The linkage between agency budgets and performance makes monitoring program performance a crucial element of your program's life cycle. The right combination of performance monitoring tools and timely feedback ensures that you continue to focus on desired outcomes while being able to make necessary course corrections to achieve success.

In contrast to a traditional contract management environment, where you measure many outputs of sometimes questionable value or relevance, the performance-based management (PBM) approach concentrates on measuring performance towards desired program outcomes. It is an approach that requires disciplined procedures for not only identifying meaningful and objective standards, but also for refining and applying those standards and measures appropriate to program. The most effective use of performance monitoring tools should consider:

• Managing to the baseline.
• Cost and schedule monitoring tools, such as earned value management (EVM) for development/production contracts or operational analysis focused on monitoring performance metrics for level of effort or sustained services contracts.
• Regular project status review and feedback mechanisms.
• Evaluation tools and a process for implementing adjustments.

The Balanced Scorecard (BSC) model provides a structured framework for strategically managing organizational activities and monitoring key organizational performance perspectives (customer, financial, internal processes, learning and growth) in the contexts of office, department, agency and Federal government considerations. The BSC provides an effective visual representation of core strategic objectives to ensure the program remains aligned with agency strategies and the agency missions.

As you develop your performance monitoring strategy, evaluate and select your tools based on the following considerations:

• Measurement and monitoring of contractor performance should focus on project goals, objectives and definitions of success set forth in contractual terms (performance standards and incentives).
The QASP should adequately and appropriately define the baseline and set performance standards.
• The monitoring and review process should be iterative to allow for refinement of metrics applicable to specific phases of the project.
• Cost, schedule, quality, and content/configuration are only a subset of the results that should be measured.