U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

Workforce Performance Resources Newsletter Reprint

Achieving Success Through Results-Based Management - An Interview with Maurice McTigue

As a result of deregulation, agency awards programs now come in a variety of shapes and sizes. Despite their differences, however, they should all be focused on results. At the 1999 Strategic Compensation Conference, speakers discussed the various ways managers can reward and recognize employees to improve performance and achieve desired results.

• Using Awards to Influence Desired Behavior.
• Awards at DSS.
• Goalsharing at the VA.

Using Awards to Influence Desired Behavior. Barbara Colchao, Office of Personnel Management, explained that managers do not so much motivate employees directly as they influence what employees are motivated to do. Rewards can be used either as incentives or recognition. They should be meaningful, timely, and associated with specific desired performance. Successful awards programs generally have high employee involvement, a variety of awards, and the flexibility to recognize individual, group, and organizational results. Agencies should design their awards programs to align with and support organizational goals.

Awards at DSS. Sally Richmond, Defense Security Service (DSS), discussed the variety of awards used by her agency. She explained that the purpose of the DSS awards programs is to improve productivity, creativity, economy, and efficiency, and that awards are used to demonstrate the high value management places on:

• excellence of performance,
• superior accomplishments,
• customer service, and
• constructive ideas.

The DSS awards include the Customer Service Excellence Award, Superior Accomplishment Award, Director's Team Award, Employee of the Year Award, Exceptional Service Award, and the Director's Special Award. Ms. Richmond stressed that in addition to using formal awards, managers "can never say 'thank you' too much" and must continually acknowledge employee contributions informally as well.

Goalsharing at the VA. Harry Ray, Veterans Affairs Health Care Network in Upstate New York, described his organization's goalsharing program. Launched in 1998, the plan began with the following guidelines:

• it would have a maximum of five goals;
• previous year-end results would be the baseline for which improvement goals for the next year would be set;
• fair stretch goals would be required;
• goals must relate to organizational priorities with results that are measurable; and
• payouts would be based on a score that combines how well the Network and how well the individual medical centers support the program's goals.

By creating a clear line of sight between employee performance and organizational goals, the plan helped the Network achieve the following results:

• the Network exceeded its goal for reduction in the cost per patient by 9.5 percent;
• the Network increased the number of veteran patients by 16 percent (fourth best in the nation);
• the Network generated $107,650 in savings while increasing the number of employee suggestions tenfold from the year before; and
• the Network improved in every customer service category, with two of the eight categories being in the top 3 percent of Networks. (The Network previously ranked in the bottom 2 to 3 percent).

Governmentwide regulations permit Federal agencies to implement goalsharing programs. Mr. Ray explained that several conditions should be present for them to be successful. He said that employee involvement, a constructive labor-management partnership, and two-way, open communication, are essential. He also said that payouts should be based on results that can be impacted by employees and that baseline data should be easily understood and perceived as fair by employees.

You may contact Barbara Colchao, OPM, at 202-606-2720; Sally Richmond, DSS, at 703-325-6171; and Harry Ray, VA, at 717-862-6004. Information about awards can also be found on our performance management web pages. You can also email us for information.

Originally published on October 1999