CEO Performance Management Process

Outlines the performance management process for public sector CEOs.
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The performance, leadership and development of our most senior leaders are central to our sector delivering the best outcomes for the community of Western Australia.

While the details differ between the various groups of CEOs, the statutory obligation and general principles of performance planning and appraisal apply to each CEO.

Our approach aims to drive high levels of performance with clear accountability. It is underpinned by section 47 of the Public Sector Management Act 1994 (PSM Act) and Commissioner’s Instruction 30: Chief Executive Officer Performance Management.

Process

Every CEO performance management process follows the same main steps.

  1. The CEO prepares an agreement using the relevant template.
  2. The agreement is endorsed by board chair/s and/or Minister/s and the Public Sector Commissioner.
  3. Ongoing review and feedback are included during the period of the agreement.
  4. The CEO self-assesses and reflects on their performance against the criteria in the agreement.
  5. The board chair/s and/or Minister/s evaluate the CEO’s performance and endorse the assessment.
  6. The Public Sector Commissioner endorses the finalised assessment.

Due to overlap in the performance agreement period, discussions about a CEO’s performance also inform future expectations and leadership focus areas for the next agreement.

Note: Acting CEOs and CEOs appointed part way through an agreement period should discuss their requirements with the Public Sector Commission by emailing the CEO Management team.

Contents of an agreement

A performance agreement includes the criteria to be met by the CEO during the term of the agreement and how they are to be assessed.

Each agreement has 4 parts:

1. Delivery of management requirements

The delivery of management requirements is in accordance with high level principles of efficiency and effectiveness. Public administration and management principles are set out in sections 7, 8 and 9 of the PSM Act; and CEO functions are set out in section 29 of the Act .

2. Contribution to whole-of-government priorities

The delivery of whole-of-government priorities create value for the sector and better services for Western Australians. Priorities of government include election commitments, COVID-19 response and recovery, public sector workforce policies, and diversity and culture targets. 

3. Delivery of Minister/s and/or board chair/s priorities

The delivery of priorities as determined by Minister/s and/or board chair/s to meet specific portfolio requirements. These are negotiated between the CEO and responsible authority (or authorities) of the agency to document the performance criteria to be applied to assess the key deliverables, and priority outcomes for the agreement period.

4. Delivery of effective leadership

Identification of professional development goals related to the delivery and leadership requirements of the agreement, and formulation of an action plan to progress these goals during the agreement period.

Key information for Public Sector Leadership Council CEOs

Agreement term: 2 financial years from 1 July 2023 to 30 June 2025

Established by: 31 October 2023

End-of-cycle assessment finalised by: 31 October 2025

Template: Contact the CEO Management team for the current template.

Key features:

  • 2-year period allowing for strategic priorities to be achieved.
  • Feedback on CEO’s leadership from government and non-government stakeholders.
  • Leadership self-assessment at start and end of agreement against leadership capabilities and mindsets required for effective public sector leadership.
  • Development guarantee providing a commitment to staged and targeted development and learning over the first 5 years of CEO’s tenure.

Phases

1. Establishing the agreement

CEO considers achievements of the previous agreement and areas where progress is expected for the next agreement.

CEO uses letter/s of expectation provided by Minister/s and/or board chair/s to populate Part 3 deliverables and priorities in the agreement.

CEO initiates discussions with Minister/s and/or board chair/s to agree on key deliverables. A CEO reporting to more than one responsible authority ensures relevant priorities are agreed with each responsible authority.

The CEO undertakes an initial leadership self-assessment and populates Part 4 of the new agreement. Where a leadership self-assessment was undertaken at the end of the previous agreement cycle, CEO uses ‘on balance’ ratings to populate Part 4 of the new agreement.

If required, the Commissioner meets with the CEO to discuss the draft agreement.

2. Mid-cycle review

Commission gathers information about the CEO’s leadership through a 180-degree survey of nominated staff as well as a survey of peers from central agencies (Department of Treasury, Department of Finance, Department of the Premier and Cabinet, and Public Sector Commission) and/or line agencies. Survey results are provided in a report to the CEO.

CEO reflects on this report, assesses their leadership performance and reviews their agreement.

CEO meets with the Commissioner who considers the mid-cycle review documentation and provides feedback on the CEO’s leadership and performance.

3. End-of-cycle assessment

Commission gathers information about the CEO’s leadership through an external validation survey of key stakeholders. Survey results are provided in a report to the CEO.

CEO assesses their performance against deliverables in Parts 1 to 3 of the agreement.

CEO reflects on the external report (and mid-cycle feedback report) when assessing and evaluating their leadership performance against Part 4 of the agreement.

Minister/s and/or board chair/s assess the CEO’s performance of how they have met performance expectations. These assessments can be conducted concurrently, and assessment document can be split by the relevant responsible authority and responsible Minister.

CEO receives feedback through either a joint meeting between all parties to the agreement or an individual meeting with the Commissioner.

If amendments to the agreement are required during the 2-year agreement period, a supplement to the agreement is produced by the CEO and endorsed by the relevant parties to the agreement.

Reflection and self-assessment

Each phase includes the CEO reflecting on and assessing their performance. There is opportunity for ongoing feedback and discussion with the Commissioner throughout the agreement cycle. These discussions enable the Commissioner to develop a greater understanding of the context and challenges faced by the CEO.

Roles and responsibilities

CEO's

  • Engage in performance management process.
  • Submit agreement, mid-cycle review document and end-of-cycle assessment in required timeframes.
  • Nominate respondents for:
  • 180-degree survey and peer feedback survey (mid-cycle)
  • external feedback survey (end-of-cycle).
  • Participate in end-of-cycle meeting with Minister/s and/or board chair/s and Commissioner.
Ministers and/or board chairs
  • Contribute to letter/s of expectation.
  • Endorse the agreement on establishment.
  • Endorse any subsequent amendments via a supplement to agreement.
  • Participate in end-of-cycle meeting.
  • Provide end-of-cycle assessment, commentary and endorsement.
Public Sector Commission
  • Designs, manages and administers guidelines, templates, surveys and activities.
  • Provides survey results to Commissioner and CEOs.
  • Provides letter of expectation template to Ministers and board chairs.
  • Supports CEOs with the Development Guarantee.
Public Sector Commissioner
  • Liaises with key stakeholders on performance management processes.
  • Endorses agreements on establishment and notes any subsequent amendments.
  • Meets with CEOs to:
  • establish agreements
  • provide mid-cycle review feedback and discuss priority areas for leadership development
  • provide feedback on leadership and performance at joint or individual meeting.
  • Provides end-of-cycle assessment, commentary and endorsement.
  • Supports CEOs with their performance and leadership.

 

Key information for CEOs of other departments and SES organisations

Agreement term: 1 financial year, from 1 July 2024 to 30 June 2025

Established by: 31 October 2024

End-of-cycle assessment finalised by: 31 October 2025

Template: 2024-25 CEO Delivery and Performance Agreement template

Phases

1. Establishing the agreement

CEO considers achievements of the previous agreement and areas where progress is expected for the next agreement.

CEO initiates discussions with Minister/s and/or board chair/s to agree on key deliverables. A CEO reporting to more than one responsible authority ensures relevant priorities are agreed with each responsible authority.

If required, the Commissioner meets with the CEO to discuss the draft agreement.

2. Agreement assessment

CEO reflects on and assesses their performance against deliverables in Parts 1 to 3 of agreement.

CEO assesses their progress against development goals in Part 4 of the agreement.

Minister/s and/or board chair/s assess CEO’s performance of how they have met performance expectations.

Reflection and self-assessment

The CEO reflects on and assesses their performance.

Roles and responsibilities

CEOs
  • Engage in performance management process.
  • Submit agreement and agreement assessment in required timeframes.
Ministers and/or board chairs
  • Endorse the agreement on establishment.
  • Endorse any subsequent amendments via a supplement to the agreement.
  • Provide agreement assessment, commentary and endorsement.
Public Sector Commission
  • Design, manage and administer templates.
Public Sector Commissioner
  • Liaise with key stakeholders on performance management processes.
  • Endorse agreements on establishment and note any subsequent amendments.
  • Provide agreement assessment and endorsement.
  • Support CEOs with their performance and leadership.

 

Key information for CEOs of state training providers

Agreement term: 1 calendar year, from 1 January 2024 to 31 December 2024

Established by: 31 March 2024

End-of-cycle assessment finalised by: 31 March 2025

Template: Contact the CEO Management team for this year's template.

Phases

1. Establishing the agreement

CEO considers achievements of the previous agreement and areas where progress is expected for the next agreement.

Commissioner pre-populates agreement with vocational education and training specific priorities, following consultation with Minister for Education and Training.

2. Agreement assessment

CEO reflects on and assesses their performance against deliverables in Parts 1 to 3 of agreement.

CEO assesses their progress against development goals in Part 4 of the agreement.

Minister/s and/or board chair/s assess CEO’s performance of how they have met performance expectations.

Reflection and self-assessment

The CEO reflects on and assesses their performance.

Roles and responsibilities

CEOs
  • Engage in performance management process.
  • Submit agreement and agreement assessment in required timeframes.
Ministers and board chairs
  • Endorse the agreement on establishment.
  • Endorse any subsequent amendments via a supplement to agreement.
  • Provide agreement assessment, commentary and endorsement.
Public Sector Commission
  • Design, manage and administer templates.
  • Support CEOs with professional development.
Public Sector Commissioner
  • Liaise with key stakeholders on performance management processes.
  • Endorse agreements on establishment and notes any subsequent amendments.
  • Provide agreement assessment, commentary and endorsement.
  • Support CEOs with their performance and leadership.