Defense unit pitches executive performance management software

A small component in the Defense Department is touting a new performance management tool for its senior executives and is hoping to spread it department-wide.

The Defense Acquisition University -- an in-house training facility for the Pentagon's procurement workers -- is rolling out new software for about 90 Senior Executive Service employees. DAU officials, who will train their SES corps by the end of the year on the program, think it will advance the performance review and goal-setting process.

Members of the SES went to a performance-based pay system in November 2003, when Congress passed a bill that eliminated cost-of-living adjustments and locality pay for senior executives in favor of this new approach. The bill also raised the SES pay cap by more than $10,000.

Administration officials hope the performance-based system will trickle down to the entire federal workforce, but the effort has hit some bumps along the way. In September, the nonprofit Senior Executives Association released an informal survey that found many SES employees did not think the system was improving their performance. Survey results also indicated that agencies were using unofficial quota systems to grade executives. SEA officials said they were not aware of the DAU's new software.

The Defense Department, which employs about 1,200 of the 7,000 SES members governmentwide, has had particular troubles implementing pay-for-performance for senior executives. Defense was one of the last two Cabinet-level agencies to receive one-year certification for its program from the Office of Personnel Management.

Bart Morrison, director of workforce policy and programs at DAU, said Proofpoint Systems Inc. of Los Altos, Calif., has developed software to help SES employees define their goals and link them to greater strategic initiatives. Eventually, the system will provide a tool for executives to calculate their possibilities for pay, based on work achievements.

Deputy "Secretary [Gordon] England last year -- he's the top of the pyramid when it comes to review -- he thought the [old] process was pretty cumbersome," Morrison said. "He got a lot of really large, 10-, 12-page plans and he said 'I want to simplify this. I want to see everything on one page.'"

Morrison and Proofpoint Chief Executive Officer Jim Hill said DAU's system should take about an hour to complete for an executive who has already put some thought into his or her goals.

The system lays out several possible types of goals. One option is to have an action that is measurable, linked to a time frame, such as "write draft legislation by Jan. 1, 2007." Another option is a binary goal -- either you complete it or you do not -- such as "get approval for a new weapons system."

The system also lets executives calculate arbitrary factors that come into play and the odds of reaching their goal. They can then weigh goals in the final performance review. It lets them check off supplemental and required goal attributes, such as customer care or leadership.

As the year goes on, senior executives can log into their profiles and keep track of what they achieve.

The software costs about $2,000 per user, but that cost would drop significantly if a larger group of executives signed on, Hill said.

The Pentagon developed its own in-house software for employees under the new National Security Personnel System - a pay-for-performance program for non-executives. That software has some similar features to the Proofpoint system.

Morrison said he demonstrated the SES program in October to Marilee Fitzgerald, the director of workforce issues for the Pentagon's civilians. Right now performance management tools are decentralized, but Morrison is hoping the program will succeed at DAU and Fitzgerald will pick it up for all senior executives. A spokesman for the Pentagon said the department did not want to comment at this time.

"Should they decide to fully implement, one single integrated tool could go from the goals of the executive team all the way through to solution selection and investment strategy development," Morrison said. "That's a big idea."

"Now the boss can see how everybody's goals can align to his or her strategy," Morrison said. "He or she can aggregate budget info. As a demonstration to the senior leadership, [an official could say], 'Look, here are all of our people and here is how they are contributing to your seven strategic goals.' "