THE 7TH STEP AND BEYOND
Managing Performance
Breakout Session # 105
Etta Waugh
July 19, 2010
11:00 a.m. – 12:15 p.m.
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THE 7TH STEP AND BEYOND
Managing Performance
SESSION OBJECTIVES
• Define Performance Management
• Provide elements of Performance
Management Framework
• Describe implementation of Performance
Management in Service Contracting
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THE 7TH STEP AND BEYOND
Managing Performance
The Seven Steps to Performance-Based
Acquisition
1 – Establish the team.
2 - Decide what problem needs solving.
3 – Examine private-sector and public-sector solutions.
4 – Develop a performance work statement or statement
of objectives.
5 – Decide how to measure and manage performance.
6 – Select the right contractor.
7 – Manage Performance.
Source: http://acquisition.gov/SevenSteps
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THE 7TH STEP AND BEYOND
Managing Performance
Performance Management is all about…
IMPROVEMENT
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THE 7TH STEP AND BEYOND
Managing Performance
PERFORMANCE
MANAGEMENT
Plans into
Results
EXECUTION
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THE 7TH STEP AND BEYOND
Managing Performance
PERFORMANCE MANAGEMENT
answers questions:
 What if my plan or decision is wrong?
 What are the consequences if I am wrong?
 If I am wrong, what can I do about it?
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THE 7TH STEP AND BEYOND
Managing Performance
Progression toward goal?
Anticipating end result or
product?
Output from process?
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THE 7TH STEP AND BEYOND
Managing Performance
Balance needed between:
- Monitoring
- Steering
- Leading/Preparing
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THE 7TH STEP AND BEYOND
Managing Performance
Define
Strategy
Better
Decisions
Act and
Improve
Performance
Analyze
Performance
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Measure
Performance
THE 7TH STEP AND BEYOND
Managing Performance
• Financial Planning
Define
Strategy
and Budgeting
Act
Better
Measure
and
Decisions
Performance
Improve
Performance
• Project/Program
Management
• People Management
and Rewards
• Performance
Reporting
• Risk Management
Analyze
Performance
• Full Analytical
Integration
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THE 7TH STEP AND BEYOND
Managing Performance
Define
Strategy
• Financial Planning
and Budgeting
Act
Better
Measure
and
Decisions
Performance
Improve
Performance
• Project/Program
Management
• People Management
and Rewards
• Performance
Reporting
Analyze
Performance
• Risk Management
Integrated Data Storage
Integrated Business Intelligence
and Analytics
Integrated Applications
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• Full Analytical
Integration
THE 7TH STEP AND BEYOND
Managing Performance
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THE 7TH STEP AND BEYOND
Managing Performance
Steps 1, 2 & 3
Acquisition Vision
Stakeholder Desired
Where to Start?
Outcomes Requirements Roadmap
Step 4
Incentive
Objective
Standards
AQL
Inspection
- A…..
Worksheet
- B…..
- C….
Performance
Work
Statement
or SOO
Quality
Assurance
Surveillance
Plan
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Business
Strategy
Evaluation Factors
for Section M of
RFP
Step 6
THE 7TH STEP AND BEYOND
Managing Performance
Requirements Roadmap
Incentive
Objective
Standards
AQL Inspection
Worksheet
PWS
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Performance Objective
1
1.0
1.1
1.2
1.3
Performance Objective
2
2.0
2.1
2.2
2.3
2.4
THE 7TH STEP AND BEYOND
Managing Performance
Requirements Roadmap
Objective Standards AQL Inspection Incentive
Worksheet
PWS
Quality
Assurance
Surveillance
Plan
Performance Objective 1
1.0
1.1
1.2
1.3
Performance Objective 2
2.0
2.1
2.2
2.3
Metrics and
Assessment
Linked to
Performance
Objectives
and
Standards
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Performance Objective 2
2.0 Objective/Standard
Metric
Method of Assessment
THE 7TH STEP AND BEYOND
Managing Performance
PWS
Quality
Assurance
Surveillance
Plan
Performance Objective 1
1.0
1.1
1.2
1.3
Performance Objective 2
2.0
2.1
2.2
2.3
2.4
Metrics data
based on
QASP
Performance
Management
Report
Performance Objective 2
2.0 Objective/Standard
Metric
Method of Assessment
Inspection and Metrics
Linked to PWS
Performance Objectives
and Standards
Cost
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Customer
Satisfaction
Performance
THE 7TH STEP AND BEYOND
Managing Performance
• Process Metrics
– Increase capability level (i.e., SEI-CMM levels)
– Do more with less (shorter schedule, less resources)
– Improve quality (less defects, less re-work)
• Project Metrics
– Track project progress
– Assess project status
– Award contract fees
• Product Metrics
– Determine product quality
– Identify defect rates
– Ensure product performance
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THE 7TH STEP AND BEYOND
Managing Performance
KPIs
Process
Measures
Key Process Indicators (KPI): Top level summary
metrics that quickly capture current performance
status such as: Cost, Customer Satisfaction,
Performance, Small Business
Process Measures: Capture the overall status of
each process area contained in your PWS
Sub-Process
Measures
KPI
Performance
Sub Process Measures: Capture the specific
performance of each of the performance outcomes for
a specific process contained in your PWS
Process Measure Sub Process Measure
• Operating Time
Supply
• Air Conditioner Fully Functioning
• System Down-Time (Detail)
AC Service
• Scheduled Maintenance
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THE 7TH STEP AND BEYOND
Managing Performance
Cost
Customer
Satisfaction
Customer Satisfaction Summary
4.5 = Standard
FY07
FY08
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Performance
THE 7TH STEP AND BEYOND
Managing Performance
Cost
Performance
QPI Performance Metrics Summary
95% = Standard
FY07
FY08
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Customer
Satisfaction
THE 7TH STEP AND BEYOND
Managing Performance
A/C Service Operation Sub
Processes
•
•
•
•
Metric 29: System Down-Time Rate
Percent
Operating Time
Air Conditioner Fully Functioning
System Down-Time (Detail)
Scheduled Maintenance
Metric 30: Scheduled Maintenance
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9
8
7
6
5
4
3
2
1
0
FY07
FY07
00
00
00
00
00
00
00
00
00
FY08
00
00
00
OCT NOVDEC JAN FEB MAR APR MAY JUN JUL AUG SEP
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FY08
THE 7TH STEP AND BEYOND
Managing Performance
Reporting Performance Results
• Report overall performance in
agency past performance
system
Scheduled Maintenance
• Ensure accuracy of
Performance Data
QPI Performance Metrics Summary
Customer Satisfaction Summary
95% = Standard
4.5 = Standard
FY07
FY08
FY07
FY08
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• Identify and resolve
performance problems or
trends early
• Promotes partnership and
problem resolution
THE 7TH STEP AND BEYOND
Managing Performance
Match & align
performance measures
to performance
requirements
Deploy measures in a
manner that will be used
and acted upon
Determine type and
number of measures to
use
Balance the merits and
costs of introducing the
desired measures
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THE 7TH STEP AND BEYOND
Managing Performance
QUALITY PERFORMANCE MEASURES
• Measure clearly relates to the associated mission,
goal, and objective.
• Measure is important to management.
• Accurate and reliable data can be collected for each
performance measure.
• Collectively, the measures accurately reflect the key
results of the program, activity or service.
• Multiple measures exist for each goal and/or
objective.
• Measures are either input, output, outcome, efficiency
or quality.
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THE 7TH STEP AND BEYOND
Managing Performance
KEY QUESTIONS
Information
Insight
PAST
PRESENT
FUTURE
What happened?
(Reporting)
What is happening
now?
(Alerts)
What will happen?
(Extrapolation)
How and why did
it happen?
(Modeling,
experimental
design)
What’s the next best
action?
(Recommendation)
What’s the
best/worst that
can happen?
(Prediction,
optimization,
simulation)
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THE 7TH STEP AND BEYOND
Managing Performance
PERFORMANCE MANAGEMENT
Integrates:
Strategy Execution
Enterprise Governance
Risk Control
Compliance Management
Customer Value Management
Collaboration
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THE 7TH STEP AND BEYOND
Managing Performance
REFERENCES
• Cokins, Gary, “Performance Management:
Integrating Strategy Execution, Methodologies,
Risk, and Analytics”.
• Kelman, Steve, “The Way to Better Contracts”
Federal Computer Week, May 6, 2010.
• Woods, Dan, “Peaking Performance”,
Forbes.com, August 25, 2008.
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