performance management using the balanced scorecard approach

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Performance Management Using the Balanced Scorecard Approach

Office of Quality Management

Office of Research Services

National Institutes of Health

May 2004

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For more information on Performance Management in the Office of Research Services:

http://www.nih.gov/od/ors/od/oqm/pm/index_pm.htm

Or Contact:

Amy Culbertson

[email protected]

(301) 594-9616

Acknowledgments

This training was developed by the Balanced Scorecard for Government, Inc., in collaboration with the Office of Quality Management.

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Training Objectives

• Understand the ORF/ORS history with Performance Management

• Review the basics of the Balanced Scorecard (BSC) approach

• Understand the Role of the PMP “Teams”

• Become familiar with the ORF/ORS Performance Management Plan (PMP)

• Understand value propositions and strategy statements

• Review how to develop objectives for the four BSC perspectives

• Learn how to link objectives through strategy maps

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ORF/ORS History with Performance Management

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Performance Management’s Roots in ORF/ORS

• Started with ORS Leadership and the theme of how do we demonstrate to customers that we are providing good value • They are getting what they pay for

• We are matching demand with needs

• Under Deputy Director’s guidance, applied simplified concept of ABC to our organizations• Two day retreat occurred in which the first Services Hierarchy was

established• Provided framework to describe the services we deliver to NIH• Help us cost from inputs to outcomes

• Then needed a way to track how we are doing• Started with the Service Area Reviews (SARs)

• Subset of service providers presented review of their operations every three years

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Performance Management’s Roots in ORF/ORS

• Germ for more frequent measurement and improvement came from discussions between the NIH Associate Director for Research Services and the OQM Director, and a subsequent trip to London to the Defense Evaluation Research Agency

• Science and engineering organization in England that is similar to ORS• They would meet with customers annually to evaluate how they did on their

objectives, review their plans for the future• Managers were rewarded based on their accomplishments

• Came back and decided to do what was known as the Annual Self Assessments (ASA) here

• Began as a pilot in April 2001 with just 1/4 of the discrete services• Held the first conference in October 2001• Modified approach based on customer inputs and organization needs

• Went to organization-wide implementation in FY02 • All 42 Service Groups involved in the effort• All groups presented at the second conference in November 2002

• Organization-wide implementation continued during the next year (Jan 2003 - Jan 2004)

• All ORS and ORF Service Groups were involved in the effort• Some new groups formed due to changes in the Services Hierarchy• One-third of the Groups presented at the third conference in January 2004

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Apr 2001-Oct 2001Pilot ASA

Feb 2002 - Nov 2002First Cycle

ASA

April 2004 - ……….ongoing

Feb 2003 - Jan 2004Second Cycle

PM

Oct 2001Conference

Nov 2002Conference

Jan 2004Conference

StartFY 02

StartFY 04

StartFY 03

StartFY 05

Performance Management Timeline

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The Performance Management Process and Continual Improvement (P-D-C-A cycle)

Step 1Step 1Review/ Establish PMPReview/ Establish PMP

Step 2Step 2Develop/ Enhance Develop/ Enhance

MeasuresMeasures

Step 3Step 3Measure & AnalyzeMeasure & Analyze

Step 4Step 4Implement ChangeImplement Change

PLANPLANACTACT

DODOCHECKCHECK

Most teams are here

A few are here

New teams are here

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Purpose of Performance Mangement

• Implement a culture in ORF/ORS that manages and improves through the use of performance data• Gauge extent to which we are delivering what customers

want and need• Use data to make process improvements• Plan how to invest in people and tools to be innovative and

competitive• Understand reasons for change in costs and funding needs• Making funding allocation decisions based on data-based

business case

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Performance Management - What’s in it for me?

• Provides opportunities to better understand your mission/function/job

• Gives you tools to accurately assess your customers’ needs, satisfaction, and know how to improve service delivery to them

• Provides opportunities to influence operational processes and decisions

• Encourages addressing issues related to cross-functional service delivery that can cause grief for all involved

• Provides a vehicle to showcase what you do and the value you deliver to NIH customers

• Strives to integrate the budgeting process with future program needs based on data so you have the resources you need

• Increases your skills in strategic planning, performance measurement, data collection/analysis, and process improvement

• Provides an opportunity to best prepare your area for competitive sourcing initiatives that may impact you

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Basics of the Balanced Scorecard (BSC) Approach

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Who made this up?

• Dr. Robert Kaplan and Dr. David Norton

• Research at Harvard University

• Research showed that organizations were…

– Placing too much emphasis on financial measures - (not in balance)

– Downsizing to address short-term financial problems - (reactive not proactive)

– Responding to Wall Street analysts, not customers

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What is a Balanced Scorecard?

• A structured way to look at our organization (a set of lenses)

• A simplified way to tell story

• Structure (rules of thumb)

– 4-5 perspectives

– 3-4 objectives per perspective

– 2-3 measures per objective

– 3-5 initiatives per objective

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What is a Balanced Scorecard? (cont.)

At the highest level, it is a framework that helps organizations translate strategy into operational objectives that drive both behavior and performance.

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The Balanced Scorecard Framework

How do we exceed How do we exceed Customer/stakeholder Customer/stakeholder

expectations?expectations?

What do our customers/What do our customers/stakeholders look for in stakeholders look for in

financial results?financial results?

What skills, tools, and What skills, tools, and culture are required to culture are required to

perform these processes?perform these processes?

What process do we need What process do we need to improve to fulfill these to improve to fulfill these


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The Balanced Scorecard for Your Organization

How do we exceed How do we exceed Customer/stakeholder Customer/stakeholder


What do our customers/What do our customers/stakeholders look for in stakeholders look for in

financial results?financial results?

What skills, tools, and What skills, tools, and culture are required to culture are required to

perform these processes?perform these processes?

What process do we need What process do we need to improve to fulfill these to improve to fulfill these

expectations?expectations?StrategyStrategy

CustomerCustomer

LearningLearning

FinancialFinancial InternalInternal

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Adapted from “Planning Is Dead, Long Live Planning, “ Jos. Fuller, Across the Board, March 1998.

Structure Is StrategyStructure Is Strategy

Today’s Organizations Today’s Organizations Are Expected to Be:Are Expected to Be:

• Competitive (sourcing)

• Accountable

• Customer-friendly

• Fiscally responsibleExternal world is highly unstable so planning

systems must deal with uncertainty

1. Strategy is a hypothesis.

2. Strategy is a dynamic process.

3. Strategy is everyone’s job.

4. Organizations are systems that must sense, experiment, learn, and adapt.

5. Strategy is an articulation of the direction we want to take an organization.

Why do we need to do this?

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What Roles Do the PM “Teams” Play?

• Team Leader - a manager or senior member of your staff who takes the responsibility for applying PM in the organization;

• Team Members - typically 4-8 staff members who understand the complexities of your current work environment. Team members provide functional expertise to assist the team leader in development and implementation of your PMP;

• Consultant - Either OQM staff or contractor assigned to each team to provide technical assistance and coaching on the process, tools and methodology;

• OQM Staff – In addition to provide consultation to teams, OQM assists teams at key points during development and implementation, and interface with Senior Management on the overall progress of the PM effort.

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The ORF/ORS Performance Management Plan (PMP)

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What is the PMP?

• The Performance Management Plan (PMP) is your business roadmap • Lists the name of your Service Group and Discrete Services

from the Services Hierarchy maintained by OBSF• Describes your value to the NIH• Defines how you implement your value (your strategy)• Highlights your performance objectives• Identifies how you measure achievement on objectives• Lays out targets for delivering performance

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The PMP Template

Performance Management Plan (PMP)

DS3:

DS2:

DS1:

Discrete Services

Division Approval/Date: Associate Director Approval/Date:

DS5:

DS4:

Service Group

Service Strategy

Value Proposition

DS6:

Team Leader

Strategy Description

Team Members

Date:

Operational Excellence

Customer Intimacy

Product Leadership

Growth

Sustain

Harvest

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Objective MeasureFY 04

TargetFY05

TargetFY06

Target Initiative OwnerC

usto

mer

Inte

rnal

Bu

sin

ess

Learn

ing

an

d G

row

thF

inan

cia

l

Service Group:

Statement of what should be achieved:

An Outcome

How success will be measured and

tracked:How we will know

we are done

The level of performance or rate

of improvement needed over time

Key actions or projects required to achieve outcomes

and their corresponding

owners

Note: Page 2 of the PMP.

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Value Proposition and Strategy Statements

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Value Proposition

The Value Proposition should be established with the Research Community in mind and should be derived using the following formula:

Value = Product and/or service attributes + image + relationship

The value proposition should establish why we do what we do, and what impact does it have on the community for whom we provide our services.

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What is the value propositionfor your Service Group?

• What is the contribution that we make to the NIH Research Community and other interested parties?– Customers

– Stakeholders

• It is a theory that must be tested

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First, you must consider “Who are our customers?”

Customers:• Are the recipients of our goods and services

• Are the direct beneficiaries

• May also be stakeholders

Stakeholders:• Influence budget, funding, and resource allocations

• Are alter egos of customers

• Fill a stewardship or regulatory role

Note: Customer segmentation data should clarify your customers/stakeholders.

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Customers• The NIH Institutes

• ORS program managers

• ORS service providers

• ORS administrators

Stakeholders• ORS Advisory Committee

• IWG and MBWG

• FARB

• DHHS

• OMB/GAO/Congress

• OSHA

• JCAHO/AAALAC

EXAMPLEEXAMPLE

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Why do we distinguish stakeholders from other customers?

• Stakeholders have different issues

• Need different approach

• Stakeholders can increase or decrease funding (regardless of how customers feel)

• Stakeholders can formulate or influence policy

• Customers and stakeholders may each value something different

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What do customers really want?

• What value do we provide to customers?

• What would happen to customers if we were no longer around?

• How much are customers willing to pay for our products/services?

• What is our obligation to customers?

• What can we do to ensure their support?

• What can we do to better educate them?

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What do stakeholders really want?

• What do our stakeholders value?

• How does what they value differ from what our customers value?

• What is our obligation to stakeholders?

• What can we do to ensure their support?

• What can we do to better educate them?

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Generic Model The value proposition should establish “why”

Example: Federal Agency

Personal Personal RelationshipsRelationships(Customers)(Customers)

Accessible Accessible (Services)(Services)

ConsistentConsistent(Products)(Products)

DedicatedDedicated(People)(People)

ProfessionalProfessional(Staff)(Staff)

Product/Service Attributes Image Relationship

Value = (Product / Service Attributes) + Image + Relationship

EXAMPLEEXAMPLE

Service Service OrientedOriented

(Employees)(Employees)

“We bring value to NIH by providing our customers with convenient, accessible, and consistent services to ensure that visiting scientists acquire the required visas in the least amount of time at the best price to the agency.”

VALUE PROPOSITION STATEMENT

The Value Proposition

Functionality Quality Price Time

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What value do we offer our customers/stakeholders?

Value = (Product / Service Attributes) + Image + Relationship

What is the VALUE PROPOSITION for your Service Group?

???? ?? ?? ??

Product/Service Attributes Image Relationship

??

Functionality Quality Price Time

Why are you in business?

33Type in value proposition (VP) here.


DS3:

DS2:

DS1:

Discrete Services

DS5:

DS4:

Service Group

Service Strategy

Value Proposition

DS6:

Team Leader


Team Members

Date:


Customer Intimacy

Product Leadership

Growth

Sustain

Harvest

Type your Value Proposition on your Performance Management Plan (PMP)

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Think of Strategy as a Way to Get to Your Destination

What is strategy?

Strategy

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The BSC Provides Structure and Context for Effective Strategic Management

Informed executives managing a strategic agenda

Motivated workforce implementing strategy and

documenting progress

The Power To Rapidly Implement Strategy, Learn, and Improve

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FinancialPerspective

CustomerPerspective

InternalPerspective

The Strategy

Learning Perspective

Strategic Learning Loop

Performance

Initiatives & Programs

test the hypotheses

output

result

Operational Control Loop

corrections

input

Fin

anci

alC

ust

Inte

rnal

L&

G

Strategic Objectives

Financially Strong

Delight the Consumer

Win-Win Relationship

Safe & Reliable

Competitive Supplier

Motivated & Prepared

Strategic Measures

Return of Capital Employed

Mystery Shopper Rating

Dealer/Pioneer Gross Profit Split

Manufacturing Reliability Index

Days Away from Work Rate

Laid Down Cost vs. Best Competitive Ratable Supply

Strategic Competency Availability

Balanced Scorecard

update the strategy

Strategic

Feedback

& Learning

Strategic Management Is Based Upon a “Double Loop” Learning Approach

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Ways to Characterize Strategy

• Michael Porter (author of Competitive Strategy )says there are three general ways to characterize strategy in organizations:• Operational Excellence• Customer Intimacy• Product Leadership

• Fee for Service Organizations should also think about where your business is in terms of:• Growth• Sustain• Harvest

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Operational Excellence Is Customer Service Excellence

• Availability

• Responsiveness

• Convenience

• Competence

• Handling of Problems

• Cost

• Quality

• Timeliness

• Reliability

Your Service Attributes Your Product Attributes

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Customer Intimacy Is Customer Quality Relationships

• Understand their business

• Know their needs

• Provide complete solutions

• Quality of the relationship

• Empower them

• Share with them

• Our team knows their team

• Follow up and feed back

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Product Leadership is Customer Needs Filled With New Solutions

• Culture for risk taking• Entrepreneurial vs.

bureaucracy• Team player over experience• Exist on limited planning and

analysis• Fast reaction times to

conditions

• Open Mindedness (avoid Not

Invented Here Syndrome)• Service and products always

state-of-art• Creativity over formula • Engineered for speed• Knowledge management

“First” initiative• A budget for failure (Command

of Capital)

41Check which box best describes your strategy.


DS3:

DS2:

DS1:

Discrete Services

DS5:

DS4:

Service Group

Service Strategy

Value Proposition

DS6:

Team Leader


Team Members

Date:


Customer Intimacy

Product Leadership

Growth

Sustain

Harvest

Indicate your Strategy on your PMP

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Elaborate on Your Strategy

• Think more deeply about your strategy choices – Write your own strategy statement– May help to develop a strategy map

• What may help with expanding your thinking on strategy?– What demands are the customers or “chain of command”

placing on the Service Group?– Are your customer demands for services changing

dramatically?– Has the environment changed to require new

products/services, or service levels, from your group?– Are there expectation for reduced unit cost?– What is the future direction of your Service Group?

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Operational Excellence Strategy

• “ We will pursue our strategy of operational excellence by providing more timely information to our customers through automation. We will educate our customers regarding regulations and requirements through rigorous training programs. Our focus will be on enabling our professional, experienced staff to provide more dedicated customer-service time.”

44Describe your strategy here.


DS3:

DS2:

DS1:

Discrete Services

DS5:

DS4:

Service Group

Service Strategy

Value Proposition

DS6:

Team Leader


Team Members

Date:


Customer Intimacy

Product Leadership

Growth

Sustain

Harvest

Describe Service Group Strategy on your Performance Management Plan (PMP)

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How to Develop Objectives for the Four BSC Perspectives

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From Strategy to Objectives…..


TargetFY05

TargetFY06

Target Initiative Owner

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Next, our focus will be on crafting the objectives.

Objectives should enable the achievement of your value proposition and strategy.

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Objectives

Perspective

• Customer

• Internal Business Process

• Learning and Growth

• Financial

Information Needed

• Customer/stakeholder segmentation, value proposition and strategy

• Process maps, process data, value proposition and strategy

• Future needs of the customer and the organization, enablers (people, tools, culture) to get there, value proposition and strategy

• Customer demands for services/service levels, willingness to pay for services, funding levels available for Service Group, value proposition and strategy

Objectives are a means to achieveyour value proposition and strategy.

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Crafting Objectives By Perspective

Financial Learning & Growth

Customer Internal Processes

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Performance Objectives for the Customer Perspective

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What Do Our Customers Really Want?

(Outcome or “end-state”)

What are we really trying to accomplish as a Service Group?

What outcomes are we offering customers with our Service Group/Discrete Service offerings?

What will our customer base look like 5-7 years from now?

What will our customer needs be in the future?

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Customer Objectives

• Provide integrated transparent access to the most relevant information via the most effective information sources for NIH researchers and staff

• Improve education of customers on portfolio of services offered by Events Management

• Be readily available to our customers to provide information, customer service, and resolve issues regarding transportation and parking services

• Improve communication with customers

• Meet customer needs by providing the right mix of specialized research support services

• Improve customers’ business decisions

• Improve as single-source contact on ORS-wide administrative processes

• Increase responsiveness to customers’ varying needs

• Increase customer satisfaction with our products and services

ORS and ORF ORS and ORF EXAMPLE

EXAMPLEOBJECTIVESOBJECTIVES

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Customer Objectives (cont.)

• Improve response to customer requests

• Improve objectivity and neutrality in dealing with customer complaints

• Improve customers’ ability to make informed decisions

• Be indispensable in service quality

• Decrease the probability of weaponized vehicles from entering the NIH Bethesda campus

• Provide an environment that is safe and secure for personnel and others while at NIH facilities

• Provide a fire safe work environment for all NIH facilities

• Respond consistently and reliably to customers

• Improve availability and reliability of guidance and expertise



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Performance Objectives for the Internal Business Process Perspective

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What is Your Value Chain?

How do we get new demand? Where does it come from?

What processes do we need to perform very well? (process maps)

How do we complete the work? (deployment flowcharts)

How do we deliver it to our customers?

How can we improve our processes to meet attributes identified in the value proposition?

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Discrete Service: DS1 - Provide technical standards and policy for NIH Facilities Date: Draft 30 July 2002 Participants: PM Team

DESAffected

OrganizationTechnical Resource Group

Identify Standard, Issue orProblem requiring

development, revision orupdate

Is it aStandard?

Collect Info sincelast change &develop draft

Advise Chief,DCAB, of findings

Research CurrentRegulations &

Policies

Retain ExistingPolicy & Advise

AffectedOrganization

DevelopAlternativeSolutions

Draft Policy

Release Draft forReview

Evaluate &IncorporateComments

Finalize standardor policy

Review &Comment

Review &Comment

Concur?

Does Mgmt Concurthat Change is

needed?

Does MgmtConcur?

Identify Standard,Issue or Problem

requiring development,revision or update

Identify Standard,Issue or Problem

requiring development,revision or update

No

Yes

Issue Standard orpolicy as

appropriate

No

YesNo

Yes

Yes

No

Review Process Maps

EXAMPLEEXAMPLE

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Internal Business Processes

• What is the value we offer to our customers?(How do we create value for our customers, stakeholders, employees) through our processes?

• What key processes do we need to focus on?

• What aspects of the processes are important (e.g., predictable performance, efficient, safe)

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What improvements can be made in our internal processes?

• What do we need to do better to make our customers happy?

• Can we be more efficient or more effective at what we do?

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Internal Business Process Objectives

• Maintain or improve turn around time for filling requests with accuracy

• Improve timeliness and accuracy of the scheduling process

• Increase benchmarking reviews to better understand competitors offerings and costs

• Hold Vendors Accountable (require regular inspections and reports; setting goals to meet improvements; decrease the gap between actual performance and goals set in contract)

• Improve quality and delivery of rate packages

• Accurately bill and pay for rent, leased space and membership services

• Adopt best practices and infuse new technology

• Improve vendor/contractor performance

• Improve access to information

• Increase consistency in the delivery of our products and services

• Adjust production capabilities to meet changing demands

• Increase timeliness of service

• Right the first time, every time. Be consistent.



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Internal Business Process Objectives(cont.)

• Improve smooth transition of new automated systems

• Meet and/or exceed timeframes established by law

• Improve capability to handle fluctuation in service demand

• Refocus service offerings based on complaint patterns

• Rework service agreements into performance-based service contracts

• Improve service response time

• Provide quicker “turn around time” (complete cases faster)

• Improve effectiveness of radioactive waste pick-up scheduling process

• Increase the consistency in guard service delivery to minimize disruption to the NIH community

• Minimize the disruption of the NIH design and construction process while ensuring all fire-safety requirements are met

• Improve best value analysis through-out design and construction of facilities

• Improve coordination and timely updating of environmental and emergency plans

• Improve internal resources requirements planning



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Performance Objectives for the Learning & Growth Perspective

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Learning & Growth

The formula for this perspective is a function of:

People, Tools, and Climate

Learning and Growth objectives are a function of future customer and organizational needs.

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The Learning & Growth Perspective

= ƒ People Tools Climate, ,Organization Learning &

Growth

People, Learning & Growth CategoriesPeople, Learning & Growth Categories

Skills & Competencies

What do we need in terms of skills & competencies for

our employees?What will we need in the

future?

Knowledge& Technology Assets

What do we need in terms of knowledge base and

technology tools to assist our employees?

What will we need in the future?

Climate forAction

What do we need in terms of our environment to

encourage our workforce to be productive?

What will we need in the future?

What are the future needs of our Service Group in terms of:

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What “enablers” will prepare us for the future?

= ƒ People Tools Climate, ,Organization Learning &

Growth

Typical Learning & Growth ObjectivesTypical Learning & Growth Objectives

Skills & Competencies

• Engineering skills

• Training to required levels

• Program Management skills

Knowledge& Technology Assets

• Technologies

• Databases

• Experience captured

• Best practices

Climate forAction

• Leadership

• Alignment

• Results Oriented

• Teaming

EXAMPLEEXAMPLE

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What do our employees need to help us achieve our goals?

What skills need to be addressed?

What will the knowledge and skill needs be over the next 5-7 years?

Do we need to train/recruit/contract out?

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Learning & Growth Objectives

• Support continuous, shared staff learning and improvement

• Increase sense of trust and partnership with customers

• Encourage a “caring environment”

• Invest and deploy technology solutions so that we are responsive to the transportation needs of the NIH community

• Cross train staff to ensure no interruption of services in the absence of a staff member

• Improve Institutional knowledge of customer business

• Maintain or enhance competencies for the future

• Increase knowledge of customer needs

• Improve accountability of workforce

• Increase technical competency of staff

• Increase staff participation in professional training

• Ensure high level of integrity among staff members



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Learning & Growth Objectives (cont.)

• Redistribute clerical work

• Improve communications among staff members

• Use innovative technology to enhance skills and improve performance

• Be experts in best practices for project analysis and quality assessment

• Build a climate of trust

• Be the benchmark for design and construction project services



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Performance Objectives for the Financial Perspective

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Financial

This perspective is typically composed of the following elements:• Funding (Revenue)• Cost (expenses)• Demonstrated savings

What will our financial requirements be in the future?

It is always about the value we offer to the organization.

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What do our financial stakeholders expect from us?

Can we do this now?

How can we contribute?

Can we increase revenue?

What cost savings can we realize?

What obligation do we have in our spending activities?

How do we manage the gap between customer demand and funding levels?

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Financial Objectives

• Minimize unit cost for custom research assistance at a defined level of service (# of custom research jobs per budget)

• Minimize the unit cost for providing parking services on campus (# of assisted parked cars per budget)

• Maintain invoice processing costs (associated with leased properties) (# of invoices processed per budget)

• Minimize the unit cost for animal diagnostic services (# of submissions per budget)

• Minimize the unit cost of providing building security services on campus (# of visitors/employees per budget)

• Minimize unit cost of conducting preliminary background checks (# background checks per budget)



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Financial Objectives (cont.)

• Achieve cost savings from reduced rework and reprocessing

• Lower ORS expenses through early intervention

• Invest in automation to lower our overhead costs

• Lower our lease costs

• Lower the square-footage requiring retro-fit

• Improve Customer's understanding of financial parameters of lease

• Avoid costly mistakes



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Generating and Finalizing Objectives

New Teams…..

• Recommend about 2 sessions with the Performance Management (PM) Team and your consultant

• Identify pool of objectives

• Narrow objectives to critical few in each perspective

• Consultant can lead team through use of “identification and selection” procedure to gather Team’s input and consolidate the list of objectives

• Enter objectives onto the Service Group’s Performance Management Plan (PMP)

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Enter Your Objectives on your Performance Management Plan (PMP)- available on the web page


TargetFY04

TargetFY05

Target Initiative Owner

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Service Group:

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Resist The Urge To Jump Ahead

• At this point most people jump into measures…and when they get there, they start listing all of the “action items”

• There is one last step before moving to measures…

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Define Objectives

CUSTOMER PERPSECTIVE: How do we identify and exceed customer/stakeholder expectations?

Objective Definition

List your objective(s) here

List your definition(s) here

INTERNAL BUSINESS PROCESS PERPSECTIVE: What processes do we need to improve to fulfill our customers expectations?


LEARNING AND GROWTH PERSPECTIVE: What skills, tools, and culture are required to perform these processes?


FINANCIAL PERPSECTIVE: What do customers/stakeholders look for in our financial results?


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Define Objectives (cont.)Common ORS Objectives

Objective

• C1: Increase customer satisfaction

• F1: Minimize unit cost at a defined service level.

Description

• C1: A relationship with the people we serve that increasingly promotes good will, repeat business, commendations, and minimal complaints.

• F1: Understanding the total dollar cost to provide measurable service and products at agreed upon terms in order to reduce these costs to levels that meet or exceed customer expectations of market prices.

EXAMPLEEXAMPLE

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Define Objectives (cont.)Provide Quality Improvement Services Objectives

CUSTOMER PERPSECTIVE: How do we exceed customer/stakeholder expectations?


Tailor the implementation of the performance management process from year to year to accommodate the changing needs of ORF/ORS service provider teams.

Develop a customized implementation method to help the organization become performance-driven. The effectiveness of these methods are evaluated at the close of each cycle through data gathered from our customers and consultants. Based on the needs of our customers, and our knowledge of organizational change, we tailor the implementation approach.

INTERNAL BUSINESS PROCESS PERPSECTIVE: What processes do we need to improve to fulfill our customers expectations?


Increase collaborations between OQM and service provider teams

Based on feedback received from our customers, we identify the need to increase the amount of collaborations between OQM and service provider teams to assist them develop and implement the PMP. Collaborations are defined as time spent interacting with service provider teams, and time spent working on specific projects for service provider teams. We will use an effort-tracking log to capture the amount of time and the ways we assisted service provider teams.

EXAMPLEEXAMPLE

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Summary

A good PMP will “tell the story” of

your Service Group.

This training has given you new information that your Team can use to develop your PM roadmap:

• Value Proposition

• Strategy

• Objectives– Customer– Internal Business Process– Learning and Growth– Financial

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Linking Performance Objectives with the Strategy Map

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Strategy Mapping…What is it????

• A pictorial representation of your whole strategy (how all of your objectives fit together)

• A way to decide which objectives are the most critical ones

• A tool that helps you validate your objectives

• A tool that can help you validate your measures

• A tool that can help you manage your strategy

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Strategy Mapping…the way it works

(We do it all the time in our daily lives)

Happy Owner

Strategy= Buy a Car by this time next year

The ultimate objective

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We do it all the time in our daily lives

Shop for best deal

Happy Owner


Some work needs to be

done first

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Save $

Shop for best deal

Happy Owner


The resources must be available

84



Save $

Get a Job

Shop for best deal

Happy Owner


There may need to be a change in

status to ensure that the strategy can be realized

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Strategy Mapping- An ORS Example

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Strategy Map

Learning & Growth L1

Give staff training

L2

Increase support staff

If we invest in our people….

Support foreign staff exchange program: We bring value to NIH by providing our customers with convenient, accessible services to ensure that visiting scientists acquire visas in the least amount of time with the fewest problems, at the best price to the agency.

87

Strategy MapSupport foreign staff exchange program: We bring value to NIH by providing our customers with convenient, accessible services to ensure that visiting scientists acquire visas in the least amount of time with the fewest problems, at the best price to the agency.

Learning & Growth L1

Give staff training

L2


We should be able to get better at managing

our resources…F1

Invest in automation

F2Minimize Unit Cost

88

Strategy MapSupport foreign staff exchange program: We bring value to NIH by providing our customers with convenient, accessible services to ensure that visiting scientists acquire visas in the least amount of time with the fewest problems, at the best price to the agency.

InternalProcesses

Financial

Learning & Growth

I3Develop level of consistency

I1Improve

our processes

L1

Give staff training


F1Invest in automation

I2Provide Access to

information systems

L2


Which should enable us to invest in improvements….

89


Customer

InternalProcesses

Financial

Learning & Growth

C1Quicker Turn around Time


I1Improve

our processes

L1

Give staff training



I2Provide Access to

information systems

C2Better communication

with and education of Customers

L2


Customer

Which should help us make our customers happy….

90


Customer

InternalProcesses

Financial

Learning & Growth

C1Quicker Turn around Time


I1Improve

our processes

L1

Give staff training



I2Provide Access to

information systems

C2Better communication

with and education of Customers

L2


Customer

And help us to accomplish our strategy and ensure our value.

Strategy Map

91

Summary

• Talked about how performance management started in ORS/ORF

• Covered the basics of the Balanced Scorecard approach

• Discussed the roles of Performance Management team members

• Reviewed the Performance Management Plan (PMP) that is your business roadmap

• Discussed how to develop a value proposition, strategy, and performance objectives

• Reviewed how to use the strategy map to show the relationships among your performance objectives

performance management using the balanced scorecard approach

Documents

performance management

performance managementreview

orf service groups

services hierarchyone

effortall groups

engineering organization

organization needswent

effortsome new groups