Module Agenda

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Module Agenda

• Todays Workshop will cover
• Regulatory drivers of the performance management
  system
  
• Whats new in Performance Management?
• Certification requirements and responsibilities
• DoD Executive and Senior Professional Performance
  Management System features and requirements
  
• DoD Organizational Assessment Tool

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Learning Objectives

• Understand the legal requirements for an
  effective performance management system
  
• Understand the DoD Executive and Senior
  Professional Performance Management features and
  requirements
  
• Understand the Office of Personnel Management
  (OPM) and Office of Management and Budget (OMB)
  performance management system certification
  requirements and the implications for Executives
  and Senior Professionals
• Understand how organizational performance is
  assessed and used in the performance management
  process

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Regulatory Drivers

• Chapter 43 of Title 5, United States Code
• Provides for performance management for the
  Senior Executive Service (SES), the establishment
  of SES performance appraisal systems, and
  appraisal of senior executive performance.
• Executive performance management systems must
  hold senior executives accountable for their
  individual and organizational performance.
  
• Under this guidance, DoD establishes a pay for
  performance system, defined in Subchapter
  (SC)920, with focus on strong principles of
  performance management.
• A performance culture that encourages a
  results-driven executive workforce by creating a
  direct link between the results you achieve and
  your pay and rewards.

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Whats New in Performance Management?

• Promotes a performance culture in which the
  performance and contribution of the workforce are
  recognized and rewarded accurately and fairly
  
• Establishes common DoD Performance Elements upon
  which to assess performance
  
• Links performance requirements with strategic
  goals of your organization
  
• Links individual performance with organizational
  performance
  
• Uses performance results as a basis for basic
  pay, bonus, development, and other personnel
  decisions
  
• Requires meaningful distinctions be made in
  performance by writing effective Performance
  Requirements and effectively assessing
  performance

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Whats New in Performance Management? (contd)

• Provides for the systematic appraising of
  performance using measures that balance
  organizational results with customers, employees,
  or other perspectives
• Requires rigorous appraisal of subordinate
  performance, which means that all the performance
  cycle components be completed. They are
  
• Planning and communicating performance
• Monitoring performance
• Appraising performance
• Rating performance
• Using performance results
• Holds executives accountable for the performance
  management of their subordinates, i.e., how well
  you oversee your employees
  
• Aligning subordinate performance plans with
  organizational goals
  
• Providing rigorous appraisal of subordinate
  performance
  
• Requires OPM certification and OMB concurrence of
  the Departments design, application and
  administration of its performance appraisal
  system

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What does Certification mean?Legal Criteria

• DoDs performance system makes meaningful
  distinctions in performance based on relative
  performance as defined by 5 U.S.C. Chapter 43
  
• Key 5 U.S.C. Performance System Requirements
• Establishment of performance standards which
  provide for accurate evaluation of performance
  based on objective criteria related to the job
  
• Employee participation in establishing
  performance standards
  
• Monitoring and appraising of performance fairly
• Use of results of performance appraisals as a
  basis for paying, training, rewarding,
  reassigning, promoting, reducing in grade,
  retaining and removing employees
• Evaluation of employees based upon individual and
  organizational performance
  
• At least 3 levels of performance (one or more
  fully successful levels, a minimally satisfactory
  level, and an unsatisfactory level)
  
• Oversight responsibilities to ensure the system
  operates fairly, efficiently, and effectively
  

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What does Certification mean?OPM Criteria

• Training executives on the design and
  implementation of the DoD Performance System
  
• Writing measurable, results-driven Performance
  Requirements
  
• Measures in Performance Requirements that include
  quality, quantity, timeliness, and cost
  effectiveness as applicable
  
• Aligning Performance Requirements to
  organizational goals
  
• Consultation of executives and raters about
  Performance Requirements and expectations for
  performance
  
• Measure of balance in Performance Requirements
  that includes indicator of employee and or
  customer feedback

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What does Certification mean?OPM Criteria
(contd)

• Individual Assessments based upon individual
  performance and organizational performance that
  is assessed annually
  
• Executive accountability for rigorously
  evaluating subordinates and cascading and linking
  organizational goals to subordinates
  
• Communication of performance results (ratings and
  payouts), in the aggregate, to executives
  
• Pay differentiation so that those who have
  demonstrated the highest levels of individual
  performance receive the highest summary ratings
  and pay adjustments (bonus and pay increases)
• Oversight of performance appraisal process to
  ensure fairness and compliance

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Certification What does it mean for you?

• Signals to the workforce that DoD has a
  creditable, transparent, fair and equitable
  system for appraising and rewarding individual
  performance
• Instills confidence in the workforce that
  supervisors are capable of making meaningful
  distinctions in performance and pay
  
• Provides authority to apply the higher aggregate
  limitation on pay equivalent to the rate
  payable to the Vice President
  
• Provides authority to increase in the maximum
  rate of basic pay from Level III to Level II of
  the Executive Schedule (SES)
  

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How do you impact certification? Executive
Responsibilities
Ensure that organizational assessment results ar
e used to appraise,
pay and reward
Ensure that pay adjustments and awards for you
r subordinates are
based on performance
Engage in training on the design and implementati
on of the DoD Executive and Senior Professional

Performance Management System
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How do you impact certification?Authorizing
Official Responsibilities
Communicate organizational performance goals or o
bjectives at the beginning of the performance cy
cle and reinforce them throughout the performanc
e year
Communicate the annual ratings distributions, ave
rage
pay adjustments and awards granted
Communicate results of the pay-for-performance sy
stem to
the executive workforce
Communicate organizational assessment results t
o executives, Rating Officials, and Performance
Review Boards
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How do you impact certification? Your
Performance Plans
Must contain a critical element
that holds executives accountable for the perform
ance management of subordinates and alignment of
subordinate performance plans
Must clearly link with and support established
organizational goals
Must include appropriate measures or indicators o
f use of employee and customer/stakeholder fee
dback
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How do you impact certification? Departmental
Oversight
Ensures meaningful distinctions
are made in the appraisal, rating, pay adjustmen
t and
award of Executives
Ensures the Performance Management System operat
es
effectively and efficiently
Ensures ratings, pay adjustments, and awards ar
e based on
performance
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Benefits of an Effective Performance Management
Process

• Assigns, assesses and rewards work provides a
  means to reward your top performers
  
• Establishes an equitable method for setting pay
• Allows flexibility to respond to mission changes
  realign, reorganize, and reshape the workforce
  
• Means to attract and retain a valued and high
  performing workforce
  
• Opens a dialogue between executives and
  supervisors around organizational goals, expected
  contributions to meet the goals, expectations for
  performance, and developmental requirements
• Builds an understanding of DoD priorities and how
  they cascade to an organizations priorities, and
  how in turn, these priorities cascade to
  executive and subordinate performance
  requirements

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Executive Performance Management CycleAt a Glance
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DoD Performance Management System
FeaturesPerformance Elements

• Performance Elements are the critical components
  of an executives or senior professionals work
  that contribute to organizational goals and
  results
• Unsatisfactory performance in any one of the
  Performance Elements would make the executives
  overall job performance unsatisfactory
  
• Performance Element Benchmarks included as a
  resource slide in this Module

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DoD Performance Management System
FeaturesPerformance Requirements

• Must be results-driven Performance Requirements,
  written as
  
• SMART-Q (Specific, Measurable, Aligned,
  Realistic, Timely, Quality) statements of results
  expected to be achieved during the Performance
  Appraisal period
• Describe what is required and how well it is
  to be done
  
• 60 percent of Performance Requirements must be
  SMART-Q.
  
• 40 percent may be written as a behavior statement
  within the measure (e.g. Consults with employees
  and/or stakeholders in developing policy)
  
• Must describe a requirement/outcome that is of
  sufficient depth and complexity to reflect the
  high-level work of an Executive or Senior
  Professional

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DoD Performance Management System
FeaturesPerformance Requirements

• Typically between one and four Performance
  Requirements per Performance Element
  
• Performance Requirements must be written to a
  Level 3 , Achieved Expectations
  
• Achieved Expectations is a high-bar standard for
  those who deliver expected, customary results of
  a high quality and creativity
  
• Stretch Performance Requirements are optional
  and describe high-bar standards for those who
  deliver breakthrough results, uncommon, or
  extraordinary or unexpected results
• The Performance Element Contribution to Mission
  Accomplishment MUST contain ALL SMART-Q
  Requirements
  
• No behavioral measures are permissable

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DoD Performance Management System Features
Performance Rating Levels
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DoD Performance Management System Features
Organizational Assessments

• An Organizational Assessment is a thorough
  evaluation of DoD, Component, organizational, and
  or functional performance against prescribed
  strategic goals, objectives, and or priorities
• Organizational Assessments must be
• Used by rating officials and Performance Review
  Boards to assess and rate individual performance,
  make meaningful distinctions in performance, and
  pay and reward executives
• Communicated and be readily assessable to
  executives
  
• The DoD Organizational Assessment consists of
• Annual publication of the DoD priorities
  (currently referred to as 25 Transformational
  Priorities), usually in September or October of
  each year
• Annual Organizational Assessment based on the DoD
  Priorities, usually published in August or
  September of year

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DoD Performance Management System Features
Organizational Assessments (contd)

• A Component Organizational Assessment consists
  of
  
• Annual publication of Component priorities that
  considers the Annual DoD Priorities publication
  is determined by the Component Head, but it must
  be published in time to be used to establish
  annual Performance Requirements
• Annual Organizational Assessment that considers
  the DoD Organizational Assessment Publication
  is determined by the Component Head, but it must
  be published in time to be considered in the
  final evaluation and rating of an executive
• Other Assessments that can be used by an
  organization include
  
• Presidential Management Agenda (PMA)
• Governmental Performance Results Act (GRPA)
• Organizational Strategic Plan Performance Results

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Resources

• SES Website (Includes SC 920)
• www.cpms.osd.mil/sespm
• Executive Performance in the 21st Century A
  Guide to Driving Organizational Results
  
• Executive Management Development Office
• 5 USC 43
• OPM Certification
• http//www.opm.gov/ses/certification.asp

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ResourcesPerformance Element Benchmarks (1)
The basis for determining the rating level of
each Performance Element will be the relationship
of an executive or senior professionals
accomplishments to the Performance Requirements.
The information below identifies each of the sev
en benchmark Performance Elements
Leadership/Supervision Contribution to Mission
Accomplishment Resource Management
Communication Cooperation/Teamwork Customer
Care and Technical Competence/Problem Solving
and illustrates accomplishments and contributions
that may be considered in reviewing the
executives accomplishments.
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ResourcesPerformance Element Benchmarks (2)
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ResourcesPerformance Element Benchmarks (3)
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ResourcesPerformance Element Benchmarks (4)
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ResourcesPerformance Element Benchmarks (5)
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ResourcesPerformance Element Benchmarks (6)
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ResourcesPerformance Element Benchmarks (7)
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ResourcesPerformance Element Benchmarks (8)
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ResourcesPerformance Element Benchmarks (9)
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Questions