Performance Management Presentation Manage ORS Budget and Finance

1
Performance Management PresentationManage ORS
Budget and Finance

• Team Members
• Herb Holder, Leader
• Belinda Ancarrow
• Heidi Ricci
• Rick Roberts
• Denise Nichols
• Barbara Liles
• Howie Hochman
• Amy Vandenburg
• ORS
• National Institutes of Health
• Date January 21, 2004

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Table of Contents

• Main Presentation
• PM Template ..4
• Customer Perspective....5
• Internal Business Process Perspective
  15
• Learning and Growth Perspective
  22
• Financial Perspective27
• Conclusions and Recommendations
  ...32

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Table of Contents (cont.)

• Appendix
• Page 2 of template..
• Customer Perspective C2 Make FMB processes more
  collaborative
• C2a Number of quarterly business manager
  meetings held.
• C2b Number of ORS Divisions represented at
  quarterly business manager meetings
• C2c Number of ORF Divisions represented at
  quarterly business manager meetings
• Internal Business Process Perspective IB3
  Improve understanding of business planning
  process
• IB3a Develop and Approve process.
• IB3b of Training Sessions
• Learning and Growth Perspective LG2 Increase
  cross-training opportunities within FMB improve
  internal knowledge management
• LG2a Team Building Events.
• LG2b Tasks delegated by Herb (PMP, Rate
  Packages, Reorganization Process, NBRSS
  Continuity, CFO Audit).
• LG2c Conduct monthly Peer Group
  Meetings

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5
Customer Perspective
6
Relationship Among Performance Objectives

• All objectives are interrelated and integral to
  achieving a strategy of operational excellence
• Committed to providing timely, high quality
  (i.e., accurate) and cost-effective services to
  our customers
• Must be recognized as value-added partners to our
  customers
• Strategy map diagram on the next slide displays
  the relationships

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Strategy MapManage ORS Budget Finance
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Customer Perspective- C1
Objective Measure FY 03 Actual FY04 Target FY05 Target Initiative
C1 Improve communication with customers Number of training sessions 3 10 gt10 Design Learning Retention Survey/Quiz
C1 Improve communication with customers Number of training sessions 3 5 YTD gt10 Design Learning Retention Survey/Quiz
C1 Improve communication with customers Number of employees trained 50 100-120 gt 120 Design Learning Retention Survey/Quiz
C1 Improve communication with customers         Website to be implemented in 2Q FY04 with Monthly Consolidated Financial Statements (CFS), FTE Reports Monthly VSOF Reports (Shell). Analysis for VSOF Reports provided to the Divisions via e-mail.
C1 Improve communication with customers         Website to be implemented in 2Q FY04 with Monthly Consolidated Financial Statements (CFS), FTE Reports Monthly VSOF Reports (Shell). Analysis for VSOF Reports provided to the Divisions via e-mail.
C1 Improve communication with customers         Website to be implemented in 2Q FY04 with Monthly Consolidated Financial Statements (CFS), FTE Reports Monthly VSOF Reports (Shell). Analysis for VSOF Reports provided to the Divisions via e-mail.
C1 Improve communication with customers         Develop maintain consistent planning timelines for budget and rate studies
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Customer Perspective C3
Objective Measure FY 03 Actual FY04 Target FY05 Target Initiative
C3 Increase customer satisfaction with FMB services and processes Survey results Completed Survey New Survey Completed 08/2004 New Survey Completed 08/2005 Identify and prioritize areas for improvement and develop plan to be implemented 01- 06/2004
C3 Increase customer satisfaction with FMB services and processes Survey results Completed Survey Improve over FY 2003 Improve over FY 2004 Identify and prioritize areas for improvement and develop plan to be implemented 01- 06/2004
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Customer Scorecard Methodology

• Team/OQM determined best methodology INTERVIEW
  - to assess customers in FY 03
• Reviewed products/services, analyzed customer
  segmentation, review development of interview
  methodology
• Reviewed development of interview questions tied
  to discrete services
• Interviews of 13 customers conducted by parties
  external to team

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ORS Customer Scorecard DataFMB Satisfaction and
Importance Ratings
Mean Ratings
Unsatisfactory
Outstanding
N 13
12
Summary of Interview Findings what does the
data show

• Financial information is critically important
• Confusion regarding the Business formulation
  process/ABC cost accounting model
• Confusion around the roles and responsibilities
  of FMB
• Customers perceive they are not receiving timely
  and accurate information from the current
  financial reports

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Summary (cont.)

• Culture of consistent customer service in FMB not
  perceived by customers
• Perception that FMB staff needs development
• Ratings of customer satisfaction hover around the
  mid-point of the scale

14
Customer PerspectiveWhat actions are planned?

• Identify and prioritize areas for improvement and
  develop plan to be implemented (01- 06/2004)
• Make use of website to provide access to business
  plan and budget information
• Improve quality and frequency of business manager
  meetings
• Strengthen agendas
• Solicit ideas for improvement

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Internal Business Process Perspective
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Internal Business Process Perspective - IB1
Objective Measure FY 03 Actual FY04 Target FY05 Target Initiative
IB1 Improve availability of Consolidated VSOF budget reports Percentage of Consolidated VSOF reports available within 15 calendar days of month end N/A 75 90 Develop and issue Operating Budget Reports during Continuing Resolution
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Internal Business Process Perspective-IB2
Objective Measure FY 03 Actual FY04 Target FY05 Target Initiative
IB2 Improve quality and delivery of rate packages Number of errors in rate package As of 12/31 no errors Maintain/Improve over FY 2003 Maintain/Improve over FY 2004 Revise Pro Forma process to include the development of a Draft Rate Package
IB2 Improve quality and delivery of rate packages of rate packages to OFM on time 20 50 75 Revise Pro Forma process to include the development of a Draft Rate Package
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ORS Customer Scorecard DataFMB Satisfaction and
Importance Ratings
Mean Ratings
Unsatisfactory
Outstanding
N 13
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Internal Business Process PerspectiveWhat does
the data tell you?

• Customers perceive they are not receiving timely
  and accurate information from the current
  financial reports
• Divisions have created their own financial
  management groups to supply them with the
  information necessary to run their business
• This redundancy is costly and causes confusion

20
Internal Business Process PerspectiveWhat
actions are planned?

• Develop and issue Operating Levels and Budget
  Reports during Continuing Resolution
• Develop a consistent framework of reports
• Provide analytical comments to improve value of
  reports

21
Internal Business Process PerspectiveWhat
actions are planned?

• Revise Pro Forma process to include the
  development of a Draft Rate Package
• Earlier start on Rate Package process will
  provide opportunities for
• better quality control
• timelier submission to OFM and internal
  management customers

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Learning and Growth Perspective
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Learning and Growth Perspective - LG1

Objective Measure FY 03 Actual FY04 Target FY05 Target Initiative
LG1 Develop and implement training plans within team Dollars per person N/A 75 of (2k) planned dollars per person spent 75 of (2k) planned dollars per person spent Develop and establish individual training plans in 02/2004 to coincide with CY 2004 Performance Evaluation Cycle
LG1 Develop and implement training plans within team Hours per person N/A 75 of planned hours used per person 75 of planned hours used per person Develop and establish individual training plans in 02/2004 to coincide with CY 2004 Performance Evaluation Cycle
LG1 Develop and implement training plans within team Adherence to Training Plan N/A Each team member adheres to 75 of plan. Each team member adheres to 75 of plan. Develop and establish individual training plans in 02/2004 to coincide with CY 2004 Performance Evaluation Cycle
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ORS Customer Scorecard DataFMB Satisfaction and
Importance Ratings
Mean Ratings
Unsatisfactory
Outstanding
N 13
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Learning and Growth PerspectiveWhat does the
data tell you?

• Perception that FMB staff needs development
• Quality of FMB staff and staff work vary widely
• Perception that there is a need to enhance staff
  skills
• Staff need to increase knowledge of specific
  ORS/ORF business operations

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Learning and Growth PerspectiveWhat actions are
planned?

• Develop and establish individual training plans
  in 02/2004 to coincide with CY 2004 Performance
  Evaluation Cycle
• Identify additional tasks and schedule for
  delegation
• Expand on teambuilding experiences
• Broaden the delegation of responsibilities within
  the Branch

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Financial Perspective
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Financial Perspective (cont.)
Objective Measure FY 03 Actual FY04 Target FY05 Target
F1 Minimize unit cost at a defined level of service Unit costs Maintain or improve over FY 2002 Maintain or improve over FY 2003 Maintain or improve over FY 2004
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Manage Budget Finance Unit Cost Measure
30
Financial PerspectiveDiscrete Service Costs
Hours
31
Financial PerspectiveDiscrete Service Costs
32
Financial PerspectiveDiscrete Service Hours
33
Financial PerspectiveWhat actions are planned?

• FMB Staffing has decreased in last two years
• However Unit Cost have remained steady with
  additional team member from OBSF.
• Budget/resources are limited in scope
• Vacancy for Deputy Budget Officer
• Completing staff is a major step to achieving
  objectives and improving unit costs

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Conclusions
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Conclusions from PMP

• Survey and PMP work sessions - Wake-up call to
  improve delivery of services
• Improve customer communications through training
  and learning sessions
• Provide reports and services on time with
  information and analyses of value
• Work on our skills sets budgeting, ABC,
  coordination, customer service, taking
  initiative, be accountable

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Conclusions from PMP What have we done?

• ABC Foundations training for various ORS/ORF
  management groups
• Operating levels issued during the CR period
• Business Managers meetings on target for 1st and
  2nd Quarters
• Initiated development of individual training and
  development plans 1st cut in hand

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Conclusions from PMP What are we going to do?

• Use the OBSF website for providing and updating
  useful information
• Provide reports with analytical comments start
  and build upon
• Improve communications learn program by
  increased participation in program staff meetings
  

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Appendix

• Page 2 of Template
• Customer Perspective C2 Make FMB processes more
  collaborative

Objective Measure FY 03 Actual FY04 Target FY05 Target Initiative
C2 Make FMB processes more collaborative Number of quarterly business manager meetings held 3 4 4 Schedule and Agenda provided 5 days in advance
C2 Make FMB processes more collaborative Number of ORF Divisions Represented at quarterly business manager meetings N/A 80 80  
C2 Make FMB processes more collaborative Number of ORS Divisions Represented at quarterly business manager meetings N/A 80 80  
C2 Make FMB processes more collaborative of Division Meetings Attended N/A Establishing Baseline TBD Contact Division Leadership to see if they have meetings and can FMB Analyst attend
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Appendix

• Page 2 of Template
• Internal Business Process Perspective IB3
  Improve understanding of business planning
  process

Objective Measure FY 03 Actual FY04 Target FY05 Target Initiative
IB3 Improve understanding of business planning process Develop and Approve process N/A Approved by Senior Leadership during FY04 N/A Formalize service hierarchy update process
IB3 Improve understanding of business planning process of Training Sessions   4 5 Formalize service hierarchy update process
IB3 Improve understanding of business planning process of Training Sessions   4 as of 11/30 5 Formalize service hierarchy update process
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Appendix

• Page 2 of Template
• Learning and Growth Perspective LG2 Increase
  cross-training opportunities within FMB improve
  internal knowledge management

Objective Measure FY 03 Actual FY04 Target FY05 Target Initiative
LG2 Increase cross-training opportunities within FMB improve internal knowledge management Team Building Events 2 2 2  
LG2 Increase cross-training opportunities within FMB improve internal knowledge management Tasks delegated by Herb (PMP, Rate Packages, Reorganization Process, NBRSS Continuity, CFO Audit) Established Baseline of 5 task delegated Improve over FY 03 Improve over FY 2004 Identify additional tasks and schedule for delegation
LG2 Increase cross-training opportunities within FMB improve internal knowledge management Conduct monthly Peer Group Meetings 6 9 10  
LG2 Increase cross-training opportunities within FMB improve internal knowledge management Conduct monthly Peer Group Meetings 6 1 YTD 10