D) Medium (3D)

Note: there are many other controls that also assist in managing this risk.

Non-achievement of CEO KPIs result in loss of community benefit and/or opportunities and/or stakeholder confidence in the organisation.


High (3B) Medium (3D) Medium (3D)

Note: there are many other controls that also assist in managing this risk. Financial and Resource Implications The Independent Member on the Panel is paid the required sitting fee each meeting. If meetings increase through the TOR more sitting fees will be required to be paid. The financial impact of this is likely to be minimal and can be absorbed within the adopted budget. Customer Service and Community/Cultural Implications There is a community expectation that the performance of the CEO is reviewed in a sound, fair and comprehensive manner, and to do this the Panel conducts itself against the requirements of the TOR. Environmental Implications Not applicable. Community Engagement/Consultation Not applicable.

Adelaide Hills Council CEO Performance Review Panel 27 July 2016 Review of Terms of Reference for CEO Performance Review Panel

2. BACKGROUND

The CEO Performance Review Panel Terms of Reference were due for review in December 2015. Previously the review has been undertaken through the Council meeting via a report from the Manager Governance and Risk. It was seen as appropriate this year for the Panel to be involved in reviewing the Terms of Reference prior to the matter being referred to Council.

3. ANALYSIS

The TOR have been updated through the review of four Local Government Terms of Reference. Changes include reformatting with the following headings: - Establishment - Objectives - Membership - Presiding Member - Operational Matters - Functions and Responsibilities

Other changes include: Independent member from non-voting to voting At least one member fo the Panel will be male and one will be female

4. OPTIONS 1. That the Panel makes no changes to the Terms of Reference 2. That the Panel agrees to make the changes recommended in this report to theTerms

of Reference. 3. That the Panel agrees to make additional changes/additions to the Terms of

Reference.

Appendix 1 CEO Performance Review Panel Terms of Reference

ADELAIDE HILLS COUNCIL CEO Performance Review Panel

TERMS OF REFERENCE

1. Establishment

New 1.1. Pursuant to Section 41 of the Local Government Act 1999 the Council establishes a committee to be known as the Chief Executive Officer's Performance Development Panel (the Panel).

New 2. Objectives 2.1. The Panel is established for the purpose of engaging in and undertaking a developmental process, in

conjunction with the Chief Executive Officer (CEO):

a) determining relevant Key Performance Indicators for the CEO

b) undertaking the formal review process of the performance of the CEO against the agreed Key Performance Indicators in accordance with these terms of reference and

c) making other recommendations to the Council relevant to the employment and performance of

the CEO.

3. Functions and Responsibilities 3.1. The Panel is charged with undertaking the following functions:

a) Reviewing the CEO’s performance over the preceding twelve months, in particular the performance against the Key Performance Indicators (KPIs)

b) Undertake a review of the CEO’s KPIs to ensure they remain relevant and aligned to Council’s

strategic objectives c) Receive and review six monthly updates of the CEO’s performance against the KPIs d) To receive the results of the CEO’s performance review e) Make a recommendation to Council on any proposed changes to the CEO’s remuneration f) Consider any other related matters that may arise from the review.

CEO Performance Review Panel TERMS OF REFERENCE

4. Membership

New 4.1. Membership of the Panel shall consist of two Council Members in addition to the Mayor and Deputy Mayor of the Council and an independent voting member with appropriate skills and experience in executive performance review processes.

4.2 The independent member shall be appointed for the term of Council, with the sitting fee determined

by Council.

New 4.3. At least one member of the Panel will be male and one will be female.

New 4.4. The Panel will be re-established after each Council periodic election. 4.5. The term of office for Panel members shall be determined by Council. Members of the Panel may be

removed from office by Council resolution at any time.

5. Presiding Member 5.1. The Council appoints the Presiding Member of the Panel.

New The Presiding Member’s role is to:

a) 1999 and the meeting procedures determined by the Panel under Clause 6.2 of the Terms of Reference.

b) Ensure all Panel members have an opportunity to participate in discussions in an open and

constructive manner.

c) Facilitate two-way dialogue with the Chief Executive Officer to reach agreed outcomes

d) Where a matter has been debated significantly and no new information is being discussed, to call the meeting to order and ask for the debate to be finalised and a motion to be put forward.

CEO Performance Review Panel TERMS OF REFERENCE

New 6. Operational Matters 6.1. The Panel does not enjoy any delegated powers or function from the Council, so all decisions of the

Panel will constitute recommendations to the Council. 6.2. The Panel shall act at all times in strict accordance with the Local Government Act 1999 and at all

times be subject to the operation of Part 2 of the Local Government (Procedures at Meetings) Regulations 2013 and where applicable, the Council’s Code of Practice for Meeting Procedures.

a) Insofar as the Act, Regulations, Code of Practice and these Terms of Reference do not prescribe

the procedure to be observed in relation to the conduct of a meeting of the Panel, the Panel may determine its own position.

6.3. The Panel shall meet at the Council offices at Stirling on at least two occasions per calendar year

according to the availability of the Panel members or as determined by the Presiding Member in consultation with the CEO.

6.4. A quorum for a meeting of the Panel shall be three members. No business can be transacted at a

meeting unless a quorum is present. 6.5. All decisions of the Panel shall be made on the basis of a majority decision of the members present. 6.6. If the Presiding Member of the Panel is absent from a meeting then the Panel will choose a member

from those present to preside at the meeting. 6.7. The Panel will establish a review methodology which includes engagement with all Council Members

and Executive staff as a minimum in the evaluation process 6.8. The Panel may recommend to the Council that these Terms of Reference be amended where the

Panel forms the opinion that such amendments are necessary for the better operation of the Panel in the performance of its functions and responsibilities.

6.9. Where the Panel is required to act jointly with or to obtain the concurrence of the CEO in the

performance of its functions and responsibilities, the Council expects that both parties will negotiate and consult in good faith to achieve the necessary objectives.

Updated 7. Role of Administration 7.1 The Coordinator for the Panel will be the Manager Organisational Development or as determined by

the CEO.

ADELAIDE HILLS COUNCIL CEO Performance Review Panel

TERMS OF REFERENCE (February 2014)

A committee of Council may be established by a resolution of Council. A committee is established for the purpose of assisting the Council in the performance of its functions, inquiring into and reporting to the Council on matters within the ambit of the Council’s responsibilities, providing advice to the Council and to exercise, perform or discharge delegated powers, functions or duties of the Council. The establishment of a committee does not derogate from the power of the Council to act in a matter.

The CEO Performance Review Panel (Panel) will provide advice to Council on matters related to the Chief Executive Officer and his performance by;

Reviewing the CEO’s performance over the preceding twelve months, in particular the performance against the Key Performance Indicators (KPIs).

Undertake a review of the CEO’s KPIs to ensure they remain relevant and aligned to Council’s strategic objectives.

Receive and review six monthly updates of the CEO’s performance against the KPIs.

Determining the CEO’s remuneration for the following twelve months.

Consider any other related matters that may arise from the review.

The membership of the Panel will be comprised of up to five members being the Mayor, the Deputy Mayor and two (2) Council Members, and an independent non-voting member with appropriate skills and experience in executive performance review processes. The term of office for Panel members shall be determined by Council. Members of The Panel may be removed from office by Council resolution at any time. Council will appoint a Presiding Member and may appoint a Deputy Presiding Member if it so wishes.

BACKGROUND

ROLE

MEMBERSHIP

Presiding Member

The role of the Presiding Member is to;

Oversee and facilitate the conduct of the meetings in accordance with the Local Government Act 1999 and Local Governement (Procedures at Meetings) Regulations

2013.

Ensure in particular that that the guiding principle at Regulation 4 are observed and that all Panel members have an opportunity to participate in discussions in an open and responsible manner; and

Ensure that when a matter has been debated significantly and no new information is being discussed to call the meeting to order and move the debate towards finalisation.

The Panel does not enjoy any delegated powers or functions from the Council so that all decisions of the Panel (subject to any clause of these Terms of Reference to the contrary) will constitute recommendations to the Council. The Panel will establish a review methodology which includes engagement with all Elected Members, senior staff and other stakeholders in the evaluation process. The Terms of Reference for the CEO Review Panel will be reviewed by December 2013 and every 12 months thereafter.

The Panel will act at all times in strict accordance with the Local Government Act 1999 and

will at all times be subject to the operation of Part 2 of the Local Government (Procedures at Meetings) Regulations 2013. Insofar as the Act or Regulations and these Terms of Reference do not prescribe the procedure to be observed in relation to the conduct of a meeting of the Panel, the Panel may determine its own procedure. A quorum for a meeting of the Panel will be three (3) members. No business can be transacted at a meeting unless a quorum is present. The Panel will meet on at least two occasions per calendar year at a time and date to be notified according to the availability of the Panel Members, or as so determined by the Presiding Member in consultation with the Chief Executive Officer. The coordinator for the Panel will be the Manager Organisational Development.

Operational Matters

MEETING PROCEDURE

Role of Administration

Meeting Time and Place


Item: 8.1 Originating Officer: Megan Sutherland, Manager Organisational Development Subject: Appointment of Consultant to undertake the CEO

Performance Review

1. Appointment of Consultant to undertake the CEO Performance Review – Exclusion of the Public

a) That under the provisions of section 90(2) of the Local Government Act 1999 an

order is made that the public be excluded from the meeting, with the exception of:

Manager Organisational Development, Megan Sutherland

A/Manager Governance & Risk, Lachlan Miller

Minute Secretary, Pam Williams

in order to consider Agenda Item 8.1: Appointment of Consultant, to undertake the CEO Performance Review , in confidence.

b) The CEO Performance Review Panel (the Panel) is satisfied that it is necessary that

the public, with the exception of Council staff in attendance as specified in (a) above, be excluded to enable the Panel to consider the report at the meeting on the following grounds: Section 90(3)(d) of the Local Government Act 1999, the information to be received, discussed or considered in relation to Agenda Item 8.1 is information of a confidential nature (not being a trade secret) the disclosure of which (i) could reasonably be expected to prejudice the commercial position of the

person (firm) who supplied the information and/or convey a commercial advantage on a third party.

Accordingly, on this basis, the principle that meetings of the Panel should be conducted in a place open to the public has been outweighed by the need to keep the information and discussion confidential.

CEO PERFORMANCE REVIEW PANEL€¦ · 2016-07-27 · The Terms of Reference (TOR) for the CEO...

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