1 Performance Management Presentation Team Members: Gil Kruemmel, Paulette Mills ORS National Institutes of Health 9 January 2004 Provide Printing and Document Management Services

2 Overview and Contents Years in Review – Changes in FTE’s PMP Template Value proposition and strategy Performance objectives and measures Customer Perspective: Critical Measures % Procurement Jobs with Multiple Bids Internal Business Processes : Critical Measures $ change in Top 10 (DS 1) Customers Learning and Growth: Critical Measures # of orders year to year # of impressions year to year FTE’s in Group Financial Perspective: Critical Measures Unit Costs Conclusions and Actions Appendix

3 Printing Branch FTE’s

4 Revenue DS1 Printing Procurement and DS2 Document Conversion/Management and Print Services

5 Service Group Performance Management Plan

6 Performance Plan For FY04 – FY05

7 Strategic Objectives - Strategy Mapping

8 Strategy Mapping Conclusions and Actions Strategy Mapping revealed our objectives should emphasize Financial as the top perspective. We modified our PMP to utilize more financial measures as both lead and lag indicators. Strategy Map Analysis:We must reach out to our existing customers and those prospective customers to inform them about our capabilities and benefits if we are to meet our customer objectives.

9 Customer Perspective Critical Measures

10 Objective C1. : Improve on best price for procurement Measure: C1.1 Change in 3 Bids Analysis 3 Bid Chart Brochure average savings 1 st & 2 nd : $1060 Posters average savings 1 st & 2 nd : $252

11 No FY 03 survey was conducted FY 04 survey will focus on the top ten customers Survey will be individual focus surveys designed to determine the most important qualities of “good service” The print team will ask OQM in assisting in the design and best implementation to gather and report on this info. Objective C3. Increase Customer Satisfaction Measure: C3.1 Customer Survey Customer Survey Methodology

12 What does this Customer Data tell us? What actions are planned? Our customers achieve the best market rates by using our leveraged buying power. Our use of multiple bids for thousands of procurement jobs keeps the vendor community aware of the value of our business at the same time it assures our customers receive the best rate. A key to high customer satisfaction is in providing a best price solution plus informing the customers that we are providing this valuable service for them.

13 Internal Business Process Perspective Critical Measures

14 -Insert chart/table here- DS 1: Top 10 Customers $- $500, $1,000, $1,500, $2,000, $2,500, NIDAODNEINIDDKNLMNICHDNHLBINIDCRNINDSCCOther FY01 FY02 FY03 Objective IB2. Improve Awareness of NIH printing and document management services. Measure: IB2.1 Top customers changes

15 NIH Activity Report Commercial Printing Activity Report $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 FY01 FY02FY03 Directly Procured by IC Procured by NIH Printing Branch Objective IB2. Improve Awareness of NIH printing and document management services. Measure: IB2.3 NIH activity report

16 Internal Business Process Perspective What does the data tell you? What actions are planned? We know who our major customers are by the type of purchases they make and the volume. Our total NIH activity shows the total market is 2x the size of the commercial procurement executed in our branch. We plan to continue our educational awareness program to all the IC’s informing them about our leveraged buying benefits and the risk management benefits built into our procurement process.

17 Learning and Growth Perspective Critical Measures

18 Printing Branch FTE’s FY 04 Target = 9 Objective L1. Improve Adoption of best business practices Measure: L1.2 Change in FTE’s

19 Objective L2: Increase knowledge of customer needs Measure L2.1: Change in number of total jobs

20 Objective L2: Increase knowledge of customer needs Measure L2.1: Change in number of impressions

21 Learning and Growth Perspective What does the data tell us? What actions are planned? Minimize our on board FTE’s while sustaining high level of commercial procurement, in-house impressions to include document conversion. In order to continue to meet the demands for orders of all types with a reduced number of FTE’s it is important we adopt the best business practices in order receipt, order management, order fulfillment and quality control.

22 Financial Perspective Critical Measures

23 Objective F2. Minimize Unit Costs Measure F2.1 Reduce internal unit costs (DS1 & DS2)

24 Conclusions

25 Conclusions from PMP Eye-Openers Total NIH printing market is twice the size of Central Printing and Publishing Management's total printing procurement revenue NIH Printing Procurement officials should be aware that our 3 Bid system enables us to meet customer requirements while ensuring best price available Emphasis On Continue emphasis on getting "Healthy" financially (Positive NOR) Educate customers on our capabilities and benefits Continue to adjust resources to ever changing customer requirements Continue adopting Best Business Practices

26 Conclusions from PMP Improvements Achieved Met all work requirements with less personnel resources (Reduced FTE's by 62.5%) Reduce space requirement by $200K Highlight Initiatives for FY-04 Awarded Scan/Conversion Contract for electronic research grant applications in support of the NIH eRA Initiative Developed formal marketing plan "Storefront" service offerings through additional DMAPS sites Develop a contract to allow for migration to off-site contractor for digital printing of grant material: Potential savings of over $1.1M Move current operation out of Stonestreet location (space savings of $300K) Develop working partnership with QAI (conversion contractor) to develop new business applications