Public-Private
Partnership (PPP)
PPP Metrics BREAKOUT
Greg Dierker
U.S. Air Force Public Private Partnering
Gil Diaz
Raytheon
November 15, 2012
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Metrics Breakout
Definition
Problem Statement: Services lack a
standard methodology to effectively
demonstrate the benefits/value of Public-
Private Partnerships to the government
Desired Outcome: Develop a standard
process for objective and metric selection
including metric tracking roles and
responsibilities
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Identified Objectives
1. Reduce Cost of DoD Parts and Services
2. Reduce DoD Cost of Ownership
3. 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
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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)
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Metrics
PPP Metrics Framework
Goal – Flexible, repeatable and consistent measurement of
PPP value
PPP Balanced Scorecard
Project
Provide a common metrics matrix that clearly cross references measures to desired objectives
Deliver a metrics reporting format to aid
leadership assessment of PPP value
Objective
PPP Metrics Identification Tool
Automate the common metrics matrix to ease and enhance the metrics application process for PPP practitioners
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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
PPP Metric Identification Tool – April 2013 Complete automation - Feb 13
Add specific metric information - Feb 13
Complete minor enhancements to tool - Mar 13
Test and Debug Tool - 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
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Questions?
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Draft Objective and
Metrics Matrix
Objectives Simplified and Grouped
Re
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ost
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oD
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riti
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ITE
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Problem Statement: Services lack a standard methodology to effectively demonstrate the benefits/value of Public-Private Partnerships
Metric
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
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PPP Metrics Framework
Charter
Title: PPP Metrics Framework
Opportunity or Problem Statement:
Services lack a common understanding concerning the statutory objectives and related supporting metrics for each of their PPPs.
Business Impact:
Provide a systematic management approach for demonstrating the benefits/value of PPPs.
Goal Statement / Objectives:
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.
Scope: This framework applies to all PPPs. However, the practitioner still has the flexibility to apply other unique metrics as applicable.
Team Members:
9
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PPP Metrics Identification Tool
Charter
Title: PPP Metrics Framework
Opportunity or Problem Statement:
Services lack a standard methodology for selecting the desired objectives and supporting metrics for each of their Public-Private Partnerships PPPs.
Business Impact:
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:
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.
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.
Team Members:
10
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PPP Balanced Scorecard
Charter
Title: PPP Metrics Framework
Opportunity or Problem Statement:
Services lack a standard format for reporting the optimal mix of metrics for each of their Public-Private Partnerships PPPs.
Business Impact:
Provide ease of evaluation and comparison of PPPs within and across Services through the use of a common metrics framework.
Goal Statement / Objectives:
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.
Scope: This scorecard format would apply to all PPPs but does not constrain practitioners from identifying and
tracking other supporting metrics as applicable.
Team Members:
11