In the world of local government, managing performance is about more than just meeting key performance indicators. It’s about fostering growth, aligning individual contributions with organisational goals, and ensuring leaders are equipped to handle both current challenges and future demands.

Increasingly, councils are turning to capability frameworks to guide performance management. These frameworks provide a structured, consistent approach to evaluating, developing, and supporting leaders at every stage of their journey. Here’s why capability frameworks matter in managing performance and how to use them effectively.

What Is a Capability Framework?

A capability framework outlines the skills, behaviours, and attributes required for success in a role or organisation. Unlike task-based job descriptions, these frameworks focus on the how of achieving outcomes, offering a comprehensive view of what high performance looks like.

For leadership roles in local government, capabilities often include areas such as strategic thinking, community engagement, adaptability, and fostering innovation. These qualities go beyond technical expertise, emphasising the full spectrum of competencies that drive results and build resilience.

Why Use Capability Frameworks in Performance Management?

1. Align Individual Performance with Strategic Goals
   A capability framework ensures that performance management isn’t just about meeting role-specific targets—it’s about contributing to the council’s broader objectives. By assessing leaders against a clear set of capabilities, you can identify how their contributions align with and support organisational success.

2. Provide Clear Expectations
   One of the biggest challenges in performance management is a lack of clarity about what success looks like. Capability frameworks establish transparent benchmarks, so employees understand what is expected of them and how they can excel in their roles.

3. Encourage Growth and Development
   Managing performance is as much about identifying opportunities for growth as it is about evaluating past results. Capability frameworks highlight areas where leaders can develop new skills, helping councils invest in their talent and build future-ready teams.

4. Ensure Fair and Consistent Assessments
   Performance management can be subjective without a structured approach. Capability frameworks provide an objective basis for evaluating performance, ensuring fairness and consistency across all leadership roles and can also provide a clear pathway for levelling up.

How to Implement Capability Frameworks in Performance Management

1. Choose or Customise a Framework
   Use established models, such as the NSW Local Government Capability Framework, or create a tailored version that reflects your council’s unique priorities. The framework should include a mix of technical and behavioural competencies relevant to leadership in local government.

2. Incorporate Capabilities into Reviews
   Move beyond task-based evaluations and use the framework to assess how work is done. For example, instead of focusing solely on “delivering projects,” evaluate capabilities like “effective stakeholder engagement” or “adaptability under pressure.”

3. Support Development with Targeted Plans
   Use performance reviews to create personalised development plans. These should focus on building capabilities that align with both the individual’s career aspirations and the council’s strategic needs.

4. Embed Capabilities in Organisational Culture
   Encourage managers to use the framework not just during formal reviews but also in day-to-day feedback and coaching. This helps embed capabilities into the council’s culture and ensures they guide leadership behaviours consistently.

5. Monitor Progress and Adapt
   Performance management is an ongoing process. Use the framework to regularly monitor progress, celebrate achievements, and adapt goals as the needs of the organisation evolve.

The Leading Roles Perspective

Capability frameworks aren’t just for recruitment—they’re powerful tools for driving performance and developing leaders who can navigate complexity and deliver results. By focusing on capabilities, councils can build resilient leadership teams and create a culture of continuous improvement.

At Leading Roles, we help councils integrate capability frameworks into their performance management processes, ensuring that every leader is equipped to contribute to organisational success. If you’re ready to take your performance management practices to the next level, we’re here to help.

Contact us at hello@leadingroles.com.au or call 1800 088 000 to learn more.