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Home > Speeches and Presentations > Speeches and Presentations 2009 > Measuring Regulatory Performance NEB

Measuring Regulatory Performance NEB

Presented by
Pradeep Kharé
Chief Operating Officer
National Energy Board

CAMPUT Presentation
Toronto, Ontario

9 February 2009

Independent Observations from an expert

Good morning. It is indeed a privilege to speak to you about Measuring Regulatory Performance... especially because it gives me a chance to blow my own horn. NEB has worked diligently and methodically to establish a suite of comprehensive measures that have become integral part of our management system. This slide is taken directly from a consultant's report who we hired last spring to examine our measures system.
(John Harrison of Performance Training Solutions in Ottawa)

Regulatory Measures

So, how do we measure regulatory performance. We start with the high level outcomes measures related to our regulatory performance. These measures are connected to the goal level of our Strategic Plan. Then we cascade them down to intermediate level measures that can objectively quantified such as Service Standards.

The next slide gives you an example.

Example

Line of Sight: From the plan to the employee

NEB has worked to clarify line of sight between its desired regulatory outcomes and NEB programs and staff activities

• To increase our ability to influence our high level regulatory outcomes
• To be able to constantly improve our programs and processes so that regulatory outcomes are consistently achieved
• To enable staff to see how their everyday work contributes to our regulatory goals and our Strategic Plan
• To solidify link to the NEB's management system which includes a corporate performance assessment framework

We don't treat Measures as a stand alone item. They are an integral part of our Day to Day Management. As the diagram illustrates the Strategic Plan is developed by the Chair and the Board. It has the high level Vision, Purpose, Strategies, Values and 5 Goals. The first four goals express our desired regulatory outcomes, and the fifth goal is a management goal.

Goals are where the rubber hits the road. Each Goal, or regulatory outcome, has several high level outcome level measures associated with it. The Strategic Plan is the direction from the Chair and the Board to the staff.

Staff then takes all elements of the Strategic Plan and incorporates them into our Business Planning at the Business Unit level, cascading it down to Project Plans and then the Individual Performance Plans... which we call the RESULTS process.

This all sounds great in theory but how do we make it happen at NEB? NEXT SLIDE

Corporate Performance

To measure the overall corporate performance for the NEB, we consider three broad areas which constitute a "balanced scorecard" on the NEB's corporate performance - regulatory outcomes, client service and change agenda.

1. Goal Measures. We measure our performance against the Goals set out in the SP by the Board. Each Goal has a set of Objectives and a set of measures. We have developed tracking mechanisms to be able to measure our performance against these. Since the Goals are broad and set our high level regulatory direction, this accounts for most of our ongoing work within our mandate. Since this is the bulk of our work, we give a weight of just over a third of the total.
2. Service Standards. We have a set of 20 Service Standards published on our Web Site. These standards are designed for us to hold ourselves accountable vis-à-vis our services to our clients. The 20 Service Standards are in the areas of applications, hearings, audits, land owner complaints and others. Since staff across the organization contribute to our regulatory service standards, we give a weight of just over a third of the total.
3. Major Actions. The third area is in the spirit of "continuous improvement". It is our change agenda to keep up with the changing environment. Each year the Board, in consultation with the staff, and based upon their own knowledge of the current environment, develops a series of Major Actions which are expected to keep us moving forward. These could be process re-engineering to internal systems renewal to stakeholder engagement or even a paradigm shift in philosophy by the Board. Some of these initiatives can span over several years. The evaluation of the progress on these is given a 25% weight.

So, how do these measurements lead to the assessment of overall corporate performance? NEXT SLIDE

Corporate Results

Here are the Results or marks. We grade ourselves in terms of the number of Maple Leaves. The Chair is the final authority in assessing this Corporate Performance. In addition to staff input, which is the technical exercise in numbers, the Chair also uses his own knowledge about NEB from external sources... the stakeholders, the government departments and industry perceptions.

Once the Chair decides on the overall performance, he communicates it to all staff which then determines their individual performance pay as I will explain on the NEXT SLIDE.

Performance Pay for Employees

The Performance Pay is determined in combination with how the entire organization performs as well as the individual performance. This allows for better Team work, more integration, higher level of co-operation amongst employees of different units and shifts the focus on Results.

This system of measurement has been developed over the past few years and is still being improved each year. However, it has been a key in focussing the energies of the entire organization towards common goals and objectives. Team NEB is as strong as ever.

Final Thoughts

Finally, I will leave you with this slide which is self explanatory.

 

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Date Modified:

2011-10-28