Annual Self-Assessment (ASA) Template Training

1. Annual Self-Assessment (ASA) Template Training Office of Quality Management Office of Research Services National Institutes of Health 21 March 2002

2. Acknowledgments ASA Template Training was jointly developed by: • Office of Quality Management (OQM) • Antonio Rodriguez, Amy Culbertson, Carmen Kaplan, and Gay Presbury • OQM Consultants • Janice Rouiller (SAIC), Kate Fenton (Atlantic Rim Group), Phil Nathanson (McManis Associates)

3. Training Objectives • Explain the background of the ORS ASA initiative • Describe the Balanced Scorecard (BSC), performance measurement, and the ASAs • Provide orientation to the ASA Template • Provide resources for additional information

4. Background of the ASA Initiative

5. History of ASAs • ORS senior leader visited organization doing great job at performance measurement and management • We can do this! • Fits well with implementation to activity-based costing/management approach • Started with the Service Area Reviews (SARs) • SARs transitioned into ASAs in 2001 • Used New Business Model as framework to organize ORS products/services • 41 discrete services chosen for 2001 • Results presented at Performance Management Conference October 31, 2001 • Lessons learned provided input for 2002 implementation

6. ASA Purpose • Implement culture in ORS that manages and improves through the use of performance data • Gauge extent to which ORS is delivering what customers want and need • Use data to make process improvements • Plan how to invest in people and tools to be innovative and competitive • Understand reasons for change in costs and funding needs • Make funding allocation decisions based on data-based business case

7. Why Use the ASA Approach? • ASAs serve as the vehicle to implement performance measurement throughout ORS • Need to develop people’s skills • Need to fine-tune IT systems for data collection • Need to develop methods for ORS-wide data collection and analysis where appropriate • Longer-term goal • Performance measures will be deployed throughout ORS and be used as part of daily business operations • Measurement will form the basis for managing for present and the future

8. What’s in it for me? • A showcase for what you do and how you add value • An opportunity to influence operational processes and decisions • A way to eliminate unnecessary steps in your business process • Help in finding better ways to serve your customers • A chance to learn more about about what others do in ORS • “Hard” data to support resource requests (e.g., funding, staff) • Help in workforce planning • Better outcomes, more satisfied customers, better business operations, more efficient processes …

9. ASA Changes in 2002 • Organized the ASAs at the Service Group level • About 45 ASAs in FY02 • Established Common Measures • Everyone will complete these • Help teams to know where to start with performance measurement • Some information will be “rolled-up” for ORS ASA Template • Identified need for ASA training sessions • ASA Template Training • Process Mapping Training • Data Analysis and Graphing Training • Implemented ASA Web Page • http://www.nih.gov/od/ors/od/oqm/asa/asa.htm • Resources • Timeline • Training • One Final Deliverable - ASA Presentation

10. Key Players in the ASAs • Team Leaders • Team Members • Office of Quality Management (OQM) • OQM Consultants • ORS Executive Committee (ORSEC) • ORS Advisory Committee (ORSAC)

11. ASA Roles and Responsibilities • ASA Team Leader • Lead and manage individual ASAs • Select and assemble ASA team members • Manage use of ASA Consultant assigned to Team • Prepare ASA Template • Guide data collection and analysis • Serve as key point of contact throughout ASA process • Prepare ASA Final Presentation • ASA Team Members • Attend trainings to learn new skills • Assist in developing the ASA template • Participate in process mapping • Assist with data collection and analysis • Participate in process improvement activities • Help prepare ASA Final Presentation

12. ASA Roles and Responsibilities (cont.) • Office of Quality Management (OQM) • Formulate ASA methodology • Develop ASA training and tools for ASA Teams • Provide Teams with technical advice/consultants • Provide ASA status reports to senior leadership • Conduct “roll-up” of common measures for ORS • Evaluate ASA methodology and fine-tune the process • OQM Consultants • Deliver ASA training courses • Serve as facilitators and technical experts to Teams • Provide consulting services at the Team level • Will have approximately 20 hours per ASA Team for FY02 • Provide feedback to OQM on ASA Teams’ progress

13. ASA Roles and Responsibilities (cont.) • ORS Executive Committee (ORSEC) • Drive commitment to the ASA process by providing leadership, personnel, resources • Monitor Division/Office progress in ASA implementation • Decision making based on ASA findings and recommendations • Recognize outstanding team efforts • Allocate resources within Division/Office based on ASA findings • ORS Advisory Committee (ORSAC) • Serve in advisory capacity to ASA effort • Communicate to stakeholders ORS initiatives regarding performance measurement

14. The Balanced Scorecard, Performance Measurement, and the ASAs

15. The Balanced Scorecard (BSC) • BSC is the framework ORS is using for the ASAs • BSC approach originated from research project with 12 companies at leading edge of performance measurement • Set of measures to give managers a fast yet comprehensive view of their business • Method to translate business strategy into action • Organizes measures in terms of 4 key “perspectives” • Measures address both current and future success • Integrates both external and internal measures • Sources for more information on the BSC • Kaplan and Norton publications (see resources list) • BSC collaborative(http://www.bscol.com) • ASPA Balanced Scorecard Interest Group(http://www.aspanet.org/bscorecard/index.html)

16. BSC’s Four Perspectives Customer Perspective Are we providing our customers what they need and want? Internal Business Process Perspective To satisfy our customers, in which internal business processes must we excel? Learning & Growth Perspective To achieve our goals, how must our organization learn and innovate? Financial Perspective Are we operating efficiently within our budget constraints? Adapted from Kaplan & Norton, 1996.

17. BSC and Performance Measurement • Fits with Government emphasis on performance measurement initiated with GPRA • Government Performance and Results Act (GPRA) http://www.whitehouse.gov/omb/mgmt-gpra/gplaw2m.html • NIH Performance Plan http://www1.od.nih.gov/gpra/gpra_nih_c.htm • Reemphasized in The President’s Management Agenda • The President’s Management Agenda http://www.whitehouse.gov/omb/budget/fy2002/mgmt.pdf • Government Executive GovExec.com - Government Executive Magazine • Many resources on performance measurement • The Performance Based Management Handbook http://www.orau.gov/pbm/pbmhandbook/pbmhandbook.html • Performance Measurement Documents http://www.orau.gov/pbm/documents/documents.html • NAPA, Center for Improving Government Performance The National Academy of Public Administration

18. BSC and Performance Objectives • Example • Performance Objectives • Increase customer satisfaction • Expand customer base • Increase speed of service • Decrease amount of errors • Increase employee satisfaction • Increase employee KSAs • Understand causes of unit cost fluctuation • Reduce unit cost BSC Perspective Customer Internal Business Process Learning & Growth Financial

19. BSC, Performance Objectives, and Performance Measures Examples

20. ASAs and Performance Measurement Customer Value Proposition Performance Measures Performance Objectives Strategy

21. ASA Methodology • Form Teams for the 45 ASAs by Service Groups • Strategy, objectives, and measures will be discussed at both Service Group and Discrete Service level • Become familiar with the ASA Template • Attend ASA Template Training • Formulate basis for why you are in business • Describe the Customer Value Proposition • Clarify your Strategy • Establish Performance Objectives for your area • Represent outcomes to be achieved • Common objectives • Every ASA Team will work to achieve • Unique objectives • Specialized objectives to your area

22. ASA Methodology (cont.) • Define Performance Measures to gauge if achieved objectives • Common measures • Every ASA Team will gather and report • Used in “roll-up” fashion to provide snapshot of ORS overall • Unique measures • Specialized for each ASA Team • May be at the Service Group level, or the Discrete Service level • Plan for data collection • Complete ASA Implementation Plan • Map your processes • Take Process Mapping Training • Gather and analyze data • Take Data Analysis and Graphing Training • Take other trainings as appropriate • Prepare ASA Final Presentation • Tell the story of your ASA • Interpret data findings and make recommendations for change

23. Orientation to the ASA Template

24. ASA Template - Page 1

25. Step 1: List Service Group/Discrete Services • Service Groups and Discrete Services are the way ORS describes what we do in the New Business Model • Categorize ORS Services in the Service Hierarchy • 5 Program Areas • Building and Space Acquisition and Development • Municipal Services • Program Support • Property Management • Services Management and Support • 45 Service Groups • 170 or so Discrete Services • Listing of Service Groups available via ASA web page http://www.nih.gov/od/ors/od/oqm/asa/asa.htm • Click on ORS Service Groups in first paragraph

26. ORS ExampleVRP Service Group: Provide Animal Research Support Type in Service Group and Discrete Services on Template

27. Step 2: Describe the Customer Value Proposition • Identifies what value your service provides to customers • Shows how you differentiate yourself from your “competitors” • Describes your unique mix of product and service attributes, customer relations, and image/reputation offered (Kaplan & Norton, 2000) • Should be written from the customer’s perspective, not yours For more information, see Kaplan & Norton (1996 pp. 73-85, 2000).

28. ORS ExampleCustomer Value Propositions from 2001 ASAs • Provide innovative and highly specialized critical care services to the NIH biomedical research community, utilizing state-of-the-art veterinary techniques, conveniently located, to accommodate the unique needs of each investigator (VRP) • Support the biomedical and behavioral research needs of the NIH Community by acquiring and providing access to electronic and print information resources (Library) • Provide flexible, timely, and cost-effective scientific equipment to the NIH research community to enhance the research efforts (SEIB) • Provide planning, design, and construction guidelines to the Architects and Engineers to improve biomedical facilities (DCAB) • Provide cost-effective, timely, and appropriate technical and craft services for the operation and maintenance of NIH facilities, under normal and emergency conditions, to ensure a physical environment that is functional, clean, safe, healthy, comfortable, and reliable (PWB) • Provide child care services to NIH employees to enhance the quality of the NIH work environment and the recruitment, retention, and performance of employees (DSS)

29. Customer Value Proposition Type in Customer Value Proposition here

30. Step 3: Identify Service Strategy • For all areas, choose from: • Operational excellence • Most common strategy for public organizations • Focus on competitive pricing, quality, selection, and timeliness • Customer intimacy • Focus on the quality of the relationships with customers • Product leadership • Provide innovative and outstanding performance on products and services offered For more information, see Kaplan & Norton (2000).

31. Step 3: Identify Service Strategy (cont.) • Fee-for-service operations, also consider: • Growth • Expanding your market share • Developing new products or enhancing features of current products • Sustain • Maintaining your market share • Maintaining current product/service offerings • Maintaining similar levels of service • Recovering costs for providing services • Harvest • Phasing out/eliminating services • Retraining and relocating workforce For more information, see Kaplan & Norton (1996, p. 48-50).

32. Service Strategy Check the appropriate box(es) on the Template.

33. Step 4: List ASA Team Leader/Members • ASA Team Leaders • Lead ASA effort • Manage use of consultant hours, expertise • Assign and track ASA related tasks • Responsible for status of team, final presentation • ASA Team Members • Attend ASA related trainings http://www.nih.gov/od/ors/od/oqm/asa/asa_training.htm • Attend ASA meetings • Assist with data collection and analysis • Provide input into final ASA Presentation

34. Service Strategy Fill in Team Information.

35. ASA Template - Page 2

36. ASA Template - Page 2 • Four BSC Perspectives • Customer • Internal Business Process • Learning and Growth • Financial • For each Perspective you must specify: • Performance objectives • Common objectives already listed • Blank space to add unique objectives • Performance measures • Common measures already listed • Blank space to add unique objectives

37. Step 5: Describe Customer Perspective Common Objectives and Measures The first common measure for the Customer Perspective asks you complete customer segmentation for the Discrete Services in your Service Group.

38. ORS Example (VRP) Revenue for Acute and Clinical Care by IC (FY01)

39. ORS Example (DBEPs)Number of Collaborations by NIH IC Number of Collaborations From DBEPs ASA in 2001.

40. ORS Example (DSS)Customer Segmentation for NIH Dining Centers

41. Step 5: Describe Customer Perspective (cont.) Common Objectives and Measures The second common measure for the Customer Perspective is ratings from the ORS Customer Scorecard. How these data will be collected will be something the Team will discuss with their Consultant. OQM will tally the data and provide your Team with summary graphs.

43. ORS Example (Fictitious)Product/Service Ratings Shows mean ratings on Product/Service categories on ORS Customer Scorecard.

44. ORS Example (Fictitious)Customer Service Ratings Shows mean ratings on Customer Service categories on ORS Customer Scorecard.

45. Step 5: Describe Customer Perspective (cont.) Unique Objectives and Measures Space to add your own unique Customer objectives and measures if desired. Note that you will NOT be reporting the actual data collected for these measures on this form. These data will be part of your ASA Final Presentation.

46. ORS ExampleCustomer Measures from 2001 ASAs • Number/type of customer complaints (DSS) • Rate of acquisition of new customers (VRP) • Increase market share of NIH customers (SEIB) • Customer retention by NIH IC (DSS) • Growth in users of Facilities Information Management System (OFP)

47. Step 6: Describe the Internal Business Process Perspective Common Objectives and Measures The first common measure for the Internal Business Process Perspective asks your team to complete process maps of your Service Group/Discrete Services. Process Map training and consultant support are available.

48. ORS Example (HR)Process Map of the Staffing Process

49. Step 6: Describe the Internal Business Process Perspective (cont.) Common Objectives and Measures The second common measure for the Internal Business Process Perspective asks you to indicate and report on process measures. These measures will be easy to identify once completing your process maps.

50. ORS ExampleProcess Measures from 2001 ASAs • Cycle time from customer request to providing of work (Locksmith) • Time between customer order and delivery of product (MAPB) • Percent of equipment stock that is rented (SEIB) • Number of unscheduled repairs (PWB) • Number of billing transactions processed with errors (VRP) • Percent of notification memos sent out within 1 week (OFP) • Problem resolution of help desk requests (ITB) • Number of facility deficiencies (VRP) • Percent errors found in radioactive materials inventory (DS)