Performance agreements & assessments
Relationship to legislation
The Chief Executive Officer (CEO) performance agreement is a statutory requirement of section 47 of the Public Sector Management Act 1994 ("PSM Act"), to be prepared following the appointment of a CEO to the public sector. A performance agreement is required for all CEOs appointed under section 45 of the PSM Act, and is to be completed for each financial year (or calendar year for Managing Directors of TAFE Colleges). Acting CEOs are also required to establish an agreement within two months of commencing in an acting CEO role.
The Public Sector Commissioner has delegated responsibility to administer CEO performance agreements. A performance agreement established between a CEO and his or her responsible authority does not take effect until ratified by the Public Sector Commissioner.
It should be noted that CEO performance agreements:
- are not a substitute for a strategic plan (although the two are closely related)
- can be updated or amended at any time on the agreement of all parties to the agreement
- is not legally enforceable (as stipulated in section 47(3) of the PSM Act.)
What is the purpose of CEO performance agreements?
The purpose of the Chief Executive Officer Performance Agreement Framework is to support high performance leadership and clear accountability across the public sector by:
- documenting the specific outcomes being sought by a responsible authority with respect to Government priorities, policies and key reform themes.
- promoting a shared understanding between a Responsible Authority, a Chief Executive Officer (CEO) and the Public Sector Commissioner (as employer) about the specific outcomes and performance standards that are expected to be achieved over a specified period.
- reinforcing the connection between CEO performance, good administration and management practices and the range of administrative compliance obligations that exist for agencies and CEOs in the public sector accountability framework.
- providing a catalyst for the identification of personal performance development goals relevant to the achievement of the agreed outcomes, sector-wide initiatives and overall excellence in leadership and effective administration and management.
The CEO performance agreement framework
The CEO Performance Agreement Framework addresses two key components of a CEO's responsibilities. The first is agency-specific goals and the second is responsibility for contributing to sector-wide initiatives as determined by the Public Sector Commissioner. The agreement also facilitates the identification of individual professional development.
These sections are discussed further on the Structure of CEO performance agreements page.
Specific requirements for the completion of agreements are found in Approved Procedure 8, which is discussed further on the Process and timing requirements page.
Evaluating the Agreement
The responsible authority and the Public Sector Commissioner will undertake an appraisal of a performance agreement in consultation with the CEO. The evaluation may draw on the observations and experience of the responsible Minister and/or Board Chair, self-assessment by the CEO, and relevant information collected by the Public Sector Commission or provided by other central agencies and oversight bodies that play a role in 'sponsoring' sector-wide initiatives.
Director Executive Services
Ph: (08) 6552 8633
Page last updated 28 September 2012