Department of Veterans Affairs Office of Management

1. Department of Veterans Affairs Office of Management Overview Of The Monthly Performance Review (MPR) May 2011

2. The MPR: A Quick Snapshot • Purpose: Chaired by the Deputy Secretary, the MPR is a monthly forum in which the Department’s senior leadership discuss and make decisions on mission-critical issues within the context of budget, program performance, and workload targets and results • Benefits: MPRs offer opportunities for senior leadership to do the following: • Analyze key aspects of the VA’s budget, financial and program performance and workload status. • Discuss causes of variances from plan and develop strategically-oriented corrective actions necessary to achieve desired outcomes. • Identify “over the horizon” problems and take proactive steps to resolve said problems before they become critical • Gain an in-depth understanding of cross-cutting issues that affect the entire Department or involve other federal or non-federal agencies. • Scope: During a given MPR, using primarily metrics reported in the budget, each administration and staff office depicts their progress in meeting established monthly and/or FYTD operating plan goals. The Department’s Operating Plan specifies monthly budget, financial and performance targets and/or expectations based on the VA’s approved appropriation. Monthly Performance Review 2

3. Monthly Performance Review Format Financials Financials Operations Operations Strategic Strategic Goals Goals Learning Client Client People and Satisfaction Satisfaction Growth • Aligned Directly With VA’s Strategic Planning Framework • Data is Presented by Strategic Goal and Corporate Outcome • Uses a Balanced Scorecard (BSC) to Assess VA’s Performance • All Metrics are Aligned to FourBSC Quadrants Monthly Performance Review 3

4. Balanced Scorecard Quadrants Measures aligned with the Financials quadrant pertain to what VA needs to do to succeed financially. For example, what should VA monitor and measure financially to make sure VA managers are providing good stewardship of public funds? What measures do we need to have so that VA stakeholders, managers and senior leaders have accurate financial data? The measure type that applies to this quadrant is Financials. 1. Financials The Operations perspective refers to internal business processes. Measures in the Operations quadrant allow managers to know how well their business is running, and whether its products (aka outputs) and services conform to customer requirements (the mission). Measures aligned within this quadrant address the level of performance that must be achieved for VA’s core business processes. The measure types that apply to this quadrant are the workload, performance and initiative-related milestone/project management measure types. 2. Operations Monthly Performance Review 4

5. Balanced Scorecard Quadrants In the current climate of rapid technological change, organizations need to be in a continuous learning mode. Kaplan and Norton emphasize that ‘learning' is more than 'training'; it also includes things like mentors and tutors within the organization. For example, VA could develop metrics that can guide managers in focusing training efforts and funds where they can help the most… i.e., measures that show our return on investment for training… The measure type that applies to this quadrant is Performance. 3. People In developing measures for the Client Satisfaction quadrant, VA needs to determine what its clients need and what processes are currently in place or should be developed to meet those needs. Do we have clients whose needs are not being met? The measure type that applies to this quadrant is Performance. 4. Client Satisfaction Monthly Performance Review 5

6. MPR in Summary • Trend Analysis • Are we Heading in the Right Direction?(Directional Analysis) • Where are we Compared to Last Year?(Comparative Analysis) • Designed to Assess Organizational Performance by Viewing the Organization as a Single Enterprise With Multiple Organizations Working as Integrated Teams to Achieve Outcomes and Strategic Goals Monthly Performance Review6

7. MPR Slides • Strategic Goal Rollup Tables • Key Trend Line Charts • Metrics Detail Charts • Major Initiative Status Charts Monthly Performance Review 7

8. Key Trend Line Charts • Key Trend Line (KTL) charts highlight a single significant or key measure supporting a given Corporate Outcome/Business Line pairing. • KTL charts trend data over time providing… • Past fiscal year actuals • Current year plan and actuals • Percent variance from current year actuals vs. plan • Color code status (upper right corner) providing information on current as well as future status • Headline (sub titles) that provide key “take aways” for the reader Sample Monthly Performance Review 8

9. Metrics Detail Charts • A Metrics Detail chart is designed to be a companion to given Key Trend Line chart. • It shows the full set or family of measures that support a given Corporate Outcome/Business Line pairing. • Similar to the KTL chart, this chart provides the following: • Past fiscal year actuals… usually FYTD • Current year FYTD actuals by month • Variances (percent and numerical) comparing past year’s to current year’s actual • Color coding to provide information on current status as well as future status • Headline (sub titles) that provide key “take aways” for the reader. Sample Monthly Performance Review 9

10. Major Initiative Status Slides • The Major Initiative chart provides a high-level summary of an initiative’s status. • This summary-level information is based on information provided at the Operational Management Review (OMR). • This chart provides the following for each Current Action (i.e., key milestone) identified: • Headline (sub titles) that provide key “take aways” for the reader. • Status pertaining to cost, schedule, quality, risk and scope (based on the date the data was pulled by OPP) • Meeting date for the next OMR Sample Monthly Performance Review 10