Table of Contents
Preamble
Effective Date
Application
Program Objectives
Guiding Principles for the PMP
Required Elements of the PMP
Assessment and Assessment Criteria
Performance Descriptions
Compensation Effects of Performance Assessment
Budget
Reporting
Performance Cycle
Consequences for Non-compliance with Requirements
Accountabilities and Roles
Enquiries
Annex A: Sample Template
Annex B Sample Letter of Attestation
Annex C Annual PMP Report
Note: Instructions for the administration of
Performance Awards are found in the Salary Administration Policy for the
Executive Group.
In its 1998 report the Advisory Committee on
Senior Level Retention and Compensation recommended the implementation of a
Performance Management Program for the Executive (EX) Group both as a
management tool to support the achievement of business results and as the tool
to be used in determining changes in the compensation of executives.
Performance management is the
process of planning, managing, improving, developing, supporting, assessing and
rewarding performance; it is linked to other key Human Resources initiatives
that take place in departments and agencies, such as: human resources planning
(including succession planning), career management and training and
development.
The PMP is:
- A key component of
an effective human resource strategy for the attraction, retention and
compensation of senior managers in the federal Public Service;
- A key management
tool to:
- Link individual accountability at all levels to
the strategies and business priorities of the government;
- Communicate expectations and priorities related to business planning
and the application of leadership competencies;
- Ensure that executives follow through on
commitments and accountabilities;
- Support organizational results-based planning
and performance measurement, reporting and accountability;
- Ensure that executives understand corporate
priorities and how they are expected to contribute to the achievement of these
priorities;
- Support individual development in Public Service
leadership competencies; and,
- Support horizontal
initiatives within departments as well as between departments and agencies,
jurisdictions, and levels of government or external stakeholders through
recognition of such teamwork in the performance agreements of individual
executives.
- A
critical component of total compensation for the EX Group, recognizing
that compensation
given to members of the Executive Group should reflect their performance.
The effective date of
these Directives is April 1, 2004.
These Directives apply to
Public Service organizations employing members of the occupational groups and
levels identified in the Salary Administration Policy for Executives.
The objectives of the
Performance Management Program (PMP) for the Executive Group are to:
- Support a
management regime that is based on values and ethics and clearly defined
leadership competencies;
- Encourage
excellence in performance by recognizing and rewarding the achievement of
results that are linked to business plans and/or corporate priorities and the
demonstration of Public Service leadership competencies, values and ethics;
and,
- Provide a
framework within which a consistent and equitable approach to managing
performance can be applied.
The
principles of respect and fairness govern the exercise of authority in managing
the performance of executives. These
principles mean that it is recognized
and respected that employees are entitled to:
- A clear idea of what is expected of them;
- Regular feedback concerning their
performance; and,
- Learning and development opportunities to
help them improve their performance.
The PMP for Executives
is a tool for a consistent and equitable approach to performance management and
assessment and is designed to support
objective evaluation and differentiation of levels of performance across the EX
Group.
The Performance Management Program
requires that every person in the organization who is being paid as an EX have
a written performance agreement.
The performance agreement:
- Demonstrates the link between an organization’s business plans and
priorities and an individual’s commitments.
The process to develop performance agreements must be integrated with
the annual departmental business planning cycle; and,
- Documents the
mutual understanding between the executive and his/her supervisor of the what
(results) and the how (leadership competencies) that will be used to
assess the performance of the executive for the performance cycle.
The starting points for
deciding what commitments should be included in performance agreements each
year are:
- Priorities of the
government;
-
Priorities of the
Clerk of the Privy Council as Head of the Public Service;
- Priorities and
plans of individual departments and agencies; and,
- Individual
development needs, which may include the development of leadership
competencies.
Assistant Deputy Head performance
agreements, as the main linkage between individual executives and the business
plans of each organization, should demonstrate alignment with corporate plans,
and include uniformity in certain ongoing commitments, defining what might be
called the broad executive management agenda for the organization.
The performance agreements for each
successive level of executive should demonstrate cascading of commitments –
that is, each commitment is an operationalization of the supervisor’s commitments,
within the realm of each executive’s responsibilities.
The performance agreement between
the executive and his/her supervisor must include the following mandatory
components to be considered valid:
- Ongoing Commitments*
- Key Commitments*
- Performance
measures of successful achievement of the commitments and leadership
competencies
- A written assessment of actual results achieved during the performance
cycle and the level of leadership competency demonstrated
- The signatures of
the executive and the supervisor when the commitments are approved.
* In situations where
the job consists solely of a special project or assignment, there are normally only
Ongoing Commitments. Exceptions could
be considered when the assignment is of such scope and complexity to warrant
the development of Key Commitments as well.
Performance agreements
are subject to revision throughout the performance cycle, dictated by such
factors as changed priorities and feedback.
An executive may have several performance agreements throughout a
performance cycle, for example, if the executive changes jobs or takes on a new
assignment or if the supervisor changes.
Each revision or new agreement must be signed.
It is a best practice
that each performance agreement include a personal learning plan that
identifies training and development commitments along with the resources that
will be provided to support the learning plan.
- Ongoing
Commitments are the principal results that the executive is expected to
accomplish so that the department can achieve its business mandate. They are linked to the departmental business
plans and/or priorities, and are reflective of the position description.
- Ongoing
Commitments are part of the continuing responsibilities of the position that do
not normally change from year to year.
They should reflect a balanced representation of core accountabilities
such as: financial management (budget), human resources management, business
planning, policy development and operational program delivery and,
self-development.
- Ongoing
Commitments should be Specific (clearly stated), Measurable, Achievable (through
influence and control), Results-based
and Timely (SMART).
Within the performance cycle the executive undertakes to achieve
specified results for each Ongoing Commitment.
- Executives may document a personal learning plan, which may include the
development of leadership competencies, in their performance agreements as an
Ongoing Commitment.
- A minimum of four
(4) and a maximum of seven (7) Ongoing Commitments should be established per
performance cycle.
- Key Commitments
are areas of focus over and above ongoing commitments for the performance
cycle. They may reflect change
initiatives linked to business plans, corporate departmental priorities or
Public Service priorities identified by the Clerk of the Privy Council as Head
of the Public Service. They are intended to be challenging but achievable with
effort.
- Normally Key
Commitments change from year to year.
- At least one (1)
Key Commitment and a maximum of three (3) Key Commitments should be established
per performance cycle.
- Performance
measures describe how an observer would know that the results have been
achieved within the performance cycle and define standards for expected level
of achievement of these results.
- The first step in
defining performance measures is the establishment of SMART (Specific
(clearly stated), Measurable,
Achievable (through influence and control), Results-based and Timely) commitments.
- The choice of a
performance measure implies that quantifiable data/information indicating
performance achievement will be available and that efforts will be made to
obtain the information defined in the measure.
- If feasible,
performance measures should also describe what characterizes levels of
performance that are above expectations.
- Performance
measures should be established at the start of the performance cycle when
commitments are established and can be adjusted during the performance cycle.
There should be 1-3 measures per Ongoing and Key Commitment.
-
Performance
measures should be assessed to ensure they are measuring the right results.
There is no set format
requirement for the performance agreement;
departments and agencies have the flexibility to develop an agreement
template or system that best suits the organization’s business planning and
results reporting requirements. Minimum requirements of a performance agreement
include:
- Parties involved
- Signature block
- Date of
performance cycle
- Ongoing
Commitments and performance measures
- Key Commitments
and performance measures
- Results achieved
(completed at the end of the performance cycle)
- Narrative
assessment (completed at the end of the performance cycle)
- A statement about
Privacy of Information
- In addition, to
clearly identify linkages to corporate priorities and the Clerk’s priorities, a
simple checklist is recommended
Annex A to these
Directives shows a sample performance agreement that meets the minimum
requirements.
Performance agreements should be periodically reviewed
by the executive and his/her supervisor and adjusted as required. In the event
of significant changes, commitments and the related performance measures can be
adjusted.
At the end of the
performance cycle each individual is assessed on the "Results
Achieved" based on the measures set for commitments. The results are
documented on the performance agreement with the appropriate Summary Ratings
for ongoing commitments and key commitments. The demonstration of leadership
competencies in the achievement of all commitments should be taken into
consideration when applying the assessment rating. Finally, an overall
narrative assessment of performance with suggested career development action
plans should also be documented.
The Performance
Management Program also requires that the deputy head have in place in the
organization a review mechanism or mechanisms, such as a review committee, to
ensure equity and consistency in performance assessment ratings of all
executives across the organization for the performance cycle.
Prior to authorizing
the issuing of payments for a performance cycle, the deputy head must, prior to
June 30, send a letter to the President of the Public Service Human Resources
Management Agency of Canada (PSHRMAC) personally attesting that:
- Each employee
subject to the PMP has a signed performance agreement; and,
-
The department has
a review mechanism to review the performance of each executive for equity and
consistency.
The letter of attestation
should also provide information about the overall expenditure for lump sum
payments, as a percentage of executive payroll. A sample letter of attestation,
which may be sent to the Agency by FAX is in Annex B.
The Public Service Human
Resources Agency of Canada will authorize payment when all of the above
requirements have been met.
Each department and
agency is responsible for developing performance assessment standards that
respond to the organization’s specific needs. Deputy heads are responsible for
communicating these standards, including clear information on what makes some
commitments more challenging, or important or critical to the organization’s
mission than others.
Assessment must include,
at a minimum:
- An assessment of
each individual’s performance against commitments, including assessment of how
the results were achieved, based on the leadership competencies;
- One-on-one
performance discussions with each executive, including constructive feedback
and identification of, and support for development and learning opportunities;
and,
- Vertical and
horizontal cross-organization review of performance assessments to ensure
consistency and fairness.
The
performance level descriptions below are to be used to assess performance
against commitments. Levels 2 to 4 may
be further sub-divided, provided that definitions are developed to describe the
expected level of performance and communicated to executives. Other titles may
be substituted provided they are cross-referenced to the four levels for
reporting purposes.
Note
that for 2004-2005 fiscal, leadership competencies that must be considered in
assessing performance refer to those related to valuing and managing
people. In 2005 - 2006 the revised leadership competencies all
refer to valuing and managing people.
This performance
level and results achieved can be characterized by the following statements:
- Delivered on all commitments
and exceeded expectations in the delivery of major commitments
- Consistently
delivers results that provide exceptional value to stakeholders and the
organization
- In delivering
commitments, is seen as an organizational role model in demonstrating the
departmental/leadership competencies.
This performance level and results achieved can
be characterized by the following statements:
- Delivered on all
commitments
- A strong
contributor to stakeholder and organizational successes
- In delivering
commitments, clearly demonstrated the departmental/leadership competencies.
This performance level and results achieved can
be characterized by the following statements:
- Delivered on the
most important commitments but not necessarily on all commitments
- Performance
results indicate a need for development in some areas
- In delivering
commitments, demonstrated a need to show improvement in the
departmental/leadership competencies.
This performance level and results achieved can be
characterized by one or more of the following statements:
- Delivered on some
but did not deliver on one or more of the most important commitments
or
- Performance
results fall below expected standards
or
In delivering
commitments, had ongoing difficulty in demonstrating the
departmental/leadership competencies.
Note: Individuals who receive a ‘Did Not Meet’
assessment should receive appropriate follow-up that addresses performance
issues.
Individuals who are
‘Unable to Assess’ are eligible for salary range increases, but no in-range
movement or lump sum performance pay.
An individual is
considered ‘Unable to Assess’ when there has been insufficient opportunity
(e.g. fewer than three (3) months) to allow for the achievement of performance
commitments. This does not mean that
the individual has not established a performance agreement, just that there has
been insufficient opportunity for achievement against the commitments. There
are 4 situations where Unable to Assess could apply for both
Ongoing and Key Commitments:
- New to the Public
Service
- Newly
appointed to the group from another occupational group
- Non-EX
acting in an EX position for fewer than three months
- Employee absent
from the job for a significant period of the performance cycle, e.g. leave
without pay or sick leave.
There are two situations
where executives might be considered Unable to Assess for Key
Commitments only:
- Executives on language
training have only one Ongoing Commitment for the duration of the language
training – attendance at language training in order to meet the language
requirements of the position, and must be considered to have met ongoing
commitments. Since there are no Key Commitments for the period of training,
they receive an Unable to Assess rating for Key Commitments in
that period.
- Situations where no Key
Commitments were established for the performance cycle, for example, an
employee whose job consists of a single project or assignment to accomplish for
the performance cycle.
Note on distribution of assessment
levels: It is recognized that a normal
distribution would result in 5% of the population assessed at level 1.
The performance assessment and resulting
compensation effects should take place within sixty days of the end of the
performance cycle.
Performance awards include in-range movement and lump sums.
No performance award may be authorized in the absence of a
signed performance agreement.
Deputy heads have flexibility to provide performance awards
that are appropriate to their organizational priorities and requirements
provided these awards are within the PMP Directives.
In determining the percentage of in-range movement and lump
sums, deputy heads should take into account the importance and impact of
results achieved. The focus should be equally on what was accomplished
and how it was done.
The executive earns a base salary for the accomplishment of
Ongoing Commitments.
The achievement of Ongoing Commitments and how the
results were achieved (demonstration of leadership competencies) affect progression
through the salary range for the position (in-range movement) which should vary
with assessed performance.
Over and above the base salary, executives have
opportunities to earn at-risk pay and bonuses based on the achievement of key
commitments.
A prerequisite for access to at-risk pay and bonuses is
that expectations for the achievement of ongoing commitments have been met.
The achievement of Key Commitments and how the
results were achieved (demonstration of leadership competencies) affect the
amount of lump sum performance awards, defined as at-risk pay and bonuses.
At-risk pay is defined as any lump sum performance award for:
- EX-1 to EX-3 – up to seven per cent
(7%) of base salary
- EX-4 and EX-5 – up to ten per cent
(10%) of base salary
A bonus is defined as any
lump sum performance award for:
- EX-1 to EX-3 – up to an additional
three per cent (3 %) of base salary
- EX-4
and EX-5 – up to an additional five per cent (5 %) of base salary
Only those who receive full
7 % (EX-1 to EX-3) or 10 % (EX-4 and EX-5) are eligible for a bonus.
At-risk pay and bonuses must be re-earned each year, and do
not increase an individual’s base salary.
The budget for at-risk pay and bonuses is part
of the annual departmental reference levels, totaling seven percent (7 %)
of the March 31st payroll for members of the occupational groups and
levels to which the provisions of the PMP apply.
Departments may exceed the budget where results
warrant, and when the excess can be found from existing reference levels.
Organizations with fewer than ten executives
should follow the budget guidelines below:
Number of Executives
|
Number
of Surpassed Ratings
|
Budget
for at-risk pay and bonuses as a % of March 31 Payroll
|
1
|
1
|
10.0%
|
2
|
1
|
8.5%
|
3
|
1
|
8.0%
|
4
|
1
|
7.7%
|
5
|
1
|
7.6%
|
6
|
1
|
7.5%
|
7
|
2
|
7.4%
|
8
|
2
|
7.3%
|
9
|
2
|
7.3%
|
10
|
2
|
7.0%
|
Annually, departments and
agencies must submit to the PSHRMAC:
- PMP
Report: The Requirements of this report are in Annex C.
- Monitoring
and Evaluation Framework Scorecard: the requirements consist of annual and
triennial reports in a scorecard format. Triennial elements are reported
on a rotating schedule so that in any year, one-third of departments and
agencies are reporting. PSHRMAC
will advise departments and agencies as to the timing of these reports and
provide training and support. This reporting requirement begins with the
2005 – 2006 fiscal year.
- Quality
Review of Performance Agreements: upon request, departments and agencies
must submit copies of performance agreements for review.
The PMP performance
cycle is the fiscal year from April 1st to March 31st.
Non-compliance with the
required elements of the Performance Management Program may result in a citing
of the department or agency in the President of PSHRMAC’s annual report to
Parliament on human resources management.
In some cases, the consequences may be a modification or withdrawal of
delegation of authority and/or recovery of amounts paid.
The following
table
highlights
some of the roles of key players accountable for the PMP for executives.
Who
|
What
|
Clerk
of the Privy Council
|
-
Establishes broad Public Service corporate
priorities in consultation with Deputy Ministers.
-
Establishes personal performance agreements
with Deputy Ministers.
-
With the Committee of Senior Officials and the
Deputy Minister community, champions the leadership competencies for the
Public Service of Canada and ensures their alignment with the current and
future needs of the Public Service.
|
Public
Service Human Resources Management Agency of Canada
(PSHRMAC)
|
-
Establishes the PMP Directives.
-
Provides instructions for the administration
of compensation and the requirements for departmental reports on the PMP.
-
Develops an integrated implementation strategy
for the Public Service leadership competencies.
-
Annually gives approval, to each deputy head
who has attested that the PMP program requirements have been met, to pay
performance awards to employees subject to the PMP.
-
Develops and delivers PMP learning sessions in
consultation with departments.
-
Monitors and evaluates the health and effectiveness
of the PMP.
|
Deputy
Head
|
-
Plans, manages, and accounts for the
performance of each executive.
-
Develops and communicates performance
assessment criteria and standards that respond to the department or agency’s
specific needs.
-
Establishes performance agreements with direct
reports based on Public Service corporate priorities and departmental
business plans and Public Service leadership competencies.
-
Assesses the actual results achieved by direct
reports at the completion of the assignment or business cycle and provides
feedback.
-
Implements the annual departmental performance
management program within the PMP description and directives.
-
Implements effective and efficient processes
to meet the requirement to ensure equity and consistency in the application
of the PMP. Such processes must include a review mechanism and may
include:
-
Simplified and streamlined planning and
assessment processes
-
A format for performance agreements that
supports departmental business planning requirements
-
Implements effective performance assessment
programs and processes.
-
Periodically and when required by PSHRMAC
evaluates the administration of the PMP to ensure the organization complies
with the PMP Directives.
-
PMP program requirements
have been met for that performance cycle in order to receive authorization to
pay in-range salary movement, at-risk pay and bonuses to those subject to the
PMP.
-
Submits a report to the PSHRMACon
the application of in-range salary movement, at-risk pay and bonuses by June
30 annually.
-
Keeps copies of signed performance agreements
for the purpose of audit by the PSHRMAC.
|
The following describes
roles for other players that reflect expectations for the effective management
of the program.
Who
|
What
|
Assistant
Deputy Minister (ADM)
|
-
Develops business plan for area of
responsibility.
-
Establishes ongoing/key commitments,
performance measures and interdependencies with deputy head.
-
Signs his or her own performance agreement.
-
Establishes and signs individual performance
agreements with direct reports.
-
Assesses the actual results achieved by direct
reports at the completion of the assignment or business cycle, and provides
feedback.
-
Communicates priorities with direct reports.
|
Director
General / Director
|
-
Develops business plan for area of
responsibility.
-
Establishes ongoing/key commitments,
performance measures and interdependencies with supervisor.
-
Signs the performance agreement.
-
Establishes individual performance agreements
with direct reports.
-
Assesses the actual results achieved by direct
reports at the completion of the assignment or business cycle, and provides
feedback.
-
Communicates priorities with direct reports.
|
Head
of Human Resources / Head of Departmental Business Planning
|
-
Advises senior management on the PMP
framework/business planning process and performance management process
requirements.
-
Provides advice and guidance to senior
management on the leadership competencies and their uses.
-
Develops and implements the departmental
performance management training strategy for executives and incorporates PMP
training into departmental EX orientation/ training.
-
Implements the Salary Administration Policy
for the Executive Group and these Directives.
|
Comments and questions
related to these directives should be referred to responsible officers in
departmental headquarters who in turn may direct question to:
Executive
Management Policies Directorate
The Leadership Network
Public Service Human Resources Management Agency of Canada
Ottawa, Ontario
Tel:
(613) 995-3146
(613) 943-5519
(613) 947-2845
Fax:
(613) 943-5205
Between:
___________________________
And: ___________________________
Signature: ______________Date:_________
|
Performance Agreement
( year – year)
|
Reviews of this agreement were conducted
on the following dates:
Mid-term: ______
Change of Supervisor: _____
Change of Assignment: _____
|
Checklist for Alignment
|
Ongoing Commitments
(4 to 7
commitments)
|
Priorities
of the Clerk of the Privy Council
|
Corporate
Priorities
(May be sub-divided)
|
Commitment
|
Performance Measures
(1 to 3 per
commitment)
|
Results
Achieved
(for each
commitment)
|
|
|
|
|
|
|
Human
Resources Management:
|
|
|
|
|
|
|
|
|
Financial
Management:
|
|
|
|
|
|
|
|
|
Business accountabilities of the
position:
1
2
3
4
|
|
|
Checklist or Alignment
|
Key Commitments
(1 to 3)
|
Priorities of the Clerk of the Privy
Council
|
Corporate Priorities
(May
be sub-divided)
|
Commitment
|
Performance Measures
(1 to 3 per commitment)
|
Results Achieved
(for each commitment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluation
Narrative Assessment:
Ongoing Commitments Rating: __________
Key Commitments Rating: __________
|
I have read this assessment:
Signatures:
Executive: _____________Date_______
Supervisor: : ______________Date_______
|
Personal
information will be protected under the provisions of the Privacy Act
and will be stored in Standard Bank, Performance Reviews and Employee
Appraisals PSE 912. This document may
be used by the Public Service Human Resources Agency of Canada for audit or
program evaluation purposes.
|
FAX
this letter to (613) 943-5205
(Date)
(Name)
President
Public Service Human Resources Management
Agency of Canada
C/O Executive Management Policies Directorate
Ottawa, Ontario
Dear (name),
This letter is to attest that all requirements of
the Performance Management Program for Executives for (name of the Department
or Agency) for (fiscal year) have been met: all executives have signed
performance agreements and our organization has in place a review mechanism to
ensure equity and consistency in the performance assessment of all executives.
Our planned expenditure for at-risk pay and bonuses
as a percentage of the executive payroll is (
% ).
As all requirements of the PMP have been met, I request your
authorization to proceed with payments to executives.
Yours sincerely,
Signature
(Please provide a fax number for the
Agency’s reply)
This report must be submitted annually, by June
30, for all groups and levels covered by the Salary Administration Policy for
the Executive group. An
EXCEL
spreadsheet in electronic format is
preferred.
The PMP Report should be sent, under
PROTECTED status, to:
Carolyn Guest
Senior Analyst
Leadership Network
122 Bank Street
Ottawa ON K1A 0R5
The data requirements for the Annual PMP
Report are as follows:
Field name
|
Width
|
Contents
|
DEPT
|
3
|
Department
|
PRI
|
8
|
Personal Record Identifier
|
FNAME
|
20
|
Employee family name
|
INIT
|
3
|
Employee Initials
|
GENDER
|
1
|
1 Male
2 Female
|
LOC
|
1
|
Geographic Location of the position:
1 Headquarters (HQ)
2 Location other than HQ
|
CLASS
|
6
|
Employee Group and Level
(Acting status should be shown by placing an A/ in front the
Group and Level, e.g. A/EX01)
|
JRATE
|
6
|
March 31 job rate (range maximum)
|
MARCH 31 SALARY
|
6
|
Employee’s salary at March 31
|
OGC LEVEL
|
1
|
Ongoing Commitments Assessment Level:
4
3
2
1
0
|
BASE SALARY INCREASE
|
6
|
Dollar amount of base salary increase (in-range movement)
|
REVISED SALARY
|
6
|
Revised base salary after in-range movement
|
FINAL SALARY APRIL 1
|
6
|
Revised base salary after in-range movement and any rounding
|
KC LEVEL
* The Unable to Assess rating MUST be used if the rating
for Ongoing Commitments was Unable to Assess
|
1
|
Key Commitments Assessment Level:
4
3
2
1
0
|
KC LUMP SUM
|
6
|
Dollar amount of lump sum in relation to Key Commitments
|
UTA REASON
|
1
|
Reason for the Unable
to Assess Rating
1 New EX in PS
2 New EX from another PS group
3 Non-EX acting as EX less than 3 months
4
EX absent from position for a significant period of the
cycle, e.g. language training, on LWOP or sick leave
5
Unable to Assess for Key Commitments Only: EX on language
training for the entire cycle (must be combined with Met All for Ongoing Commitments)
6
Other Unable to Assess for Key Commitments Only: No Key
Commitments were established
|
PERFORMANCE PAY CATEGORY
(New for 2004-2005)
|
1
|
1
No At-Risk Pay
2
At-Risk Pay
3
Bonus
|
COMMENTS
|
|
As appropriate
|
|