Download - VBA’s Executive Performance Appraisal System A New Approach to Executive Performance Management
VBA’s Executive Performance Appraisal System
A New Approach to Executive Performance Management
Senior Executive Service in VBA
• Total SES - 57– Headquarters SES - 15– Field SES - 42
• VBA comprised of (57) Regional Offices and Centers along with Headquarters elements
State of VBA - 1997
• Environmental scan revealed– Large Backlogs– Large Appellate Workload– High Remand Rate– High Blocked Call Rates– Poor Customer Satisfaction– Lack of Succession Planning– Poor Data Integrity
State of VBA - 1997
• Veterans Claims Adjudication Commission “Report to Congress” - December 1996
• National Academy of Public Administration report on “Management of the Compensation and Pension Benefits Claim Processes for Veterans” - August 1997
Improved service delivery to veterans– Increase Accessibility– Improve Efficiency– Reduce Redundancy– Promote Cooperation/Teamwork– Eliminate Destructive Competition– Push Decision Making to Lowest Level– Promote Flexibility in Decision-Making
Service Delivery Networks
VBA Service Delivery Networks
1
2
34
5
6
7
8
9
Seattle
Portland
Boise
Salt Lake
Ft. Harrison
Cheyenne/Denver
Denver
Albuquerque
Fargo
Sioux falls
Lincoln
Wichita
St. Paul
Des MoinesChicago
St. LouisSt. Louis RMC
Milwaukee
Reno
Oakland
Los Angeles
Phoenix
Waco
Houston
Muskogee Little Rock
New Orleans
JacksonMontgomery
St. Petersburg
Indianapolis
Detroit
Cleveland Pittsburgh
Louisville
Huntington
Roanoke
Nashville
AtlantaColumbia
Winston Salem
Buffalo
ANCHORAGE
HONOLULU
SAN JUAN
TogasManchester
White River Jct.
BostonProvidence
HartfordNew York
NewarkPhiladelphia
WilmingtonBaltimoreWashington
MANILA
San Diego
Why Develop a New Performance Measurement
System?• To encourage teamwork throughout VBA -
consistent with the SDN concept
• To leverage performance measured on the Balanced Scorecard
• To foster development of key executive competencies
• To tap the insights of peers, subordinates and stakeholders (360 degree feedback)
Executive Performance Appraisal Plan Development
• The plan is aligned with VBA’s corporate philosophy
• Development Team was comprised of Directors from the field
• Field survey was conducted with the best ideas incorporated in the final plan
• Performance expectations from senior level VBA management were incorporated in the final plan
Elements of the Executive Performance Appraisal System
Element 1 - Balanced Scorecard Performance
Element 2 - Organizational Support/Teamwork
Element 3 - Leadership Development
Element 4 - External Relations
Element 5 - Workplace Responsibilities
The VBA Balanced Scorecard
• Each major business line (Program) has a Balanced Scorecard with unique measures
• Measures were selected based on management experience; customer & stakeholder interest; and benchmarking with similar organizations
• Balanced Scorecards developed at the Local, Service Delivery Network, and National levels
The Balanced Scorecard
Balanced Scorecards for each business line contain the following key elements:
– Speed
– Accuracy
– Unit Cost
– Customer Satisfaction
– Employee Development
National Loan Guaranty Business Line Scorecard
Category SPEED ACCURACY UNIT CO ST CUSTO MER SATISFACTIO N EMPL. DEV. & SAT.
Weight 15% 30% 15% 25% 15%
Measure
Acq
uire
d P
rop
erty
Hol
ding
T
ime
(mon
ths)
(2)
Pro
cess
ing
tim
e fo
r el
igib
ility
ce
rtif
icat
es (
2)
Pro
cess
ing
tim
e fo
r va
lue
dete
rmin
atio
ns (
day
s) (
2)
For
eclo
sure
Avo
idan
ce
Thr
ough
Ser
vici
ng (
FA
TS)
ra
tio
(2)
Stat
isti
cal Q
ualit
y C
ontr
ol
(SQ
C)
Inde
x (4
)
Ret
urn
on S
ales
of
Acq
uire
d P
rop
erti
es (
RO
S) (
2)
Adm
inis
trat
ive
cost
per
loan
gu
aran
ty is
sued
(5)
Adm
inis
trat
ive
serv
icin
g co
st
per
def
ault
pro
cess
ed (
5)
Adm
inis
trat
ive
cost
per
p
rop
erty
sol
d (5
)
Vet
eran
Sat
isfa
ctio
n In
dex
Len
der
Sati
sfic
atio
n I
ndex
Tel
epho
ne A
ctiv
itie
s -
Aba
ndon
ed C
all R
ate
Tel
epho
ne A
ctiv
itie
s -
B
lock
ed C
all R
ate
Em
plo
yee
Dev
elop
men
t Sk
ill
Mat
rix
One
VA
Sur
vey
(m
ean
scor
e)
(6)
Strategic O bjective 8 5 15 40% 98% 100% $125 $320 $0 95% 80% TBD TBD TBD 4
FY 2000 Targets 9 7 19 39% 97% 98% TBD TBD TBD TBD TBD TBD TBD TBD 3
Zero Value 15 15 30 18% 80% 80% TBD TBD TBD 80% 50% TBD TBD TBD 1
Actual 8.2 4.9 15.0 29.9% 93.2% 99.5% $291 $96,212 $1,725 TBD TBD TBD TBD TBD 3.3Earned Points 4.8 5.0 5.0 8.1 11.0 2.4 TBD TBD TBD TBD TBD TBD TBD TBD 3.9Maximum Points 5.0 5.0 5.0 15.0 15.0 2.5 5.0 5.0 2.5 7.5 7.5 5.0 5.0 10.0 5.0
Total Score 40.3 x1.90 76.8 NOTES:Maximum Score 53 x1.90 100 (1) Reflects monthly data
(2) Reflects FYTD data (thru current month)(3) Reflects FYTD data (thru prior month)(4) Reflects 12-month cumulative data(5) Reported quarterly(6) Reported annually(7) End of month snapshot
Balanced Scorecard Performance Element 1
Organizational Level Percent of Rating underElement 1 for each Director
Balanced Scorecard Target
VBA 15% Established by UnderSecretary for Benefits
SDN 50% Negotiated between the SDNand Office of FieldOperations
Regional Office 35% Negotiated between the SDNand Office of FieldOperations
Organizational Support/TeamworkElement 2
Sub-Element 1 – Support for the SDN Concept through
participation in National and SDN Projects and support of Innovation
Sub-Element 2 – Peer Review of Teamwork
Support for the SDN ConceptSub-element 1
• Participation in projects at the SDN level
• Participation in projects at the National level
• Promoting and sharing “Innovative” ideas and business practices
Peer Review of TeamworkSub-element 2
• Designed to evaluate effectiveness as a SDN team-member
• A peer evaluation survey instrument was developed with the help of outside contractors
• Directors are also required to complete a self-assessment
• Results are discussed with fellow team-members
Teamwork Assessment Feedback Dimensions
Directors are rated on a scale of 1 to 6 in the following categories
– Respect and Openness– Communication– Managing Performance– Innovation– Budget and Resource Planning– Budget Execution/Resource Sharing– People Development
Peer Review Observations
• FY 2000 results not used for rating purposes
• Evaluations appear to be inflated
• The process resulted in open and frank discussion among Directors
• Results will be used for rating purposes in FY 2001
Leadership DevelopmentElement 3
Sub-element 1– Leadership Development Plan
Sub-element 2– 360 Degree Performance Assessment
Leadership Development PlanSub-element 1
• Tied to Office of Personnel Management core competencies
• Directors required to assess strengths as well as weaknesses
• Supervisors required to identify developmental issues
• An Individual Performance Plan is required for each performance period
360 Degree AssessmentSub-element 2
• Difficult concept for senior executives to accept
• Directors must be assessed in the normal performance of duties
• VBA has elected to utilize the FEI instrument
• Concept to be tested in the FY 2001 executive performance appraisal process
External RelationsElement 4
Building effective, productive relationships with organizations external to VBA in support of the overall VA mission and goals
– Participation in the Federal Executive Board– Working with other elements in VA (e.g., VISN
or NCS)– Fostering productive relationships with service
organizations, congressional staff, and local media
Workplace ResponsibilitiesElement 5
• Effective labor/management relationships
• Discrimination-free work environment
• Diverse workforce
• Effective recruitment, training, retention, and employee development
• Safe and healthy work environment
VBA Executive Performance Appraisal System - where are we?
An organizational framework is in place to– Hold Directors accountable for their
performance– Link actions to corporate goals and objectives– Promote cooperation and teamwork in
furthering VA’s mission– Ensure universally consistent performance
assessment of senior VBA leaders
VBA Executive Performance Appraisal System - what’s next?
• Continue to develop the peer assessment process
• Finalize details on the 360 degree performance assessment process
• Shift the weighting in Element 1 to encourage ownership in national goals and objectives