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October 26, 2007

Anything I Can Do, I Can Do Better

“The toughest thing about success is that you’ve got to keep on being a success. Talent is only a starting point in this business. You’ve got to keep on working that talent.”
-- Irving Berlin

Every year at this time EPA’s approximately 260 career senior managers receive one of five possible performance ratings, from “Unsatisfactory” at the low end to “Outstanding” at the high end. However, before the ratings go out, I review them. I have to decide if the agency, or a particular office, is grading too ‘hard’ or too ‘easy.’ Yuck.

You try it. The “Outstanding” rating is “reserved for the truly exemplary employee,” someone who is “extraordinary.” Now, what percentage of EPA managers do you think should receive an “Outstanding”?

In 2004, 60 percent of EPA’s managers were rated “Outstanding” (PDF) (9 pp, 245K, About PDF). In 2005 we went through a difficult process of changing expectations. As a result, 30 percent of our managers were rated “Outstanding” in 2005 (see graph).

graph of Percent of career managers rated at the highest level, in 2002: all Govt, 85%, EPA 70%; declining to 2004: both all Govt and EPA, 60 %; 2006: all Govt, 43%, EPA 44%.This change has not been popular. Lower ratings reduce salary increases for some and can make it harder to get a bonus. Also, there seems to be an inconsistency: over the years EPA tends to ‘grade’ harder than most other federal agencies, yet I think our managers are better than the managers at other agencies. What gives?

The concerns about lower ratings are real and they influence my review of the preliminary ratings. On the other hand, I believe if we allow our ratings to ‘creep up’ it will send EPA down the path of mediocrity, not greatness. What is good enough for the average federal agency, at least right now, is not good enough for us. Elite organizations become elite because they expect their employees to improve every year. In such an organization, it is very hard for an employee who does the same thing they did last year – even if they were “Outstanding” last year – to get an “Outstanding” this year. They need to bring something new to the game. They need to compose another hit song.

The Nuclear Regulatory Commission (NRC) and the Office of Management and Budget (OMB) share the distinction of being the toughest ‘graders’ in the federal government. Last year fewer than 10 percent of their managers received the highest possible rating (PDF) (9 pp, 245K, About PDF). That happened even though these organizations have excellent managers.

They also have something else in common. In 2006, based on a government-wide survey, both the NRC and OMB were rated among the top ten agencies in all of government.

Kawinkydink, Mr. Jolly? Maybe, like Annie Oakley, they are just straight shooters.

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Make peace, not war!

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