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Competitive Sourcing at NIH: The Decision-Making Process

Learn about the evaluation process for determining which commercial activities should be competitively sourced at NIH, involving functional managers and employee representatives.

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Competitive Sourcing at NIH: The Decision-Making Process

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  1. Competitive Sourcing at NIH: The Decision-Making Process Suzanne F. Grefsheim Branch Chief NIH Library NIH Competitive Sourcing Initiative

  2. Goal of the Evaluation • Help NIH determine which commercial activities should be “competitively sourced” • Use an open, fair process for making the determination • Involve functional managers and employee representatives (e.g., Unions) in the evaluation process NIH Competitive Sourcing Initiative

  3. What does the evaluation do? INPUT - Uses the program’s opinion of the current condition of the commercial activity in terms of: Customer satisfaction, workforce, processes, tools & technology, etc. OUTCOME - Identifies activities that are: • highly competitive today (Case 1) • might benefit from re-engineering (Case 2) • would not be good candidates for competitive sourcing and/or cost comparison at this time (Case 3) NIH Competitive Sourcing Initiative

  4. Criteria of Interest: Case 1 & 2 • Results – current level of program performance • Tools, efficiency, effectiveness, customer satisfaction, cost to sustain performance • Work force – characteristics of current work force • Turnover, size, skills • Demand – nature of the demand for the function • Capacity, trend, range • Market – availability of function in market place NIH Competitive Sourcing Initiative

  5. Criteria of Interest: Case 3 • Work force – characteristics of current work force • “Treasures,” under represented groups • Readiness – ability of function to undertake a study • Size, climate • Outcome – ability to handle HR consequences of outsourcing function • Mission – risk to mission if function is outsourced • Program integrity, role of function NIH Competitive Sourcing Initiative

  6. Full decision tree for Case 1 High Satisfaction Neutral Low Tools Results Effectiveness Efficiency Cost to sustain Turnover Find High performers Skills Work force Size Capacity Demand Trend Range Market NIH Competitive Sourcing Initiative

  7. How were the decision models created? • Task team from the Competitive Sourcing and Workforce Planning Work Group developed criteria and decision trees • Criteria weights behind model were also developed using “Expert Choice” decision support software by Task Team • Model and Questionnaire tested using commercial activities in the Office of Research Services NIH Competitive Sourcing Initiative

  8. What is “Expert Choice?” • COTS software package for developing weighted decision criteria • Based on making pair-wise comparisons between every option at each level in decision tree • Creates ratio relationships: • 2x better, 3x better, etc. among competing options • User friendly, uses verbal comparisons • Equally (more important), moderately, strongly, very strongly, extremely NIH Competitive Sourcing Initiative

  9. Outcome of criteria ranking 8 High 8 Satisfaction 2 Neutral 1 Low 5 Tools 65 Results 19 Effectiveness 17 Efficiency 16 Cost to sustain 5 Turnover Find High performers 11 Skills 17 Work force 2 Size 2 Capacity 6 Demand 1Trend 3 Range 12 Market NIH Competitive Sourcing Initiative

  10. Model 1 – highly competitive NIH Competitive Sourcing Initiative

  11. Model 2 – poised to improve NIH Competitive Sourcing Initiative

  12. Model 3 – don’t go there NIH Competitive Sourcing Initiative

  13. How does the evaluation work? • The evaluation instrument consists of 18 questions. • Each question critically rates a characteristic of the activity • Each answer is associated with a weighted value • Behind the questions and the answers are three independent decision models that were used to create the weighted values • Completed answers generate three “scores” for each commercial activity: one for each “case” • NIH will use the scores to help select areas for competitive sourcing NIH Competitive Sourcing Initiative

  14. What do the results look like? NIH Competitive Sourcing Initiative

  15. What do the results look like? NIH Competitive Sourcing Initiative

  16. NIH Competitive Sourcing Initiative

  17. NIH Competitive Sourcing Initiative

  18. NIH Competitive Sourcing Initiative

  19. NIH Competitive Sourcing Initiative

  20. Statistics: All Functions NIH Competitive Sourcing Initiative

  21. Acknowledgment Leonard Taylor, Deputy Director Office of Research Services, OD, NIH Co-Chair, NIH Commercial Activities Steering Committee NIH Competitive Sourcing Initiative

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