# Presentation: 079579

## Department of TransportationFAA Office of Research and Acquisitions’Performance Management Program

*Office of Personnel Management*
* **Strategic Compensation Conference 2002*
*August 27, 2002*

**Notes:**
Good morning, I’m Lauraline Gregory, Director of the Office of Business Management for the FAA’s Office of Research and Acquisitions

I’m extremely pleased to be here today to tell you about the Office of Research and Acquisitions’ Performance Management Program.

I’ll give you a little background on the organization to set the context of our program; I’ll explain the major components of the program;  and I’ll tell you how we measured and tracked our success

 The Office of Research and Acquisitions is one of FAA’s lines of business, has approximately 2000 employees, organized into 8 directorates.
 Located at Headquarters and at William J. Hughes Technical Center, Atlantic City, NJ
Responsible for ensuring that FAA has research and technology base needed for safe, secure, and efficient National Airspace System—today and in the future

Our story begins back in 1996. . . 

## Background

*1996: Department of Transportation Appropriations Act:*
*“**Develop and implement a personnel management system that addresses the unique demands of the agency’s workforce.”*
*February 1997: Associate Administrator for Research and Acquisitions created Office of Business Management*
*Spring 1997: Management Team began strategic planning to define the organization's long-term goals*
*September 1997: Performance Plan published*
*Included measurable, outcome-oriented performance goals and strategies to accomplish those goals*

**Notes:**
Legislation welcome, but certainly presented a huge challenge to the organization (and we didn’t just tackle strategic planning and performance management, we also tackled compensation and workforce development. . .)

The Office of Business Management was charged with operationalizing the initiative and to assist in establishing and integrating corporate policies and processes for the management of our primary capital asset:  our people.

Performance goals: describe multi-year objectives that align with and support both the Department of Transportation and FAA Strategic and Performance Plans.

Our plan is updated annually, and a companion implementation plan cascades the goals and strategies to the next level of activities

These plans are the guiding documents for our individual performance plans. . . 

## Performance Management Program 

**FAA Strategic**
**Goals**

-  Safety
-  Security
-  System Efficiency

**ARA Performance Plan**
-  Performance goals/measures
-  Strategies and Action Plans
-  Annual Performance Targets

**Individual Performance Plans**
-  Developed Collaboratively
-  Contain Critical Results Statements
-  Include Monitoring and Feedback
-   Strategies

**X**

**X**

**... ****A Direct Line-of-Sight**

**Notes:**
Implemented in 1998, our program was designed as a collaboration between our  organization and Human Relations professionals.
Our Performance Management System is: 
1) Results-based, 2) Aligns with and supports the Line of Business’s  performance planning process and 3)Supports FAA’s strategic goals
Our guiding principles were:
Satisfy customers: We provide superior products for our customers.  This reflects our desire to increase our customers’ commitment to us and their trust in us.
Build and sustain effective leadership practices:  We want to achieve optimal organizational and individual performance through applying the very best leadership and management practices.
Create a high performance learning organization:  we want to become skilled at creating, acquiring, and transferring knowledge AND at modifying our behavior to reflect new knowledge and insights
Individual Plans:
Collaborative effort:   When managers and employees meet to discuss the employee’s performance plans, they first focus on what will be expected of the employee during the coming year
Results Statements:  It’s not always so easy to state the results we expect to achieve—many managers and employees are more accustomed to describing the activities they engage in, rather than the results they’re responsible for.  The results must describe a product, an outcome, an accomplishment, or an objective. Results statements can be amended throughout the performance year to accommodate influences that impact expected work products or deliverables.
Monitoring/Feedback:  In order to enhance productivity and performance, we also built in the requirement for monitoring and feedback.  Plans describe how managers will monitor performance (what information/data will be gathered, from whom) and how often feedback sessions will be held. 

## Implementation

***Awareness***
*Overview briefings*
*Hotlines*
***Training******	***
*Managers*
*Instructor/Coaches*
*Employees*
***Maintenance and Skill Enhancement***
*Coaching Workshops*
*Learning Support Groups*
*Mandatory Supervisory Results Statement*
*Tools for Managers*

**Notes:**
Awareness:
We held a series of overview briefings for employees and managers: “Morning, Noon, and Night Sessions”—held through the span of the business workday
Enrolled employees in the change process by establishing the rationale for new system, and helped them see “what it means for me.”
Hotlines: both e-mail and voice mail: SME’s reviewed all questions and provided responses within 24 hours.
Training:
Managers trained first—taught them how to apply results-based process, how to write a plan. Stressed importance of leadership and coaching.
Train-the-trainer workshop: 23 employees (“Instructor/Coaches”) who then trained employees.  After employees trained, these Instructor/Coaches provided support to the organization.
Maintenance/Skill Enhancement:
 Coaching Workshop: 1-day workshops; focused on using coaching tools to overcome barriers to performance success.
 LSG’s: Information sessions: topics included Addressing Poor Performance, Strategies for Soliciting and Receiving Performance Feedback
 Managers’ Results Statement: sets expectations for leadership behavior
 Tools: ARA Managers’ Desk Guide; Monitoring and Feedback Templates

## Evaluations

*Criteria*
*Results-based*
*Linked to larger goal*
*Measures*
*Stretch goals*
*Monitoring and feedback strategies*
*Use*
*Provide feedback to managers*
*Identify interventions for improving implementation*
*Determine whether organization achieved target*

**Notes:**
Beginning in 1998, we conducted two evaluations each year, one at the mid-point of the performance cycle (“interim”) and one at the end of the performance year (“final”)

We used a random sample and evaluated approximately 10% of each directorate’s plans, making sure to get plans from each job category.

We carefully reviewed the sampled plans according to the criteria shown. . .

One aspects of the plans that I haven’t mentioned before is the presence of “stretch” goals.  We asked managers and employee to write results statements not only for what must be done for expectations to be met, but also for expectations to be exceeded, giving both managers and employees a clear idea of what constitutes superior performance.

Use of evaluation data:
As you would expect, we provided feedback to managers about how they were doing, and we provided tools for improving, but we also held ourselves accountable for the results:
Each year we set a goal for how well we wanted to do—as you’ll see on the next page, we made tremendous progress as we kept raising the bar for what equaled success

## Tracking our Progress

- * Raised bar in 2001: Conducted Focus Groups to Assess Quality of      Coaching and Feedback

**Notes:**
Talk through evaluation results

Presented results to Management Team for whole organization and for each directorate.

Directors could easily see where they needed to improve and target areas of weakness.

Conducted Focus groups: We knew that managers could write good monitoring and feedback statements.  We wanted to know something about the quality of the feedback employees were getting from the THEIR perspective.  We found that although coaching/feedback was taking place, employees believed that managers needed more skills in this area.

## Results

***FAA used as model for new agency-wise system***
***National Academy of Public Administration:***
*“**ARA’s experience indicates that linking performance management more clearly to organizational goals, making a special effort to provide feedback and coaching. . .has the potential to improve FAA’s performance.”*
***Compensation Evaluation:**** *
*“**. . . The workforce and management are having real discussions concerning organizational goals and how those reflect on individual performance. . . The Performance Management Program clearly works.”  *

**Notes:**
A new system adopted by FAA used our Performance Management Program as a model; the new system, which is results-based and focuses on linking individual performance to organizational goals will be implemented this year.

August 1999: NAPA cited benefits of our Performance Management Program. . .  The study goes on to say that Managers indicate that the system has caused them to be more focused on mission results.

We were especially pleased that an independent evaluation of the compensation system highlighted the positive comments of managers and supervisors about the Performance Management Program.

## We Have Learned A Lot...

*Leadership, Leadership, Leadership*
*Involve employees as partners*
*Plan broadly, but implement sequentially*
*The impact on managers and supervisors can be significant*
*Communication is absolutely essential*
*Don’t underestimate the time & commitment needed*

- ...**and we are still learning**

**Notes:**
 Leadership = KEY!!
 Employees were partners in design AND implementation: 
 Instructor/Coaches: assisted with training and supported the program as it was implemented
 Plan: Need big picture from beginning, but have to be patient and spend the time needed on each step 
 Impact on Managers: They MUST have coaching/feedback skills for this to work—this is a role change for them, and they have to learn new skills
 Improves over time and with practice.
 BTW: if you’re the person implementing this. . . Understand that no one is going to love you for it!

 We know our system isn’t perfect, but we believe strongly in tying performance management to organizational objectives and strategic goals while allowing individuals the flexibility to develop performance plans that reflect individual and team roles.  And we believe that our process contributes to developing  behaviors that add value to the business process.  
 We’re honored to receive the Pillar Award, and we’re committed to continuing to strive for excellence . . . 
  Thank you. . .