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Testing for the X factor

The UK Experience by Malcolm Morley*

There is a television program in England called Stars in Their Eyes where aspiring singers imitate famous stars. It’s very popular and provides people with a particular type of talent (singing in other people’s style) with recognition. Another very popular show has emerged based upon a real talent contest, called the X Factor. In the X Factor contestants have to be themselves and to prove their own real talent. For some this leads to real fame; for many a realisation that they do not have the X factor.

What’s all this got to do with Councils? The Comprehensive Performance Assessment (CPA) test is changing to provide a “Harder Test” for Local Government performance. It has been designed to test whether Councils have merely got stars in their eyes or if they have the X factor.

The Audit Commission has decided to use a 0–4 scale of stars to replace the poor to excellent categories of CPA. The rationale for the change and the “Harder Test” is that the expectations placed on Councils are constantly changing.

Continuous improvement requires an increasing bar height for Councils to illustrate their performance. Previously being judged as excellent is no longer enough.

The star ratings will be combined with a Direction of Travel Statement. This statement will illustrate whether Councils are improving strongly or just well or just adequately. Where this is not the case, the statement will identify the Council as not improving adequately or not improving.

In combining star ratings and Direction of Travel Statements, the public will be able to tell whether a Council’s performance is comparable with the best and whether its potential to improve further gives confidence that it will continue to improve.

Direction of Travel Statements will be determined by a Council’s track record of achievement of outcomes and the delivery of improvement plans will be tested. Is the Council delivering what it promised and how does that compare with the best?

Star ratings have three elements:

  • the use of resources (financial planning/ management/value for money)
  • a corporate assessment (ambition, prioritisation, performance management and achievement)
  • service assessment (focusing on children and young people, adult social care, housing, environment, culture, benefits and the fire service).

A detailed formula will translate assessment scores into star ratings.

To gain four stars a Council would have to score a maximum four points for the corporate assessment and at least three for all services assessed. A Council with one or two points for its corporate assessment and one for any service would not be awarded any stars. All other combinations will result in one to three stars.

It is not clear how the new system will evaluate local innovation and performance outside of the context of national comparison of performance statistics. It is anticipated that few Councils will get four stars and a Direction of Travel stating that they are improving strongly. These will be the Councils truly with the X factor.

Most Councils will have to prove that they’re good stars in their eyes competitors before they can reach for the X factor!

*Malcolm Morley is Chief Executive of Harlow District Council and can be contacted via the Editor, email info@lgfocus.com.au The views expressed in this article are not necessarily those of his employer.

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