OARS Phase I Performance Measurements

1. OARS Phase I Performance Measurements August 21, 2014

2. AEP Implementation Focus Group An AEP Implementation Focus Group comprised of AEP team leads and POS Directors at the L/C/O level and remote divisions was formed to review and discuss critical implementation issues The first meeting of this group was held last week in RTP Performance measures developed by the HR, BE and Travel teams were reviewed The Focus Group developed some OARS-wide performance measures that would indicate the overall organizational success of OARS

3. Transformational Goals and Service Level Objectives • ORD is transforming its administrative operations as it simultaneously drives down costs • A key method to ensure that OARS meets its objectives for cost savings and service delivery targets is to develop performance measures that include both transformational goals and service level objectives • Some performance measures will be cross-cutting across all the business functions, and others will be specific to each function or sub-function • As ORD’s experience with ISS has shown, it is critical for an organization to carefully select key areas of performance to measure in light of the feasibility of and cost required to measure all areas of performance • The creation of transformational goals and service level objectives is dependant on a number of factors, including the scope of the organization and organizational maturity • All service level objectives will not be implemented simultaneously, but rather as OARS matures over time, different elements of performance can be measured using new or improved tools, technologies and/or processes

4. Transformational Goals and Service Level Objectives • Transformational Goals • Transformational goals are objectives set that facilitate change into the future state organization • For the OARS organization and each business function, transformational goals are targets related to organizational structure, process improvements, staffing, training, technology that achieve the future vision • Example: Address and fix GovTrip routing issues before implementation and on an on-going basis • Service Level Objectives (SLOs) • Service level objectives define the performance targets for OARS-wide and specific business functions • A number of measures will apply OARS-wide to all business functions around areas such as customer and staff satisfaction, and financial cost savings • Each function will have their own set of performance measures around timeliness and quality for each product or service they produce • Example: Process Domestic Travel Authorizations within 3 days

5. Balanced Scorecard A balanced set of performance measures allow the organization to meet targets related to cost, quality, customer satisfaction, and other areas. Unbalanced External • % customer satisfaction • Implementation of a ticketing system • Cost reduction Process Result Financial Operational • % cost savings • Reduction in work years • Integration of systems Vision and Strategy Balanced • Rate of customer satisfaction • Amount of employee training External Internal Customer People and Learning • Achieving adopted quality measures • Achieving timeliness measures • % customer satisfaction • Achieving adopted timeliness measures • Rate of staff satisfaction • Achieving quality measures Process Result • % adherence with standard operating procedures • % of staff meeting training goals • % cost savings Internal

6. OARS-wide and Function Specific Metrics Overview Budget Execution Travel Human Resources • Service level objectives apply to the OARS organization and to specific business functions, and will be evaluated on an ongoing basis. • OARS may have service-level objectives related to: adoption rate, customer satisfaction, productivity, financial cost savings, and staff satisfaction. • Each OARS business function may have specific transactional measures for each service or product it produces that measure timeliness and quality. ADOPTION RATE Example: 80% internal compliance with new standard operating procedures CUSTOMER SATISFACTION Example: 80% of customers are satisfied or very satisfied with products/services PRODUCTIVITY Example: 10% increase in work output with new standard operating procedures FINANCIAL COST SAVINGS Example: 25% cost savings STAFF SATISFACTION Example: 80% of staff are satisfied or very satisfied on the job TIMELINESS Example: complete data entry in 1 day TIMELINESS Example: complete authorization in 3 days TIMELINESS Example: award processed in 3 days QUALITY Example: 90% of data entered correctly QUALITY Example: 90% of travel authorizations completed correctly QUALITY Example: 90% of HR paperwork processed correctly Note these examples are for illustrative purposes only.

7. Sample Service Level Objectives

8. OARS-Wide Measurements Performance Measures Organizational Vision • Provide exceptional administrative services to support ORD’s mission in the most effective and efficient manner. FINANCIAL OPERATIONAL Defining Success • 100% compliance with Standard Operating Procedures (SOPs) after 1 year • 25% reduction in • administrative • work years • Execute OARS-wide communications plan that fosters ongoing communications throughout all levels of the ORD Organization • Adopt Standardized Operating Procedures to ensure consistency • Develop Customer Relationship Management Strategy to build strong partnerships • Implement technology to leverage information from agency systems to provide decision support for improved business decisions • Implement communications plan that fosters ongoing communications throughout all levels of ORD • Regularly assess attainment of AEP Goals CUSTOMER PEOPLE& LEARNING • 80% customer satisfaction by 2012 • 80% staff satisfaction by 2012

9. Budget Execution Measurements Organizational Vision Performance Measures • Implement the budget execution process throughout ORD, providing customer assistance, advice, guidance, and analyses to ORD Managers. • Perform strategic or operational budget execution activities and develop policies and procedures. FINANCIAL OPERATIONAL • Alert management of issues/problems and recommended courses of action within 3 days of identifying the issue • 95% of all reconciliation discrepancies (>$100) corrected within 1 week • Emergency funding requests processed within 1 business day, non-emergency requests within 3 business days • Reduce work years by 24.3 from 2005 Baseline Defining Success • Budget formulation and execution are more fully integrated • Increased staff expertise • Improve processes and use of technology • Improved knowledge of customers programs • Retirement of IRMS; feeder systems are fully integrated with new financial management system • Budget Execution staff are viewed as adjunct members of the organizations they service; HQ versus field tension disappears CUSTOMER PEOPLE &LEARNING • 5% increase in customer satisfaction in 1 year • Regular budget Meetings w/ LCO and/or Division Management • 10% increase in staff knowledge in 1 year • 25% of staff training needs accomplished

10. Travel Measurements Performance Measure Organizational Vision • Staff are consolidated into one division with three teams. • SEEs are utilized for basic travel services such as domestic TAs and vouchers • Federal staff focus on more complex travel services and monitoring SEEs OPERATIONAL FINANCIAL • Domestic travel authorizations completed within 3 business days • Travel Vouchers completed within 2 business days • Follow-up travel authorizations through issuance of ticket • Reduce work years by 16.63 from 2005 Baseline Defining Success • Travelers request services with minimal effort using online forms • Travelers receive consistent travel services within the service level timeframes • Opportunities to share knowledge among co-located staff enhances the quality of service • More efficient use of staff through workload sharing • Travelers are more likely to reach a live person to answer questions or provide last minute service • Utilize GovTrip to its fullest potential by uploading all receipts and retaining them electronically as the official file CUSTOMER PEOPLE & LEARNING • 10% increase in staff knowledge in 1 year • 25% of staff training needs accomplished • 5% increase in customer satisfaction in 1 year

11. Human Resources Measurements Performance Measures Organizational Vision • Consolidated ORD-Wide HR organization providing a full range of HR operational, strategic and management advisory services FINANCIAL OPERATIONAL • Reduce work years by 38.37 from 2005 Baseline • 100% compliance with external requirements • Implement automated HR system that meets requirements by 2012 Defining Success • HR employees have a shared vision of customer focus and attention to HR issues • Improved collaboration on policies and policy decision making between the strategic and operational staffs • Increased efficiencies in infrastructure; i.e., reduction in process steps and service time, reduction in IT databases and tracking systems • Some of the HR burden on managers would be alleviated • HR generalists have a uniform knowledge and skill level and achieve a consistent and effective mode of operation CUSTOMER PEOPLE &LEARNING • 5% increase in customer satisfaction with 3 critical areas (recruitments, career-ladder promotions and incentive awards) in 1 year • 5% increase in staff satisfaction after 1 year • 10% increase in core competency knowledge

12. Questions to be Addressed by Manager Break-out Groups Which performance measures are most important to organizational success? Which performance measures will drive us toward achievement of the desired future state? What other information do you as managers need to ensure successful implementation of AEP?