Annual Self-Assessment (ASA) Template Training

1
Annual Self-Assessment (ASA) Template Training

• Office of Quality Management
• Office of Research Services
• National Institutes of Health
• 21 March 2002

2
Acknowledgments

• ASA Template Training was jointly developed by
• Office of Quality Management (OQM)
• Antonio Rodriguez, Amy Culbertson, Carmen Kaplan,
  and Gay Presbury
• OQM Consultants
• Janice Rouiller (SAIC), Kate Fenton (Atlantic Rim
  Group), Phil Nathanson (McManis Associates)

3
Training Objectives

• Explain the background of the ORS ASA initiative
• Describe the Balanced Scorecard (BSC),
  performance measurement, and the ASAs
• Provide orientation to the ASA Template
• Provide resources for additional information

4
Background of the ASA Initiative
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History of ASAs

• ORS senior leader visited organization doing
  great job at performance measurement and
  management
• We can do this!
• Fits well with implementation to activity-based
  costing/management approach
• Started with the Service Area Reviews (SARs)
• SARs transitioned into ASAs in 2001
• Used New Business Model as framework to organize
  ORS products/services
• 41 discrete services chosen for 2001
• Results presented at Performance Management
  Conference October 31, 2001
• Lessons learned provided input for 2002
  implementation

6
ASA Purpose

• Implement culture in ORS that manages and
  improves through the use of performance data
• Gauge extent to which ORS is 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
• Make funding allocation decisions based on
  data-based business case

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Why Use the ASA Approach?

• ASAs serve as the vehicle to implement
  performance measurement throughout ORS
• Need to develop peoples skills
• Need to fine-tune IT systems for data collection
• Need to develop methods for ORS-wide data
  collection and analysis where appropriate
• Longer-term goal
• Performance measures will be deployed throughout
  ORS and be used as part of daily business
  operations
• Measurement will form the basis for managing for
  present and the future

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Whats in it for me?

• A showcase for what you do and how you add value
• An opportunity to influence operational processes
  and decisions
• A way to eliminate unnecessary steps in your
  business process
• Help in finding better ways to serve your
  customers
• A chance to learn more about about what others
  do in ORS
• Hard data to support resource requests (e.g.,
  funding, staff)
• Help in workforce planning
• Better outcomes, more satisfied customers, better
  business operations, more efficient processes

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ASA Changes in 2002

• Organized the ASAs at the Service Group level
• About 45 ASAs in FY02
• Established Common Measures
• Everyone will complete these
• Help teams to know where to start with
  performance measurement
• Some information will be rolled-up for ORS ASA
  Template
• Identified need for ASA training sessions
• ASA Template Training
• Process Mapping Training
• Data Analysis and Graphing Training
• Implemented ASA Web Page
• http//www.nih.gov/od/ors/od/oqm/asa/asa.htm
• Resources
• Timeline
• Training
• One Final Deliverable - ASA Presentation

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Key Players in the ASAs

• Team Leaders
• Team Members
• Office of Quality Management (OQM)
• OQM Consultants
• ORS Executive Committee (ORSEC)
• ORS Advisory Committee (ORSAC)

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ASA Roles and Responsibilities

• ASA Team Leader
• Lead and manage individual ASAs
• Select and assemble ASA team members
• Manage use of ASA Consultant assigned to Team
• Prepare ASA Template
• Guide data collection and analysis
• Serve as key point of contact throughout ASA
  process
• Prepare ASA Final Presentation
• ASA Team Members
• Attend trainings to learn new skills
• Assist in developing the ASA template
• Participate in process mapping
• Assist with data collection and analysis
• Participate in process improvement activities
• Help prepare ASA Final Presentation

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ASA Roles and Responsibilities (cont.)

• Office of Quality Management (OQM)
• Formulate ASA methodology
• Develop ASA training and tools for ASA Teams
• Provide Teams with technical advice/consultants
• Provide ASA status reports to senior leadership
• Conduct roll-up of common measures for ORS
• Evaluate ASA methodology and fine-tune the
  process
• OQM Consultants
• Deliver ASA training courses
• Serve as facilitators and technical experts to
  Teams
• Provide consulting services at the Team level
• Will have approximately 20 hours per ASA Team for
  FY02
• Provide feedback to OQM on ASA Teams progress

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ASA Roles and Responsibilities (cont.)

• ORS Executive Committee (ORSEC)
• Drive commitment to the ASA process by providing
  leadership, personnel, resources
• Monitor Division/Office progress in ASA
  implementation
• Decision making based on ASA findings and
  recommendations
• Recognize outstanding team efforts
• Allocate resources within Division/Office based
  on ASA findings
• ORS Advisory Committee (ORSAC)
• Serve in advisory capacity to ASA effort
• Communicate to stakeholders ORS initiatives
  regarding performance measurement

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The Balanced Scorecard, Performance Measurement,
and the ASAs
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The Balanced Scorecard (BSC)

• BSC is the framework ORS is using for the ASAs
• BSC approach originated from research project
  with 12 companies at leading edge of performance
  measurement
• Set of measures to give managers a fast yet
  comprehensive view of their business
• Method to translate business strategy into action
• Organizes measures in terms of 4 key
  perspectives
• Measures address both current and future success
• Integrates both external and internal measures
• Sources for more information on the BSC
• Kaplan and Norton publications (see resources
  list)
• BSC collaborative (http//www.bscol.com)
• ASPA Balanced Scorecard Interest Group
  (http//www.aspanet.org/bscorecard/index.html)

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BSCs Four Perspectives
Customer Perspective
Are we providing our customers what they need and
want?
Internal Business Process Perspective
To satisfy our customers, in which internal
business processes must we excel?
Learning Growth Perspective
To achieve our goals, how must our organization
learn and innovate?
Financial Perspective
Are we operating efficiently within our budget
constraints?
Adapted from Kaplan Norton, 1996.
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BSC and Performance Measurement

• Fits with Government emphasis on performance
  measurement initiated with GPRA
• Government Performance and Results Act (GPRA)
• http//www.whitehouse.gov/omb/mgmt-gpra/gplaw2m.h
  tml
• NIH Performance Plan
• http//www1.od.nih.gov/gpra/gpra_nih_c.htm
• Reemphasized in The Presidents Management Agenda
• The Presidents Management Agenda
• http//www.whitehouse.gov/omb/budget/fy2002/mgmt.
  pdf
• Government Executive
• GovExec.com - Government Executive Magazine
• Many resources on performance measurement
• The Performance Based Management Handbook
• http//www.orau.gov/pbm/pbmhandbook/pbmhandbook.h
  tml
• Performance Measurement Documents
• http//www.orau.gov/pbm/documents/documents.html
• NAPA, Center for Improving Government Performance
  
• The National Academy of Public Administration

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BSC and Performance Objectives

• Example
• Performance Objectives
• Increase customer satisfaction
• Expand customer base
• Increase speed of service
• Decrease amount of errors
• Increase employee satisfaction
• Increase employee KSAs
• Understand causes of unit cost fluctuation
• Reduce unit cost

• BSC Perspective

Customer
Internal Business Process
Learning Growth
Financial
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BSC, Performance Objectives, and Performance
Measures
Examples
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ASAs and Performance Measurement
Customer Value Proposition
Performance Measures
Performance Objectives
Strategy
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ASA Methodology

• Form Teams for the 45 ASAs by Service Groups
• Strategy, objectives, and measures will be
  discussed at both Service Group and Discrete
  Service level
• Become familiar with the ASA Template
• Attend ASA Template Training
• Formulate basis for why you are in business
• Describe the Customer Value Proposition
• Clarify your Strategy
• Establish Performance Objectives for your area
• Represent outcomes to be achieved
• Common objectives
• Every ASA Team will work to achieve
• Unique objectives
• Specialized objectives to your area

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ASA Methodology (cont.)

• Define Performance Measures to gauge if achieved
  objectives
• Common measures
• Every ASA Team will gather and report
• Used in roll-up fashion to provide snapshot of
  ORS overall
• Unique measures
• Specialized for each ASA Team
• May be at the Service Group level, or the
  Discrete Service level
• Plan for data collection
• Complete ASA Implementation Plan
• Map your processes
• Take Process Mapping Training
• Gather and analyze data
• Take Data Analysis and Graphing Training
• Take other trainings as appropriate
• Prepare ASA Final Presentation
• Tell the story of your ASA
• Interpret data findings and make recommendations
  for change

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Orientation to the ASA Template
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ASA Template - Page 1
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Step 1 List Service Group/Discrete Services

• Service Groups and Discrete Services are the way
  ORS describes what we do in the New Business
  Model
• Categorize ORS Services in the Service Hierarchy
• 5 Program Areas
• Building and Space Acquisition and Development
• Municipal Services
• Program Support
• Property Management
• Services Management and Support
• 45 Service Groups
• 170 or so Discrete Services
• Listing of Service Groups available via ASA web
  page
• http//www.nih.gov/od/ors/od/oqm/asa/asa.htm
• Click on ORS Service Groups in first paragraph

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ORS ExampleVRP Service Group Provide Animal
Research Support
Type in Service Group and Discrete Services on
Template
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Step 2 Describe the Customer Value Proposition

• Identifies what value your service provides to
  customers
• Shows how you differentiate yourself from your
  competitors
• Describes your unique mix of product and service
  attributes, customer relations, and
  image/reputation offered (Kaplan Norton, 2000)
• Should be written from the customers
  perspective, not yours

For more information, see Kaplan Norton (1996
pp. 73-85, 2000).
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ORS ExampleCustomer Value Propositions from 2001
ASAs

• Provide innovative and highly specialized
  critical care services to the NIH biomedical
  research community, utilizing state-of-the-art
  veterinary techniques, conveniently located, to
  accommodate the unique needs of each investigator
  (VRP)
• Support the biomedical and behavioral research
  needs of the NIH Community by acquiring and
  providing access to electronic and print
  information resources (Library)
• Provide flexible, timely, and cost-effective
  scientific equipment to the NIH research
  community to enhance the research efforts (SEIB)
• Provide planning, design, and construction
  guidelines to the Architects and Engineers to
  improve biomedical facilities (DCAB)
• Provide cost-effective, timely, and appropriate
  technical and craft services for the operation
  and maintenance of NIH facilities, under normal
  and emergency conditions, to ensure a physical
  environment that is functional, clean, safe,
  healthy, comfortable, and reliable (PWB)
• Provide child care services to NIH employees to
  enhance the quality of the NIH work environment
  and the recruitment, retention, and performance
  of employees (DSS)

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Customer Value Proposition
Type in Customer Value Proposition here
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Step 3 Identify Service Strategy

• For all areas, choose from
• Operational excellence
• Most common strategy for public organizations
• Focus on competitive pricing, quality, selection,
  and timeliness
• Customer intimacy
• Focus on the quality of the relationships with
  customers
• Product leadership
• Provide innovative and outstanding performance on
  products and services offered

For more information, see Kaplan Norton (2000).
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Step 3 Identify Service Strategy (cont.)

• Fee-for-service operations, also consider
• Growth
• Expanding your market share
• Developing new products or enhancing features of
  current products
• Sustain
• Maintaining your market share
• Maintaining current product/service offerings
• Maintaining similar levels of service
• Recovering costs for providing services
• Harvest
• Phasing out/eliminating services
• Retraining and relocating workforce

For more information, see Kaplan Norton (1996,
p. 48-50).
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Service Strategy
Check the appropriate box(es) on the Template.
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Step 4 List ASA Team Leader/Members

• ASA Team Leaders
• Lead ASA effort
• Manage use of consultant hours, expertise
• Assign and track ASA related tasks
• Responsible for status of team, final
  presentation
• ASA Team Members
• Attend ASA related trainings
• http//www.nih.gov/od/ors/od/oqm/asa/asa_training
  .htm
• Attend ASA meetings
• Assist with data collection and analysis
• Provide input into final ASA Presentation

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Service Strategy
Fill in Team Information.
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ASA Template - Page 2
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ASA Template - Page 2

• Four BSC Perspectives
• Customer
• Internal Business Process
• Learning and Growth
• Financial
• For each Perspective you must specify
• Performance objectives
• Common objectives already listed
• Blank space to add unique objectives
• Performance measures
• Common measures already listed
• Blank space to add unique objectives

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Step 5 Describe Customer Perspective
Common Objectives and Measures
The first common measure for the Customer
Perspective asks you complete customer
segmentation for the Discrete Services in your
Service Group.
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ORS Example (VRP) Revenue for Acute and Clinical
Care by IC (FY01)
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ORS Example (DBEPs)Number of Collaborations by
NIH IC
Number of Collaborations
From DBEPs ASA in 2001.
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ORS Example (DSS)Customer Segmentation for NIH
Dining Centers
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Step 5 Describe Customer Perspective (cont.)
Common Objectives and Measures
The second common measure for the Customer
Perspective is ratings from the ORS Customer
Scorecard. How these data will be collected will
be something the Team will discuss with their
Consultant. OQM will tally the data and provide
your Team with summary graphs.
42
(No Transcript)
43
ORS Example (Fictitious)Product/Service Ratings
Shows mean ratings on Product/Service categories
on ORS Customer Scorecard.
44
ORS Example (Fictitious)Customer Service Ratings
Shows mean ratings on Customer Service categories
on ORS Customer Scorecard.
45
Step 5 Describe Customer Perspective (cont.)
Unique Objectives and Measures
Space to add your own unique Customer objectives
and measures if desired. Note that you will NOT
be reporting the actual data collected for these
measures on this form. These data will be part
of your ASA Final Presentation.
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ORS ExampleCustomer Measures from 2001 ASAs

• Number/type of customer complaints (DSS)
• Rate of acquisition of new customers (VRP)
• Increase market share of NIH customers (SEIB)
• Customer retention by NIH IC (DSS)
• Growth in users of Facilities Information
  Management System (OFP)

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Step 6 Describe the Internal Business Process
Perspective
Common Objectives and Measures
The first common measure for the Internal
Business Process Perspective asks your team to
complete process maps of your Service
Group/Discrete Services. Process Map training
and consultant support are available.
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ORS Example (HR)Process Map of the Staffing
Process
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Step 6 Describe the Internal Business Process
Perspective (cont.)
Common Objectives and Measures
The second common measure for the Internal
Business Process Perspective asks you to indicate
and report on process measures. These measures
will be easy to identify once completing your
process maps.
50
ORS ExampleProcess Measures from 2001 ASAs

• Cycle time from customer request to providing of
  work (Locksmith)
• Time between customer order and delivery of
  product (MAPB)
• Percent of equipment stock that is rented (SEIB)
• Number of unscheduled repairs (PWB)
• Number of billing transactions processed with
  errors (VRP)
• Percent of notification memos sent out within 1
  week (OFP)
• Problem resolution of help desk requests (ITB)
• Number of facility deficiencies (VRP)
• Percent errors found in radioactive materials
  inventory (DS)

51
ORS Example (VRP)Standard Holding Days for
Acute/Intensive Care
Sample XmR Chart
From VRP ASA in 2001.
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Step 6 Describe the Internal Business Process
Perspective (cont.)
Unique Objectives and Measures
Space to add your own unique Internal Business
Process objectives and measures if desired. Note
that you will NOT be reporting the actual data
collected for these measures on this form. These
data will be part of your ASA Final Presentation.
53
Step 7 Describe the Learning and Growth
Perspective
Common Objectives and Measures
Four common measures for Learning and Growth have
been identified for the objective Enhance
quality of work life for employees in ORS. This
information will be provided by HR at the Service
Group level for analysis and interpretation by
your ASA Team.
54
Step 7 Describe the Learning and Growth
Perspective (cont.)
Common Objectives and Measures
The second common measure for the Learning and
Growth Perspective is analysis of data provided
by the Readiness Index, a tool to help you with
work force planning. HR will be developing the
Readiness Index and it will be distributed to all
ASA Teams for their use.
55
Step 8 Describe the Financial Perspective
Common Objectives and Measures
The first common measure for the Financial
Perspective is analyzing and understanding
changes in the unit cost for each Discrete
Service in your Service Group. More detailed
information will be provided by OBSF on how to
gather and analyze this data.
56
Step 8 Describe the Financial Perspective
(cont.)
Common Objectives and Measures
The second common measure in the Financial
Perspective is analyzing actual assets utilized
compared to planned asset utilization for each
Discrete Service. More detailed information will
be provided by OBSF on how to gather and analyze
this information.
57
Step 8 Describe the Financial Perspective
(cont.)
Unique Objectives and Measures
Space to add your own unique Financial objectives
and measures if desired. Note that you will NOT
be reporting the actual data collected for these
measures on this form. These data will be part
of your ASA Final Presentation.
58
ORS ExampleFinancial Measures from 2001 ASAs

• Sales data by fiscal year (DSS)
• Percent variation between budgeted and actual
  expenditures (OD)
• Comparison of in-house cost to commercial cost
  (MAPB)
• Revenue generated from equipment sales/rental to
  other Government Agencies (SEIB)
• Amount of late fees and penalties paid per month
  (PWB)
• Percent change in operation expenses (VRP)
• Number of code-required design changes identified
  in reviews (DES)
• Actual costs/sq ft compared to contracted
  costs/sq ft (DCAB)

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ORS ExamplePrinting Sales Data by Fiscal Year
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Step 9 Submit ASA Template to Division/Office
Director

• Due date of 30 May
• Seek review of your work thus far
• Provide approval that moving in the right
  direction
• Give senior leaders opportunity to be involved in
  performance measurement process
• Make revisions to template based on feedback

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Step 10 Submit ASA Template to OQM

• Due date of 14 June
• Submit completed ASA Template file (Excel) to Gay
  Presbury
• presburg_at_ors.od.nih.gov
• OQM and Consultants will review
• Ask questions if necessary
• Provide team with feedback
• Provide senior leadership with status report on
  how ASA effort is proceeding

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Next Steps

• Complete ASA Template
• 30 May - to Division/Office Head
• 14 June - to OQM
• Take process mapping training
• Map Service Group Process, Discrete Services
• Identify process measures
• Set up data collection methods
• Complete ASA Implementation Plan
• Gather data
• Analyze data
• Take additional trainings
• Data Analysis and Graphing
• Customer Measurement
• Process Behavior Charts
• Complete ASA Final Presentation
• 22 Oct - to Division/Office Head
• 6 Nov - to OQM
• 18 Nov - ASA Conference

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Conclusions

• ASA provide framework to tie strategy,
  performance measurement, and process improvement
  together
• Made improvements in ASAs since FY01
• Organized ASAs at the Service Group level
• Came up with common performance objectives and
  measures for all ASA Teams
• Developed ASA-related trainings
• Implemented Web page for information/communication
  
• ORS leadership is expecting significant progress
  in 2002
• Performance measurement is not going away
• ORS facing increasing competitive environment
• Must gauge how well meeting customer needs
• Implement culture that manages and improves
  through the use of data

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Resources

• Kaplan, R. S., Cooper, R. (1998). Cost
  effect. Boston, MA Harvard Business School
  Press.
• Kaplan, R. S., Norton, D. P. (2000). Having
  trouble with your strategy? Then map it. Harvard
  Business Review On Point, Product Number 5165.
• Kaplan, R. S., Norton, D. P. (1996). The
  balanced scorecard. Boston, MA Harvard
  Business School Press.
• Kaplan, R. S., Norton, D. P. (1992). The
  balanced scorecardmeasures that drive
  performance. Harvard Business Review On Point,
  Product Number X92105.
• Kaplan, R. S., Norton, D. P. (1993). Putting
  the balanced scorecard to work. Harvard Business
  Review On Point, Product Number X93505.
• Kinlaw, D. C. (1992). Continuous improvement
  and measurement for total quality A team-based
  approach. San Diego, CA Pfeiffer Company.
• National Institutes of Health. (2001).
  Government Performance and Results Act (GPRA),
  Final FY 2001 GPRA Annual Performance Plan.
  Bethesda, MD Author. (Available at
  http//www1.od.nih.gov/gpra/gpra_nih_c.htm).
• Office of Management and Budget. (1993).
  Government Performance and Results Act.
  Washington, DC Author. (Available at
  http//www.whitehouse.gov/omb/mgmt-gpra/index.html
  ).
• Performance-Based Management Special Interest
  Group. (1995). How to measure performance A
  handbook of techniques and tools. Washington,
  DC U.S. Department of Energy. (Available at
  http//www.orau.gov/pbm/documents/
  documents.html).
• Performance-Based Management Special Interest
  Group. (2000). The performance-based management
  handbook, Volume 2 Establishing an integrated
  performance measurement system. Washington, DC
  U.S. Department of Energy. (Available at
  http//www.orau.gov/pbm/documents/documents.html).