Description
Performance-based management is a systematic approach to performance improvement through an ongoing process of establishing strategic performance objectives; measuring performance; collecting, analyzing, reviewing, and reporting performance data; and using that data to drive performance improvement.
Performance-Based Management System
Project Management Plan
ORNL/TM-2000/377
Revision 0
December 2000
Prepared by: ___________________________________________________
Jeff Long, Quality Systems Manager
Quality Services Division
Prepared by
Oak Ridge National Laboratory
Oak Ridge, Tennessee 37831
Managed by
UT-Battelle
for the
U.S. Department of Energy
under contract DE-AC05-00OR22725
2
TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................. .......................................................4
1. SCOPE AND METHODOLOGY.................................................... ..........................................................6
1.1 Determining Performance Objectives and Indicators.......................................... ..............................6
1.2 Measuring Performance Against POIs........................................... ...................................................7
1.3 Evaluating Performance........................... .........................................................................................7
1.4 Implementing Improvements.......................... ...................................................................................8
2. PROJECT LEADERSHIP............................................ .............................................................................8
2.1 Key Roles and Responsibilities..................... ....................................................................................9
3. CURRENT PRACTICES........................... ................................................................................................9
4. PBMS IMPLEMENTATION....................................... ..............................................................................10
4.1 Task 1: Planning Phase................................................................... ...................................................10
4.1.1 Organize a PBMS Steering Committee............................... ..................................................10
4.1.2 Develop a Self-Assessment/Performance Evaluation Planning Calendar...... .......................10
4.1.3 Draft a Management System Description Document........................... ............................11
4.1.4 Organize a PBMS Project Team................................................................. ...........................11
4.2 Task 2: Preparation/Awareness Phase. . . . . . . . . . . . . . . . . . . . . . . . ......................11
4.2.1 Develop and Conduct Awareness Briefings for ORNL Management . . . . . . 11
4.2.2 Develop and Conduct Detailed Training . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.3 Task 3: FY 2001 Execution Phase....................................................................... .............................11
4.3.1 Submit the FY-01 Performance Evaluation Plan to the DOE Site Office .....11
4.3.2 Issue the Management System Description Document . . . . . . . . . . . . . . . . . 12
4.3.3 Revise the Existing Self-Assessment Procedure................................ . ..........12
4.3.4 Compile the FY 2001 Independent Assessment Schedule . . . . . . . . . . . . . .12
4.3.5 Compile the FY 2001 Internal Audit Schedule . . . . . . . . . . . . . . . . . . . . . . 12
4.3.6 Compile a Laboratory Self-Assessment Plan . . . . . . . . . . . . . . . . . . . . . . . . 12
4.3.7 Perform Assessments Per Plans................................................... .......................................13
4.3.8 Conduct Regularly Scheduled Review of Performance Data With DOE . . . 13
4.3.9 Prepare a Mid-Year Review Report....................................... .............................................13
4.3.10 Conduct a level 2 Vulnerability Assessment . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.3.11 Charter an Independent Review of the Process . . . . . . . . . . . . . . . . . . . . . . 13
4.3.12 Develop the FY-02 Performance Evaluation Plan . . . . . . . . . . . . . . . . . . . . 14
4.3.13 Prepare an Annual Self-Evaluation Report . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.0 DELIVERABLES.................... .................................................................................................................14
5.1 UT-Battelle Performance Evaluation and Fee Agreement Document . . . . . . . . . . . . 14
3
5.2 Self-Assessment Plan(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.3 Mid-Year and Annual Self-Evaluation Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
4
EXECUTIVE SUMMARY
The purpose of this project is to identify those processes, documents and resources necessary to
implement a Performance-Based Management System (PBMS) for the Oak Ridge National
Laboratory and to define those activities necessary to complete the fiscal year 2001 cycle of the
process. PBMS will be fully implemented throughout the Laboratory in one year and within existing
ORNL staff and budgets. A Project Team composed of Quality Services Division personnel working
under the direction of a PBMS Manager will execute this project plan consisting of tasks culminating in
a FY 2001 self-evaluation report for the Laboratory that will be submitted to DOE by November 2,
2001. Quality Managers will work with the individual divisions and directorates throughout the year-
long process to ensure that efforts remain focused.
Performance-based management is a systematic approach to performance improvement through an
ongoing process of establishing strategic performance objectives; measuring performance; collecting,
analyzing, reviewing, and reporting performance data; and using that data to drive performance
improvement. Performance-based management has many benefits, including:
1. It provides a structured approach to focusing on strategic performance objectives. In other words,
performance-based management focuses on the achievement of results deemed important by the
organization, not on the number of activities.
2. It provides a mechanism for accurately reporting performance to upper management and
stakeholders. Performance-based management takes the guess work out of, “How are we doing?”
Because all work is planned and done in accordance with the strategic performance objectives, the end
result is an accurate picture of individual, program, and organizational performance.
3. It brings all “interested” parties into the planning and evaluation of performance. Performance-
based management brings customers, stakeholders, employees (i.e., those who do and/or are most
familiar with the work), and management together to plan strategies and goals and to evaluate results. It
is the antithesis of the “command and control” style of management of the past. The key word is
involvement. Performance-based management involves those who should be involved in the process.
4. It provides a mechanism for linking performance to budget expenditures. At the beginning of the
cycle, performance-based management provides a framework for showing what goals will be
accomplished and what resources will be necessary to accomplish those goals. At the end of the cycle,
it shows what was actually accomplished and what resources actually were used to achieve those
results. Thus, performance-based management takes the uncertainty out of budget allocations and
provides an effective accounting for dollars spent.
5. It represents a “fair way” of doing business. Performance-based management represents fairness.
Decisions on budget allocations, employee promotions, work assignments, reward and award
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distribution, and the like are based on objective performance planning/results, not on appearance,
personality, or other forms of favoritism.
6. It provides an excellent framework for accountability. Performance-based management ensures
accountability for results. In the performance-based management framework, all actions, decisions,
expenditures, and results can be easily explained, justified, and reported.
7. It shares responsibility for performance improvement. In the performance-based management
process, performance improvement becomes a joint responsibility between the organization and its
stakeholders/customers or between the individual and his/her management. This “jointness” assures
input from both sides and increases involvement in the process, ownership of results, and accountability
for performance.
During the transition from Lockheed Martin Energy Research Corporation to UT-Battelle, LLC, an
issue was identified related to lack of an overarching framework that would integrate all of the various
aspects of performance management in a way that was consistent, understandable, and self-reinforcing.
The existing systems did not exhibit a connection between the institutional and strategic planning
processes and the Critical Outcomes process. There was no understandable link between organization
and individual performance and the Laboratory’s goals and objectives. Further, a weakness was
identified in the existing self-assessment process because the process was primarily compliance-based,
focusing on environmental, safety, health and quality (ESH&Q) issues. PBMS, when implemented,
will address this identified issue.
The PBMS philosophy and methodologies have been deployed at Pacific Northwest National
Laboratory (PNNL) and Brookhaven National Laboratory (BNL) under a process called the
Integrated Assessment Program (IAP). At these laboratories, IAP is a defined management system
under the overall umbrella of their Standards-Based Management System (SBMS). Lessons learned
from implementation of these systems at these two laboratories will be utilized in the deployment of
PBMS at ORNL.
Any major changes to this plan will be approved by the Project Team, the Quality Services Division
Director, and the Environment, Safety, Health and Quality Director prior to implementation.
6
1. SCOPE AND METHODOLOGY
PBMS encourages scientific, operational, and business excellence through evaluation of the line
management activities and their accountability for scientific excellence, safety, cost effectiveness,
business efficiency, and customer satisfaction. PBMS enables staff to identify their critical business
objectives, to develop quantifiable performance indicators, to define goals, to measure their
performance and the implementation of efficient and effective business practices, and to determine
appropriate changes in future initiatives as set forth by Laboratory management. PBMS is used to
measure, to optimize, and to drive improvement in processes and products. PBMS is also recognized
as an important aspect of the Integrated Safety Management process as a feedback and improvement
tool.
PBMS is implemented utilizing four key processes:
1.1. Determining Performance Objectives and Indicators (POIs)
The first process of PBMS is the development of performance objectives and indicators, those items
management wishes to measure because they are important for the success of the enterprise. Critical
outcomes are identified by Laboratory management to focus the efforts of all staff members towards
achievement of the strategic plan set forth in the Laboratory Agenda. During the annual business
planning cycle the DOE and Laboratory directorates and divisions determine supporting performance
objectives that represent near-term results contributing to the achievement of those critical outcomes
1 1
Determining Performance
Objectives and Indicators
2 2
Measuring
Performance
3 3
Evaluating
Performance
4 4
Implementing Actions
for Improvement
7
and other objectives deemed necessary to measure overall performance of the Laboratory missions.
Indicators are developed for the performance objectives as a means of determining the degree of
success in achieving those objectives. After agreement has been reached, the critical outcomes,
performance objectives and indicators are documented in the an annual Laboratory Performance
Evaluation Plan which disseminates that information to ORNL’s staff. Additional performance
objectives are documented in organizational self-assessment plans. Flowdown of the performance
objectives and indicators to staff members through personal Performance Assessment and
Development System (PADS) Results Plans enables them to understand their role in achieving the
Laboratory Critical Outcomes.
1.2 Measuring Performance Against POIs
The second process of PBMS is measuring the degree of success that organizations are achieving in
performing activities directed toward achieving the Laboratory’s performance objectives. Five
identified methods of measurement are: Line Management Self-Assessment, Management System Self
Assessment, Scientific and Technical Review, Independent Oversight Assessment, and Internal Audit.
Together these assessments generate information on scientific, business and operational performance
for Laboratory management, staff, customers, stakeholders, and regulators. The key to accomplishing
the measurement is an integrated assessment program with primary emphasis on self-assessment at the
division and directorate levels. Self-assessment plans are developed at the beginning of each fiscal year
by each organization using guidance provided by ORNL-QA-P03, “ORNL Self-Assessment
Program,” to ensure that important aspects of performance are monitored. The Self-Assessment
program will include aspects of the “balanced scorecard” approach to performance measurement which
ensures assessment in a wide variety of business activities such as customer focus, financial, business
processes, and organizational effectiveness, as well as operational discipline. These organizational
plans are summarized and included as part of the Laboratory-level Self-Assessment Plan. Planned
assessment activities are reviewed with appropriate internal and external customers and stakeholders.
The ESH&Q Director ensures that the overall Laboratory Assessment Plan is made available to the
DOE ORNL Site Manager. In addition to the five methods identified above, assessments are
performed by DOE and external regulators and customers. Information generated by these
assessments is used by ORNL’s organizations to measure their progress towards achieving their
performance objectives.
1.3 Evaluating Performance
The third process of PBMS is evaluation of the information obtained from the assessments performed
as a part of the overall integrated assessment program (e.g., self-assessments, focused independent
oversight assessments, internal audits, technical review of science and technology activities, etc.).
Results of this evaluation provide input to the development of an overall summary of the Laboratory's
performance. During the evaluation process, data from assessment activities at all levels of Laboratory
activity are reviewed including those programs set in place to discover existing problems. These
programs include, but are not limited to, occurrence reporting, P-AAA Noncompliance Reporting,
Nonconformance Reporting, Radiological Event Reporting, Accident/Incident Reporting, Employee
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Concerns, OSHA Inspections, and Environmental Noncompliance Reporting. They offer Laboratory
personnel and management opportunities to find and to fix operational problems at lower levels, to look
for common areas of concern across the Laboratory, and to provide feedback to both internal and
external customers and stakeholders. All of this information is compiled in a management level
presentation (qualitative and quantitative) on a periodic basis with an annual evaluation provided to
DOE. Each presentation describes how objectives are met as evidenced by the performance indicator's
progress toward selected targets. Special emphasis is placed on the identified Critical Outcomes.
Level 1 managers are responsible to ensure that performance against Critical Outcome objectives is
measured and reported.
Annually, the evaluation process generates a Laboratory-level summary document (the Laboratory
Self-Evaluation Report) that is utilized by management and DOE-ORO to determine overall
performance. This document also describes the Laboratory's key improvement opportunities as
summarized from the self-assessments, technical review of science and technology activities,
independent oversight, internal audit and external assessment results.
1.4 Implementing Improvements
The final process in the PBMS system is to implement key improvement opportunities that the
evaluation processes identified and to share key lessons learned with others, both within the Laboratory
and across the DOE complex. Quality improvement processes are utilized to determine the root cause
of problems and corrective actions are implemented to mitigate or to prevent recurrence. Data analysis
and trending, through the self-assessment program, will be conducted to identify lower level precursor
data that may indicate more serious emerging issues. Laboratory-level improvement areas are
disseminated to all levels of Laboratory staff through lessons learned and other feedback mechanisms
for mid-course corrections and to be considered for inclusion into the overall Laboratory Agenda
during the next planning cycle. PBMS is also recognized as an important aspect of the Integrated
Safety Management process as a feedback and improvement tool.
2. PROJECT LEADERSHIP
The Environmental, Safety, Health and Quality (ESH&Q) Directorate is the managing entity. The
Quality Services Division will be the sponsoring organization responsible for the design, implementation
and continued support of PBMS.
Existing resources are available to implement this management system.
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2.1 Key Roles and Responsibilities
The reporting hierarchy for the PBMS Project Team is as follows:
The implementation of PBMS will require direct interface and commitment from management and staff
throughout the Laboratory. Quality Managers have been appointed to facilitate this process for line
managers. Line managers must commit the necessary staff/resources to support the timely development
of required documents and the conduct of the self-assessment activities.
3. CURRENT PRACTICES
Performance Management at ORNL consists of several existing processes including the Critical
Outcomes and Performance Objectives process, the self-assessment process, an internal ESH&Q
assessment program, and a Lessons Learned Program. These processes are not integrated and in
many cases are not necessarily measuring those objectives most critical to the organization.
ESH&Q Director
Kelly Beierschmitt
Quality Services Director
Pete Hoke
Quality Systems Manager
(PBMS Project Manager)
Performance Evaluation
Plan
John Glowienka
Data Analysis and
Self-Evaluation Reporting
Amanda Denton
Quality Managers
Suzanne Beard
Martha Carpenter
Gary Denton
John Glowienka
Keith Joy
Mark Vance
Janet Wagner
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4. PBMS IMPLEMENTATION
Implementation of the PBMS will be accomplished during FY 2001. A detailed project schedule has
been developed for the tasks outlined below. Objectives of the tasks are to implement mechanisms to:
• Ensure appropriate flowdown of those items identified as strategic objectives in the
ORNL Institutional Plan.
• Provide an integrating framework for various aspects of performance management in a
way that is consistent, understandable, and self reinforcing.
• Expand the current self-assessment process. Utilize self assessment as the primary
means of providing ORNL management and DOE-ORO with a status of the health of
the Laboratory.
• Build upon the current management assessment process. Utilizing the “balanced
scorecard” approach, expand the scope of management assessments beyond
operational compliance to include all aspects of business operations.
• Provide effective feedback for improvement to ORNL organizations.
4.1 Task 1: Planning Phase
4.1.1 Organize a PBMS Steering Committee
Responsible: Jeff Long
The PBMS steering committee is comprised of the Project Manager, stakeholders from
participating organizations that includes two members from R&D organizations, and a
Leadership Team Champion. The committee is chartered to conduct benchmarking
activities and to develop a first cut program description for PBMS. The steering
committee membership is as follows:
• Amanda Denton, Quality Services Division
• John Glowienka, Laboratory Director’s Office
• Roger Jones, Chemical Technology Division
• David Kocher, Life Sciences Division
• Gail Lewis, Audit and Management Advisory Services
• Jeff Long, Quality Services Division, Committee Chair
• John Murphy, Independent Oversight
• Jan Preston, Independent Oversight, Leadership Team Champion
4.1.2 Develop a Self-Assessment/Performance Evaluation Business Planning
Calendar
Responsible: John Glowienka
This calendar will provide affected personnel with the schedule of events related to
PBMS, including proposed dates for input of documents and for important reviews with
the DOE customers. The calendar will be a “living document” that will be updated
11
throughout the year as necessary.
4.1.3 Draft a Management System Description Document
Responsible: Jeff Long
The PBMS Steering Committee will develop the first draft of the management system
description document. This program description will outline the overall model for
PBMS and will provide the Requirements and Guidance, Inputs, Outputs, and Key
Responsibilities of the management system.
4.1.4 Organize a PBMS Project Team
Responsible: Jeff Long
The PBMS project team is comprised of the Project Manager and other Quality
Services Division staff with technical assistance from other Battelle Laboratories. This
team will be tasked with implementing the project schedule activities (see Section 2.1).
The PBMS Project Team will work with the SBMS Project Team during the
implementation phase to revise the management system description document consistent
with emerging SBMS guidance.
4.2 Task 2: Preparation/Awareness Phase
4.2.1 Awareness Briefings for Laboratory Management
Responsible: Jeff Long
Both the Leadership Team and the Division Directors and their staffs will be offered
awareness training on the philosophy and process of PBMS. This awareness training
will be provided in time to utilize the process in the development of self-assessment
plans.
4.2.2 Develop Detailed Training
Responsible: Jeff Long
A formal training program will be developed to build skills in the PBMS process.
Quality Managers and Quality Assurance personnel (Specialists and Coordinators)
should be recognized as the “experts” related to performance-based management.
4.3 Task 3: FY 2001 Execution Phase
4.3.1 Submit the FY 2001 Performance Evaluation Plan (PEP) to the DOE Site Office
Responsible: John Glowienka
The PEP identifies those performance items to be included for fee determination. The
PEP, which is developed in concert with our DOE stakeholders, also identifies
performance goals and criteria for assigning performance ratings for fee determination.
12
4.3.2 Issue the Management System Description Document
Responsible: Jeff Long
After the appropriate review and comment by Laboratory staff, the management system
document (see 4.1.3) will be issued to formally communicate and to document the
PBMS model for ORNL. Specific sub-tasks are identified in the project schedule.
4.3.3 Revise the Existing Self-Assessment Procedure
Responsible: Jeff Long
The existing self-assessment procedure (ORNL-QA-P03) must be revised to support
PBMS by expanding the scope of the Laboratory’s self-assessment process beyond
ESH&Q compliance utilizing the “balanced scorecard” philosophy. The revised
procedure will be a bridge from the existing playscript format to the “subject area”
guidance that will become available with the implementation of SBMS. This revision
will be accomplished through the existing Directives Review process. Specific sub-
tasks are identified in the project schedule.
4.3.4 Compile the FY 2001 Independent Oversight Assessment Schedule
Responsible: Jan Preston
This schedule will include those organizations/processes as determined by Independent
Oversight staff.
4.3.5 Compile the FY 2001 Internal Audit Schedule
Responsible: Scott Branham
This schedule will include those organizations/processes as determined by Audit and
Management Advisory Services staff.
4.3.6 Compile a Laboratory Self-Assessment Plan
Responsible: Jeff Long
Each division will develop a self-assessment plan with assistance from their Quality
Managers and appropriate directorate Quality Assurance staff. When selecting
candidate assessment areas or activities, consider the following:
• Linkage to achievement of Laboratory Critical Outcomes,
• Owner responsibilities for performance,
• Feedback received from other sources (e.g., other assessments, stakeholders,
customers, oversight functions, or regulatory agencies),
• Customers' current and potential needs,
• Competitive environment for the organization,
• Drivers which must be satisfied (e.g., regulatory or contractual),
• Anticipated changes in business needs, regulatory requirements, customer
needs, and costs,
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• Controls to mitigate risks and how well these controls are working, and
• Verification that improvements are having the desired effect on activities.
These division level plans will be combined by the Quality Managers at the Directorate
level and then forwarded to the Quality Services Division where they will be combined
by the PBMS Project Manager into a Laboratory-level Self-Assessment Plan. This
plan will be available for DOE review. Specific sub-tasks are identified in the project
schedule.
4.3.7 Perform Assessments per Plans
Responsible: ORNL-wide Staff
Line organizations and internal assessment organizations (Independent Oversight, Audit
and Management Advisory Services, etc.) will be responsible for the conduct and
evaluation of assessment activities throughout the fiscal year. DOE Site Office
personnel will be invited to participate in the review process, as appropriate.
4.3.8 Conduct Regularly Scheduled Reviews of Performance Data with DOE
Responsible: Jeff Smith
A quarterly review will be conducted with our DOE Site Office. Participants in the
review will be determined as appropriate. Specific sub-tasks are identified in the
project schedule.
4.3.7.1 Conduct First Quarter Oral Review with DOE Site Office Personnel.
4.3.7.2 Conduct Mid-year Oral Review with DOE Site Office Personnel.
4.3.7.3 Conduct Third Quarter Oral Review with DOE Site Office Personnel.
4.3.7.4 Conduct FY 2001 Oral Review with DOE Site Office Personnel.
4.3.9 Prepare a Mid-Year Review Report
Responsible: Amanda Denton
At the end of April, a formal status review will be conducted to determine progress
toward meeting the objectives and indicators as set forth in the Self-Assessment Plans
and the Performance Evaluation Plan. Mid-course corrections will be identified and
implemented through the assessment process.
4.3.10 Conduct a Level 2 Vulnerability Assessment
Responsible: Quality Managers
Based on items of concern identified during the Mid-Year Self Evaluation, Quality
Managers will conduct a vulnerability assessment at the division level to determine
required mid-course corrections to successfully meet identified performance objectives.
4.3.11 Charter an Independent Review of the Process
Responsible: Jan Preston
The UT-Battelle Independent Oversight organization will conduct a focused assessment
14
of ORNL line management feedback and improvement programs (self-assessment
planning and implementation and corrective action management). This assessment will
include the implementation and effectiveness of PBMS, evaluating the degree of
organizational participation, the adequacy and effectiveness of planning and conducting
self-assessments, and the adequacy of self-evaluation reports. This review should
include a representative from the DOE Site Office on the assessment team.
4.3.12 Develop the FY 2002 Performance Evaluation Plan
Responsible: John Glowienka
Generation of the FY 2002 PEP will begin with an integrated data call. Information
related to performance goals at all levels will be requested and gathered. From this
information, the Performance Evaluation Plan will be generated and the negotiation
process with the DOE Site Office will be initiated. Specific sub-tasks are identified in
the project schedule.
4.3.13 Prepare an Annual Self-Evaluation Report
Responsible: Amanda Denton
After the end of the fiscal year, line organizations will develop a Self-Evaluation Report
based on results of assessment activities conducted during the year. These line
organization reports will be collated at the Directorate level and forwarded to Quality
Services. Quality Services will develop a Laboratory-level Annual Self-Evaluation
Report to combine the results of the line organization input, internal audit results,
independent oversight results, customer survey data, operational improvements,
opportunities for improvement, and a summary of external assessments. This report will
be distributed across the Laboratory and will be submitted to DOE as input for fee
determination. Feedback from the assessment activities will serve as input for the next
fiscal year’s Laboratory Agenda and resulting Performance Evaluation Plan. Specific
sub-tasks are identified in the project schedule.
5. DELIVERABLES
5.1 UT-Battelle Performance Evaluation and Fee Agreement Document
This document describes the basis for the evaluation of UT-Battelle’s performance regarding
the management and operations of the Oak Ridge National Laboratory. The performance
evaluation provides the evidence that UT-Battelle is managerially and operationally in control
and is meeting the requirements of DOE as stipulated within the contract. The document also
describes the distribution of the total available performance-based fee and the methodology for
determining the amount of fee earned by UT-Battelle.
15
5.2 Self-Assessment Plan(s)
Self-Assessment Plans will be created at appropriate levels of the organization to include those
items management wishes to measure because they are important for the success of the
enterprise. Plans at the Division-level are to be rolled together to develop the Directorate-level
Plan. Directorate-level Self-Assessment Plans are to be submitted to the Quality Services
Division to be rolled together as a Laboratory Self-Assessment Plan.
5.3 Mid-Year and Annual Self-Evaluation Reports
At mid-year, an appraisal of progress towards assessment plan expectations and performance
indicators will be conducted and documented. At the end of the fiscal year, the
divisions/directorates will utilize the evaluation process and generate self-evaluation reports
which are aggregated into a Laboratory-level self-evaluation report that describes the results of
the assessment process and identifies key improvement opportunities as summarized from the
Divisional/Directorate assessments and other Laboratory-level assessment data. This report is
also provided to our DOE customer as a tool for judging the Laboratory’s overall performance.
doc_182822486.pdf
Performance-based management is a systematic approach to performance improvement through an ongoing process of establishing strategic performance objectives; measuring performance; collecting, analyzing, reviewing, and reporting performance data; and using that data to drive performance improvement.
Performance-Based Management System
Project Management Plan
ORNL/TM-2000/377
Revision 0
December 2000
Prepared by: ___________________________________________________
Jeff Long, Quality Systems Manager
Quality Services Division
Prepared by
Oak Ridge National Laboratory
Oak Ridge, Tennessee 37831
Managed by
UT-Battelle
for the
U.S. Department of Energy
under contract DE-AC05-00OR22725
2
TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................. .......................................................4
1. SCOPE AND METHODOLOGY.................................................... ..........................................................6
1.1 Determining Performance Objectives and Indicators.......................................... ..............................6
1.2 Measuring Performance Against POIs........................................... ...................................................7
1.3 Evaluating Performance........................... .........................................................................................7
1.4 Implementing Improvements.......................... ...................................................................................8
2. PROJECT LEADERSHIP............................................ .............................................................................8
2.1 Key Roles and Responsibilities..................... ....................................................................................9
3. CURRENT PRACTICES........................... ................................................................................................9
4. PBMS IMPLEMENTATION....................................... ..............................................................................10
4.1 Task 1: Planning Phase................................................................... ...................................................10
4.1.1 Organize a PBMS Steering Committee............................... ..................................................10
4.1.2 Develop a Self-Assessment/Performance Evaluation Planning Calendar...... .......................10
4.1.3 Draft a Management System Description Document........................... ............................11
4.1.4 Organize a PBMS Project Team................................................................. ...........................11
4.2 Task 2: Preparation/Awareness Phase. . . . . . . . . . . . . . . . . . . . . . . . ......................11
4.2.1 Develop and Conduct Awareness Briefings for ORNL Management . . . . . . 11
4.2.2 Develop and Conduct Detailed Training . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.3 Task 3: FY 2001 Execution Phase....................................................................... .............................11
4.3.1 Submit the FY-01 Performance Evaluation Plan to the DOE Site Office .....11
4.3.2 Issue the Management System Description Document . . . . . . . . . . . . . . . . . 12
4.3.3 Revise the Existing Self-Assessment Procedure................................ . ..........12
4.3.4 Compile the FY 2001 Independent Assessment Schedule . . . . . . . . . . . . . .12
4.3.5 Compile the FY 2001 Internal Audit Schedule . . . . . . . . . . . . . . . . . . . . . . 12
4.3.6 Compile a Laboratory Self-Assessment Plan . . . . . . . . . . . . . . . . . . . . . . . . 12
4.3.7 Perform Assessments Per Plans................................................... .......................................13
4.3.8 Conduct Regularly Scheduled Review of Performance Data With DOE . . . 13
4.3.9 Prepare a Mid-Year Review Report....................................... .............................................13
4.3.10 Conduct a level 2 Vulnerability Assessment . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.3.11 Charter an Independent Review of the Process . . . . . . . . . . . . . . . . . . . . . . 13
4.3.12 Develop the FY-02 Performance Evaluation Plan . . . . . . . . . . . . . . . . . . . . 14
4.3.13 Prepare an Annual Self-Evaluation Report . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.0 DELIVERABLES.................... .................................................................................................................14
5.1 UT-Battelle Performance Evaluation and Fee Agreement Document . . . . . . . . . . . . 14
3
5.2 Self-Assessment Plan(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.3 Mid-Year and Annual Self-Evaluation Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
4
EXECUTIVE SUMMARY
The purpose of this project is to identify those processes, documents and resources necessary to
implement a Performance-Based Management System (PBMS) for the Oak Ridge National
Laboratory and to define those activities necessary to complete the fiscal year 2001 cycle of the
process. PBMS will be fully implemented throughout the Laboratory in one year and within existing
ORNL staff and budgets. A Project Team composed of Quality Services Division personnel working
under the direction of a PBMS Manager will execute this project plan consisting of tasks culminating in
a FY 2001 self-evaluation report for the Laboratory that will be submitted to DOE by November 2,
2001. Quality Managers will work with the individual divisions and directorates throughout the year-
long process to ensure that efforts remain focused.
Performance-based management is a systematic approach to performance improvement through an
ongoing process of establishing strategic performance objectives; measuring performance; collecting,
analyzing, reviewing, and reporting performance data; and using that data to drive performance
improvement. Performance-based management has many benefits, including:
1. It provides a structured approach to focusing on strategic performance objectives. In other words,
performance-based management focuses on the achievement of results deemed important by the
organization, not on the number of activities.
2. It provides a mechanism for accurately reporting performance to upper management and
stakeholders. Performance-based management takes the guess work out of, “How are we doing?”
Because all work is planned and done in accordance with the strategic performance objectives, the end
result is an accurate picture of individual, program, and organizational performance.
3. It brings all “interested” parties into the planning and evaluation of performance. Performance-
based management brings customers, stakeholders, employees (i.e., those who do and/or are most
familiar with the work), and management together to plan strategies and goals and to evaluate results. It
is the antithesis of the “command and control” style of management of the past. The key word is
involvement. Performance-based management involves those who should be involved in the process.
4. It provides a mechanism for linking performance to budget expenditures. At the beginning of the
cycle, performance-based management provides a framework for showing what goals will be
accomplished and what resources will be necessary to accomplish those goals. At the end of the cycle,
it shows what was actually accomplished and what resources actually were used to achieve those
results. Thus, performance-based management takes the uncertainty out of budget allocations and
provides an effective accounting for dollars spent.
5. It represents a “fair way” of doing business. Performance-based management represents fairness.
Decisions on budget allocations, employee promotions, work assignments, reward and award
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distribution, and the like are based on objective performance planning/results, not on appearance,
personality, or other forms of favoritism.
6. It provides an excellent framework for accountability. Performance-based management ensures
accountability for results. In the performance-based management framework, all actions, decisions,
expenditures, and results can be easily explained, justified, and reported.
7. It shares responsibility for performance improvement. In the performance-based management
process, performance improvement becomes a joint responsibility between the organization and its
stakeholders/customers or between the individual and his/her management. This “jointness” assures
input from both sides and increases involvement in the process, ownership of results, and accountability
for performance.
During the transition from Lockheed Martin Energy Research Corporation to UT-Battelle, LLC, an
issue was identified related to lack of an overarching framework that would integrate all of the various
aspects of performance management in a way that was consistent, understandable, and self-reinforcing.
The existing systems did not exhibit a connection between the institutional and strategic planning
processes and the Critical Outcomes process. There was no understandable link between organization
and individual performance and the Laboratory’s goals and objectives. Further, a weakness was
identified in the existing self-assessment process because the process was primarily compliance-based,
focusing on environmental, safety, health and quality (ESH&Q) issues. PBMS, when implemented,
will address this identified issue.
The PBMS philosophy and methodologies have been deployed at Pacific Northwest National
Laboratory (PNNL) and Brookhaven National Laboratory (BNL) under a process called the
Integrated Assessment Program (IAP). At these laboratories, IAP is a defined management system
under the overall umbrella of their Standards-Based Management System (SBMS). Lessons learned
from implementation of these systems at these two laboratories will be utilized in the deployment of
PBMS at ORNL.
Any major changes to this plan will be approved by the Project Team, the Quality Services Division
Director, and the Environment, Safety, Health and Quality Director prior to implementation.
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1. SCOPE AND METHODOLOGY
PBMS encourages scientific, operational, and business excellence through evaluation of the line
management activities and their accountability for scientific excellence, safety, cost effectiveness,
business efficiency, and customer satisfaction. PBMS enables staff to identify their critical business
objectives, to develop quantifiable performance indicators, to define goals, to measure their
performance and the implementation of efficient and effective business practices, and to determine
appropriate changes in future initiatives as set forth by Laboratory management. PBMS is used to
measure, to optimize, and to drive improvement in processes and products. PBMS is also recognized
as an important aspect of the Integrated Safety Management process as a feedback and improvement
tool.
PBMS is implemented utilizing four key processes:
1.1. Determining Performance Objectives and Indicators (POIs)
The first process of PBMS is the development of performance objectives and indicators, those items
management wishes to measure because they are important for the success of the enterprise. Critical
outcomes are identified by Laboratory management to focus the efforts of all staff members towards
achievement of the strategic plan set forth in the Laboratory Agenda. During the annual business
planning cycle the DOE and Laboratory directorates and divisions determine supporting performance
objectives that represent near-term results contributing to the achievement of those critical outcomes
1 1
Determining Performance
Objectives and Indicators
2 2
Measuring
Performance
3 3
Evaluating
Performance
4 4
Implementing Actions
for Improvement
7
and other objectives deemed necessary to measure overall performance of the Laboratory missions.
Indicators are developed for the performance objectives as a means of determining the degree of
success in achieving those objectives. After agreement has been reached, the critical outcomes,
performance objectives and indicators are documented in the an annual Laboratory Performance
Evaluation Plan which disseminates that information to ORNL’s staff. Additional performance
objectives are documented in organizational self-assessment plans. Flowdown of the performance
objectives and indicators to staff members through personal Performance Assessment and
Development System (PADS) Results Plans enables them to understand their role in achieving the
Laboratory Critical Outcomes.
1.2 Measuring Performance Against POIs
The second process of PBMS is measuring the degree of success that organizations are achieving in
performing activities directed toward achieving the Laboratory’s performance objectives. Five
identified methods of measurement are: Line Management Self-Assessment, Management System Self
Assessment, Scientific and Technical Review, Independent Oversight Assessment, and Internal Audit.
Together these assessments generate information on scientific, business and operational performance
for Laboratory management, staff, customers, stakeholders, and regulators. The key to accomplishing
the measurement is an integrated assessment program with primary emphasis on self-assessment at the
division and directorate levels. Self-assessment plans are developed at the beginning of each fiscal year
by each organization using guidance provided by ORNL-QA-P03, “ORNL Self-Assessment
Program,” to ensure that important aspects of performance are monitored. The Self-Assessment
program will include aspects of the “balanced scorecard” approach to performance measurement which
ensures assessment in a wide variety of business activities such as customer focus, financial, business
processes, and organizational effectiveness, as well as operational discipline. These organizational
plans are summarized and included as part of the Laboratory-level Self-Assessment Plan. Planned
assessment activities are reviewed with appropriate internal and external customers and stakeholders.
The ESH&Q Director ensures that the overall Laboratory Assessment Plan is made available to the
DOE ORNL Site Manager. In addition to the five methods identified above, assessments are
performed by DOE and external regulators and customers. Information generated by these
assessments is used by ORNL’s organizations to measure their progress towards achieving their
performance objectives.
1.3 Evaluating Performance
The third process of PBMS is evaluation of the information obtained from the assessments performed
as a part of the overall integrated assessment program (e.g., self-assessments, focused independent
oversight assessments, internal audits, technical review of science and technology activities, etc.).
Results of this evaluation provide input to the development of an overall summary of the Laboratory's
performance. During the evaluation process, data from assessment activities at all levels of Laboratory
activity are reviewed including those programs set in place to discover existing problems. These
programs include, but are not limited to, occurrence reporting, P-AAA Noncompliance Reporting,
Nonconformance Reporting, Radiological Event Reporting, Accident/Incident Reporting, Employee
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Concerns, OSHA Inspections, and Environmental Noncompliance Reporting. They offer Laboratory
personnel and management opportunities to find and to fix operational problems at lower levels, to look
for common areas of concern across the Laboratory, and to provide feedback to both internal and
external customers and stakeholders. All of this information is compiled in a management level
presentation (qualitative and quantitative) on a periodic basis with an annual evaluation provided to
DOE. Each presentation describes how objectives are met as evidenced by the performance indicator's
progress toward selected targets. Special emphasis is placed on the identified Critical Outcomes.
Level 1 managers are responsible to ensure that performance against Critical Outcome objectives is
measured and reported.
Annually, the evaluation process generates a Laboratory-level summary document (the Laboratory
Self-Evaluation Report) that is utilized by management and DOE-ORO to determine overall
performance. This document also describes the Laboratory's key improvement opportunities as
summarized from the self-assessments, technical review of science and technology activities,
independent oversight, internal audit and external assessment results.
1.4 Implementing Improvements
The final process in the PBMS system is to implement key improvement opportunities that the
evaluation processes identified and to share key lessons learned with others, both within the Laboratory
and across the DOE complex. Quality improvement processes are utilized to determine the root cause
of problems and corrective actions are implemented to mitigate or to prevent recurrence. Data analysis
and trending, through the self-assessment program, will be conducted to identify lower level precursor
data that may indicate more serious emerging issues. Laboratory-level improvement areas are
disseminated to all levels of Laboratory staff through lessons learned and other feedback mechanisms
for mid-course corrections and to be considered for inclusion into the overall Laboratory Agenda
during the next planning cycle. PBMS is also recognized as an important aspect of the Integrated
Safety Management process as a feedback and improvement tool.
2. PROJECT LEADERSHIP
The Environmental, Safety, Health and Quality (ESH&Q) Directorate is the managing entity. The
Quality Services Division will be the sponsoring organization responsible for the design, implementation
and continued support of PBMS.
Existing resources are available to implement this management system.
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2.1 Key Roles and Responsibilities
The reporting hierarchy for the PBMS Project Team is as follows:
The implementation of PBMS will require direct interface and commitment from management and staff
throughout the Laboratory. Quality Managers have been appointed to facilitate this process for line
managers. Line managers must commit the necessary staff/resources to support the timely development
of required documents and the conduct of the self-assessment activities.
3. CURRENT PRACTICES
Performance Management at ORNL consists of several existing processes including the Critical
Outcomes and Performance Objectives process, the self-assessment process, an internal ESH&Q
assessment program, and a Lessons Learned Program. These processes are not integrated and in
many cases are not necessarily measuring those objectives most critical to the organization.
ESH&Q Director
Kelly Beierschmitt
Quality Services Director
Pete Hoke
Quality Systems Manager
(PBMS Project Manager)
Performance Evaluation
Plan
John Glowienka
Data Analysis and
Self-Evaluation Reporting
Amanda Denton
Quality Managers
Suzanne Beard
Martha Carpenter
Gary Denton
John Glowienka
Keith Joy
Mark Vance
Janet Wagner
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4. PBMS IMPLEMENTATION
Implementation of the PBMS will be accomplished during FY 2001. A detailed project schedule has
been developed for the tasks outlined below. Objectives of the tasks are to implement mechanisms to:
• Ensure appropriate flowdown of those items identified as strategic objectives in the
ORNL Institutional Plan.
• Provide an integrating framework for various aspects of performance management in a
way that is consistent, understandable, and self reinforcing.
• Expand the current self-assessment process. Utilize self assessment as the primary
means of providing ORNL management and DOE-ORO with a status of the health of
the Laboratory.
• Build upon the current management assessment process. Utilizing the “balanced
scorecard” approach, expand the scope of management assessments beyond
operational compliance to include all aspects of business operations.
• Provide effective feedback for improvement to ORNL organizations.
4.1 Task 1: Planning Phase
4.1.1 Organize a PBMS Steering Committee
Responsible: Jeff Long
The PBMS steering committee is comprised of the Project Manager, stakeholders from
participating organizations that includes two members from R&D organizations, and a
Leadership Team Champion. The committee is chartered to conduct benchmarking
activities and to develop a first cut program description for PBMS. The steering
committee membership is as follows:
• Amanda Denton, Quality Services Division
• John Glowienka, Laboratory Director’s Office
• Roger Jones, Chemical Technology Division
• David Kocher, Life Sciences Division
• Gail Lewis, Audit and Management Advisory Services
• Jeff Long, Quality Services Division, Committee Chair
• John Murphy, Independent Oversight
• Jan Preston, Independent Oversight, Leadership Team Champion
4.1.2 Develop a Self-Assessment/Performance Evaluation Business Planning
Calendar
Responsible: John Glowienka
This calendar will provide affected personnel with the schedule of events related to
PBMS, including proposed dates for input of documents and for important reviews with
the DOE customers. The calendar will be a “living document” that will be updated
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throughout the year as necessary.
4.1.3 Draft a Management System Description Document
Responsible: Jeff Long
The PBMS Steering Committee will develop the first draft of the management system
description document. This program description will outline the overall model for
PBMS and will provide the Requirements and Guidance, Inputs, Outputs, and Key
Responsibilities of the management system.
4.1.4 Organize a PBMS Project Team
Responsible: Jeff Long
The PBMS project team is comprised of the Project Manager and other Quality
Services Division staff with technical assistance from other Battelle Laboratories. This
team will be tasked with implementing the project schedule activities (see Section 2.1).
The PBMS Project Team will work with the SBMS Project Team during the
implementation phase to revise the management system description document consistent
with emerging SBMS guidance.
4.2 Task 2: Preparation/Awareness Phase
4.2.1 Awareness Briefings for Laboratory Management
Responsible: Jeff Long
Both the Leadership Team and the Division Directors and their staffs will be offered
awareness training on the philosophy and process of PBMS. This awareness training
will be provided in time to utilize the process in the development of self-assessment
plans.
4.2.2 Develop Detailed Training
Responsible: Jeff Long
A formal training program will be developed to build skills in the PBMS process.
Quality Managers and Quality Assurance personnel (Specialists and Coordinators)
should be recognized as the “experts” related to performance-based management.
4.3 Task 3: FY 2001 Execution Phase
4.3.1 Submit the FY 2001 Performance Evaluation Plan (PEP) to the DOE Site Office
Responsible: John Glowienka
The PEP identifies those performance items to be included for fee determination. The
PEP, which is developed in concert with our DOE stakeholders, also identifies
performance goals and criteria for assigning performance ratings for fee determination.
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4.3.2 Issue the Management System Description Document
Responsible: Jeff Long
After the appropriate review and comment by Laboratory staff, the management system
document (see 4.1.3) will be issued to formally communicate and to document the
PBMS model for ORNL. Specific sub-tasks are identified in the project schedule.
4.3.3 Revise the Existing Self-Assessment Procedure
Responsible: Jeff Long
The existing self-assessment procedure (ORNL-QA-P03) must be revised to support
PBMS by expanding the scope of the Laboratory’s self-assessment process beyond
ESH&Q compliance utilizing the “balanced scorecard” philosophy. The revised
procedure will be a bridge from the existing playscript format to the “subject area”
guidance that will become available with the implementation of SBMS. This revision
will be accomplished through the existing Directives Review process. Specific sub-
tasks are identified in the project schedule.
4.3.4 Compile the FY 2001 Independent Oversight Assessment Schedule
Responsible: Jan Preston
This schedule will include those organizations/processes as determined by Independent
Oversight staff.
4.3.5 Compile the FY 2001 Internal Audit Schedule
Responsible: Scott Branham
This schedule will include those organizations/processes as determined by Audit and
Management Advisory Services staff.
4.3.6 Compile a Laboratory Self-Assessment Plan
Responsible: Jeff Long
Each division will develop a self-assessment plan with assistance from their Quality
Managers and appropriate directorate Quality Assurance staff. When selecting
candidate assessment areas or activities, consider the following:
• Linkage to achievement of Laboratory Critical Outcomes,
• Owner responsibilities for performance,
• Feedback received from other sources (e.g., other assessments, stakeholders,
customers, oversight functions, or regulatory agencies),
• Customers' current and potential needs,
• Competitive environment for the organization,
• Drivers which must be satisfied (e.g., regulatory or contractual),
• Anticipated changes in business needs, regulatory requirements, customer
needs, and costs,
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• Controls to mitigate risks and how well these controls are working, and
• Verification that improvements are having the desired effect on activities.
These division level plans will be combined by the Quality Managers at the Directorate
level and then forwarded to the Quality Services Division where they will be combined
by the PBMS Project Manager into a Laboratory-level Self-Assessment Plan. This
plan will be available for DOE review. Specific sub-tasks are identified in the project
schedule.
4.3.7 Perform Assessments per Plans
Responsible: ORNL-wide Staff
Line organizations and internal assessment organizations (Independent Oversight, Audit
and Management Advisory Services, etc.) will be responsible for the conduct and
evaluation of assessment activities throughout the fiscal year. DOE Site Office
personnel will be invited to participate in the review process, as appropriate.
4.3.8 Conduct Regularly Scheduled Reviews of Performance Data with DOE
Responsible: Jeff Smith
A quarterly review will be conducted with our DOE Site Office. Participants in the
review will be determined as appropriate. Specific sub-tasks are identified in the
project schedule.
4.3.7.1 Conduct First Quarter Oral Review with DOE Site Office Personnel.
4.3.7.2 Conduct Mid-year Oral Review with DOE Site Office Personnel.
4.3.7.3 Conduct Third Quarter Oral Review with DOE Site Office Personnel.
4.3.7.4 Conduct FY 2001 Oral Review with DOE Site Office Personnel.
4.3.9 Prepare a Mid-Year Review Report
Responsible: Amanda Denton
At the end of April, a formal status review will be conducted to determine progress
toward meeting the objectives and indicators as set forth in the Self-Assessment Plans
and the Performance Evaluation Plan. Mid-course corrections will be identified and
implemented through the assessment process.
4.3.10 Conduct a Level 2 Vulnerability Assessment
Responsible: Quality Managers
Based on items of concern identified during the Mid-Year Self Evaluation, Quality
Managers will conduct a vulnerability assessment at the division level to determine
required mid-course corrections to successfully meet identified performance objectives.
4.3.11 Charter an Independent Review of the Process
Responsible: Jan Preston
The UT-Battelle Independent Oversight organization will conduct a focused assessment
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of ORNL line management feedback and improvement programs (self-assessment
planning and implementation and corrective action management). This assessment will
include the implementation and effectiveness of PBMS, evaluating the degree of
organizational participation, the adequacy and effectiveness of planning and conducting
self-assessments, and the adequacy of self-evaluation reports. This review should
include a representative from the DOE Site Office on the assessment team.
4.3.12 Develop the FY 2002 Performance Evaluation Plan
Responsible: John Glowienka
Generation of the FY 2002 PEP will begin with an integrated data call. Information
related to performance goals at all levels will be requested and gathered. From this
information, the Performance Evaluation Plan will be generated and the negotiation
process with the DOE Site Office will be initiated. Specific sub-tasks are identified in
the project schedule.
4.3.13 Prepare an Annual Self-Evaluation Report
Responsible: Amanda Denton
After the end of the fiscal year, line organizations will develop a Self-Evaluation Report
based on results of assessment activities conducted during the year. These line
organization reports will be collated at the Directorate level and forwarded to Quality
Services. Quality Services will develop a Laboratory-level Annual Self-Evaluation
Report to combine the results of the line organization input, internal audit results,
independent oversight results, customer survey data, operational improvements,
opportunities for improvement, and a summary of external assessments. This report will
be distributed across the Laboratory and will be submitted to DOE as input for fee
determination. Feedback from the assessment activities will serve as input for the next
fiscal year’s Laboratory Agenda and resulting Performance Evaluation Plan. Specific
sub-tasks are identified in the project schedule.
5. DELIVERABLES
5.1 UT-Battelle Performance Evaluation and Fee Agreement Document
This document describes the basis for the evaluation of UT-Battelle’s performance regarding
the management and operations of the Oak Ridge National Laboratory. The performance
evaluation provides the evidence that UT-Battelle is managerially and operationally in control
and is meeting the requirements of DOE as stipulated within the contract. The document also
describes the distribution of the total available performance-based fee and the methodology for
determining the amount of fee earned by UT-Battelle.
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5.2 Self-Assessment Plan(s)
Self-Assessment Plans will be created at appropriate levels of the organization to include those
items management wishes to measure because they are important for the success of the
enterprise. Plans at the Division-level are to be rolled together to develop the Directorate-level
Plan. Directorate-level Self-Assessment Plans are to be submitted to the Quality Services
Division to be rolled together as a Laboratory Self-Assessment Plan.
5.3 Mid-Year and Annual Self-Evaluation Reports
At mid-year, an appraisal of progress towards assessment plan expectations and performance
indicators will be conducted and documented. At the end of the fiscal year, the
divisions/directorates will utilize the evaluation process and generate self-evaluation reports
which are aggregated into a Laboratory-level self-evaluation report that describes the results of
the assessment process and identifies key improvement opportunities as summarized from the
Divisional/Directorate assessments and other Laboratory-level assessment data. This report is
also provided to our DOE customer as a tool for judging the Laboratory’s overall performance.
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