2005 - 2006 Performance Management Program Guidelines
Deputy Ministers, Associate Deputy Ministers and Individuals Paid in the GX
Salary Range
Senior Personnel and Special Projects Secretariat
Privy Council Office
April 2005
PERFORMANCE MANAGEMENT PROGRAM GUIDELINES
The purpose of this document is to provide an overview of the Performance
Management Program as it applies to deputy ministers, associate deputy
ministers, and individuals paid in the GX salary range.
This guide and all related documentation are available on the Privy Council
Office Web site at: www.pco-bcp.gc.ca/performance-rendement.
PROGRAM OBJECTIVE
The objectives of the Performance Management Program are:
- to encourage excellent performance by recognizing and rewarding the
achievement of results that are linked to business plans and government
objectives and the demonstration of leadership competencies; and
- to provide a framework within which a consistent and equitable approach to
performance management can be applied.
COMPENSATION PLAN
In February 1998, the government accepted the recommendations contained in
the First Report of the Advisory Committee on Senior Level Retention
and Compensation. As a result, a new compensation plan for deputy ministers,
associate deputy ministers, and other Governor in Council appointees was
introduced.
Cash compensation for senior personnel has two components - base salary and
performance pay. Performance pay has two elements - a variable amount (at-risk
pay) which must be re-earned each year and a bonus for performance that
surpasses expectations. As in the private sector, it would be expected that most
senior personnel would receive at-risk pay.
An effective performance management program is integral to the success of
this compensation plan.
PERFORMANCE MANAGEMENT PROGRAM COMPONENTS
Eligibility
To be eligible for performance pay, incumbents appointed by the Governor in
Council must normally hold their positions for at least six (6) consecutive
months in the performance cycle. This period allows the incumbent sufficient
time to achieve measurable results. If the period covered by the performance
evaluation is less than 12 months (full performance cycle), performance
pay, if approved, is prorated.
If an individual is appointed as a deputy minister (or associate deputy
minister or paid within the GX salary range) from an assistant deputy minister
position during the performance cycle, the individual will be included in the
Performance Management Program for Deputy Ministers for the complete cycle.
Performance Agreement
The performance agreement is a mutual understanding between the deputy
minister and the Clerk of the Privy Council (or the associate deputy minister/GX
and the deputy minister) as to what is expected for the performance cycle. This
performance agreement is comprised of commitments and their related performance
measures in the following three categories:
- Policy and Program Results: These commitments reflect
the organization’s priority areas of focus during the performance cycle
related to business plans. They are challenging but achievable with effort
through the individual’s own influence and control. They are also
results-oriented and measurable. Individuals are expected to develop the
following into their performance agreements, as appropriate:
- commitments based on the business plans of the department;
- a commitment that reflects a priority area of focus related to the
policy or program agenda of the government as identified by the Clerk of
the Privy Council.
- Each commitment must be accompanied by related performance measures which
are observations or data that determine and define if and how well the
commitments are met. They will form the basis of reporting at the end of the
performance cycle.
- Management Results:
Individuals with responsibility and
accountability for the management of an organization will also be measured on
their progress against core organizational and management accountabilities as
described in the Corporate Priorities issued annually by the Clerk of the
Privy Council and in the Management Accountability Framework of the Treasury
Board Secretariat. Individuals’ performance will be assessed against the
generic management results commitments (Annex A) which will serve as the
benchmark for expected performance.
- Personal Results:
These commitments reflect the
expected demonstration of the leadership competencies required to successfully
carry out the responsibilities of the position. Individuals’ performance
will be assessed against the generic leadership commitments (Annex B) which
will be used as the benchmark for expected performance.
Changes to Performance Agreements
Changes may be made to the performance agreement during the performance
cycle, in consultation with the Clerk (or with the deputy minister in the case
of associate deputy ministers/persons paid in the GX salary range).
Performance Evaluation
At the end of the performance cycle, each deputy minister completes a
self-evaluation assessing achievements against the agreed upon commitments.
Deputy ministers also complete an evaluation of their associate deputy
minister(s) as well as those paid in the GX salary range, where applicable.
Additional information is sought by the Privy Council Office to supplement
the self-evaluations including:
- the input of the responsible Minister;
- the comments of central agencies including the Treasury Board Secretariat
reporting on results in relation to the Management Accountability Framework; and
- the input of the Committee of Senior Officials.
Evaluation Results
Overall performance is evaluated with the following possible results:
- No Performance Pay/Unable to Assess
Did not achieve the performance expectations or unable to assess the
performance during the cycle (leave, training, special assignment).
Has achieved the performance expectations.
Has surpassed performance expectations.
The amount of performance pay is determined by the degree to which the
commitments were achieved, the relative contribution of the individual and the
manner in which these results were achieved.
Performance Pay
The Performance Management Program provides the opportunity to earn the
following compensation:
Movement through the salary range, up to the maximum of the range, is
earned through the successful achievement of commitments. Normal progression for
successful performance is 5% per year. Higher or lower percentages may be
approved based on the degree of performance against expectations. No in-range
salary increase is awarded for performance that does not achieve expectations.
This lump sum payment is equivalent to a percentage of base salary and must
be re-earned each year, based on the successful achievement of commitments. This
payment does not increase an individual’s base salary but is included in
average salary for pension calculations. At-risk pay can be earned regardless of
an individual’s position in the salary range, however, no at-risk pay is
awarded for performance that does not achieve expectations.
This lump sum payment is in addition to at-risk pay and is based on the
individual’s demonstrated performance that has surpassed expectations. Like
at-risk pay, this payment does not increase an individual’s base salary but is
included in average salary for pension calculations. Bonuses can be earned
regardless of an individual’s position in the salary range.
Eligibility for an economic increase, as recommended annually by the Advisory
Committee on Senior Level Retention and Compensation, is normally dependent
upon the successful achievement of commitments. An economic increase is also
awarded in cases where performance is unable to be assessed for reasons such as
leave, training, etc. Therefore, no economic increase is awarded for
performance that does not achieve expectations.
In implementing in-range salary increases, at-risk pay and bonuses, the
salary used as the base for calculations is that in effect on the last day of
the performance cycle, that is, March 31st. Economic increases are
based on the salary following application of any in-range salary increase.
The following table illustrates the maximum performance awards available
according to performance and the individual’s level:
Approval
Compensation for deputy ministers and associate deputy ministers is approved
by the Governor in Council. Copies of the Order in Council authorizing payment
are provided to the individuals concerned for forwarding to their compensation
office for implementation.
Communications
To ensure transparency and understanding of the program objectives and
results, as well as alignment in the organization, individuals are encouraged to
share their performance commitments with their organization.
Timelines
February
- Corporate priorities and policy/program commitments are finalized.
- Call letters to deputy ministers are sent requesting an evaluation of the
previous fiscal year’s performance, including those of associate deputy
ministers and individuals paid in the GX salary range, and a proposed
performance agreement for the next fiscal year.
January - March
- Deputy ministers finalize planning processes, meet with management teams on
commitments, etc.
April
- Evaluations and performance agreements are due.
- Clerk seeks input from various sources including Ministers, the Privy Council
Office and central agencies.
May
- COSO meeting is held to provide advice to the Clerk on individual
performance.
June
- Clerk follows up with each deputy minister to discuss performance and to
finalize the new performance agreement.
- Performance pay is implemented.
Annex A
Management Results
Generic Commitments
These commitments reflect the core organizational and management
accountabilities as described in the Treasury Board Secretariat’s Management
Accountability Framework.
Policy and Programs
Organizational research and analytic capacity is developed and sustained to
assure high quality policy options, program design and advice to ministers.
People
The organization has the people, work environment and focus on building
capacity and leadership to assure its success and a confident future for the
Public Service of Canada.
Citizen Focussed Service
Services are citizen-centred, policies and programs are developed from the
"outside in" and partnerships are encouraged and effectively managed.
Risk Management
The executive team clearly defines the corporate context and practices for
managing organizational and strategic risks pro-actively.
Stewardship
The organizational control regime (assets, money, people, services, etc.) is
integrated and effective, and its underlying principles are clear to all staff.
Accountability
Accountabilities for results are clearly assigned and consistent with
resources, and delegations are appropriate to capabilities.
Public Service Values
Through their actions, organizational leaders continually reinforce the
importance of public service values and ethics in the delivery of results to
Canadians (e.g. democratic, professional, ethical and people values).
Governance and Strategic Direction
The essential conditions - internal coherence, corporate discipline and
alignment to outcomes - are in place for providing effective strategic
direction, support to the minister and Parliament, and the delivery of results.
Learning, Innovation and Change Management
The organization manages through continuous innovation and transformation,
promotes organizational learning, values corporate knowledge, and learns from
its performance.
Annex B
Personal Results
Generic Commitments
These commitments reflect the expected demonstration of the key leadership
competencies required to successfully carry out the responsibilities of the
position as defined in the leadership competency profile for deputy ministers
(DMs). The profile can also be found at the following Web site: http://www.hrma-agrh.gc.ca/leadership/klc-ccl/intro_e.asp.
VALUES AND ETHICS – Serving through Integrity and Respect
Public Service (PS) leaders serve Canadians, ensuring integrity in personal
and organizational practices, and respect people and PS principles, including
democratic, professional, ethical, and people values. They build respectful,
bilingual, diverse and inclusive workplaces where decisions and transactions are
transparent and fair. They hold themselves, their employees, and their
organizations accountable for their actions.
An effective leader:
- Demonstrates values and ethics, including the Code, in personal behaviour;
- Integrates values and ethics, including the Code, in departmental practices;
- Makes transparent decisions without favouritism or bias;
- Models and instills commitment to citizen-focused service and the public
good;
- Provides fearless advice and acts with the courage of his/her convictions;
- Recognizes and reconciles conflicting values;
- Creates an inclusive and diverse culture built on Official Languages (OL) and
Employment Equity (EE) policies; and
- Models and builds a culture of respect for people and PS principles.
STRATEGIC THINKING – Innovating through Analysis and Ideas
PS leaders advise and plan based on analysis of issues and trends, and how
these link to the responsibilities, capabilities, and potential of their
organization. They scan an ever-changing, complex environment in anticipation of
emerging crises and opportunities. They develop well-informed advice and
strategies that are sensitive to the various needs of multiple stakeholders and
partners, reflect the strategic direction of the PS, and position the
organization for success.
ANALYSIS
An effective leader:
- Frames issues with a thorough understanding of legislation and the role of
the DM;
- Identifies links between global, societal, and economic trends, stakeholder
concerns, the policy agenda, public service values, and departmental, regional
and horizontal issues;
- Extracts the key issues from complex, ambiguous, rapidly changing contexts;
and
- Analyzes problems thoroughly before developing solutions.
IDEAS
An effective leader:
- Provides quality judgment and policy advice to the Minister;
- Develops vision and policy, based on broader PS vision and policy and the
national context;
- Projects beyond the status quo to the department’s potential contribution
to society;
- Sets necessary transformational goals with broad perspective and long-term
timelines;
- Encourages debate and ideas from across hierarchy, skills sets, and
stakeholders;
- Anticipates emerging issues / changing context and develops strategies
quickly to solve problems or seize opportunities; and
- Teaches and learns from others.
ENGAGEMENT – Mobilizing People, Organizations, Partners
PS leaders engage people, organizations, and partners in developing goals,
executing plans, and delivering results. They lay the groundwork by building
coalitions with key players. They mobilize teams, building momentum to get
things done by communicating clearly and consistently, investing time and energy
to engage the whole organization. They use their negotiation skills and
adaptability to encourage recognition of joint concerns, collaboration, and to
influence the success of outcomes. They follow and lead across boundaries to
engage broad-based stakeholders, partners, and constituencies in a shared agenda
and strategy.
An effective leader:
- Develops effective working relationships and trust with the Minister and
Minister’s Office;
- Acts as interface and builds relations between the Minister, partners,
stakeholders, and Central Agencies;
- Mobilizes and motivates teams to achieve objectives;
- Builds a commitment to excellence and common purpose by promoting the vision
internally and externally;
- Collaborates with strategic alliances to achieve departmental and shared
objectives;
- Develops and implements effective communication and engagement strategies
with partners, including unions;
- Builds support through influence, negotiation, and balancing national and
regional interests;
- Removes barriers to collaboration; and
- Works with other DMs as a corporate collective to strengthen PS results for
Canadians.
MANAGEMENT EXCELLENCE – Delivering through Action Management, People
Management, Financial Management
PS leaders deliver results by maximizing organizational effectiveness and
sustainability. They ensure that people have the support and tools they need and
that the workforce as a whole has the capacity and diversity to meet current and
longer-term organizational objectives. They align people, work, and systems with
the business strategy to harmonize how they work and what they do. They
implement rigorous and comprehensive human and financial resources
accountability systems consistent with the Management Accountability Framework
(MAF). They ensure that the integrity and management of information and
knowledge are a responsibility at all levels and a key factor in the design and
execution of all policies and programs.
ACTION MANAGEMENT: Design and Execution
An effective leader:
- Leads organizational change that maximizes results, departmentally and
PS-wide;
- Builds an effective, sustainable organization through stewardship and
governance;
- Creates, aligns, and integrates structures, systems, and teams to better
achieve objectives;
- Integrates the business plan into a transparent management framework;
- Integrates Comptrollership, MAF, federal legislation, regulations, and
policies into organizational practices;
- Fulfils obligations of management accountabilities;
- Applies and encourages strategic risk management practices;
- Integrates HR, Finance, IT, IM, and Communications issues into planning and
actions;
- Revises goals and plans to reflect changing priorities or conditions;
- Commits to a course of action despite incomplete information, if required;
- Makes decisions, initiates urgent actions, and remains calm in crisis
situations; and
- Recognizes and acknowledges errors and makes corrections.
PEOPLE MANAGEMENT: Individuals and Workforce
An effective leader:
- Invests time in managing and developing people, individually and
collectively;
- Looks after people and builds staff morale;
- Provides clear direction on priorities;
- Encourages reasonable and strategic risk taking;
- Recognizes and rewards results and deals constructively with setbacks;
- Gives clear, honest feedback and manages non-performance;
- Builds accountability and value for people management within the executive
community;
- Provides people with the ongoing learning, support, and tools they need;
- Ensures the workforce has the capacity and diversity to meet current and
future needs;
- Builds rigorous HR systems and fulfils obligations of HRM accountabilities;
and
- Collaborates within the DM collective on PS-wide HR initiatives and issues.
FINANCIAL MANAGEMENT: Budgets and Assets
An effective leader:
- Implements strategies to achieve operational efficiencies and value for
money;
- Builds, operates, and monitors rigorous systems for Financial Information
Management, internal audit, and evaluation;
- Fulfils obligations of accountabilities for departmental finance and assets
management;
- Delegates authority, responsibility, and accountability to appropriate
levels;
- Acts on audit, evaluation, and other objective performance information;
- Links financial and performance information; and
- Manages stewardship issues actively, e.g. chairs audit and evaluation
committees, seeks strategic re-allocation.
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