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Department of Energy Working Capital Fund Balanced Score Card Targets Robert Emond Office of Working Capital Funds U.S. Department of Energy (202) 586-2354

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Department of Energy

Working Capital FundBalanced Score Card Targets

Robert Emond

Office of Working Capital Funds

U.S. Department of Energy

(202) 586-2354

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC Targets

• Who we are• Matrix Management• Focus on Performance

Dept of Energy Working Capital Fund BSC Targets

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DOE Working Capital Fund

• Intragovernmental revolving fund for managing “common administrative services” primarily for DOE Headquarters.

• Organized as 13 “businesses” , each expected to breakeven from program office customer revenues.

• Network or Matrix organization that supplements, not supplants, line organization.

Dept of Energy Working Capital Fund BSC Targets

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Current WCF BusinessesTable I: FY 2004 Year End Business Results

(dollars in millions)

$ 3.8$ 1.3$ 95.4$ 96.7Total

1.21.21.32.5PMCDP

0.20.00.50.5Corp Training Srvs

0.40.31.92.2CHRIS

1.3-0.12.22.1Payroll Services

0.70.20.81.0Procurement Mgt

1.40.35.65.9Network

-0.4-0.11.00.9Desktop

-7.80.67.68.2Phones

7.1-1.364.262.9Bldg Occupancy

0.70.22.93.1Printing & Graphics

-0.2-0.22.42.2Copying

0.30.22.22.4Mail

$ -1.1$ 0.0$ 2.8$ 2.8Supply

Net Earnings FY 97 – 04

Net EarningsFY 2004

ExpensesEarnings

Dept of Energy Working Capital Fund BSC Targets

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Who We Are (Cont)The objectives of the Fund include:• Improve the efficiency of administrative services by

providing managers with the opportunity and responsibility to make choices on the amount, priority, and, where possible, the sources of administrative services used by their programs;

• Ensure that program mission budgets include a fair allocation of the costs of common administrative services; and

• Expand the flexibility of the Department's budget structure to permit service providers to respond to customer needs.

Dept of Energy Working Capital Fund BSC Targets

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WCF Performance Management Features

Fund Management Includes• Matrix or Network Management• Frequent reports to customers• Targets are used to Motivate Performance• Governance by Customer Board

– Notwithstanding Line Responsibilities• Quarterly Reviews of Business Performance• Five-year Plans in BSC format

Dept of Energy Working Capital Fund BSC Targets

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WCF Performance Management Features

“We believe good businesses should pay attention to the four corners of their business structure; namely, customers, financial performance, internal processes, and knowledge management including human capital and information systems.”[1]

We ask our businesses to consider balanced indicators when planning over a five-year horizon with an emphasis on current trends in business performance (baselines) and anticipating the future needs of the business. The focus on these leading and lagging indicators will predict business line success.

[1] FY 2006 Congressional Budget Request

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsOutcome vs. Output Measures• Process Measures• Business line measures• Common Outcome – Support Mission Programs• How do we accomplish this outcome?

– This is what we measure, ie., Output measures

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC Targets

Phase 1 & 2 implement at HQ, mining 100% of HQ cardholder transactions. Phase 3 will add one contractor and one Federal DOE site.Phase 3 will expand the pilot to include all contractor sites in fiscal year 2006.

Incrementally implement purchase card data mining pilot in accordance with Project Plan

Performance StandardPerformance Goal for Purchase Card Data Mining

Baselines: Data Source: EAGLS and ACL Frequency: Monthly

Evolution of Measures: Examples

Customer Objective: Improve the visibility of purchase card transactions, with emphasis on reducing any known vulnerabilities.

Mitigate risk to programs of fraud, waste, and abuse of purchase cards. Resolve all instances of questionable use of

purchase cards.

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsFinancial Objective: Improve the availability of funding for programs.

Rebates in excess of data mining costs will be returned to DOE.Increase purchase card rebate potential

Performance StandardPerformance Goal

Reduce costs related to inappropriate use of purchase cards Decrease instances of abuse.

Baseline for financial loss due to PC abuse? DOE has no established baseline for loss due to PC abuse. It would be difficult to measure levels of loss. However, we can measure when there is no evidence of abuse (as a result of surveillance), and we can measure costs recovered when abuse has been uncovered. It will take several years to establish a financial baseline for this business.

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsInternal Processes Objective: Improve contract closeout to accommodate changing contract types. Fully implement Phase 1, 2, and 3 of data mining pilot project

Roll out by phase and fiscal yearRoll out all 3 phases of data mining pilot

Performance StandardPerformance Goal

Reduce the time required to resolve questionable uses of purchase cards

Determine reasonable time-frames for review process.

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsLearning and Growth Objective: Improve knowledge, skills and abilities of staff and improve business systems in support of business line mission.

Each contractor employee is assessed annually for incremental training needs

Contractor Employee Training

All Federal employees associated with the closeout business line have IDPs

Federal Employee IDPs

Performance Standard Performance Goal

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsProcess for Determining Performance Measures: Performance

measures must satisfy certain criteria: • No conflict with line responsibilities of business employees. The best

measures are those used by their managers to measure their individual performance.

• Aligned to business success [fosters organizational commitment].• Easy to capture and part of regular business reporting [data quality].• Designed in a way that employees can align their individual contributions

to organizational success. The best measures have feedback loops that are readily available to the employees’ responsible for business success.

• Aligned to stakeholder perception of success.• Managers understand data limitations, accept the impact of limitations

and mitigate risk of misunderstanding data, and justify using this data in the context of the value of the resulting information and the cost of obtaining better data.

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsBuilding Occupancy Business: Balanced Scorecard ElementsCustomer Objective: Improve customer satisfaction.

Establish baseline for lost workday injury (LWDI) rate

Reduce number of accidents & injuries

Mitigate/resolve 100% of deficiencies found.Improve performance in FEOSH survey

Complete 20% of barriers identified in barriers report*

Reduce barriers to persons with disabilities

Evaluate workstations for 50 personnel at HQ*

Perform workstation evaluations

Average satisfaction level of 3.6*Improve occupant satisfaction

Performance StandardPerformance Goal

*Performance Gradient: Outstanding = >125% of Standard Highly Successful = 110% of Standard Acceptable = meets StandardNeeds Improvement = less than Standard

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC Strategies

XXXXXPerform Workstation Evaluations

XXCreate biennial Hazardous Waste Shipment Report

XX XXXCreate and maintain inventory of hazardous materials used in each delegated building

XXXXXConduct Safety and Health Training Programs

XXXXXConduct fire drills for each building

XXXXXPartner with Office of Environmental Safety and Health

XXXXXResolve hazards identified in Safety and Health surveys

XXXXXCalculate LWDI and compare to DOE & OSHA data

XXXXXPerform FEOSH survey for each building

XXUpgrade restrooms to meet ADA requirements (24 /year)

XXXXXPrepare Occupant Emergency Plans for each building

XUpgrade GTN elevators (except 10 & 13) with new controllers and SCR drives

XImprove GTN Cafeteria

XXXXXImprove aesthetics & functionality of public areas

XXXXXReview customer requests & feedback, through APPLIX, feedback cards, e-mail, DOECAST responses, etc.

XXPerform Customer Satisfaction Survey*

XXXXXConduct Space Coordination Meetings

20092008200720062005

Fiscal YearStrategies for Improving Customer Satisfaction

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsBaselines:

Ergonomic Workstation Evaluations Performed

100 100 100 100 100 100 100

55

0

20

40

60

80

100

FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03

Percentage of FEOSHInspections Closed Out

FEOSH Inspections

83

535

312

196136

5642

0

100

200

300

400

500

600

FY97 FY98 FY99 FY00 FY01 FY02 FY03

Ergonomic WorkstationEvaluations Performed

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC Targets83

75 76 75 6959 57

49 46

0

20

40

60

80

100

FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03

Number of Accidentsat Headquarters

Results of MA Customer Surveys, FY96-FY98

0

1

2

3

4

5

Caf eter ia Conf er ence & A/ V Oper ations &

Maintenance

Of f ice Space

Management

Aver age

Area of ConcernFY96 FY97FY98

Results of MA Customer Surveys, FY96-FY98 and GSA Survey FY02

012345

Caf eter ia Conf er ence &A/ V

Operations &Maintenance

Of f ice SpaceManagement

Aver age

Area of Concern

Ave

rage

Sa

tisfa

ctio

n

FY96 FY97FY98 FY2002

Accidents at Headquarters

Data Source: ME (formerly MA) Customer Survey, Accident Logs, Workstation Evaluation

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsFinancial Objective: Reduce cost per person

Increase number of occupancy agreements by 14% per year

Obtain occupancy agreements for HQ buildings from GSA

Increase energy efficiency by 28% over the 1985 baseline for FY 2004.

Fulfill the requirements of E.O. 13123

Reduce vacancy rateMonitor Vacancy Rate

Reduce cost per personMonitor Cost/Person

Reduce cost per square foot of leased spaceMonitor Cost/Square Foot (leased)

Reduce cost per square foot of owned spaceMonitor Cost/Square Foot (owned)

House all personnel required to meet organizations’ mission

Monitor Employees Housed

Provide sufficient space to meet organizations’ mission in accordance with IG Audit #DOEIG-0402 dated April 1997

Monitor Total Square Footage

Performance StandardPerformance Goal

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsBaseline:Building Occupancy Statistics

2.262.282.3

2.322.342.362.382.4

2.42

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY0559006000610062006300640065006600

Total Sq. Ft.(in millions)Population

Rent and Rent per Person

$6,500

$7,000

$7,500

$8,000

$8,500

$9,000

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04$44.00$46.00$48.00$50.00$52.00$54.00$56.00

Average Rent per PersonRent (in millions)

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC Targets

215221

209213

208 205

224

213

180

190

200

210

220

230

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04

Average Utilization Rate (sq.ft)GSA Goal

HQ To ta l En e rg y Co n su mp tio n

190

240

290

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

Fis cal Ye ar

BTU

X 1

0 9

Required Planned A c tual

Average Utilization Rate

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsOccupancy Agreements (OA's) with GSA

05

101520

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08Fiscal Years

Num

ber o

f A

gree

men

ts

Actual number of OA's completed Goal

Note: Unless otherwise noted, FY 04 through FY 08 data is projected.Data Source: Building Occupancy Business Line Occupancy Agreement October Summary, Energy Consumption data

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC Targets

Design < 90 daysProcurement < 120 daysConstruction < 180 days (with exceptions)

Alterations > $25,000

Design < 30 daysProcurement < 6 weeksConstruction < 30 days

Alterations < $25,000

Design < 7 daysProcurement < 3 daysConstruction < 7 days

Alterations < $2,000

Within 30 days of request.Installation and removal of telephones and electrical outlets.

Respond to routine calls within 24 hours.Respond to emergency calls within 3 hours.

Timely response to maintenance service calls.

Performance StandardPerformance Goal

Internal Processes Objective: Operate and maintain equipment and systems in a manner that will provide for orderly operations of the Department, be environmentally responsible, and ensure preservation of the Government’s real property assets.

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC Targets

6537 61327360

10,363

0

2000

4000

6000

8000

10000

12000

FY2000 FY2001 FY2002 FY2003

Service Tickets

HQ Maintenance Service Requests

Forrestal Requisitions Received

539479

639

841888

1099 1121 1229 1082

0200400600800

100012001400

FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03

Requisitions Received

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC Targets

0500,000

1,000,0001,500,0002,000,0002,500,000

FY96 FY98 FY00 FY02

Dollars

Forrestal Alteration DollarsResults of Customer Survey

0

1

2

3

4

5

Oper ations & Maintenance Of f ice Space Management

FY96 FY97FY98 FY2002

Data Source: Requisition logs, Service ticket repair logs and GSA Gallop Poll Survey. Please note one of our strategies is to develop a baseline for service response rates. Frequency: Annual

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC Targets

0

20

40

60

80

100

FY98 FY99 FY00 FY01 FY02 FY03

Employees w ith IDPs

Learning and Growth Objective: Improve knowledge, skills and abilities of staff and improve business systems in support of business line mission.

Survey results for ME-411 and ME-412 greater than ME average

Improve Employee Satisfaction

All employees have IDPsEmployee IDPs

Performance Standard Performance Goal

Baseline: Percentage of Employees with IDPs

Data Source: Employee IDPs; ME Culture Survey (FY 2002)Frequency: Annual

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsMail Business Line: BSC Elements

Customer Objective: Improve Customer Satisfaction.

Zero customer complaints regarding on-time delivery of mail.

Improve customer service

Performance StandardPerformance Goal

Baseline: 2003 HR Customer Satisfaction SurveyCustomer Satisfaction Responses (A total of 100 responses received)

0%0Don’t Know

4%4Fair

6%6Good

65%65Very Good

25%25Excellent Service

PERCENTNUMBER RESPONDINGRESPONSE

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsFinancial Objective: Reduce customer’s mailing costs.

Increase the use of presorts mail services.

Improve contractor productivity.Reduce mail costs for program offices.

Performance StandardPerformance Goal

Baseline:

4555

2000200120022003

NUMBER OF OFFICES USING BULK MAIL SERVICESFISCAL YEAR

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsInternal Processes Objective: Streamline internal processes and apply best practices and technology advancements.

02468

Number

FY1999

FY2000

FY2001

FY2002

FY2003

Fiscal Year

PERSONNEL SECURITY

SecurityIncidences

Establish improved sensing/ID processes for incoming mail.

Improve personnel safety

Performance StandardPerformance Goal

Baselines:

Mail Business Line Usage Data

0246

FY 1999 FY 2000 FY 2001 FY 2002 FY 2003

Fiscal YearM

illio

ns o

f Pi

eces Incoming

Postal Mail

InternalDistribution

OutgoingUSPS Mail

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF BSC TargetsLearning and Growth Objective: Improve the skills of all staff

0

10

20

30

40

50

60

Number

FY1999 FY 2000 FY 2001 FY 2002 FY 2003

Fiscal Year

STAFF DEVELOPMENT

Training Classes/ SeminarsAttended

100% of staff attends at least 5 classes or seminar per quarter.

Fully train and develop staff100% of federal staff has IDP

Performance StandardPerformance Goal

Baseline:

Dept of Energy Working Capital Fund BSC Targets

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DOE WCF Contact InformationHoward G. BorgstromWorking Capital Fund Manager (ME-15)Office of Management, Budget, and EvaluationUS Dept. of Energy1000 Independence Ave., SWWashington DC 20585202.586.5923202.586.8415 [email protected]

Robert F. EmondManagement Analyst (ME-15)Same address and [email protected]

www.wcf.doe.gov