By Lauren G. Weiner, Ph.D.
President
Wittenberg Weiner Consulting, LLC
In an era of continued fiscal austerity, where Federal programs are competing for every marginal dollar, justifying the cost of a program by quantifying its impact is more critical than ever. Agency budget offices, the White House budget office, and the Hill are all asking for more data-driven ways to assess the return on investment of Federal programs. So, what does this mean for Federal contractors? A few thoughts:
1. Everything ties back to budget, and budget now ties back to performance data. Programs run on funding—period. Great policy, great programs… they all matter only to the extent that sufficient funding is flowing to the program. The budget cycle—managed by the White House’s Office of Management and Budget (OMB)—is tied more directly to program outcomes than ever before. If your support isn’t directly tied into those mission-critical aspects that are being measured, the dollars funding your contract are more at risk. And if your client isn’t positioned for mission success—or can’t show that they are—you might want to expand your client base, quickly.
2. The metrics define the central priorities of your client’s office. Need to know what the central mission of your client is? What they measure and report is critical—even more so than mission statement. (Of course, if the metrics plan is solid, those metrics will tie directly to mission statement… but this is often not the case). Keep in mind the old adage, “what gets measured, gets done.” Show clients how your services will help them meet their reporting requirements and look good—or they, and therefore you, will be in jeopardy of losing funding.
3. If clients are being measured, they’re certainly going to measure you, too. “Performance-based work statements” are replacing “statements of work,” and the change is becoming less about semantics and more about proving your return on investment. Even if your clients haven’t asked you to measure your contract, figure out how to. When it comes time to justify follow-on funding, or recompete your current contract, you’ll be glad to have those outcome-based measures in hand to justify your return on investment.
Presidential administrations have been trying to focus on performance metrics and evaluations to drive budgets for decades. Now, however, with a better understanding of the how of data-driven metrics across agencies, and the criticality of the why more obvious than ever given sequestration-driven austerity, the budget cycle is finally being driven by meaningful performance data. As these measures drive client budgets, and therefore priorities, smart Federal contractors will be driven by them, as well.
www.wipp.org
WHY PERFORMANCE METRICS MATTER
Give Me 5: FOCUS ON PERFORMANCE METRICS
Course Instructor: Lauren Weiner, President/CEO, Wittenberg Weiner Consulting, LLC