The Performance-Based Management Handbook - exinfm

[Pages:100]The Performance-Based Management Special Interest Group (PBM SIG) is a U.S. Department of Energy (DOE) and DOE contractor funded organization made up of DOE and DOE contractor personnel who have a special interest in performance-based management. The mission of the PBM SIG is to facilitate, promote, and advance the use of performance-based management in DOE. The activities and publications of the PBM SIG are coordinated and administered by the Oak Ridge Institute for Science and Education.

The Oak Ridge Institute for Science and Education (ORISE) was established by the U.S. Department of Energy to undertake national and international programs in education, training, health, and the environment. ORISE and its programs are operated by Oak Ridge Associated Universities (ORAU) through a contract with the U.S. Department of Energy. Established in 1946, ORAU is a multiuniversity consortium.

This document was produced under a contract between the U.S. Department of Energy and Oak Ridge Associated Universities.

The Performance-Based Management Handbook

A Six-Volume Compilation of Techniques and Tools for Implementing the Government Performance and Results Act of 1993

Volume 2 Establishing an Integrated Performance Measurement System

Prepared by the Training Resources and Data Exchange Performance-Based Management Special Interest Group

for the Office of Strategic Planning and Program Evaluation

Chief Financial Officer Office of Planning, Budget and Outreach Assistant Secretary for Energy Efficiency and Renewable Energy Office of Environment, Security, Safety, and Health

Assistant Secretary for Fossil Energy Office of Laboratory Policy Director, Office of Science

Office of Performance Management Pacific Northwest National Laboratory Strategic Petroleum Reserves Project Management Office Strategic Petroleum Reserves Operations

Laboratory Administration Office University of California

September 2001

Written by

Will Artley Oak Ridge Institute for Science and Education

Suzanne Stroh University of California

Volume 2

Establishing an Integrated Performance Measurement System

Preface

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i - vi

Volume 2 Overview

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Section I: Understanding Performance Measurement

` What Is Performance Measurement? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ` What Are Performance Measures? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ` Why Measure Performance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

# National Performance Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 # General Services Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 # U.S. Department of Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 # Mark Graham Brown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

` How Is Performance Measurement Used? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 ` What Performance Measures Won't Tell You . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 ` Performance Measurement ?Roadblocks" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 ` Major Pitfalls of Performance Measurement Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 ` Performance Measurement Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Section II: Establishing an Integrated Performance Measurement System

` Why Establish an Integrated Performance Measurement System? . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 ` Major Components of Integrated Performance Measurement Systems . . . . . . . . . . . . . . . . . . . . . . . . 11

# The Strategic Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 # Key Business Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 # Stakeholders Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 # Senior Management Involvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 # Employee Involvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 # Accountability for Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 # A Conceptual Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 # Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 # A Sense of Urgency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

` Integrating Performance Measures Vertically and Horizontally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

# Vertical Integration of Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

The Performance-Based Management Handbook

Table of Contents - 1

Establishing an Integrated Performance Measurement System

Volume 2

# Horizontal Integration of Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

` Ensuring Organizational Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Section III: Choosing a Performance Measurement Framework

` Balancing Measures: One Concept, Different Frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 ` The Balanced Scorecard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

# Why a Balanced Approach? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 # NPR's Balanced Measures Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 # DOE's Balanced Scorecard Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 # Mark Graham Brown's Balanced Scorecard Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

` The ?Critical Few" Set of Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

# DOE/EM's Critical Few Set of Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

` Performance Dashboards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

# The Balanced Scorecard as a Dashboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 # University of California Dashboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 # Houghton College Dashboard Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

` Malcolm Baldrige National Quality Award Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

# Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 # Strategic Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 # Customer and Market Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 # Information and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 # Human Resource Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 # Process Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 # Business Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Section IV: Developing Performance Measures--Getting Organized

` Step 1: Establish the Performance Measurement Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

# Guidelines for Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

` Step 2: Gain an Understanding of the Jargon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

# Types of Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 # Classifications of Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

` Step 3: Consider ?The Considerations" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 ` Step 4: Know How to Test/Check Your Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

# The Smart Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 # The Quality Check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Table of Contents - 2

The Performance-Based Management Handbook

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download