Greg Dierker U.S. Air Force Public Private Partnering
Gil Diaz Raytheon
November 15, 2012
Metrics Breakout Definition Problem Statement: Services lack a standard methodology to effectively demonstrate the benefits/value of PublicPrivate Partnerships to the government Desired Outcome: Develop a standard process for objective and metric selection including metric tracking roles and responsibilities P u b l i c - P r i v a t e
P a r t n e r s h i p
W o r k s h o p
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Identified Objectives 1. 2. 3.
Reduce Cost of DoD Parts and Services Reduce DoD Cost of Ownership Leverage Private Sector Capital Investment Recapitalization 4. Maintain Core/Critical Skills 5. Enhance Readiness and Improve Efficiency and Effectiveness of CITE 6. Improved Support to the Warfighter 7. Develops new Processes Best Practices 8. Maximum Utilization of CITE Resources (People, Equipment and Facilities) 9. Foster Cooperation between DoD and Private Industry 10. Sustains the Defense Industrial Base Strategy 11. Promotes New Technologies and Modernization P u b l i c - P r i v a t e
P a r t n e r s h i p
W o r k s h o p
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Metrics Breakout Results Scope: The Metrics framework and balanced scorecard apply to all PPPs without constraining practitioners. The tool assists in the identification of desired objectives and supporting metrics.
Services would benefit from: a common understanding concerning the statutory objectives and related supporting metrics for each of their Public-Private Partnerships (PPP) a standard methodology for selecting the desired objectives and supporting metrics for each of their Public-Private Partnerships (PPP) a standard format for reporting the optimal mix of metrics for each of their Public-Private Partnerships (PPP) P u b l i c - P r i v a t e
P a r t n e r s h i p
W o r k s h o p
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Metrics Project
Objective
PPP Metrics Framework
Provide a common metrics matrix that clearly cross references measures to desired objectives
PPP Metrics Identification Tool
Automate the common metrics matrix to ease and enhance the metrics application process for PPP practitioners
PPP Balanced Scorecard
Deliver a metrics reporting format to aid leadership assessment of PPP value
Goal – Flexible, repeatable and consistent measurement of PPP value P u b l i c - P r i v a t e
P a r t n e r s h i p
W o r k s h o p
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Key Activities & Milestones PPP Metrics Framework – February 2013 Identify and prioritize the preferred metrics- Jan 13 Define specific metric information - Jan 13 Develop the two illustrations - Feb 13
Complete automation Add specific metric information Complete minor enhancements to tool Test and Debug Tool
- Feb 13 - Feb 13 - Mar 13 - Apr 13
PPP Balanced Scorecard – March 2013 Adopt/modify balanced scorecard approach- Mar 13 Evaluate quadrant definitions - Mar 13 Establish run rules - Mar 13
Team Currently Meets on a Weekly Basis P u b l i c - P r i v a t e
P a r t n e r s h i p
W o r k s h o p
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Questions?
P u b l i c - P r i v a t e
P a r t n e r s h i p
W o r k s h o p
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Commercial cost avoidance Cost savings Cost of goods sold Depot/Arsenal productivity cost reduction (labor hours) Reduces Labor rates Private sector dollars received for plant and equipment recapitalization (depot/arsenal activation) Core workload hours performed organically vs planned hours Creates CORE hours/ adds to CORE sustainment Creates or retains jobs Organic depot/arsenal turn time Depot/Arsenal quality/material deficiency returns Depot/Arsenal on time delivery Reduce risk Depot/Arsenal first pass yield New employee skills acquired New processes incorporated Reimbursement dollars received from private industry (lease)
Existing facility square footage used for partnership workload Organic workload hours (above-core) attributed to partnership Depot/Arsenal revenue received New technologies incorporated
P u b l i c - P r i v a t e
P a r t n e r s h i p
W o r k s h o p
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Promotes New Technologies and Modernization
Sustains the Defense Industrial Base Strategy
Foster Cooperation between DoD and Private Industry
Maximum Utilization of CITE Resources (People, Equipment and Facilities)
Develops new Processes Best Practices
Improved Support to the Warfighter
Enhance Readiness and Improve Efficiency and Effectiveness of CITE
Maintain Core/Critical Skills
Leverage Private Sector Capital Investment Recapticalization
Metric
Reduce DoD Cost of Ownership
Objectives Simplified and Grouped Problem Statement: Services lack a standard methodology to effectively demonstrate the benefits/value of Public-Private Partnerships
Reduce Cost of DoD Parts and Services
Draft Objective and Metrics Matrix
PPP Metrics Framework Charter Title: PPP Metrics Framework Opportunity or Problem Statement:
Business Impact:
Services lack a common understanding concerning the statutory objectives and related supporting metrics for each of their PPPs.
Provide a systematic management approach for demonstrating the benefits/value of PPPs.
Goal Statement / Objectives:
Scope: This framework applies to all PPPs. However, the practitioner still has the flexibility to apply other unique metrics as applicable.
Provide two metric framework illustrations. The first illustration will depict the statutory objectives and groupings of supporting metrics. The second illustration will be a matrix that depicts the primary and secondary metrics identified that best support the respective objectives. Specifically, Identify and prioritize the preferred metrics (depot, common, higher headquarters) used to measure achievement of desired objectives, define specific metric information (definitions, formulas, …) and develop the two illustrations based on results from the first objective. Team Members:
P u b l i c - P r i v a t e
P a r t n e r s h i p
W o r k s h o p
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PPP Metrics Identification Tool Charter Title: PPP Metrics Framework Opportunity or Problem Statement:
Business Impact:
Services lack a standard methodology for selecting the desired objectives and supporting metrics for each of their Public-Private Partnerships PPPs.
Automated process using a common metrics framework provides a consistent approach for all PPP practitioners to use where the chosen metrics are aligned to the desired objective(s).
Goal Statement / Objectives:
Scope: The tool assists in the identification of desired objectives and supporting metrics. The tool is not currently planned to act as the data repository or graphical display of the metrics.
Provide a standard and automated process that enables PPP practitioners to identify the primary objectives and metrics that will be tracked to ensure to demonstrate the benefits/value of their PPPs. Objectives: complete automation of Metrics Framework (load and link metrics to objectives), add specific metric information (definitions, formulas, …) to tool, complete minor enhancements to tool (while remaining within the defined scope), test and debug the tool, and release 1.0 demonstration version. Team Members:
P u b l i c - P r i v a t e
P a r t n e r s h i p
W o r k s h o p
10
10
PPP Balanced Scorecard Charter Title: PPP Metrics Framework Opportunity or Problem Statement:
Business Impact:
Services lack a standard format for reporting the optimal mix of metrics for each of their Public-Private Partnerships PPPs.
Provide ease of evaluation and comparison of PPPs within and across Services through the use of a common metrics framework.
Goal Statement / Objectives:
Scope: This scorecard format would apply to all PPPs but does not constrain practitioners from identifying and tracking other supporting metrics as applicable.
Provide a standard, easy to use, metrics report format that will enable leadership to make an accurate assessment of the health and benefits to the Service provided by each individual PPP. Objectives: adopt/modify an existing COTS balanced scorecard approach (e.g. Kaplan & Norton), evaluate quadrant definitions for applicability to PPPs and redefine as appropriate, and establish run rules defining the proper balance between and among quadrants.
