2013 Louisiana Transportation Conference Kirt A. Clement, P.E. DOTD Deputy Undersecretary February 19, 2013

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1 2013 Louisiana Transportation Conference Kirt A. Clement, P.E. DOTD Deputy Undersecretary February 19, 2013

2 Presentation Overview Historical and statutory requirements for performance measurement Current use of performance measurement in DOTD Agency level LaPas Department level Division Program level Section/District Use of section/district performance measures to measure individual performance Pay for Performance Pilot Program

3 Statutory Requirements for Performance Louisiana Government Performance and Accountability Act - Act 1465 of 1997 Created RS 39: SUBPART D. GOVERNMENT PERFORMANCE AND ACCOUNTABILITY Added 6 statutes Amended 8 statutes

4 Statutory Requirements and Provisions Requires strategic planning w/performance measures Three year revision cycles Requires operation plans w/performance measures Annually Requires performance-based budgeting Requires biannual and quarterly reporting Provides for auditing of performance measures Provides for penalties for non-performance

5 Statutory Compliance Requirement/Provision Accomplished Strategic Planning Yes Operational Planning Yes Performance-budgeting??? Biannual & quarterly reporting Yes Auditing of performance Measures??? Penalties for non-performance???

6 Current Performance Measurement and in DOTD Agency Level Performance Measures Division Level Performance Section Level Performance

7 Agency Level Reporting

8 Division Level Performance Performance Measurement Reporting Scorecards Performance Monthly meeting at executive level Monthly meeting at section level Annual executive level performance reviews tied to performance measures

9 Engineering Division Scorecard Division Section Criteria Objective Type Target Jul FY Aug Sep Oct Nov Dec Engineering Division Continually improve the performance of DOTD (LAPAS - Obj 9.4) Effectively Divisional maintain and improve the State Highway System so that the system stays in its current or better condition each FY. 80 (FY Yearend = 87.55) Engineering Division Continually improve the performance of DOTD (LAPAS - Obj. 9.1) Effectively Divisional maintain and improve the State Highway System so that the system stays in its current or better condition each FY. 97 (FY Yearend = 98.09) Engineering Division Continually improve the performance of DOTD (LAPAS - Obj. 9.2) Effectively Divisional maintain and improve the State Highway System so that the system stays in its current or better condition each FY. 95 (FY Yearend = 95.30) Engineering Division Continually improve the performance of DOTD (LAPAS - Obj. 9.3) Effectively Divisional maintain and improve the State Highway System so that the system stays in its current or better condition each FY. 80 (FY Yearend = 96.46) Engineering Division Continually improve the performance of DOTD Increase the number of Divisional Engineer s Estimates that are in the range -25 to +10 of award cost to 70 of all HQ let projects 50 (FY yearend = 41.6) Engineering Division Continually improve the performance of DOTD To deliver 25 of active projects without Type 1 change orders or addenda due to plan/design errors each fiscal year Divisional

10 Section Level Performance Performance Measurement Reporting Monthly scorecards Performance Monthly division scorecard review at staff meeting Monthly section scorecard review with section head Annual performance reviews tied to performance measures

11 Budget Section Scorecard Division Section Criteria Objective Type Target Jul FY Aug Sep Oct Nov & Finance & Finance & Finance & Finance & Finance & Finance Budget Budget Budget Budget Budget Budget Deliver costeffective products, projects, and services in a timely manner Effectively develop and manage our human resources Efficiently manage DOTD's financial resources Improve customer service and public confidence Improve customer service and public confidence Improve customer service and public confidence Manage and prioritize budget request not to exceed an average of 35 days old for incomplete request (cumulative average of month end averages) Sectional TBD Develop staff's proficiency Sectional by successfully completing an average of 16 hours of supervisor approved report training per employee. Manage and restrict nonpersonal Sectional services expenditures not to exceed 97 of budget authority. Manage and close multiproject Sectional fund sources/appropriation to have no more than 5 active years by fiscal year end. Meet with Office Heads (or designee) at least bi-monthly to review Program operating budget status. Minimize the average number of days a FHWA billable charge is 'suspended' and on unbilled report. Sectional Sectional 70 days

12 Goals DOTD s Top Down/Bottom Up Strategic Planning Methodology Departmental level sets goals Goals then set at office level, then division level, then districts and section level Objectives and Performance Measures District and section level, and in some cases work unit level, set objectives, measures, and targets Based on objectives established at district, section, or work unit level, objectives, measures and targets then set at the division level, then office level, then Department level

13 Budget Section Scorecard Division Section Criteria Objective Type Target Jul FY Aug Sep Oct Nov & Finance & Finance & Finance & Finance & Finance & Finance Budget Budget Budget Budget Budget Budget Deliver costeffective products, projects, and services in a timely manner Effectively develop and manage our human resources Efficiently manage DOTD's financial resources Improve customer service and public confidence Improve customer service and public confidence Improve customer service and public confidence Manage and prioritize budget request not to exceed an average of 35 days old for incomplete request (cumulative average of month end averages) Sectional TBD Develop staff's proficiency Sectional by successfully completing an average of 16 hours of supervisor approved report training per employee. Manage and restrict nonpersonal Sectional services expenditures not to exceed 97 of budget authority. Manage and close multiproject Sectional fund sources/appropriation to have no more than 5 active years by fiscal year end. Meet with Office Heads (or designee) at least bi-monthly to review Program operating budget status. Minimize the average number of days a FHWA billable charge is 'suspended' and on unbilled report. Sectional Sectional 70 days

14 Engineering Division Scorecard Division Section Criteria Objective Type Target Jul FY Aug Sep Oct Nov Dec Engineering Division Continually improve the performance of DOTD (LAPAS - Obj 9.4) Effectively Divisional maintain and improve the State Highway System so that the system stays in its current or better condition each FY. 80 (FY Yearend = 87.55) Engineering Division Continually improve the performance of DOTD (LAPAS - Obj. 9.1) Effectively Divisional maintain and improve the State Highway System so that the system stays in its current or better condition each FY. 97 (FY Yearend = 98.09) Engineering Division Continually improve the performance of DOTD (LAPAS - Obj. 9.2) Effectively Divisional maintain and improve the State Highway System so that the system stays in its current or better condition each FY. 95 (FY Yearend = 95.30) Engineering Division Continually improve the performance of DOTD (LAPAS - Obj. 9.3) Effectively Divisional maintain and improve the State Highway System so that the system stays in its current or better condition each FY. 80 (FY Yearend = 96.46) Engineering Division Continually improve the performance of DOTD Increase the number of Divisional Engineer s Estimates that are in the range -25 to +10 of award cost to 70 of all HQ let projects 50 (FY yearend = 41.6) Engineering Division Continually improve the performance of DOTD To deliver 25 of active projects without Type 1 change orders or addenda due to plan/design errors each fiscal year Divisional

15 Annual Performance Reviews Tie to Performance Measures

16 Performance of Staff Linked to Strategic and Operational Planning DOTD Pay for Performance Pilot Program

17 Pay for Performance Pilot I* Pilot was project based and tied to DOTD special initiatives One in a headquarters/district function Bid 100 of 116 surplus funds projects by commitment date - Successfully achieved Improve on-time bidding on the overall program by 10 - Failed to achieve One in a district function Design and bid an interstate cable barrier project by targeted dates - Successfully achieved * Approved By Civil Service November 2007

18 Pay for Performance Pilot I Managers Feedback Heightened level of project ownership Change from traditional rewards program needed Increased teamwork Challenges timeliness, communication, inclusiveness Participants feedback Pleased with extra pay in amount to incent performance Incentives caused employees to work harder on the project Team members were more cooperative Projects linked to PFP were given highest priority

19 Pay for Performance Pilot I Decisions No expansion of project based PFP Difficulty in including all employees Not tied to performance of normal work Allows for a concentration on PFP project to the detriment of normal operations Proceed with a Phase II PFP pilot Tied to unit/section operational objectives Tied to DOTD strategic & operational plans Allows expansion to all employees

20 Pay for Performance Pilot II* Utilized the unit/section objectives and annual performance review Tied to core work objectives rather than projects Performance must clearly exceed quantifiable targets Incentives would be a pre-determined amount Involve each of DOTD s five Offices Systems Preservation Section - Engineering Procurement Section & Finance Aviation Section Public Works & Intermodal Traffic Monitoring Section Planning & Programming Bridge Tender Gang in District 02 - Operations * Approved by Civil Service Commission January 2009

21 Pay for Performance Pilot II Performance Incentives Performance review 30 of rating tied to section/gang performance Rating of 3 on all factors to be eligible for pay Pay for Performance Reward Exceed 25 of objectives by more than 10 - $500 Exceed 50 of objectives by more than 10 - $1000 Results 3 of 5 sections/gangs exceeded objectives for pay Bridge tender gang exceeded

22 Pay for Performance Pilot II Survey results Participants believed the objectives were achievable Participants believed that the program and possible reward caused them to work harder Participants believed that since the program was teamwork-based it made them work more like a team

23 Pay for Performance Pilot II Participant comments I believe as a whole, we worked harder to achieve the goals needed to receive our reward. I know working together things were better as far as work quality and our relationship as employees. I would love to participate in such programs in the future. I believe this pilot program fostered additional team effort to complete the objectives

24 Agency actions Pay for Performance Pilot II Presentation to Civil Service Director Presentation to DOTD Standing Committee on Human Resources Presentation to DOTD Executive Committee Refine agency recommendations Present SCHR recommendations to DOTD Execs Present results and recommendations to Civil Service Commission

25 Pay for Performance Pilot III* Voluntary agency wide participation Refine/develop SMART objectives in FY11 Collect data in FY12 and use data to validate objects and set targets Tie objectives to pay incentives for FY2013 Actual payments made in FY14 Participation All Office of and Finance Sections 10 Sections & district gangs participating 1 District gang withdrew after validation year * CS Commission & administration authorization to proceed

26 Performance of Staff Linked to Strategic and Operational Planning Strategic and operational planning can be tied to individual performance Through performance expectations and reviews Though pay-for-performance mechanisms Individual performance can be affected Through accountability via performance ratings Through pay incentives

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