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Home My WebLink AboutContract 27604 (2)CI�Y �EC�€'TI�I�V ' C4NTRACi � . . :� . �. . � STAT� OF TEXAS § COLJNTIES OF T�liR1�NT, DENTON AND WISE § KNOW ALL BYTHE�E PRESENTS: CON'T`RACT FOR PROFESSIONAL CONSULTING SERV�CES This contract is made by ihe City of Fort Worth, T�xas, a municipal coxporat�on s�iva.ted in Tarrant County, Texas, hereinafter called "City", and Grrote Consulting Corporation, a Texas far� profit coxporation, hereinafter called "ConsuItant", both parties acting herein by and tl�rough their duly authoxized representatives: 1. �cope of Seirvices. Cons�zltant agrees to provide consuitafiion services to enable City to create a new performar�ce managemen.t system utilizing accepted best practices, as desc�bed in detail in E�ibit "A": "City of �ort Warth Reco�nz�n.ended Plan o�Aciaonta Develo� a Perforrnance Management Syst�m." Same is attached hereafter and incorporated herein far a11 purposes by reference. In the event of a conflict between the terms of thi� Contract and the terms af Exhibit "A," this Contract shall control. 2. Compensatian. The arriounfi fio be paid to consultant for all services performed hereunder shall not exceed �ixty thousand dollars ($60,OOQ). 3. Term. The term of this Coniract shall commence t�e date of full execution by City and Consultant and, with the e�cepiion of on-going m�intenance and monitaring as delineated in ExhiY�it "A," shall terminate no later than the 31st day af October 2002, uzaless fiexrzai�natec� ea�lier as pxovided herein. ' j . .y VI�I�VtG�U;�i� �'L�� r " - � _� ��d�( �� + ' '�o 4. Termination. a. City may t�rminate this Confiract at any tim� for cause amounting to a material laxeach of this Contract by Co�su�tant, by notice in variting io Consultan.t. Upon receipt o� such notice, Consu�tant shall immediately disconiinue all services and wark and �lie �lacing of all orders ar the entering inio contrac#s for all suppiies, assistanee, facilities and matex�als in connection vu�t.�i the pexfoxxnance nf �his Coniract and shail proceed to cancel promptly a11 existi�g cantracts insofar as they are char�eable to this Cantract. If the Ciiy terminates this Cantrac� under this Section 4.a., the City shall pay [:antractnr for services actually perfozmed in accordance herewith priar to such terminatioz�, less such payments as have been previously made to consultant, in accordance with a fi�al statement submitted by Consuitant documenting th� performance of such work. Consultant rnay terminate this Contract at any tirne if any payment due hereuz�dex is nat made by the City. b. In the e�ent no fiinds ar insufficient funds are appxopriated and budgeted by City in any fiscal period for any payments due hereunder ("De�aulf Period"), Czty will noiify Consultant of such occurr�nce prior to the begizaning of the Default Period, and this Contract shall terrninate an the last day o� ihe fiscal period for which appropri�tians were xeceived without penalty or ez�pense to City of any lcuid whatsoevex witli respect to the Default Periad, except as to the portions of the payments herein agreed upon for which fi.rnds shall have bee� appropriated and budgeted. City agrees to apprapriate and budget, as practicably as possible after the Default Pez�od, arnounts su�cient to cavex any payments owed but noi paid to Co�sultani as ofihe beginning of the Default period, and to promptly pay these amounts to Consultant. City has infarmed Consultant that, cancurrently vvith appraval of this contract, City will appropxiate and budget 140% of the funds specified in tlus Contract, so that all fiuzds will be apprapriated and budgeted priox ta the commencement daie of tiv.s Co�tract. c. Cipon termination of this Contract far any �reason, and subject to paragraphs 13 and 14, Consultai�fi shall provzde i4�e City vvith copiss of a11 completed ar partially completed documents prepared under ihis Con�ract. 5. Indemnificatian. a. Eaeh party to this Cantract ("Indemnified Party") shall indemnify and hold the ather party ("In.demnif ed Party") and its a�ficers, agents and employees harmless frorn any loss, darnage, liability or expense for damage to property and injuries, in.cluding death, to any person, including but �.ot limited to off'icers, agents, employees ar subcontractors of the Tndemnified Party, which may arise out of any t�egligent act, error or omission of the Indemnifying Pariy in connection v�+ith this Cantract. The Indemnifying Party shall defend at its own expense any suits or other proceedings bxought against the Inderrurzified Party, its officers, agents axxd employees, or any of them, resulting from such negligent act, errar ar omission; and shall pa� all expenses and satisfy alI judgments which may be incurred by or rendered aga�inst them or any of thezn in connec�ian therewi�h resulting from such negligent act, error or omission. 6. Insurance. a. Cansultar�i shall not co�nmence worlc under this Co�tract until ii has obtained a11 insura�lce required under this section and such insurance has been appraved by the City, nor shall Consultant a11ow any subcontractor �o commence work on its 3 subcontract until aIl similar insuranca of the subcontractor has been sa obtainec� and approval given by the City. b. Workers' Compensation Ins��rance: Consultant s1�all tak� out and maintain during the life of this Conf.ract statutory Workers' Cam.pensatian Insurance for aIl of its employees performing any of the services hereunder, and, in case any work is sublet, Consuitani shall require the subcontractor similarly to provide Work�rs' Comper�sation insuranca for all of ihe latter's employees unless such employees are covered by the prot�ction afforded by Contract's insuraz�.ce. In case any class of employee who e�agages in hazardous wark under this Contract is nat protected under the Workers' Compensatioi� statute, Consultant shall pravide and shall cause subcontractar to provide adequate and suitable insurance for the protection af employees not otherwise protected. c. Public Liability and Property Damage Insurance. Cansultant shail take out and maintain during the lifc of this Contract such public liability and property damage insurance as shall protect Consulfant and any subcontractor perFarming work eovered by this Coniract fram cla.ims for personal injuries, includiz�g dea�, as well as from claims for property damages ar losses which may arise frozxx operaiian under this contract, whether such operations be by Consultant ar by axzy subcontractar or by anyone directly or indirectly employed by either of tk�em. The amount of such insurance shall be as follows: (1} Public Liability Insurance. In an amount no less than Two Hundred Fifty Thousand Dollars (�250,000) far injuries, including accidental c�eath, to any 4 one person; and suhject to the ��ne limit for each pexsan, in an amount not less fihan Five Hundred Thousand Dollars ($Sa0,000} on accaunt of one accident; (2) Property Damage Insurance. In an amount not less than Five Hundred Thnusand Dollars ($S�10,Q00); (3) Umbr�lla Policy. In an amaunt not less tlian One Million Dollars ($1,000,000). d. Praof af Insu:rance Coverage. Contractor sha.11 furnish the City with a certificate of insurance �s proof that it has obtained far the duration ofthis Contract the insurance amounis required herein. Cansultant's insurance policy shall provide that the insurer shall give the City thirty (3 Q} days' prior written notice befare altexing, modifying or ferminating the insuran.ce coverage. 7. Independent Contractor. Cansultant shall perform all wark and services hereunder a� an independent contractar and not as an afFicer, agent or employee of the City. Consultant shall have exclusive cont�'ol of, and the exclusive right to control, the detazls o� the work performed hereunder. Nothing herein sha11 be construed as creating a partnership ax jaant venture between the City at�d the Consultant, its officers, agents, employees and subcontractors; and the doctrine of xespandeat superior shall have no applzcation as between the City and the Consultan�. $. Disclosure of Conflicts. Consultant v�arrants to the Gity of Fort Worth that it has rnade full disclosure in writing of any existing or potential conflicts of intarest related to the serviices to be performed hereunder. 5 Consultant furiher warran�s that it will make prampt disclosure in �it�ng of any conflicts of interest which develap �ubsequent ta the signing of this Contract. 9. Right to Audit. Consulfiant agrees that tlie Ciiy shall, until the expiranon of three (3) years aftar f nal payment under this contract, have access to and the right to examine at reasaraable times any dir�ctly pertinent books, documez�ts, papers and recards of the consultant involving transactions relating to this Contract. Consultant agrees that tha City shall Ilave access during normal working hours to a11 necessary Consultant facilities and shall be pravided adequate and appropriate warlc space in order to conduct audits in compliance with the pxovzsians of this sec�ion. The City shall give Cansultant reasonable advance notice of intended audits. Consultant fii�her agrees �o include in all its subcantractor agreements hereunder a prowision to tlie effect that the subcontractor agrees that the City shall, until the expiration o� �ree (3} yeaxs after fnal payment of the subcantract, have acc�ss to and the righfi to examine at reasonabie times any directly pertinent books, documents, papers and records af such subcontractor involving t� ansactions r�lated to the subcontract, and further that City shall have access during normal vvorlcing haurs to a11 subcontractor facilitie� and shall be provided adequate and appropria�e work space in arder to cQnduct audits in compliance with the provisians of this paragraph. City shail give subcontxactor reasanable notice of intended audits. 1 �. Prahibiti.on of A�sign�x�ent, Neither party hereta shall assign, sublet or transfer zts interest herein �vithout ihe priar written consent of il�e othe.r party, and any aitempied assignment, sublease or tra.nsfer of all or any part hereof without such prior written consent shail be void. � 11. Non-discr�rnination. , As a condition af this Contracf, CQnsultant covenants that it will take a11 necessary actians fio insure that, in connection with any worlc under this Contract, Contractors, its assaciates ar�d subcontractors, will not discximinate in the treatment or employment of any individual ar gr�ups of individuals on the grounds af race, calor, religion, natianal arigin, age, sex ar physical handicap unrelated to �ob pexforrnance, either directly, indireciiy ox fihrough contractual or othex arrangements. 12. Choiee of Law; Venue. a. TYus Cantract shall be construed in accardance with thc intert�al law of the State of Texas. b. �hould any action, whcther real or asserted, at law ar in equity, arise out of the terms of this can�ract, venue for said action sha11 be in Tarrant County, Texas. 13. Ri�hts in Results of Services. The materials and methods useti in the provision of Consultant's services axe praprietary to Cansultarzt. A11 rights, including copyrights, in and to such materials and methods shail xemain th� property of Gonsultani. City is granted a limited right of internal reproduction ax�d distribution of materials prepared specifically for City under this Contract. 14. ConfidentialInformation. City acknowledges and agrees that any and all i�£orrnation (in whatever form) re�ating to the business of Consultant and acc�uired by City under this �ontract, ar otherwise, is and shail rexziain, to � the extent permitted by law, conf dential information of Consultanf to the axtent that ii includes valua.ble and praprietary trada, �usiness and industry secxets af Consultant. Ciiy agrees to maintain in canfidence and (excep� as otherwise provided in paragraph 13) to refrain, direcily or indaarectly, fram copying, using, transfer�ring, disclosing or exploiting in any manner a.ny o� such conf'idential infoxmation d�xring the term of this Contract and following termination thereof, for any reason. EXECUTED an this /(� day of G� �4"T!j�'�ST: ' �t. . � . . _ y—. �.�-�---� � —�--,. �— - City Secr�tary f_. � � %�%�j,�,).! � Contrsct Au'�haxizatian _ �r.�C� �-C�,�- _ _ ._, ��e . 2002. CI OF FORT WORTH �. � Charles Boswell Assistant City Manager APP f OVED � � R RM AND LEGALITY': c � s Assista�� City Attorney GROTE CONSULTING By: \ /�,�, DIC OTE Presiden� � ORATI � � I u�(��, ��i�"� � �n '� �- �� M �Z_?� l-� � (� � �� ''�, . �—� r.-� � _ �� y �� o�t r��t�, �e�or�menc��d Pl�n o�' �ction to Devel�p � �e��'�rm�nee I�I�nagemen� ��t�m OB7�CTIVES The purpase af this project is to help the Ciky af Fot-t Worth develop a new performance management system. This r�ew system will produce the Following resufts far Fort Wor�h: 1, There wi{I be consensus amang the senior feadership team about the mos� important competencies required for success among Forr Worth managers, teehnical/professional empioyees, and non-manag�ment associates. 2. The performance managemen� syskem will support the city's campensa�ion system and wi11 assist city managers make appropria�e ancf defensible compensat�or� decisians. 3. Department heads will have greater ability {and accountability} �o run their departments as business uniYs. 4. Fort Warth wilf have a perFormance management process that incorparates accepted besi �rac�i�es. Amang these "accept�d best practiees" are the follow�ng elements: ❑�very city ernp{oyee -- at e�ery level — will understand just how his or her job cantributes to For� Worth's overall mission, ❑ The appraisal toal will identify and assess khe core camp�tencies identifiecf by senior city leadership as critical to success for every City of For-� Warth employee. ❑ We will identify al1 of the various "job families" in the c�t� [e.g., managerial, professionai/technieal, operations, support, etc.) and the competencies that are most critical to successful performance for each of these job families. ❑ Each empEoyee 9n �he identified job �amilies will set goal5 and object�ves that support overal! departm�ntal anc# city-wide objectives. ❑ Each city employee wili understand the most irnportant elements af his ar her job and the way that their performance on the job will be measured, ❑ Th�re will be a process for regular, on-going performance feedback, a mid-year review, and formal perfarmance assessment on at least an an�ual basis. � The appraisa! farms w�11 be comprehensiva, understandable, relatively simple ta use� and accepted as appropriate by all organization members, 5. The m�mbers of the Fart Worth managernent team will b� trafned to be hi�hly effective pewformanee managers. Among the knowledge and skills fihey will gain are the fflllowing: ❑ The ability to create and gain agreement on speclfic� challenging and measurable goals. ❑ The ability to create an infectious sense of enthusiasm a�d commitment ta the city's overall mission and the specific goa[s af their department. ❑ Knowiedge af the faciors that actually generate motivation and the ability to use those factors to i�crease bo�h 3ob perfarmance and satisfaction, � The willingness to set demanding standards pf performance and to musc�e-build their organization ta achieve excellent results. ❑ The ability to accurately evaluate — precisely and unarguably — an individual's strengths and weaknesses, particularly in hard-ta-measure professional and knowledge-vrrorker jabs. ❑ The ability to discuss a perfarmance e�aluation in a way t�at rema�es defensiveness, builds good working relationshi�as, and leads to genuine change. ❑ Tf�e abifity ta identify an individual's de�elopment needs and the skills needed to help ihat persan come up with a workable plan that will fmprove performance. ❑ The abiiity �o identify that small minority of truly exceptional Fort Worth employees whose retention is critic�l ta angaing organiza�ion success and to apply appropriate retention tackics. 4 The ability to identify that small minority of City of �ort Worth nan- contributors and confror�t them with the requirement that they either change or lea�e. How w� wi�.� no aY Tn my book, The Co,�r�plete Guide to Performance Appraisal, I explain thak creating a perPormanc� management system that is f�11y successful in�olves seven steps: 1. Identify senior� m�nagernent's objectides ar�d expec�atians f�r the perfarmance management system so tha�t fh�y can be incarporated inta t'he system and communicated to all of the organization's employe�s and managers. 2. Iden�9fy the core eompe�encies that se�iar management wants every member of the organization to demonstrate. 3. Construct a performance management system (forms, procedures� po{icies) that links indididual �erformance wi�h organigatian ob�ectives ancf m�eis a{I o� the expectatians of managers, employees, senior leadership, and HR. 4. Develop effective traCning �nd reference m��erials to make sure that af! members of the organization �ompletely understand the purpose, procedures and administrative m�chanics of the new system. 5. �elir��r ghe iraining prag�ra�m in such a way that it produces not only the knowledge and skills required �o use the performance managem�nt system r+vefl but the motivakion and enthusiasm to do sa, 5. Mak� sure thafi e�erybody affected by the nev�r City of Fort Workh performance management system understands an�1 suppor�s �he new approach. 7. Provide on�going support ae�d assistance to make sure that the new system remains Gompletely up-to-date and effecti�e follawing implementation. �ECOMM�IVDED �TEP�SY-STEP PLARi The detailed plan of acfiion will be determined foflowir�g discussions between the City vf Fort INorth's human resources management keam and Dick Grote, We propose the foflowing initial plan of action as an effective process �or achieving the goafs described above: OntE: The consultant, i7ick Grote, wifl visit �ort Worth far a pro}�ect planning meeting with the HR project mar�ager and other senior human resources managers. The abjective ofi this meting will I�e to establish a detail�d and cc�mprehensive s�ope-and- sequence plan of ac�ian for the camplete pro,}ect, Two: Grote will meet with the City Manager, the Ass9stant City Manag�rs, and key senior City �f Fort Warth leadership team members for a meeiing �f approximately three hours. There will be iwa primary abjecti��s for this meeting: 1. A seniar management executive o�erview to review fihe o�erall project plan, explain what "accepted best practices" in perfarmance managerrient are, and identify the ob3ectives that senior management wants to accomp{[sh fhrough its p�rformance management system. �. Determine the �ore cflmpetencies that senior management wants to hold every City of For� Worth employee accountai�le for demonskrating. iHREE: Groie wifl wark with tl�e City of Fort Worth on an on-going basis �o camplete his work helping the senior managemen� grou� ident9fy core competenci�s, begin the actual prajecfi work with project managers and HR staff, and work with the city's new performance appraisal implementation team. These graups and Grote will discuss and resolve many of �he important elements of an effecicive appraisal system, induding the fallowing : o Det�rmin�tion of the diFFerent job families o Determinatian of which competencies are ta be assessed a Number of forms needed ❑ Form design and Contents ❑ Balance be�ween R�su�Ts and Cor�p�T�r�ci�s/P�R�aRMa�eE FacTORs ❑ Who appraiser(s) should be ❑ Self-appraisal? ❑ Upward appraisa!? 8 Number of perfarmance levels ❑ Names/labefs far perFormance le�els ❑ Appraisal period ❑ Number af ineetings Q Pay/performance linkage ❑ Appraval requirements o Training requirements ❑ Communication requirements �ourt; During this process, Grote wifl de�elap the draft forms, operating system, training design, ac�ministrative slements and implementa�ion plan far review and approval by City of Fort W�rth leaders. During this d�velopment period, Grote will be in regular contact with the Fort Warth project manager for guidance and approval of drafts. Grote will probabfy afso need to meet on-site for a final re�iew of a11 per-formance management materials and to beg{n the developmeni of the training design. �Y�e: Folfowing appro�al by the City, Grate and the Fort Warth HR feadership team will de�ermine the most appropriate training delivery process ta me�t �ort Worth's management dev�lopment needs, The most likefy approach will be traditional elassrpam�based, instructor-led management seminars; however, web-based or CD- R�M based in�eractive training and other possibilities may also exist. Whatever the delivery system� Grote Consulting wi11 design the actual training progr�m and de�elop all training and reFerence manuals, Six; After appra�al o� the trainir�g approach and ma�erials by the City of Fort Warth, Grote wili create khe training process ret�uired to inaugurate the system and develop the skills and motirration to use it effecti�ely by alf Fort Worth appraisers. Grote will also design an apprapr�ate training/orienta�ian programs required for non- management �ort Warth employees / ap�raisees. Qn�e the training element of the system has been completed, the system will be afficially implemented and will go inro f�ll operation. However, mare work is required to assure tota� success. S��E�u: Assuming that the performance rnanagement system provides For a mid-year re�iew (recommended), Dick Grote wi11 meet wiih �'ort Worth management after the mid-year review has been completed ta review the resuits and determine any changas reqUired ta assure the system's on-going effecti�eness, �IGHT: Follvwing this six-month review meeting, Grote will then meet annually for one day with the City af Fort Warth. The agenda for thes� meetings will be specifically determined as the time for the meeting approacF�es, bu� is likely to include the following items: � Refresher training far Fort Wor�h appraisers ❑ Training for new Fort Warth appraisers ❑ On-going review of perfarmancE management activi�ies and results ❑ Updating forms and procedures to assure the incorporation of best- practice methodolagies � Operational changes tio forms, competencies, system structure, based on Fort Worth experience etc. WiAfdAGEMEPlT FORUM: As part of this plan of actian, Dicic Grate will also speak at �he City vf �ort Worth's h1anagement Forum to build understanding, acceptance and support for the ciiy's new perfarmance management system. Df��GOirdG TECKN�cAL SUPPort7: Beginning With the start of the project, the Fort Worth HR D9rectar and �he senior management team will have unlimfied technical support through 1-80� access to Grote Consulting for discussion and recommendations any time a perfarmance managemer►t issue that is particularly difFicuit or prececient setting arises. �OiilStILTARf7 QUALIFTCI�TIOI�S Dick Grate is uniquely qualified to pr��id� assistance to the City of Fort Worth in developing a bes�-practice performance management system: o Grote is the author of the book, The Complete Guide to Perfarmance Appraisal. Publishec! by the American Managem�nt Association, the boak was a major baok club selection and is now in its stxth printing. Grote's new boak, The Perfarmance Appraisal q�estion and Answer Book, will be also published by the Am�rican Management Associatian and will be released in April, 20a2, ❑ Grote served as the s�tbject-matter ex�ert for the �.999 na�ional benchmarking s�udy af best practices in performance appraisal spansored by �he American Productivity and Qu�lity Center {APQC) and Linkag�, inc. and underwritten by DDI and 19 majar public- and private-sectar sponsors. ❑ Dicic Grot�'s articfe about the results of the APQC benchmarking study, "Secrets of Performance AppraisaL• �est Practices from the Masters," was ihe cover story in the May, 2000 issue of Across the Board, khe publication of The Conference Board. ❑ Grote's ariicfe, "Performance Appraisai Reappraised," appeared in tf�e January- February 2000 issue of the Harvard Business Revi�vv. The article highlights the innavative approaches Ameri�a's public sector organizations are taking in developing performance management systems. � In 2000 and ZOq1, Dick Grote pr�sented a pre-conference workshop, "Perfiormanee Management: Best Practices; New Directions," fior the SHRM A�nual Conference in L.as Vegas and will conduct a similar ►�vorkshop at the Linkage Organizational Excellence Conference 9n Chicago. He deli�ered the clasing genera! session address for The Conference Board`s annual HR Canference in New York and For the Internatianal Persannel Management Association's (TPM,4) annua{ canference in San Francisca. Ne has spoken at every Governing magazine national conference since 1999. fl Grate has recently created performanc� management systems for a wide variety of organizations, including Miller �eer, Andersen Worldwide, CAR�, Caterpillar, Texas , Instruments, the City of Houston, th� City of Zrvi�g� the City of Wir+ston-Salem, the Minnesota [7epar-tment of Transportatian, and the Nationaf Security Agency. ❑ Grote has developed an e�armous library ofi resource ma�erials on perfarrnance rnanagement that make the difficuft job ofi u�ing a performance management sys�em straightforward and trouble-iree. Grote will specificafly provirJe a li�ense for the City of �ort Worth to us� any of this library oF inateria{s as part of this praject. ❑ Dicic Grote has been a consultant in perfarmance management for 24 years. PerFormance management is our only busir�ess. Public sectar is our specialty. �DMIC+IYSTRATIOIV AAID IINVESTMERIT REQUIREMEPfTS Dick Grote, pr�sident of Grote Consulting Corporation, will be the project manager and will p�rsonally facilitake all meetings and construct all forms and ciacuments. Dick Grote will afso design and conduei all training programs. Grote Consufting's fees are aVwa�rs based on the nature of the project, the objectives to be accomplished, and the value to the cfien� arganization, and not on units af time. This arrangement encourages yau to call us or to extend meetings without worrying if the meter is running� and allaws us to perForm unscheduled work or to s�ggest additional areas of focus writhout concern for increasing your investmen�. The professional fee for all praject activities required to develop the City oF Fort Worth pertormance management system, will not exc�ed $6fl,000. This �raject fee includes �a Working with Fort Warth s�nior HR and operating managem�nt to identify job families and core competencies. ❑ Conducting all system development meetings with t'he HR professional staff, tMe senior city leadership, and �he perfarmance appraisal implementation team. ❑ Development p� unique For� Worth perfarmance appraisal forrns, administrative pracedures, materials and resources. o Development and defivery of the Train-khe-Trainer program far the new appraisal system to a group of City af Fort Worth trainers. a Conducting o�e training program for a group of senior city managers and the group of trainers. ❑ Access to Grote Consulting's master perfarrnance appraisal form, model forms from ather orga�izations, and Grote Consulting's library af perfiarmance management intellectual property. ca Revisions fio materials as required. a Pr�duction of electronic versions and camera-ready final capies of a{I materials, including a Hcense ta use and reproduce all materials �or use within Fart Worth. n Comple�e technology transfier. The professional fee also includes Dick Grote's presentation at ihe city's Management Forum and unlimited 1-800 telephone technica! support at any time following implementation for help with unusually difficuft or precedent�setting performance management issues. Grote Cansulting's siandard arrangement for payment of the professfonal fee for the similar projects is one-third at the time of the acceptance of the agreernent, one�third at the canclusion �f the system design meeiing, and the final third at �he conclusion of the first training pragram. Travel expenses outside the D/FW area, if any, are calculated on the basis of actual and reasonable. Expenses are cornpiled and invaiced with the prafessional fee. All Grote Consulting's narmal l�usiness expenses (phone� fax, mail, etc.) are included in the prafessional fee, �a�minis�ra�ir�e gnformaiion Dicfc Grote regularly writes about best-practice techniques and appro�ch�s used by our clients. Grote Consulting agrees that any of Dick Grote's writings that mentian the City of Fort Worth or its sys�em will be reviewed and approved in advance by il�e Ci�y. The City of ForC Worth agrees to r�fer at►y external inquiries about its perfarmance managemer�t system to Groie Cansuf�ing for response and agrees nat to pravide any materials cankaining Gr�te Consulting`s +ntellectua� property to any person or organization external to �ort Wor-th. In return� Grote Consulting agrees to secure fihe City of Fort Worth's permission before referring any pros�ective client to the city for informatian. Gro�e Cansulting Corpora�ion and the City af Fart Worth agree that ail wark performed an t�is project is for the sole and exclusive use of City of For� Worth, and not for any other entity. We will sign nondiscCosure agreements as requested. All of aur vvork is conducted within strict baunds of confidentiality. 7his project is noncancellable� a�d agreed-upon payment terms are due as tiescribed, Nowever, you may postpane or delay any part of the work in progress without penalty. In additfon, our work is guaranteed. If v;re do not meet your objectives, and cannot meet them after your notification and an attempt tfl correct the shortcoming, we will refund your fulf fee. This has been our commitment to our clients for over 24 years. �c�ep�ance Submitted by Grote Consulting Corporation �y: - , �� Dick Grote Presicient d� 15303 Dalfas Parkway, SUite 5�5 Addison, Texas 75001-6725 972-702-7555 97Z-702-756Q �ax Accepted for the City of Fort Worth by: 1Vam�:: Title: Address: Telephone: Fax: March 21., 2002 Date: 'I�1 G `�� 4� nS 1�'�iA,fL`L G•.� $ G£ S 51�Ly � � ---� �� u�� Cli'�f OF �ORT dVORTM ie��a��ve timeli�� r devel�p��r�� r�ew �e�f�r�arac� rrQa�ag�rr��r�t s��emn T�skf AG�ivs#y o�adline I � Week �ndi�+�} c�mm�r+ts Projeet planning meeting with City of Fort Wortt� Steering Committee. April iZ Agenda: Q Project O�erview (Why they were selected, what expectations the organization has of them, how m�ch time will be invo{ved, why the City of Fort Worth is undertaking this proje[t, what the major milestones wil{ �e, what's in it for them). ❑ Develop a common understanding of the key elements of perFormance management. ❑ Begin development of Steering Committee rrEembers as interna� consultants on performance inanagement issues. ❑ Develop project timetables and goals 0 Identify key is5ues to be r2solved over t�e caurse of the projett ❑ Identify any immediate communication requirements ❑ Determine Steering Cammitiee memiaers' expectations oF a new City of Fort Worth performance management 5ystem. ThiS wilf be an i�itial proje[t o�errriew that wikl ad�u5t this � project timetabEe, introduce all p[ayers, determine roles ar�d responsibilities, and get the �roject ofF to a gaod start. Estimated time: 3 hours Note: T�e Steering Committee meeting will be preceded by an infQrmal meeting and telephone discussions betwee� Dick Grote and the City of Fort Worth pro�ect managers. 0 Plan �he Transition Team rneeting. ❑ Deve[op the members of the Steering Cammittee into perfarmance management Ghampions. p�a�line Task1 Activaty �1lMeek Cornme�t� endin9) Conduct Executi�e Gverview meeting (ai�out 3 hovrs) with City of Fort Apri[ 26 Worth Transitian 7eam. Agenda: ❑ Build senior management understanding af best pra[tices in performance management. 0 Explain what a world-cEass performance managernent system looks iike and haw it ciiffers from the procedures used by ordinary organizations. 0 Describe the rafe that a robust perfarmance management process can play iR aligning human performan�e with top management expectations and [reating a high performance organization. ❑ Explain the impact the pertormance management systems can have in building nrganizat�onal culture (and in a{igning culture in organizations with significantly different organizational components). ❑ ❑etermine senior management expectat9ons of a perfarmance management system. o Determine the competencies that all City af Fart Worth employee5 r�rill be expected ta dispfay regardless of position, department, or arganizatianal level. O Develop the senior manegement team into perfarmance management champions. Complete tampetency development work Conduct second Steering Committee meeting. Agenda: ❑ Review of the competencies ct�osen by the Transit9on Team. 0 Review of Transition "feam's expectations of a new City of Fort Worth perforrnance management system ❑ Initial Steering Committee discus5ion and recommer�dations on key pertormance ma�agement system issues: Preparat�on activities will inciude: C ❑ Identifying who shoufd attend (only 7ransition Team members? Nfajor department heads? Key staf# managers2) Arranging for log9stics {finding a date that works far the ma�oriiy of participants; arranging an appropriate meeting lo[ation, sending out in�itations and any pre-reading materials, confrming participatian immeciiately before the meeting, etc,) "Core compete�cies" are the f�ndamental building blocks of performance ma�agement. By identifying Gore competeRcies, the City of Fort Worth's leadership tommunicates to every rnember of the organization exactly what is expected. TBD If fhe Transition Team is una61� ta come to complete eonsensus on the core campetencies for al! Cify of Fort Worth employees in their meating, additlonal work will be needed. However, the rest of the activities rn the projeet can proceed while this phase is being completed. May 10 The Steering Cammittee can begin its work as sofln as the Transition Team has identified the City of Fort Worth [ore competencies. This meeting usualiy involves one full day. o Nurrrber of forms needed o �orm design and contents o Should seEf-appraisal be �art oF the process? -- �i�a�li�e �askJ Activi�y (week Garrasner�t� �n��ng} - � o Shguld upward appraisal be part of the proces5 o Approval requirements o Appeal processes o Nurnber of performance levels o NamesJlabels for perfarmance levels TniCiaf development of form/5 and managerrtent system Steering Committee reuiew and analysis of draft forms Canduct third Steering Committee meeting. Agenda: ❑ Review / revise / approve initial recommendaiions on form design ❑ Identify any remaining or unanswered policy questions ❑ Review / revise / appro�e initial communication plan ❑ Begin identifiCation of unique City of Fort Worth training needs Transition Tearn review Organizafiona! review (optional) fNay 10- 3u�e i ]une 7 — ]une 21 ]une 28 In this four week periad, the fir5t draft of the form or forms will be developed. This task will 6e perFormed by Dick Grote, hased on the input from Steering Committee members. In addition, Di[k Grote antf t�e City of Fort Worth project managers will wor[c on de�eloping preliminary answers to m,�ny of the key administrative questions regarding such issues as: ❑ Pay and performance linkages ❑ Use of performance ma�agement system results for succession planning purposes ❑ Training resources and requ[rements ❑ Confidentiality requirernents, etc. Each indirridual on the 5teering Committee will he provided a full set of draft forms for review. Comments and recomrnendations must 6e senC to Dick Grote in ad�ance of the next Steering Committee meeting. Dra�ts of the new pertormance appraisal forms will k�e circulated �o Steering Committee members in advance of t1'iis meetinq. This meeting is ty}�ically one-haff day iong. June 28- The Transition Team will be requested to re�iew and comment July 5 an tha forms after changes recammended by the Steering Comrr�ittee have been intorporated. TBD The City of Fort Worth may decide to circulate drafts of the new performance appraisal forms ta a group oFemployees once the forms are close to fina! draft stage. This review will serve the puroose af prevaring organization T� sk f Activi#y Final de�efopment of forms Fi�al pre-training Steering Cornmittee meeting. Agenda: ❑ ReWiew employee feedback o� the Content of the forms ❑ petermine areas for particular emphasis dur[ng training. ❑ Determine employee cofrimunicatian plans ❑ Review transitioR requirements ❑ Resolve final administrative issues Transition Team final review. Develap training materials Cvnduct appraiser Train-the-7rainer programs Dick Grote cond�cts demonstr�tion pertorm�nce management training p�ogram for senior City of Fott Worth managers and trainers. �eadiine (We�k �n�ing) Comrnent* � members for the new system and wiil allow tFrem a degree of influence over the system's conient's. It wi!! also extend the development pracess, but may increase user acceptance. July 5— Wit� the inputs from the Steering Cammittee, the 7ransition �uly 1Z. Team, and any other employees of the City of Fort Worth who have been requested to review the Porms, Dick Grote wifl de�elop the forms into �inal , Camera-ready form. July 19 This maeting is typically between one-haEf and one full day. At this meeting a11 issues that must be resol�ed before the beginning vf the de�elapment o� the appraiser training program are discussed and settled (suhlect to final review following training). July 26 Transition Team will be kept informed of progress of the performance management Steering Committee ancf the decisions and recommendation5 on system administration throughout the project. Drafts of a[I ferms and policy/procedural guidelines wifl be routinely circulated to them #ar review, ]ufy 26 — The development of training materials will be ongoing August 9 throughout Che project as farrrts are appro�ed and proced�ral decisions are made. August The length of the performance manage�-nent Train-the-Trainer 16 program wifl depend on the eourse content and length. In general, a 3: i ratio (three days af Train-the-Trainer fo� every day of the training prograrr�) is workable. Trainers for the program need to be identified and committed well in advance of the Train-the-Trainer program date. August Tmmediately following the Train-the-Trainer program, Dick 23 Grote will Gonduct the program for a eom6ined group of 20-24 senior managers and the grvup of trainers. This will allow the trainers to observe Grote actually conduct the prograrn that they are aho�t to conduct. The emphasis in thi5 program will be on senipr management's responsibi[ity for performance management, as wall as ihe regular training program agenda. -- �1e�t11in� �3S�C/kC.tlYlty (Weei4 CO#71m�r1[5 e�d�rlg} Trainers tonduct training programs for City of Fart Worth appraisers. August 23 — Septemb er ZO During [he training programs, the trainers vvill collect any questions for review and response by the member5 af the Steering Committee. Final 5teering Cammittee meeting. Agenda: ❑ Review of all questions that arose during appraiser training and de�elopment of appropriate response5 ❑ Review plans for employee orientation sessions and ather employee [ommunication plans ❑ Determine responsibilities for program maintenance following implementation ❑ Develop 5enior management presentatEon Senior management presentation Conduct management forum Employee orientatian sessions System inauguratian Immediat The purpose of this meting is to ma�Ce 5ure t{�at any issc�es efy left unresolved during system development are resol�ed, ar�d fal[owing to make sure thai any questions that arose during tf�e final training programs that weren't answered in dass get training answered. program This meeting typically consumes ane moming. in the at�ernoon the members of the Steering Committee will ma[ce a formal pre5enfiation to City of Fort Warth Transition Team, explaining e�erything that they have done and that the missiv� thafi they were assigned has been successfully accomplished, Some form of formal recognition for the efForts oF the Steering Committee from the city's senior [eadersh9p is appropriate. Afternoon This meeting fiypicaliy lasts b0-90 minutes. of final It is at this meeting that the City of Fort Worth TranSition Steering Team farmally approves the new perfarmance management Committe syster'n. By deiaying formal approval �ntil this point, the e meeting inputs of almost every city sta[ceholt�er have been solicited and considered, thereby increasing user acceptance. Morning An overview af the new pertormance program wifl be meeting deli�ered to the City's management team (about 2�D persans). Septemb These fi0-40 minute 5essions contentrate on achieving the er 27 foilowi�g agenda: ❑ Explaining the system's purpose and operations p Building understanding, acceptance and support ❑ Ex�laining how they can get the most persona] hene�t from ti�e city's new �ertormance management system Dctober i System inauguration typically starts with managers (appraisers) conduct[ng pertormance planning meetings with their subordirlates (appraisees) to discuss City of Fort Worth competencies. 9oals, lcev ]ob respQnsibilities, and I}ea��ine T�sk JAct�vity { W eek Can,merits en�ing) performance expecr�atior�s over �he next 12 months. Monitor and maintenance I On-going I — _ �. _ �'ity of �'o�t Wo�th➢ T'exa� �iayor ��d Cou�cil Cor�nmun�c��tio� DA7E REF�RENC� NUMBER L�G NAME 3126102 **��'� 9�� 14G ROTE PAGE 1 of 2 SUBJECT PROFESSIONAL SERVICES AGREEMENT WIT�! G�E ��NSUi,TING C�RPDRATI�N F�R ASSISTANCE IN DESlGN1NG AND IMPLEMENTING A NEW PERFORMANCE , EVALUATiON SYSTEM RECOMMENDATION: It is recommended that �the Ci#y Council aut�orize the City Manager to execute a professional services agreement with Grafs Consult�ng Carporation for assistanc� in designing and implementing a new performance e�aluation system, at a cost not to exceed $60,aaa. DISCUSSION: The Public 5trategies Group (PSG) was engaged in FY2p��-2D01 #o conduet a strategic assessment of City gauernmental operatic�ns. The purpase of the review was to identify opportunities for #he Ci�y to "ta4ce it to the next level". PSG identi#ied key findings and recommer�dations in fi�e areas of public- sector organizational �ffectiveness: Core {cfarity af purpose); and Customer {flrientatian toward interest of its residents); and Co�nsequences (accountability for perfarmance); and Control (decisia�-making alignment}; and Cul�ur� (wark enviranment}. In the area of Consequer�ces, PSG recomm�nded that the p�rfarmance management system pravide organizational accountabifi#y for produeing results� for citizens and crea#e t�e conditians to cnntinually improve pertormance. The performance management taols should be integrated at a11 l��els of the organization so ther� Es alignment between ths City's goals and the wor4� that employees do ev�ry day. The City's executive team stro�gly agreed with this recommendation, a�d in November 20p1, during the Deparkment Head R�treat, ider�tified as a high priority a radesEgn of the City's performance � appraisal tool. While the City's current performance appraisal tool addresses the two key areas of performance ("how we get the job done" ar�d "what we get dane"), it is not aligned with the strategic gaals and is not c�astomized for the wide varie#�► of jobs in the Gity. Alsa, it i� not utifized as a performance managem�nt tool, and the relatianship it ereat�s between performance and pay is nat iniegrat�d with acc�mplishments that support the City's•strategic gaals. As one af the first majar process changes related to becoming a high performance arganizatinn and one that "touches" all employees, it is critical that the �erformance evaluation incorparate components tha# can serve as building blocfcs for future impravement in other processes. Develaping such a comprehensi�e system requires expertise not currently available in-house. Grate Consulting Corpora#zon facuses on performance management: pertarmance ap�raisal systems and disci�iine systems. Dici� Grate is a nationally recognized expert on such systems, often quoted in the Harvard Business Review and author of The Complefe Guide #o Performance Appraisal. �'ity of �'o�t �orth, Texa� M�yor and Cou�c�[ Commu�ic��tio� DATE REF�RENCE NUMBER LOG NAME PAG� 3/2fi102 **�a� �01 � I 14GROTE � 2 of 2 51JBJECT PROFES5IONAL SERVICES AGREEMENT WITH GROTE CONSU�TING CORPORATION FOR ASSISTANCE �N DESIGN�NG AND IMPLEMENTlNG A NEW PER�ORMANC� EVALUATION SYSTEM The scope of work for this contract includes: Creating a new performance appraisal system unique to the City of Fort VIlorth that incorporates all accepted best practices, as well as being customized �or the Cify.. The system will include appraisal farms for each job family and will recognize citywide competencies expected af all employees, as well as �ob-specific campete�cies related #o job families. lnput from all le�els of the vrganization will be sought to er�sure alignmenfi. Emphasis will be placed on utilizing the pracess as a performance-planning tool; and � Ensuring tf�at managers and supervisors ar� trained in the use of #he n�w process by designing and conductir�g a"Trair� the Trainer" program. Trainers throughaut the City will tiien present fihe training fa managers and supervisors; and • Designing the training pragram far the management and supervisory trait�ing, with emphasis on the fiacfi that performance management is an on-going process, no# just an annual evaluation that includEs setting performance goals, measuring resuits, making fhe results matter, and learning from the results. Included alsa will be ski�f training in dealing effectively with performance problems, MIV►1BE - A waiv�r af the MIWBE requirements was requested by the Human Resources Departm�nt and approved �y the MIWBE Office �ecause ihe subcontraGtinglsupplier opportunities are negligible from the purchase saurce. F1SCA� INFORMATiON10ERTIF[CAT�ON: The Finance Director cer�ifies that funds are available in the currant operating budget, as appropriated, of the Ger�eral Fund. No funds wer� incl�ded in the Human Resources pepartment budget far this exp�nditure, however, the department expects to absorb this expenditure wi#hin its existing a�p�opriation. CB:n Submitted for City Manxger's Officc by: Cl�arles Boswell Originating Department Heads Linda Cohb Additianal Iniormation Contact: Lib6y Lanzara F[J1�iD I ACCOUNT f � (to) � 8511 I � � 7783 I (from) GG01 5399 20 8552 CENTER I AMOUNT 01410Q0 CITY SECRETARY APPROVED 03/2G102