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					Department of Defense




                        Driving Organizational Performance



June 2007

                           Leading The Way
                    Panel Members
   Frank Anderson
        President, Defense Acquisition University

   RDML(S) James McManamon
        Deputy Commander for Warfare System Engineering, Naval
            Sea Systems Command
        Department of the Navy

   Al Rich
        Vice Director, 76th Maintenance Wing, Tinker Air Force Base
        Department of the Air Force

   Stephanie Olson – Moderator
        Director, Training
        Program Executive Office, NSPS

                                                 Leading The Way
June 2007                                                              2
                 Overview

Alignment – Drawing the line of sight
 Discuss job objectives within the broader
    context of mission and organization
 Provide real-time lessons learned
      Integration and use of strategic planning
        documents
      Alignment across geographically dispersed,
        multi-functional organizations
      Leadership’s challenge in identifying,
        communicating and assessing organizational
        and individual performance
                                         Leading The Way
June 2007                                                  3
                                           June 7, 2007




       Driving Organizational Performance
          Job Objectives Matter - Panel
              Frank J. Anderson, Jr.
                    President

                                                          2
                                                       200



2005
 &
                                   #

                                   2004
                                       1      Best:
                                              Overall
                                              Virtual
                                              Mature
                                                          2006



2006                                          Leader of Year
                     2004 & 2006                                 4
                                                 The AT&L Performance Management Construct (Story)

                          The President’s Management Agenda
                          National Security Strategy
                               National Military Strategy                                                      SES Performance Planning and Evaluation
                               Defense Planning Guidance                         Local Objectives and Tasks                                                       Critical Elements / Performance Standards


                               Quadrennial Defense Review                                                          Critical Elements / Performance Standards      •
                                                                                                                                                                  •
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                                                                                                                                                                                                                   Outcome:
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                                     DoD Transformation Planning                                                  •
                                                                                                                  •
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                                     Guidance                                    AT&L Objectives and Tasks
                                                                                                                  •
                                                                                                                  •
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                                                                                                                  •   Sddlfkfsjkdfj;asdkfj ifs                        sldku s s fsdf ss

                                                                                 (with Performance Targets)       •   Sldkfjsdf;lsdjfslddsfv fdsafsdi dkdisld
                                                                                                                      sldku s s fsdf ss
                                                                                                                                                                             Outcomes (Accomplishments)




                                                                                                                                                                                                                   Organizational
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                                                                                                                                                                                                                   Performance
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                                                                                                                                                                      End of Rating Period

                                                                                                               Start of Rating Period
                                                                                              Goal 7
                                                                                                              Individual Performance
                                                                                             Goal 6
                                                                                           Goal 5
                                                                                          Goal 4
                                                                                                                Plan and Incentives                                                                                Individual Results
                                                                                         Goal 3
                                            USD(AT&L) 7 Goals                           Goal 2
                                                                                                                                                                                                                   – Stratified Ratings
 USD (AT&L) Management Principles
 Adopt Customers’ View of Success       1. Acquisition Excellence with              USD(AT&L)
– in Terms of Outcomes                      Integrity
                                                                                        Goal 1                                                               USD(AT&L)
Manage Performance Against              2. Logistics: Integrated and
                                                                                Acquisition Excellence
Standards
Build Data to Drive Decisions at the
                                            Efficient
                                         3. Systems Integration &
                                                                                    with Integrity                                                                                                                 – Pay for Performance
Right Level                                 Engineering for Mission
                                            Success                                                                                                                    \
Increase Agility – Shorten Cycle
Times and Hedge Surprises
                                         4. Technology Dominance
                                         5. Resources Rationalized
Give Best Value to the Taxpayer
                                         6. Industrial Base                                                                                             Annual
Integrity – Build and Operate an           Strengthened                         Objectives and Tasks                                             Performance Report
Environment that Merits Trust and
                                         7. Motivated, Agile Workforce
Confidence
                                                                                 AT&L Goals                                             Measurement and
                                         USD(AT&L) Goals                       Supporting Plans                                           Assessment

                   Performance Management Framework                                                                                        Performance Management Reviews
     Performance-based AT&L                                               Performance Plans                                                                   Quarterly Organizational Performance
     Strategic Plan                                                       - Annual                                                                            Reviews and Assessment (Outcome metrics)
     - 7 Strategic Goals                                                  - Objectives / Tasks                                                                           - Transformation Initiatives
     - AT&L Mgt Principles                                                                                                                                               - Program success
     - QDR Outcomes                                                                                                                                                      - People
                  DoD AT&L Workforce Management
                              USD (AT&L) Leadership/Strategies/Policy
                                                                        AT&L HCSP
                                                                        Version 1.0
                                                                                      3.0




                                          P&R Partnering

                                           Workforce Senior Steering Board
   Component Strategies
                                                 Service/Component
 (HCSP, Policy, Resourcing)
                                               Acquisition Executives
                                                    (4 meetings)
      AT&L
   Competency
    Initiative                                      Functional Advisors

     AT&L                                               Director, HCI
   Workforce
                                                            WMG
Lifecycle Model

  AT&L
Data Green
                        Performance Resources
                                DAU
       AT&L Performance Management
             System Construct


Other Strategic            DoD           Statutory
Level Guidance             Goals         Mandates

                        USD (AT&L)
                           Goals




              USD (AT&L) Direct Report
                  Performance Requirements


                      Subordinates
                  Performance Requirements
       Other                                Other
       Core                                 Core
      Mission                              Mission
    Value-Added                          Value-Added
         The Planning Cycle


   Strategic
     Plan
                    Organizational
                    Performance
                        Plan       Organizational
                                   Performance
Directions                          Assessment
                Milestones                           Individual
                & Targets
                                                    Objectives &
Supporting Plans                                    Contributions
  Performance Learning
  Roadmap
  IT Master Plan
  Facilities Master Plan
  Performance Task Action Plans
              Aligning People Around a Strategy and
               Motivating People to Achieve Results

          Leadership Team
          • Mission • Vision • Goals
                                              Supervisors
                                              • Performance Tasks
                                                                            • Setting individual

 Cascades                                                                     objectives based on
                                                                              strategic/annual

  down to                                                                     performance plans
                                                                            • Agreement on performance
    the                                                                       criteria

individual!                     Establish Objectives                        • Periodic performance
                                                                              feedback
                         Individual Objectives
                                                                            • End-of-period: self- and
                           Individual Contributions                           supervisor evaluations
                                                           Report Results

                                                                            • Rewards tied to mission
                                                                              contribution
Department of Defense




                        NSPS SMART Objectives

                        Al Rich


May 24, 2007
              For Discussion
Building SMART Objectives




                       Leadership
                       Challenge




                                    11
              For Discussion
Building SMART Objectives

                      Measurable
                       Attainable
                   Clearly Understood


                        Leadership
                        Challenge




                                        12
              For Discussion
Building SMART Objectives

                      Measurable
                       Attainable
                   Clearly Understood


                        Leadership
                        Challenge

                                        Cascade
                                        Balanced Scorecard
                                        Tie through the
                                        Organization




                                                             13
                For Discussion
Building SMART Objectives

                        Measurable
                         Attainable
                     Clearly Understood


                           Leadership
                           Challenge

                                             Cascade
          Cost                               Balanced Scorecard
        Schedule                             Tie through the
      Performance                            Organization
         Quality
                     Tie to / Measure by
                    Organizational Metrics


                                                                  14
                                                                      AFMC Vision
                                                     War-winning Capabilities… On Time, On Cost
                              OC-ALC Goal: America’s Air Logistics Center…The World Leader in Sustaining Combat Capability
Stakeholder



                                                                             Mission Impact
 Operator/




                       Deliver Weapon Systems           Modify Weapon Systems             Sustain Weapon Systems         Deploy AEF-Ready Airmen



                                                                             Mission Areas
                             Technology                                                        Sustainment
                                                                                      Continuously Improve       Weapon
                     Shape and Transition High                                              Systems & Equipment
Continuous Process




                       Pay-off Technologies                                                Capability & Availability
   Improvement




                                                                 Develop a Performance                                  Reduce Cost of
                                Test                                                                                      Operations
                                                                  Based Supply Chain
                                                                                                   Drive
                      Support Development of                                                   Organizational
                      Future Test Capabilities                 Improve Integrated             Speed, Efficiency          Improve Maintenance
                                                              Sustainment and Field           and Quality thru          Quality, Speed, and Cost
                                                                 Support Plans                   Enterprise
                             Acquisition                                                        Integration
                       Strengthen Acquisition
                              Support                                                         Enhance System
                                                                                                 Reliability



                                                                          OC-ALC Foundation
Infrastructure
 People And




                         Balance Investment in Installation           Protect People, Information and             Train and Equip AEF-Ready
                            and Mission Infrastructure                            Assets                                    Airmen

                                                                                                                             Create a Wellness-
                       Deliver a Competency-           Institutionalize Realistic          Develop Supervisors               Focused and Safe
                         Based Workforce                        Planning                                                         Workforce

                                                                                                                                               15
               23 March 06                      Integrity First … Service Before Self … Excellence In All We Do
                                                                                                                                              2-8
For Discussion




          Link individual performance
            objectives to OC-ALC’s
                strategic mission
                                        16
                              For Discussion
                                   Supply Chain Management
                                             WING
Reduce OC-ALC-managed MICAP hours 15-20% from FY06 average and customer wait time 20-25% from FY06
EOY goal in FY07. Meet or exceed FY07 Material Support Division Net Operating Result target by 30 Sep 07.
OC-ALC BSC: Continuously Improve Weapon System/Equipment Capability & Availability

                                                   GROUP
      Proactively support AAIP initiatives through improved material supportability and availability. FY07 average
monthly group MICAP hours will achieve a 20% (or greater) reduction from FY06 averages for at least 85% of
the supported weapon system. FY07 average monthly group CWT will meet or exceed the FY07 target reduction
of 20-25%. OC-ALC BSC: Continuously Improve Weapon System/Equipment Capability & Availability


                                               SQUADRON
Increase support to the war fighter through MICAP reductions and management of technical issues aggressively
evaluating issues as required. FY07 average monthly squadron MICAP hours will achieve a 20% (or greater)
reduction from FY06 averages for at least 85% of the supported weapon system. Average monthly CWT meets
target reduction of 20-25%. DR/339 metrics within 90% of goal. Increase Strategic Relationships with Boeing
through quarterly PMRs and co-forecasting. No more than one issue elevated by a customer due to failure of the
employee to provide appropriate customer support is acceptable per quarter. OC-ALC BSC: Continuously
Improve Weapon System/Equipment Capability & Availability, Reduce Cost of Operations


                                                 FLIGHT
Support the war fighter through MICAP reductions and management of technical issues aggressively evaluating
issues as required. FY07 average monthly flight MICAP hours will achieve a 20% (or greater) reduction from
FY06 averages for at least 85% of the supported weapon system. Approved get well plan on all overage
requisitions. DR/339 metrics within 90% of goal. No more than one issue elevated by a customer due to failure of
the employee to provide appropriate customer support is acceptable per quarter. OC-ALC BSC: Continuously
Improve Weapon System/Equipment Capability & Availability, Reduce Cost of Operations                           17
                 For Discussion

Lessons Learned
 Clearly written, measurable job objectives facilitate
  communication and assessment of performance
 Skill in writing job objectives and assessments will
  increase with experience/training
 Focus on what the job objective measures and behavior it
  drives
 Focus on leveling the job objectives by skill and
  responsibility level
 Templates – sample job objectives
 Training – center overarching guidelines, wing/group level
  guidelines, and iSuccess tool
                                                               18
          National Security
          Personnel System (NSPS)


NSPS Senior Leader Workshop


         07 June 2007
    RDML(Sel) Jim McManamon
       Vice Commander
                      NSPS Fact or Fiction?

•   Time consuming
•   Requires excessive Leadership engagement
•   Objectives are too tedious to manage
•   Recruitment flexibilities overstated
•   Makes supervisors very visible
•   Paid the same
•   Employees afraid of the military
•   Just too cumbersome …..
    The concept is good but … is it worth it?
                                                20
                  Supervisors Talk Performance


Conversation 1:                                        Conversation 2:
Performance Plan                                Interim Review(s)
                                         At least one during the cycle.
Beginning of cycle

Conversation 4:                                        Conversation 3:
Annual Appraisal                            End of Cycle Review
No later than three months after the                        End of cycle.
end of the rating cycle.               Separate conversation from the
Communicate pay                         first one of the following cycle.
pool decisions.




                                                                            21
                               Is NSPS Perfect?

• Tools not ready for prime time
• “3” rating is not received as a “valued
  performer” by employees
• Does not pace with GS schedule
  – Intern/Career Ladder
  – Private Industry/Civilian Agencies
• SMART objectives are hard
• Supervisors are out of practice
• NO ONE can write well …

                                              22
                         NAVSEA Lessons Learned
• Mock Exercise was insightful and invaluable
• Overall Take-Aways
  – Practice, practice, practice and then practice some more
  – Evaluate your performance and implement course changes
  – Clean up “system” issues (data sources correct)
• Findings
  –   Supervisors need to improve on assessing performance
  –   Employees need to articulate their accomplishments
  –   Writing skills missed the mark across the board
  –   Objectives are hard to write and to assess
  –   We thought we had trained enough …but more training needed on …
       • Self-assessments
       • Supervisory Write-ups
       • Setting Objectives
  NSPS is hard and labor intensive to get it right
                                                                        23
Senior Leadership engagement is
   critical to successful NSPS
          implementation



                                  24

				
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