Department of Commerce Performance Team Vision, Approach and Functions

1. Department of CommercePerformance Team Vision, Approach and Functions September 15, 2016

2. History of Federal Performance Management Measurement for Compliance (not results) • 1949: Hoover Commission (unit cost) • 1960s:PPBS • 1970s:MBO • 1970s:ZBB • 1980s:TQM • 1990s:GPRA • 2000: ROMA • 2008: GAO Report • (Measurement done, but not used) 2010:GPRAMA - Required Use of Data for Planning and Managing Operations (OMB Circular A-11)

3. 2010 Government Performance Results Act (GPRA) Modernization Legislative Intent: • Improved Performance (ROI) through Focus on Priority Measurable Outcomes • Frequent Monitoring of Data on Progress Toward Outcomes • Data-Based Decision Making • Transparency • Performance Reporting Modernization http://www.gpo.gov/fdsys/pkg/BILLS-111hr2142enr/pdf/BILLS-111hr2142enr.pdf

4. Performance & Evaluation Legal Functions 2010 v. 2016 2016 Post-GRPAMA Functions 2010 Pre-GPRAMA Functions OMB A-11 Strategic Plan Overhang Overview for bureau-specific plans Annual Performance Plan Annual Performance Report OMB A-136 Performance Section of AFR OPM Annual Organizational Assessment (for SES) OMB A-11 Integrated Strategic Plan + Measures & Targets Annual Strategic Review of All Strategic Objectives Progress on Strategic Objectives Posted on Performance.gov Annual Performance Plan/Report Agency Priority Goals Cross Agency Priority Goals Quarterly APG Updates on Performance.gov Quarterly Data-Driven Reviews Evidence Template in Budget GAO Audits of GPRAMA Compliance OMB A-136 Expanded AFR Performance Analysis OMB M-12-14 & M-13-17 Evidence & Evaluation in the BudgetWhite House Memo (July 6, 2015) Evidence Agenda Implementation OPM Annual Organizational Assessment (for SES) Data & Analysis for SES Certification

5. Definition of Performance Management A Systemfor: • Establishing and deploying results-driven vision, values, and culture • Developing and refining a focused strategic plan • Setting objectives and measures of progress • In light of “evidence” and well defined customer requirements • Developing/implementing/refining strategies and tactics • Aligning resources and activities to objectives • Through the budget, process design, and employee engagement • Monitoring implementation of plans and making mid-course adjustments • Evaluating effectiveness of plans • Continuously improving results through “Feedback Loops”that create organizational and individual learning

6. Performance Management is Scientific Method Plan Execute Monitor Evaluate Improve A Learning System Scientific Method: Form a hypothesis (a plan); test a hypothesis (operations, monitoring indicators and evaluation); revise a hypothesis (make a better plan)

7. DOC Performance Management Vision and Approach Our Vision: A Department of Commerce that fosters cross-bureau collaboration, institutional learning, and continuous improvement to deliver better services, solutions, and outcomes that benefit the American people. Our Approach: As the principle accountable office for implementing GPRA-MA, the Commerce Performance Team sets the performance vision, supports executive governance, manages the Department’s integrated systems-based performance framework, and provides authoritative guidance, direction, and training to all 12 bureaus. Three key principles of our approach are: • Baldrige Excellence Framework is the foundation of our systems-based management framework that aligns and integrates (Leadership, Strategic Planning, Customer Satisfaction, Employee Engagement, Process Management, Management Information) with customer feedback that produces better results with less effort. To promote integration, Performance, Evaluation, and ERM are located in a single office. • Commerce operates in a highly distributed, matrix environment where the HQ performance team is a critical hinge pin between the Executive Management Team’s (EMT) governance of our Strategic Plan and the 12 bureaus’ staff who implement the plans’ diverse strategies, programs, and improvement efforts. We collaborate with our bureau performance and evaluation communities of practice through the Performance Excellence Council (PEC) and help the bureaus do high-value work right the first time versus running a compliance drill or simply reviewing their work and sending it back for corrections. • Beyond collaborating with each bureau’s performance staff, our HQ performance team encourages every Commerce employee to be empowered to participate in performance management. We strive to instill a data-driven and learning culture into our organizational DNA. The DOC Performance Team has defined 9 core Performance Management functions to explain our work and support budget justifications. FOUO - Discussion Materials

8. DOC Performance Management Functions/Capabilities Notable advances in Green Our 9 Performance Management Functions: • 3. Budget & Performance Integration • Align ASR, APPR & Strategic Plan • Evidence Template • Use of Evidence & Indicators in Budget deliberations • Full integration of evidence in budget process • 1. Strategic/Annual Planning & Execution • Annual & 4-year Update • Support Executive Governance • Annual Strategic Review (ASR) • Improved Strategic Objective (SO) Measures • Quarterly Data-Driven Reviews • 2. APGs and CAP Goals • Close out FY 14/15 • Develop FY 16/17 • Quarterly Reviews of APGs • Deep Dives on APG progress • 6. Strategic Evidence & Evaluation • Evidence Agenda • Bureau evidence developed to address recurring OMB/Hill questions or unfunded priorities • Routine evaluations of programs/processes • 5. Perf. Indicator Refinement/Use • Logic Models to improve measures • Annual review/assessment of utility of key measures • On-going data validity quality control • Data in database available for analytics • 4. Training & Capabilities Building • Annual DOC PM Summit & Academy • Strategic Plan On-boarding • Commerce Learning Center • Perf. Mgmt in Supervisory Training • 7. Alignment/Engagement • Cross-bureau Performance Staff Engagement • Performance Excellence Council • DOC Talks • Internal Communications Plan • Annual Organizational Assessment • Deployment of Strategic Objectives to SES performance plans • Deployment of SOs to all work plans • 8. DOC Customer Service Strategy • Customer feedback informs the Strategic Plan • Customer Service CAP Goal Rep • Customer feedback in key processes • Employees understand their customer interface • 9. Risk & Performance Integration • Align guidance and direction on OMB Circulars A-11 and A-123 • Use of Risk info in Strategic Review • Use of Risk info in Qrtrly APG Reviews • Use of Risk info in planning processes FOUO - Discussion Materials

9. An Integrated, Learning Performance Management System Workforce Focus Strategic Planning Measurement, Analysis, & Knowledge Management Leadership Results Operations Focus Customer Service http://www.nist.gov/baldrige/

10. How the Functions Fit Together at DOC Individual Work Plans Aligned to Strategic Plan Strategic Planning Budget CXO Councils Strategic Reviews APPR Metrics ResultsMeasured by Regular Data on Indicators & Evaluations Leadership Uses Evidence & Input to Set Direction Processes Aligned to Plans & Customer Reqs Customer Surveys & Advisory Groups http://www.nist.gov/baldrige/