1. VBA’s Executive Performance Appraisal System A New Approach to Executive Performance Management

2. Senior Executive Service in VBA Total SES - 57 –Headquarters SES - 15 –Field SES - 42 VBA comprised of (57) Regional Offices and Centers along with Headquarters elements

3. State of VBA - 1997 Environmental scan revealed –Large Backlogs –Large Appellate Workload –High Remand Rate –High Blocked Call Rates –Poor Customer Satisfaction –Lack of Succession Planning –Poor Data Integrity

4. State of VBA - 1997 Veterans Claims Adjudication Commission “Report to Congress” - December 1996 National Academy of Public Administration report on “Management of the Compensation and Pension Benefits Claim Processes for Veterans” - August 1997

5. Improved service delivery to veterans –Increase Accessibility –Improve Efficiency –Reduce Redundancy –Promote Cooperation/Teamwork –Eliminate Destructive Competition –Push Decision Making to Lowest Level –Promote Flexibility in Decision-Making Service Delivery Networks

6. VBA Service Delivery Networks 1 2 3 4 5 6 7 8 9 Seattle Portland Boise Salt Lake Ft. Harrison Cheyenne/Denver Denver Albuquerque Fargo Sioux falls Lincoln Wichita St. Paul Des Moines Chicago St. Louis St. Louis RMC Milwaukee Reno Oakland Los Angeles Phoenix Waco Houston MuskogeeLittle Rock New Orleans Jackson Montgomery St. Petersburg Indianapolis Detroit ClevelandPittsburgh Louisville Huntington Roanoke Nashville Atlanta Columbia Winston Salem Buffalo ANCHORAGE HONOLULU SAN JUAN Togas Manchester White River Jct. Boston Providence HartfordNew York Newark Philadelphia Wilmington Baltimore Washington MANILA San Diego

7. Why Develop a New Performance Measurement System? To encourage teamwork throughout VBA - consistent with the SDN concept To leverage performance measured on the Balanced Scorecard To foster development of key executive competencies To tap the insights of peers, subordinates and stakeholders (360 degree feedback)

8. Executive Performance Appraisal Plan Development The plan is aligned with VBA’s corporate philosophy Development Team was comprised of Directors from the field Field survey was conducted with the best ideas incorporated in the final plan Performance expectations from senior level VBA management were incorporated in the final plan

9. Elements of the Executive Performance Appraisal System Element 1 - Balanced Scorecard Performance Element 2 - Organizational Support/Teamwork Element 3 - Leadership Development Element 4 - External Relations Element 5 - Workplace Responsibilities

10. The VBA Balanced Scorecard Each major business line (Program) has a Balanced Scorecard with unique measures Measures were selected based on management experience; customer & stakeholder interest; and benchmarking with similar organizations Balanced Scorecards developed at the Local, Service Delivery Network, and National levels

11. The Balanced Scorecard Balanced Scorecards for each business line contain the following key elements: –Speed –Accuracy –Unit Cost –Customer Satisfaction –Employee Development

12. National Loan Guaranty Business Line Scorecard

13. Balanced Scorecard Performance Element 1

14. Organizational Support/Teamwork Element 2 Sub-Element 1 –Support for the SDN Concept through participation in National and SDN Projects and support of Innovation Sub-Element 2 –Peer Review of Teamwork

15. Support for the SDN Concept Sub-element 1 Participation in projects at the SDN level Participation in projects at the National level Promoting and sharing “Innovative” ideas and business practices

16. Peer Review of Teamwork Sub-element 2 Designed to evaluate effectiveness as a SDN team-member A peer evaluation survey instrument was developed with the help of outside contractors Directors are also required to complete a self-assessment Results are discussed with fellow team- members

17. Teamwork Assessment Feedback Dimensions Directors are rated on a scale of 1 to 6 in the following categories –Respect and Openness –Communication –Managing Performance –Innovation –Budget and Resource Planning –Budget Execution/Resource Sharing –People Development

18. Peer Review Observations FY 2000 results not used for rating purposes Evaluations appear to be inflated The process resulted in open and frank discussion among Directors Results will be used for rating purposes in FY 2001

19. Leadership Development Element 3 Sub-element 1 –Leadership Development Plan Sub-element 2 –360 Degree Performance Assessment

20. Leadership Development Plan Sub-element 1 Tied to Office of Personnel Management core competencies Directors required to assess strengths as well as weaknesses Supervisors required to identify developmental issues An Individual Performance Plan is required for each performance period

21. 360 Degree Assessment Sub-element 2 Difficult concept for senior executives to accept Directors must be assessed in the normal performance of duties VBA has elected to utilize the FEI instrument Concept to be tested in the FY 2001 executive performance appraisal process

22. External Relations Element 4 Building effective, productive relationships with organizations external to VBA in support of the overall VA mission and goals –Participation in the Federal Executive Board –Working with other elements in VA (e.g., VISN or NCS) –Fostering productive relationships with service organizations, congressional staff, and local media

23. Workplace Responsibilities Element 5 Effective labor/management relationships Discrimination-free work environment Diverse workforce Effective recruitment, training, retention, and employee development Safe and healthy work environment

24. VBA Executive Performance Appraisal System - where are we? An organizational framework is in place to –Hold Directors accountable for their performance –Link actions to corporate goals and objectives –Promote cooperation and teamwork in furthering VA’s mission –Ensure universally consistent performance assessment of senior VBA leaders

25. VBA Executive Performance Appraisal System - what’s next? Continue to develop the peer assessment process Finalize details on the 360 degree performance assessment process Shift the weighting in Element 1 to encourage ownership in national goals and objectives