The evaluation scheme uses a series of scorecards to measure the behavioral dimension of performance as well as business results, with the overall goal of aligning employee efforts to the corporation's articulated vision and mission. In its new incarnation, the scorecard process relies on a significantly expanded customer survey, which branches out beyond simply rating customer satisfaction into uncovering actionable items.

The merger of the two oil giants was itself preceded by considerable internal consolidation within Chevron. Extensive outsourcing of business and real estate functions occurred throughout the late 1990s. Then in 2000 the two internal groups, Business Services and CREMCO, were blended into a single site services organization, which has since morphed into ChevronTexaco Business and Real Estate Services, BRES (pronounced "breeze").

"Each change in the organization has impacted the performance measurement process," says Judy Shah, BRES metrics coordinator. "As we kept merging we added new surveys, new survey questions, and new scorecards to the process."

Tracking Performance

The BRES customer survey originated in 1994 when Chevron's real estate group launched a program to assess its service levels. When CREMCO and Business Services became a site services organization, the scope of the survey expanded beyond facility management to track performance in the new areas. Now as a site services survey for the new enterprise, it includes services offered across the board at each site.

According to Shah, functions listed on the survey tend to be universal—items that most tenants are likely to have experience with and have an opinion about. Along with formerly surveyed activities like custodial services and office moves, mail, telephone, reprographics, and other business services now appear.

The earlier surveys posed just one question about each function, asking customers simply to rate their satisfaction with that service. Now, the number of questions has multiplied while the survey has become much more detailed and specific to home in on prospective trouble spots.

"We want to have data that indicates potential problem areas such as availability, accuracy, and courtesy, so now each function or area of service has from two to nine pinpointed questions," explains Shah.

This new approach provides the opportunity to examine customer feedback from several vantage points. Especially revealing is the technique of multivariate analysis, a statistical method that establishes a correlation between independent and dependent variables. By highlighting the derived importance—as opposed to the stated importance—of customer opinions, multivariate analysis is a way of getting at what Shah calls "the real truth" behind the drivers of customer satisfaction.

"People can state that something is important to them, but according to the statistics underlying their answers, it's not really that important," she says, noting, "Other factors influence their opinions.

"Multivariate analysis allows us to go beyond merely tracking the ups and downs of a trend," she continues. "You can't say it reveals the causes, but it does uncover a correlation between (a) the overall customer satisfaction score and (b) performance on specific services that affect the overall score. Those scores with the highest correlations are then considered the drivers."

Leveraging the Survey

Statistically distinguishing what is important to the customer makes it possible to target areas in need of improvement and thus get more leverage from the survey.

"You don't want to just collect data without doing something with it," says Shah.

In the BRES survey the dependent variable is overall customer satisfaction for the company as a whole, and it is the first question asked. Then the individual functions or services are evaluated to determine the independent variables that can affect customer satisfaction.

For example, of 10 factors listed in the survey from the first quarter of 2001, multivariate analysis uncovered three specific areas that were closely linked to overall customer satisfaction: courteous and timely performance of moving services, consistent restroom and office cleaning, and reliable mail delivery. Relatively low performance ratings indicated these areas were in need of improvement. With this information in hand, BRES can implement positive reinforcement-based changes, continuing to reward performance in service areas that display strength while motivating improved service in those areas that reveal weakness.

"As a result we now get customer service ratings as well as customer satisfaction ratings, and site managers can take action on specific service attributes instead of trying to figure out why a rating is high or low," says Shah. "Now we know where it's best to put our resources in moving forward."

Scorecards Reflect Ratings

Along with their role in crafting effective action plans, survey ratings also flow into three major scorecards to create a well-rounded view of individual and company performance. The resulting measurement scheme offers the assessments needed to address the various perspectives of the multiple constituencies to which BRES is accountable.

"There are many elements of customer satisfaction beyond occupants' concerns," says Steve Hopkins, general manager of ChevronTexaco Site Services for California and the United Kingdom. "We also have line management, customer management, and, of course, our own internal CT Business and Real Estate employees. All of those folks have different needs from those of the management team, and the scorecards must reflect those."

The major scorecards roll up ratings in three formats: business results, upward feedback, and the two-by-two matrix. The first is safety and financially oriented, including such metrics as RSI lost workday cases and gross expense as a percent of plan. The second, also known as the values scorecard, is more behavior-related, measuring a manager's or supervisor's effectiveness in encouraging teamwork, recognizing good job performance, treating individuals with dignity and respect, and so on. The last is a four-quadrant graph that plots results scores along the X axis and values scores along the Y axis to deliver a snapshot of overall performance.

The desirable place to score is the upper right quadrant, an indication that the individual or work group is not only getting superior business results but can sustain that performance through appropriate behaviors. Woven through the scorecard system is the theme that it's not enough simply to turn in good business performance, but results have to be accomplished in accordance with the company's underlying values, now described in a brief document known as the ChevronTexaco Way.

"From almost everyone's perspective, performance is a combination of business results and behaviors," says Hopkins. "The key point is that we achieve results the right way.

"The CT vision is to be the global energy company most admired for people, performance, and partnership," he continues. "People come first because we believe that if we take care of values presented in the ChevronTexaco Way—such as trust, diversity, partnership, and protecting people and the environment—all the rest will fall into place."

Cascading Strategic Plan

In addition to fostering behavior that echoes the CT Way, the scorecard process is closely tied to overarching corporate objectives. Individual metrics are chosen and weighted to reflect company priorities. This alignment puts the categories in a more meaningful context, so employees clearly see how their activities fit in with enterprise plans. They also have some leeway in establishing their own goals to dovetail with what is being done at the executive level.

In this way the strategic ChevronTexaco plan cascades through the various layers of the organization down to individuals', managers', and supervisors' plans and scorecards.

"The scorecards help us produce a line of sight from the individual performer all the way back up to the corporate strategic plan," says Hopkins, adding, "Sometimes it takes the whole team to make these goals and performance agreements move forward."

Testimony to the effectiveness of the performance measurement scheme comes in several forms. Hopkins points out that the most recent average upward feedback score has risen to roughly 4.95 on a scale of 6, as compared to 4.40 in July 1998. Beyond that, the scorecard process has become institutionalized in the corporate culture.

"The scorecards have taken off and become successful," says Shah. "People expect to do upward feedback, and being measured is now part of doing business."

In fact, managerial and workforce acceptance of the scorecard system has been so widespread that it is now integrated with performance reviews.

As for timing, the business results scorecard is prepared monthly for the company president and quarterly for everyone else. The upward feedback scorecard is issued every six months. It used to be quarterly but went to twice a year to give supervisors more time to create action plans and implement changes before the next survey.

"The final step, integrated with the performance management process that we utilize, is the annual review, which we are going to make much more interactive and fast-paced," says Hopkins.

One other evaluation method is what's known as 360-degree feedback, a corporate process that involves managers and supervisors. These are surveys and facilitated sessions where participants offer feedback to a manager or supervisor with the outcome being another action plan for improved interpersonal relationships. Generally, a supervisor will initiate one of these surveys every two years.

Plan for Improvement

According to Shah, the scorecard system is a natural outgrowth of the quality path the organization has been following for several years. That approach entails a shift away from command-and-control type management to an environment that encourages the free and open exchange of ideas.

A central tenet of this new direction is that the people who actually do the work have the best ideas on how to improve it. Another belief holds that identifying and promoting effective leadership behaviors is essential for improved decision-making.

"When you coach people, the idea is that no matter how great they are, there is still some aspect which can be improved," says Shah. "However, you can't accomplish that improvement without knowledge and a plan," she concludes.

By Nicole Stahl