# Presentation: 079132

## Performance Management Update

- Barbara Colchao
- Performance Management and Incentive Awards Division

## Topics Covered

- Focus on Performance
- Performance Culture
- Recent and Upcoming Projects
- Data, Data, Data
- OPM Director’s PILLAR Award

## President’s Management Agenda
Building a Government that is
Citizen-centered
Results-oriented
Market-based
Human Capital on GAO’s High Risk List
OMB’s Human Capital Scorecard

- President’s Management Agenda
- Building a Government that is
- Citizen-centered
- Results-oriented
- Market-based
- Human Capital on GAO’s High Risk List
- OMB’s Human Capital Scorecard

## Voinovich Human Capital Working Group
Draft legislation (S. 1603) proposes studying processes for dealing with poor performers
Volcker Commissions’ 9 areas of concern include “Addressing the Poor Performer Problem”

- Voinovich Human Capital Working Group
- Draft legislation (S. 1603) proposes studying processes for dealing with poor performers
- Volcker Commissions’ 9 areas of concern include “Addressing the Poor Performer Problem”

**Notes:**
Recent developments in several quarters are once again surfacing issues concerning the laws and policies governing pay and performance and the ways those policy areas are related, especially as they focus on dealing with poor performers:
The Voinovich Human Capital Working Group routinely raises both areas.
Draft Voinovich Human Capital legislation (S.1603) may be amended to require that OPM (vs. GAO or NAPA) study processes for dealing with poor performers.
The Pay Reform White Paper highlights the pay system’s performance insensitivity and emphasizes the importance of good performance measurement.
OMB Director Daniels has asked for quantitative and anecdotal information about the difficulties of dealing with poor performance.
Various Human Capital initiatives and scorecards all include elements focused on aligning employee performance with organizational goals (i.e., hook to GPRA), identifying the good and the poor performer (and providing real consequences for each), etc.
The new Volcker Commission’s nine areas of concern include “Addressing the Poor Performer Problem” and “Closing the Pay Gap” and directly link the two. 

## Create a culture that motivates employees for high performance, based on their contribution to the work of the organization, and common values while ensuring fairness in the workplace

- Create a culture that motivates employees for high performance, based on their contribution to the work of the organization, and common values while ensuring fairness in the workplace

## Characteristics of a Good Performance Culture

- Strong performance appraisal programs
- Deal effectively with poor performers
- Strong recognition programs
- Strong diversity program
- Positive labor-management environment
- Environment that makes employees feel valued for their contributions

## Strong Performance Appraisal Programs

- Clear, results-focused elements and standards aligned with organizational goals
- Standards are measurable, observable or verifiable
- Standards make clear distinctions among performance levels

## Deal Effectively with Poor Performers

- Clear, results-focused elements and standards
- Feedback is sooner rather than later
- Management support
- Use the probationary period

## Strong Recognition Programs

- Reward what you value
- Recognize top performers
- Align with organizational goals
- Make distinctions
- Celebrate success

## Strong Diversity Program

- Create an environment that values diversity
- Reflect the diversity in our society
- Design effective affirmative action policies and plans
- Analyze workforce demographics
- Identify and address gaps in representation
- Communicate plans and policies

## Positive Labor-Management Environment

- Engage employees
- Create synergy through common goals
- Communicate early and often
- Keep unions in the information loop

## OPM Resources

- Performance Management
- Performance Management Technical Assistance Center
- _[www.opm.gov/perform](http://www.opm.gov/perform)_
- Poor Performers
- Resource Center for Addressing and Resolving Poor Performance
- _[www.opm.gov/perform/poor](http://www.opm.gov/perform/poor)_

## OPM Resources

- Diversity
- Building and Maintaining a Diverse, High-Quality Workforce
- _[www.opm.gov/diversity/guide.htm](http://www.opm.gov/diversity/guide.htm)_** **
- Labor-Management Relations
- Labor Management Relations Advisories
- _[www.opm.gov/lmr/advisory/index.htm](http://www.opm.gov/lmr/advisory/index.htm)_
- Significant Cases in Federal Employee and Labor Relations
- _[www.opm.gov/lmr/sc](http://www.opm.gov/lmr/sc)_

## Recent and Upcoming Projects

- Plain Language Regulations
- New Awards Calendar
- Developing Performance Plans for Managers
- Rating Data Review

## Plain Language Regulations

- OPM-wide effort to revise title 5, Code of Federal Regulations
- Put personnel regulations in plain language
- Update and clarify current regulations
- Revisions to 430 and 451

## Clarify implicit requirements and policies
Codify established requirements
Acknowledge focus on results-oriented elements and standards based on balanced measures
Amplify importance of monitoring performance, both formally and informally

- Clarify implicit requirements and policies
- Codify established requirements
- Acknowledge focus on results-oriented elements and standards based on balanced measures
- Amplify importance of monitoring performance, both formally and informally

## Codify non-monetary awards criteria
Codify established requirements
Clarify implicit requirements and policies
Create separate subpart for Presidential Ranks, published as interim regulations mid-August

- Codify non-monetary awards criteria
- Codify established requirements
- Clarify implicit requirements and policies
- Create separate subpart for Presidential Ranks, published as interim regulations mid-August

## New Awards Calendar

- Previously published as back page of *Workforce Performance*
- Now available electronically
- Awards listed alphabetically
- Awards listed by nomination dates
- Let us know of any awards you want listed
*http://www.opm.gov/perform/honorawd.htm*

## Developing Performance Plans for Managers

- A handbook for measuring managerial performance
- Based on *Handbook for Measuring Employee Performance*
- Looks at measuring various aspects of managerial performance
- Includes basing critical element on work unit results

## Rating Data Review

- More data requests to support analysis of performance culture
- Accuracy issues with rating data as reported to CPDF
- Three fields of data required
- Rating level
- Rating pattern
- Rating period

## Rating Data Review

- Reporting rating patterns still questionable
- Rating timeliness looks bad
- Need agencies to verify data accuracy
- Share current data with agencies
- Identify any discrepancies
- Seek solutions
- Improve data accuracy

## Data, Data, Data

- Ratings Distributions
- Ratings Timeliness
- Cash Awards Spending
- Time Off Awards Usage

## Rating Pattern Distributions

- Source:  Central Personnel Data File status files for December 2001

**Notes:**
What has happened since the 95 regulatory changes permitted use of various rating patterns?
Some agencies still looking at going to Pattern A but data does not reflect those post-Sept. 2000 ratings yet
Still get lots of questions on what do we do about rewards?  Hear that employees often don’t like P/F, especially those who used to get outstanding
Given rating inflation that could cover a lot of employees

## Adjusted Ratings Distributions

- Source:  Central Personnel Data File status files for December 2001

## Pattern H Rating Level Distribution

- Source:  Central Personnel Data File status files for December 2001

## Corrected Pattern H Rating Level Distribution

- Source:  Central Personnel Data File status files for December 2001

## Rating Period Distributions

- Data Source:
- CPDF Dec 2001

## Cash Awards Data

- Other Awards include Special Act or Service, Suggestion, Gainsharing, and other Awards
- Source:  *Workforce Compensation and Performance Service, Incentive Awards Program databases and Annual Reports.  *

**Notes:**
December 99 newsletter dedicated to trends in awards data
Overall spending levels still remain fairly constant hovering around the 1% of payroll figure
Shift from rating based to other continues
Government averages are simply that -- can be used as benchmark to see how your agency compares but doesn’t indicate good or bad regardless of where you fall
Agencies design awards programs to support their own needs
More crucial to review to see if those needs are still the right ones; are they being influences by awards use; do awards support goal achievement; is agency making good use of awards funds

## New Cash Awards Data

- Source: *Central Personnel Data File. December 2001 dynamics file*

## Time Off Awards Data

- Source: W*orkforce Compensation and Performance Service, Incentive Awards Program databases and Annual Reports*

**Notes:**
Use of time off seems to be leveling off
May be more integrated into overall programs by now
Agencies becoming aware of “cost” of time off
Other programs may impact ability to absorb additional absence of employees

## New Time Off Awards Data

- Source: *Central Personnel Data File. December 2001 dynamics file*

## PILLAR Award (Performance, Incentives, and Leadership Linked to Achieve Results)

- Recipients for 2002
- Energy: National Energy Technology Laboratory
- Transportation: FAA, Associate Administrator for Research and Acquisition
- Information available on *http://www.opm.gov/perform/pillar.htm*

- Congratulations!