Performance Metrics… Real or expected

1. Performance Metrics… Real or expected

2. Performance Metrics…real or expected Etta Waugh, CFCM, CPCM Senior Consultant II Acquisition Solutions, Inc. Session #6, 2:45m-3:10pm ET NCMA’s 1st Performance-Based Service Acquisition Community of Practice - Virtual Conference Wednesday, March 31, 2010 12:00pm - 4:00pm ET

3. Performance Metrics…real or expected “Even when real performance metrics currently exist, they do not fully address the question.” Rep. Rob Andrews, Chair House Armed Services Committee

4. Performance Metrics…real or expected Measurement: A set of observations that reduce uncertainty where the result is expressed as a quantity. A Definition of Measurement

5. Performance Metrics…real or expected Performance measures address: Type or level of program activities conducted (process) Direct products and services delivered by a program (outputs) Results of those products and services (outcomes) The Object of Measurement

6. Performance Metrics…real or expected Performance Measurement Framework Goals Objectives Standards Metrics Basic component for measuring progress in attaining project objectives. End toward which effort is directed; a predetermined result. Basis for uniformly measuring or specifying performance. Units of measurement used to assess, calculate, or determine progress performance.

7. Performance Metrics…real or expected Where to Start? • What is the program/project objective? • What are you measuring – output or outcome? • How will you measure progress or achievement of the objective? • What is the standard to be used to measure progress or results? • What is the cost of measurement? Do you have the people and resources to measure? • Do your measures make sense?

8. Performance Metrics…real or expected Requirements Roadmap Worksheet Incentive Objective Standards AQL Inspection Steps 1, 2 & 3 Where to Start? Acquisition Vision Stakeholder Desired Outcomes - A….. - B….. - C…. Step 4 Step 6 Business Strategy Evaluation Factors for Section M of RFP Performance Work Statement or SOO Quality Assurance Surveillance Plan Step 5

9. Performance Metrics…real or expected Requirements Roadmap Worksheet Incentive Objective Standards AQL Inspection PWS Performance Objective 1 1.0 1.1 1.2 1.3 Performance Objective 2 2.0 2.1 2.2 2.3 2.4

10. Performance Metrics…real or expected Requirements Roadmap Worksheet Incentive Objective Standards AQL Inspection Quality Assurance Surveillance Plan PWS Performance Objective 1 1.0 1.1 1.2 1.3 Performance Objective 1 1.0 Objective/Standard Metric Method of Assessment Metrics and Assessment Linked to Performance Objectives and Standards Performance Objective 2 2.0 Objective/Standard Metric Method of Assessment Performance Objective 2 2.0 2.1 2.2 2.3 2.4

11. Performance Metrics…real or expected Performance Management Report PWS Quality Assurance Surveillance Plan Performance Objective 1 1.0 1.1 1.2 1.3 Performance Objective 1 1.0 Objective/Standard Metric Method of Assessment Metrics data based on QASP Performance Objective 2 2.0 2.1 2.2 2.3 2.4 Performance Objective 2 2.0 Objective/Standard Metric Method of Assessment Inspection and Metrics Linked to PWS Performance Objectives and Standards Customer Satisfaction Performance Cost Key Performance Indicators

12. Performance Metrics…real or expected • Process Metrics • Increase capability level (i.e., SEI-CMM levels) • Do more with less (shorter schedule, less resources) • Improve quality (less defects, less re-work) • Project Metrics • Track project progress • Assess project status • Award contract fees • Product Metrics • Determine product quality • Identify defect rates • Ensure product performance

13. Performance Metrics…real or expected Key Process Indicators (KPI): Top level summary metrics that quickly capture current performance status such as: Cost, Customer Satisfaction, Performance, Small Business KPIs Process Measures Process Measures: Capture the overall status of each process area contained in your PWS Sub-Process Measures Sub Process Measures: Capture the specific performance of each of the performance outcomes for a specific process contained in your PWS KPI Performance Process Measure Supply Logistics A/C Service Operation Grounds • Sub Process Measure • Operating Time • Air Conditioner Fully Functioning • System Down-Time (Detail) • Scheduled Maintenance

14. Performance Metrics…real or expected Cost Customer Satisfaction Performance Customer Satisfaction Summary 4.5 = Standard FY07 FY08

15. Performance Metrics…real or expected Cost Performance Customer Satisfaction QPI Performance Metrics Summary 95% = Standard FY07 FY08

16. Performance Metrics…real or expected • A/C Service Operation Sub Processes • Operating Time • Air Conditioner Fully Functioning • System Down-Time (Detail) • Scheduled Maintenance Metric 30: Scheduled Maintenance Metric 29: System Down-Time Rate Percent FY07 FY08

17. Performance Metrics…real or expected Reporting Performance Results • Report overall performance in agency past performance system • Ensure accuracy of Performance Data • Identify and resolve performance problems or trends early • Promotes partnership and problem resolution QPI Performance Metrics Summary Customer Satisfaction Summary Scheduled Maintenance 95% = Standard 4.5 = Standard FY07 FY08 FY07 FY08

18. Performance Metrics…real or expected

19. Performance Metrics…real or expected QUALITY PERFORMANCE MEASURES • Measure clearly relates to the associated mission, goal, and objective. • Measure is important to management. • Accurate and reliable data can be collected for each performance measure. • Collectively, the measures accurately reflect the key results of the program, activity or service. • Multiple measures exist for each goal and/or objective. • Measures are either input, output, outcome, efficiency or quality.

20. Performance Metrics…real or expected KEY QUESTIONS