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United States Office of Personnel Management Retirement Programs

Volume Two • Issue One

Ed Flynn, A s s o c i ate Dire c t o rfor Retirement and Insurance

Modernization effort— A strategic initiative to rethink, reevaluate, and ultimately reengineer the various processes that support and provide retirement services.

Last fall, we held a series of veryhelpful and thought-provokingmeetings with our customersaround the country to listen to theirthoughts about the Modernizatione ffort. We heard the concerns andexpectations of people who dependon our services in Philadelphia,Pennsylvania, Minneapolis,Minnesota, Washington, D.C.,Portland, Oregon, and Boyers,Pennsylvania. These focus groupsincluded current Federal employeesand human resources specialists, allof whom have a direct interest in thesuccess of our Modernization eff o r t .

The feedback we got wast r e m e n d o u s—we received positiveresponses to our initiative andadditional suggestions for change.I was extremely pleased with thereports of active participation byeveryone who attended and I thankeveryone involved.

As a result, we learned that ourcustomers are looking to us to builda retirement system that makes themost of modern technology andfocuses the power of that technolog y

The Modern i z ation Effo rt —Focusing on the Customer

on helping the people we serve. Inthe I’m Glad You A s k e d c o l u m nyou will see our answers to someof the questions we received fromour customers.

This issue of Modernizing To d a yalso contains other items I hopeyou will find interesting. Wehave an interview with one of thekey technology players here atOPM and articles that describeother different facets of theModernization effort. Finally, ifyou would like more information,please take a look at the H a v eQuestions or Suggestions? s e c t i o n .We would like to hear from you.

"One of the Reinventing Government initiatives was to empower employees tomake decisions in the workplace re g a rding means, methods, and technology. Abonus of this initiative is that employees will provide better customer serv i c e .

Local 32 salutes RIS officials. They were open to empowering employees toplay an active role in the process. These employees are making valuable contri -butions that are paying off alre a d y. With every accomplishment, the task forc eshows us that a labor and management team – working collaboratively – re a l l ycan make a differe n c e .

To Ed and the task force, we say, ‘Keep up the good work and keep on keepingus informed.’ As A F G E ’s slogan says: ‘Government employees – nobody doesit better!"

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In this issue● The Blueprint of the

Modernization Eff o r t p. 2

● Quotable Quote p. 2

● Merle To w n l e yI n t e r v i e w p. 4

● Measuring Results p. 6

● The Modernization E ffort and Information Technology p. 8

● I’m Glad You A s k e d p. 10

● Have Questions orSuggestions? p. 12

● Late-Breaking News p. 12

Quotable QuoteFrom the President of AFGE Local 32Michelle R. Tolson

The Blueprint of the Modernization EffortBy Shoshanna Goodman American Management Systems Team Leader

As you may recall from our lastissue of Modernizing To d a y, wehad a "late-breaking news" itemthat the Modernization eff o r t ’sproject team had just completedvalidation of the To-be modeland was embarking on creatingthe blueprint for the reengin e e r e d

The Blueprint of the Modernization Effort

retirement processes. As weexplained, redesigning theRetirement Program can becompared to building a house.Using the To-be model as ourfoundation, the project team hasmade significant progress intranslating the To-be modelsketch into a detailed floor planfor our "new house." We are inthe process of documentingwhat the redesigned processesand new technologies will looklike. As the team leader for thisphase of our project, I wouldlike to share with you how wehave gone about creating theblueprint and what we haveaccomplished.

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What is a blueprint?

The blueprint is the detailed layoutof what functions and processesmust be supported to ensure thatthe Modernization effort meetsits primary goals and objectives.As the detailed floor plan of our"new house", the blueprint alsoinforms the project team of theprocedures and systems that itneeds to design to transform theblueprint into a functioning sys-tem. We have been designingour blueprint one process or"room" at a time. This ensuresthat we can adequately focus onthe details of each process.

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an ideal place to live, we arevalidating each process blueprintwith our stakeholders (OPMe m p l o y e e representatives, OPMmanagement, and representa-tives of other Federal agencies)as we have developed it.A d d i t i o n a l l y, we have incorporatedthe results of our customer focusgroups, mentioned in Ed’s article.These activities continue toensure that we are moving in theright direction.

Where is the Modernizatione ff o r t ’s project team on thedevelopment of the blueprint?

The project team is almosthalfway through creating theblueprints for the 6 core processes(i.e., Member A d m i n i s t r a t i o n ,Claim to Payment Initiation,Annuity Roll Maintenance,Benefits Counseling, EmployeeWithholdings, and Trust FundManagement) of our To - b emodel. American ManagementSystem (AMS) is also workingalongside OPM and IBM to helptranslate our blueprint into thetechnical design we will need

The Blueprint of the Modernization Effo rt . . .

Creating the blueprint is a step bystep process. Each component ofthe design builds on the previousone. The first step we took inthis phase of the project was tocreate detailed process stepsbased on the To-be model. Indoing this, we added detail tothe To-be model and performed astep by step analysis to determinehow work would flow. Welooked at who or what systemwould perform the work. We thenused the detailed process flows tolist the required functions ( e . g . ,the ability to determine coverage,the ability to verify the member'ssecurity information, the abilityto automatically determine servicecredit) of the future systems andprocesses. The finishing touchof our blueprint is an analysis ofthe types of data (e.g., memberidentification data, Tier 1 cus-tomer service call information,deposit eligibility information)we will need to access to ensurethat we can properly automateand support the processes setout in the To-be model.

Because our house must haveall of the elements that make it

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c o n t i nued from page two

to properly build the systemsthat will support the futureRetirement Program.

Where do we go from here?

The project team is workingtowards creating the blueprints forthe remaining core processes.A d d i t i o n a l l y, AMS is gearing upto begin designing the proceduresthat support the To-be modelalong with developing an imple-mentation plan. We will ensurethat the employees who keep theRetirement Program runningwill be ready for any changes.We will identify any trainingneeds that will be essential for asmooth transition. Finally, OPM,AMS, and IBM will continue t owork together to ensure that theprocesses and systems that wedevelop work as a whole toexceed the expectations ofemployees, former employees, andretirees of the Retirement Program.

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A. Yes. I have many diff e r e n tresponsibilities and the chance tokeep up and use the ever- c h a n g i n gtechnologies and apply them to theO ffice of Retirement Programs.

Q. How did the team get startedon the calculator endeavor?

A. We needed a kernel of businessrules that could be used as a pro-t o t y pe and be incorporated intofuture systems. We had alreadybeen working on this because ourtraditional computer resourceswere squeezed by a combinationof Y2K issues and the diff i c u l t yin hiring technical people.Also, the Office of RetirementPrograms' workload is shiftingfrom the old Civil ServiceRetirement System (CSRS) tothe new Federal EmployeesRetirement System (FERS) withno offsetting increase in the toolsneeded for FERS claims. T h eproject of building a calculatorseemed perfect for an "early win"in our Modernization eff o r t .Previous efforts to build a compre-h e n s i v e Benefits Calculator hadnot been productive. There werevendors with benefits calculators,but their products were more inthe category of "estimators"---and that is a significant diff e r e n c e .There is no margin for errorswhen you are building a calculatorto compute federal employees'monthly retirement pay.Therefore, with the number ofFERS claims increasing, theenvironment was right for anO ffice of Retirement Programse ffort by people who understoodthe program.

Merle Townley Interview

Merle Townley is the BranchChief who leads the team workingon the prototype BenefitsC a l c u l a t o r. He works inOperations Support Division, theOffice of Retirement Programs atO P M .

Q. Merle, what is your job?

A. The Quality Control andAuthorization Branch (QCAB)ensures that the 2.4 million federalannuitants receive their paymentsas scheduled and respond tosituations beyond our controlsuch as when checks are lost orstolen—we make sure replace-ment checks are furnished asquickly as possib l e . We’re alsoresponsible for quality controland liaison with other Divisionsfor Automated Data Processingissues. Most recently, part of thebranch has evolved into a team thathelps with PC computer issuest h r o u g h o u t the Office ofRetirement Programs. My jobis to make sure all the activitieswork together as a productivew h o l e .

Q. It sounds like your jobrequires a lot of creativity?

Merle Townley InterviewBy Joe Parker and David Lewis

Q. Don't you feel on the hot seatfor a possible failure?

A. At the beginning of the projectI guessed the odds of successwere 1 in 5. Yet we went forwardbecause the payoff would behuge. QCAB's talented peoplehad the ability and courage topull off the project despite thelong odds. I believe if our taskwas to put a satellite in orbit, wecould have accomplished itbecause of our determination.

Q. Wouldn't it be easier to tell acontractor what you want and letthem build it?

A. We'll be looking towardsCommercial Off - t h e - S h e l f(COTS) solutions too, as newapplications become availablethat meet our needs. As partof the Retirement SystemsModernization effort, we'll beevaluating various COTS solu-tions to get the most cost-eff e c t i v esolution for the long term. Butthe main advantage of creating aprototype calculator in-house isthat many of us were BenefitsSpecialists and knew the work.This allowed us to make larg eimpact decisions quickly. In addi-tion, knowledge of retirement lawand current practices is dispersed.There is no single person or sourcethat knows it all down to the detaillevel. Telling a contractorwhat todo can be a very slow process.As I stated before, what weactually created was an automatedset of business rules that can beused in development of new tools

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through the Retirement SystemsModernization effort.

Q. How do you know what tobuild into the system?

A. From the technical side, theQCAB team used the Internet andalso talked directly to developersat Fortune 500 companies toglean ideas. We also studied thedesign of "estimators" and theC O B O L code and design of thecurrent mainframe system. Fromthe retirement side, we tried toadd components of the calculatorthat affected the largest number ofretirement cases.

Q. How do the users input theirideas and needs?

A. Originally, because the devel-opers were ex-Benefits Specialists,we designed the system for us.Then, as the project evolved, wegot a lot of feedback from the endusers and the FERS analysts. Now,we have a more formal systemwhere an end user can email thelead developer and we try torespond in less than 24 hours.

Q. How long does it take to builda new program like the BenefitC a l c u l a t o r ?

A. About 18 months, and about 4to debug it.

Q. What is beta testing?

A. Beta testing is selected usertesting. We alpha tested amongthe development group first, thenbeta tested with a select group of

users, then submitted it to QualityAssurance Division for furthertesting. We then put it in test pro-duction in the FERS adjudicationbranches, carefully checking eachanswer on every case. We alsohad an independent IV&V t e s tdone by Booz, Allen and Hamilton.

Q. How do you choose who willtest the system?

A. We worked closely with theFERS Division Chief and his ana-lysts. They made suggestions as towho should test the calculator.

Q. How do you know what toc h a n g e ?

A. User feedback and discrepan-cies from known correct answers.

Q. What is it you would like thereaders to know about the newBenefits calculator and how itw o r k s ?

A. The easier it is to use meansthe harder it was to develop. T h eBenefits Calculator takes a verycomplex process and presents itto the user in an understandableand streamlined fashion. It isintuitive and based on Englishlanguage cues, not codes. T h a tmakes a big difference to people.They don’t have to learn a lot ofcodes. Our calculator only showst he user what they need andhides the rest letting BenefitsSpecialists be more productiveand make fewer errors.

I would want my retirementcalculated using this tool.

M e rle Townley Interv i e w. . .

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M e a s u ring Results

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By Chris Brown

We’ve reached the point in theModernization effort where weneed to figure out how we willknow if the project is achievingthe results we expect. Beyond this,we need to measure whether theRetirement Program is achievingthe program goals and objectiveswe have established for it.

To do this, we need to establish asystem of what is called "perform-ance measures." P e r f o r m a n c emeasures pertain to tracking theperformance of an org a n i z a t i o nor a program to determine if it isfulfilling its mission and meetingits stated goals. Performancemeasurement does not focus onthe performance of individuals.H o w e v e r, as individuals, we are allinterested in how our org a n i z a t i o nperforms. It is the combinationof our individual efforts that

determines how well we meet ourmission to provide "fast,friendly, accurate, and cost-effective services . . ."

Performance measurement isnot a new science for us in theRetirement and InsuranceService. We have tracked andreported our organizational per-formance for many years, using asystem of performance measuresthat we call indicators. Since theearly 1990s, we have reportedthese indicators as a part of ourannual financial reports requiredunder the Chief FinancialO ff i c e r s ’Act. In 1993, PresidentClinton signed into law theGovernment Performance andResults Act which raised the

importance of performancemeasures and required that theybe used in annual and strategicplans and to track agencies’progress toward meeting theirgoals and objectives.

The performance indicators wecurrently use for the RetirementProgram include measures ofcustomer satisfaction, such asthe percent of new customers(annuitants) satisfied with how weprocessed their claim for benefits.Looking at this indicator allows usto see how our customers f e e labout the hard work we do toprocess claims as quickly ande fficiently as we can.

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I n t e rim Annuity Payment Processing T i m e s

7

54

3 3

FY 95 FY 96 FY 97 FY 98 FY 99

7

6

5

4

3

2

1

0

Our indicators provide otherways for us to see how eff i c i e n t l ywe do our work. For instance, wemeasure how long it takes us toauthorize interim and final annuitypayments. By aligning this informa-tion with customer satisfactioninformation, we can see howp r o c e s s i n g payments faster resultsin high customer satisfaction.

So, performance measures helpus connect the work we do withthe results our work has on ourcustomers and our org a n i z a t i o nWe also measure the accuracy ofour claims processing when theQuality Assurance Divisionreviews a sample of completedclaims. Finally, we have financialmeasures, such as the cost ofprocessing claims. We maycontinue to use many of thesemeasures to evaluate whetherthe Modernization effort isworking e ff e c t i v e l y. But, becausethe effort involves new businessprocesses and systems, we maydecide that some new measuresare necessary. Also, we mayfind that the new systems willallow us to measure somethings that our current systemsd o n ’t measure. To work throughthese issues, we’ve established aperformance measures committeeto review the goals and objectivesof the Modernization effort and allof our current performancemeasures. The committee willrecommend what we shouldmeasure and how we shouldmeasure it.

The Modernization effort will u s ea very sophisticated system ofmeasures called the "BalancedScorecard." This system is calledthe Balanced Scorecard becauseit establishes a balanced set ofkey measures that allow us toevaluate performance from thecustomer, business process,financial, and workforce per-spectives. The benefits of

doing this now include gaininga program-wide perspective t h a tincludes functions performed byagencies, a greater emphasis onbenefits counseling, and havingmeasures that serve as earlyindicators for success, or warningsignals that will help us guidethe Modernization effort.

Measuring Results...c o n t i nued from page six

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N ew Customer Sat i s faction withO verall Retirement Process

100%

80%

60%

FY 95 FY 96 FY 97 FY 98 FY 99

% Very Generally Satisfied

The Modern i z ation Effo rt and Info rm ation Te c h n o l o g yBy Joyce Ludwig Business Systems Reengineering Division

added on to old processes butis used to support improvedways of working.

Who is working on the technologyarchitecture and what is thepurpose of it?

This spring IBM became theModernization project's infor-mation technology partner.IBM is certified at Level 3 ofthe Software EngineeringInstitute's Capability MaturityModel (for more information,w w w.sei.cmu.edu). Currently,IBM is developing the technologyarchitecture to support the processredesigns developed byAmerican Management Systems.The purpose of a technology

architecture is to define themajor kinds of technologiesneeded to support the reengi-neering effort. For example, whichkind of database, relational orhierarchical, will best meet ourneeds must be considered.Deciding what company to buythe database from comes later. Ofcourse, our choices will complywith the OPM InformationTechnology Architecture and thestandards set by the HumanResources Technology Council.The Modernization eff o r t ’st e c hn o l o g y architecture will alsoensure agencies are notrequired to change their tech-nology architectures in order toparticipate in the e ff o r t .

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I’m sorry, I don’t havethat information-you

can get it by calling...

Changing business needs oftenrequire new ways of working.Yet all too often, technology ispurchased to improve productivitywithout rethinking the way workis being performed. As a result,dramatic improvements in servicethat could be achieved are missed.In successful business processreengineering, technology is not

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How does a technology architecturebenefit us?

You can think of the technologyarchitecture as providing tech-nology standards that apply tothe whole organization. Thesestandards ensure consistency sothat information from variousparts of the organization can beconnected through the technology.A good example of the benefitswill be seen in our call centers.Too many times, a customer’sretirement data is not availablethrough the Customer ServiceSpecialist’s work station. Thisforces the specialist to refer thecustomer to yet another personin yet another office (and itmay not stop there). By beingintegrated and having access tothe same data as others, we canhandle most customer inquiriesright then and there.

Another benefit is improvedsystem maintenance. Thisallows the data processingorganization to respond more

quickly to user requests. Byeliminating the duplication thatoccurs with separate systems,only one part needs to be changedinstead of several, simplifyingmaintenance. In addition tomeeting your business needs moreq u i c k l y, faster implementation o fnew technologies is possible,keeping our systems modern. As aresult, technology serves those whouse it, not the other way around.

How does the technologyarchitecure fit into the overallModernization effort?

In 2002, we will begin imple-mentation of the redesigned

User Satisfaction Business Needs

Architecture

processes and org a n i z a t i o n ,and underlying technology.Technology will be implementedin increments. Once each segmentof technology is developed,IBM will provide training forit. The redesigned processes,organization, and supportingtechnology will improve produc-tivity and eff i c i e n c y, eliminate orreduce paper handling, standardizeo p e r a t i o n s, harness the potentialof the Internet, and strengthen theinternal work force and partici-pating agency benefit counselors.

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The Modernization Effo rt and Information Te c h n o l o g y. . .c o n t i nued from page eight

I’m Glad You A s ked

From the Focus Groups

Will agencies want to participatein the Modernization eff o r t ?

Throughout the Modernizationeffort five agencies have servedas champions for the effort andhave worked side by side withthe rest of the ModernizationTeam. They are the U.S. PostalService, U.S. Department ofAgriculture, Department ofLabor, Department of Defense,and the Office of PersonnelManagement. Their supportand input have shaped andmolded the processes so thatthe Modernization effort will beacceptable across all agencies,and provide services that weneed to conduct our business.We believe that every agencywill want to participate becauseof the increased services it willprovide their employees.

With the automation that will beintroduced, will an employee still

be able to speak to someonedirectly if they don’t feel comfort-a b l e with the automated tools orif they need special assistance?

We believe strongly that thereshould always be an advisoravailable for complex questionsor for the "comfort zone" ofemployees and annuitants. Tothat end, the Modernization eff o r tis building a three-tiered approachto customer service. In the firstt i e r, the employee/annuitant canuse self-service automationtools that will handle frequentlyasked questions or assist themin making routine requests. T h esecond and third tiers provide thecustomer with personal assistancedepending on the nature of therequest. For example, the secondtier would handle questions thatrequire a broad spectrum ofRetirement Program knowledgethat only a Retirement Counselorat the agency can address. Thethird tier would deal with morecomplex questions that may

require OPM’s subject matterexpertise or interpretation. T h eModernization team will alwayskeep in mind an individual’s needfor human interaction whendiscussing important decisionsthat may have a life-long effect.

I’m a Benefits Counselor in anagency field office. Will the newsystem result in loss of jobs?

The new system focuses on theprompt payment of annuitiesand agencies having the completehistory of an employee formore comprehensive counseling.The system should make thecounselor's job easier. In addition,because of the access to informa-tion, agencies can do proactivecounseling. This will not causea loss of jobs, but makes iteven more critical to haveknowledgeable counselors avail-able for their employees.

Will the Modernization efforttake into account challenges forthe West Coast, such as callcenter hours?

We want to be available to allour customers located all over theworld and know that time-zoned i fferences present a challenge.The Modernization effort will lookat various options for providingour customers the services theyneed when they need it, e.g.,Internet access to retirement infor-mation, email inquiries/responses,and additional options and flex-ibility with our current automatedInteractive Voice Response system.

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We want employees, annui t a n t s ,and HR Specialists to have asmany options as we can support.

But we are not just waiting forModernization. Our eveningcall center hours have alreadybeen extended. Callers can talkto a live Retirement CustomerService Specialist at OPM aslate as 8:00 p.m. eastern timeand as early as 7:15 am easterntime. In addition, our automatedInteractive Voice ResponseSystem is available 24hours ad a y, 7 days a week.

What is the status of theBenefits Calculator?

As you've read in our previousissues of Modernizing Today,the RBC 2000 (RetirementBenefits Calculator 2000) willcontinue to be enhanced tocompute a variety of claims.Currently it is computing amajority of the FERS cases.The calculator team will con-tinue to work on additionalenhancements and expand itscapabilities. You can readabout the development teamand the process in the MerleTownley interview featured inthis issue.

From OPM RetirementProgram Employees

About a year ago, we saw avideo at the all-hands meetingthat showed a lot of computertechnology. Does that reallyapply to Retirement Programemployees and customers?

Yes it does. The video usedsome dramatized scenarios toshow the capability of newtechnology. Although we may

not currently use it, that technologyis available now. As we moveforward, the things we mustconsider are the level of technologyavailable within the manyFederal agencies and also thelevel of technology available to ourcustomers. The goal is to use thehighest level of technology avail-able to best serve our customers.

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I’m Glad You A s k e d . . .c o n t i nued from page ten

?H a ve Questionsor Suggestions?We'd like to hear what you think!There are several ways to getmore information about theModernization effort, or providefeedback.

Contact BSRD-Retirement and InsuranceS e r v i c e ’s Business SystemsReengineering Division (BSRD)supports the Retirement SystemsModernization (RSM) eff o r tand manages the communicationprocess. To find out more aboutthe Modernization effort, pleaseemail us at: a s k r s m @ o p m . g o vor write us at U.S. Office ofPersonnel Management, BusinessSystems Reengineering Division,1900 E St. NW R o o m 3 H 2 8 ,Washington, DC 20415-3400;or fax us at (202) 606-0548.

Look us up on theWo rld Wide We b -If you have Internet access, youcan visit the Retirement SystemsModernization web site at:w w w. o p m . g o v / re t i re/modern. Past Modernizing To d a y b u l-letins and notes from the focusgroup sessions can be found onthe web site.

L at e - B reaking New s

As this issue went to print, theMember Administration CoreProcess blueprint and thePerformance MeasurementProgram report were completed.Work on the Claim to PaymentInitiation and Annuity RollMaintenance core process blue-prints has begun.

M o d e rn i z ation Commu n i c ations Committee Members

From the A g e n cy A d v i s o ry Committee

Eleanor Ratcliff D e p a rtment of A g r i c u l t u reSyrena West D e p a rtment of Defense

From OPM’s Retirement and Insurance Serv i c e

Chris BrownManagement Information BranchMarty Ehrlich Business Systems Reengineering DivisionPhil GardnerR e t i rement Claims DivisionLesley Gordon Disability and Reconsideration and Appeals DivisionDelberta Grossman R e t i rement Operations CenterAgnes KallandInsurance Planning and Evaluation DivisionPat LancasterDisability and Reconsideration and Appeals DivisionJohn Landers, ChairAssociate Dire c t o r’s OfficeDavid LewisInsurance Contracts Division IIIVivian MackeyOffice of CommunicationsJoe Parker Office of Retirement Pro g r a m sSandy Ringler R e t i rement Operations CenterMary SugarAgency Services DivisionDiane Tyler Business Systems Reengineering DivisionBernadine Wa l k e rP i t t s b u rgh Te l e s e rvice Center

Special thanks to Ruth Ann Kier for her photography and Mike Garth for his help on developing a model for the art w o r k .

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