DoD Instruction 1400.25, Volume 1404, "DoD Civilian Personnel

Department of Defense

INSTRUCTION

NUMBER 1400.25, Volume 1404

June 26, 2014

Incorporating Change 1, Effective April 28, 2023

USD(P&R)

SUBJECT: DoD Civilian Personnel Management System: Nonappropriated Fund Performance

Management Program

References: See Enclosure 1

1. PURPOSE

a. Instruction. This instruction is composed of several volumes, each containing its own

purpose. The purpose of the overall instruction, in accordance with the authority in DoD

Directive (DoDD) 5124.02 (Reference (a)), is to establish and implement policy, establish

procedures, provide guidelines and model programs, delegate authority, and assign

responsibilities regarding civilian personnel management within the DoD.

b. Volume. In accordance with DoDD 1400.25 (Reference (b)), this volume:

(1) Reissues Volume 1404 of this instruction (Reference (c)) to establish policy, assign

responsibilities, and prescribe procedures for performance management programs covering DoD

nonappropriated fund (NAF) employees.

(2) Establishes a senior executive performance appraisal system for DoD NAF

employees at the NF-6 payband level pursuant to section 1587a of Title 10, United States Code

(U.S.C.) (Reference (d)), to regulate the amount of total compensation for senior NAF executives

to achieve pay parity between DoD senior NAF executive and DoD senior appropriated fund

(APF) executive performance.

2. APPLICABILITY. This volume:

a. Applies to OSD, the Military Departments, the Office of the Chairman of the Joint Chiefs

of Staff and the Joint Staff, the Combatant Commands, the Office of Inspector General of the

Department of Defense, the Defense Agencies, the DoD Field Activities, and all other

organizational entities within the DoD (referred to collectively in this volume of this instruction

as the “DoD Components”).

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b. Unless otherwise stated:

(1) The Army and Air Force Exchange Service may be considered a DoD Component

for the purposes of this volume, if delegated authority to oversee internal NAF performance

management policy by the Secretaries of the Army and the Air Force, as applicable.

(2) The United States Marine Corps; the Navy Exchange Service Command; and the

Commander, Navy Installations Command may be considered DoD Components for the

purposes of this volume (with the exception of Enclosure 5), if delegated authority to oversee

internal NAF performance management policy by the Secretary of the Navy.

c. Applies to all NAF employees and positions within the DoD, including those NAF

positions authorized to receive funding from appropriated funds.

3. POLICY.

a. Performance management programs will be established within the DoD Components that

accurately and fully measure the performance of all eligible NAF employees, establish goals and

expectations, and assess individual employees, teams, or groups of employees, as well as whole

organizations.

b. All DoD NAF senior executives at the NF-6 payband level will be compensated on a

comparable level and basis as DoD APF employees in the Senior Executive Service (SES). The

NAF senior executive performance appraisal system will apply the requirements of section 5382

of Title 5, U.S.C. (Reference (e)), to provide applicable standards of comparison that make

meaningful distinctions between levels of performance. The NAF senior executive performance

appraisal system will:

(1) Support and facilitate performance excellence, accountability, and strategic

alignment, and link performance to organizational results.

(2) Require executive performance plans that support such factors as the DoD (and

respective DoD Component and organization) strategic plan(s), Public Law 111-352 (Reference

(f)), and other related goals, desired outcomes, and system results.

(3) Require oversight of the performance appraisal process to include an annual

assessment of the organization’s performance, use of guidelines for performance evaluation,

certification of the assessment process by the DoD Component head and the Under Secretary of

Defense for Personnel and Readiness (USD(P&R)), through the Deputy Assistant Secretary of

Defense for Civilian Personnel Policy (DASD(CPP)) and Assistant Secretary of Defense for

Manpower and Reserve Affairs (ASD(M&RA)), as described in Enclosure 2 of this volume, and

assurance of appropriate recognition for senior executives.

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(4) Allow for executive involvement in the evaluation process, communication between

the rating official and the executive, clear accountability, executive pay progression based on

performance and mission accomplishment, and an understandable basis for pay adjustments.

(5) Hold NAF senior executives accountable for rigorous performance management of

subordinates and for aligning their subordinate employees’ performance plans with

organizational goals.

(6) Appraise the performance of NAF executives using measures that balance

organizational results with customer, employee, and other perspectives.

(7) Be transparent across the DoD Components and have appropriate accountability

mechanisms.

(8) Be applied in a consistent, equitable, and nonpolitical manner to employees in NF-6

positions DoD-wide.

4. RESPONSIBILITIES. See Enclosure 2.

5. PROCEDURES. See Enclosure 3 for requirements for authorizing officials and rating

officials. See Enclosure 4 for requirements for performance management programs for NAF

employees in paybands NF-1 through NF-5, Child and Youth (CY) paybands, and Crafts and

Trade pay schedules. See Enclosure 5 for requirements for the NAF senior executive

performance appraisal system.

6. RELEASABILITY. Cleared for public release. This volume is available on the Directives

Division Website at https://www.esd.whs.mil/DD/.

7. SUMMARY OF CHANGE 1. The changes to this issuance:

a. Supersede the direction in the January 11, 2019 USD(P&R) Memorandum (Reference (g))

as it relates to NAF senior executives performance management process.

b. Update the weighted percentage for the critical performance elements; remove specific,

measurable, aligned, realistic and relevant, timely, quality framework language; and add new

paragraphs regarding validation and certification to Enclosure 5.

c. Update organizational titles and references for accuracy and remove expiration language

in accordance with current DoD direction.

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8. EFFECTIVE DATE. This volume: is effective June 26, 2014.

Enclosures

1. References

2. Responsibilities

3. Procedures

4. Performance Management Programs for NAF Employees in Paybands NF-1 through NF-

5, CY Paybands, and Crafts and Trades Pay Schedules

5. NAF Senior Executive Performance Appraisal System

Glossary

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TABLE OF CONTENTS

ENCLOSURE 1: REFERENCES ...................................................................................................7

ENCLOSURE 2: RESPONSIBILITIES .........................................................................................8

USD (P&R) ................................................................................................................................8

ASD(M&RA) .............................................................................................................................8

DASD (CPP) ..............................................................................................................................8

DIRECTOR, DEPARTMENT OF DEFENSE HUMAN RESOURCES ACTIVITY………..9

DOD COMPONENT HEADS ...................................................................................................9

ENCLOSURE 3: PROCEDURES ................................................................................................12

AUTHORIZING OFFICIALS .................................................................................................12

RATING OFFICIALS .............................................................................................................13

ENCLOSURE 4: PERFORMANCE MANAGEMENT PROGRAMS FOR NAF

EMPLOYEES IN PAYBANDS NF-1 THROUGH NF-5, CY PAYBANDS, AND CRAFTS

AND TRADES PAY SCHEDULES .......................................................................................15

CORE REQUIREMENTS .......................................................................................................15

PERFORMANCE RATINGS ..................................................................................................16

LESS THAN SATISFACTORY PERFORMANCE (LEVEL ONE OR TWO

ON A FIVE-LEVEL RATING SYSTEM) ........................................................................16

DISPUTING A PERFORMANCE RATING ..........................................................................16

ENCLOSURE 5: NAF SENIOR EXECUTIVE PERFORMANCE APPRAISAL SYSTEM .....17

PERFORMANCE PLANNING...............................................................................................17

Developing Performance Plans ..........................................................................................17

Content of Performance Plans for NAF Senior Executives ...............................................17

MONITORING PERFORMANCE .........................................................................................18

DEVELOPING PERFORMANCE ..........................................................................................18

APPRAISING AND RATING PERFORMANCE ..................................................................19

Performance Appraisal Period ...........................................................................................19

Preparing the Appraisal......................................................................................................20

Assigning Ratings ..............................................................................................................21

Communicating Assessment…. .........................................................................................21

HIGHER-LEVEL REVIEW ....................................................................................................22

EXECUTIVE REQUEST FOR HIGHER-LEVEL REVIEW .................................................22

LINKING PAY AND PERFORMANCE ................................................................................22

PRB………. .............................................................................................................................23

FINAL PAY AND PERFORMANCE RESULTS ..................................................................24

VALIDATION……………………………………………………………………………….24

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CERTIFICATION….………………………………………………………………………..25

APPENDICES

1. NAF SENIOR EXECUTIVE PERFORMANCE APPRAISAL PROCESS ...............26

2. NAF SENIOR EXECUTIVE PERFORMANCE APPRAISALS:

PERFORMANCE ELEMENTS, PERFORMANCE LEVELS, AND

DERIVATION FORMULAS ......................................................................................28

3. NAF SENIOR EXECUTIVE PERFORMANCE BENCHMARK

DESCRIPTORS ...........................................................................................................35

GLOSSARY ..................................................................................................................................44

PART I: ABBREVIATIONS AND ACRONYMS ................................................................44

PART II: DEFINITIONS ........................................................................................................44

TABLES

1. Steps in the Performance Appraisal Process .......................................................................26

2. NAF Senior Executive Performance Element Rating Derivation Formula ........................33

3. Performance Rating and Score Ranges Conversion Chart .................................................34

4. Example of NAF Senior Executive Derivation Calculation ...............................................34

5. Examples of Senior Executive Work Behaviors .................................................................35

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ENCLOSURE 1

REFERENCES

(a) DoD Directive 5124.02, “Under Secretary of Defense for Personnel and Readiness

(USD(P&R)),” June 23, 2008

(b) DoD Directive 1400.25, “DoD Civilian Personnel Management System,”

November 25, 1996

Nonappropriated Fund (NAF) Performance Management Program,” January 29, 2010

(hereby cancelled)

(d) Title 10, United States Code

(e) Title 5, United States Code

(f) Public Law 111-352, “GPRA Modernization Act of 2010,” January 4, 2011

(g) Under Secretary of Defense for Personnel and Readiness Memorandum, “Delegation of

Authority – Assessment and Validation of Component Senior Executive Service and Senior

Professional Performance Appraisal Process,” January 11, 2019

(h) Title 38, United States Code

(i) Office of Personnel Management, “Operating Manual for the Federal Wage System

Nonappropriated Funds,” as amended

Copies may be obtained at https://www.opm.gov/policy-data-oversight/pay-leave/pay-systems/federal-wage-

system/#url=Nonappropriated-Fund

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ENCLOSURE 2

RESPONSIBILITIES

1. USD(P&R). The USD(P&R):

a. Establishes performance management policy applicable to all DoD NAF employees.

b. Establishes a DoD NAF senior executive performance appraisal system that applies

Reference (e) requirements to pay senior executives based on individual performance,

contribution to the agency’s performance, or both, as determined under a rigorous performance

management system.

(1) Oversees and assesses implementation of the NAF senior executive performance

appraisal system to ensure NAF system standards of comparison are comparable to those of the

DoD performance appraisal system for APF senior executives.

(2) Certifies every 2 years that the NAF senior executive performance appraisal system,

as designed and applied, makes meaningful distinctions between levels of executive performance

and appraises executive performance in relation to contributions to DoD and DoD Component

strategic goals. This positive certification will be contingent upon the DoD obtaining and

maintaining Office of Personnel Management certification of a DoD performance appraisal

system for DoD APF senior executives.

2. ASD(M&RA). Under the authority, direction, and control of the USD(P&R), and in

accordance with Reference (a), the ASD(M&RA) develops policies and oversees civilian

personnel management and DoD NAF instrumentalities, including ensuring DoD performance

management policy and procedures are consistently and uniformly applied.

3. DASD(CPP). Under the authority, direction, and control of the ASD(M&RA), the

DASD(CPP):

a. Issues guidelines, as necessary, for the implementation and certification of the DoD NAF

senior executive performance appraisal system.

b. Validates the NAF senior executive annual performance appraisal results provided by

DoD Component heads pursuant to Reference (g).

c. Monitors NAF executive performance management requirements and oversees

compliance with the provisions of this volume, ensuring consistent implementation and

continuous application throughout the DoD.

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4. DIRECTOR, DEPARTMENT OF DEFENSE HUMAN RESOURCES ACTIVITY. Under

the authority, direction, and control of the USD(P&R), the Director, Department of Defense

Human Resources Activity supports the DASD(CPP), as appropriate, in the execution of their

duties and responsibilities in this volume.

5. DoD COMPONENT HEADS. The DoD Component heads:

a. Develop plans and establish a performance management program, consistent with

Enclosure 4 of this volume, that measures performance, establishes goals and expectations, and

assesses individual employees, teams, or groups of employees as well as whole organizations.

(1) Measures of performance will determine what has been accomplished and serve as

the basis for performance pay increases or bonuses, special recognition, and formal and informal

awards.

(2) Programs may be tailored to fit the mission and culture of the organization. They

will be designed to improve individual and organization performance and strengthen the link

between pay and performance.

b. Implement a NAF senior executive performance appraisal system consistent with

Enclosure 5 of this volume.

(1) Function as the authorizing official as defined in the Glossary. This responsibility

and authority may not be delegated below the DoD Component head level except as described in

the definition.

(2) Ensure the NAF senior executive appraisal process takes into account the

organization’s assessment of its performance relative to the accomplishment of strategic goals

and other program measures.

(3) Ensure pay adjustments are based on performance and reflect organizational

performance.

(4) Comply with DoD certification of the NAF senior executive performance

management system by submitting supporting documentation every 2 years to Defense Civilian

Personnel Advisory Service (DCPAS) for performance appraisal system certification that:

a. Meets the DoD’s annual opening and closeout guidance.

b. Considers organizational performance in rating decisions.

c. Reflects training on the operation of the performance appraisal system.

d. Aligns performance plans with the DoD Component’s strategic plan.

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(5) No later than 90 days after the end of the DoD Component’s annual official appraisal

period and completion of the performance review boards (PRBs), provide recommended annual

performance ratings and associated pay increases and bonuses for the appraisal period to DCPAS

for technical review. Include a memorandum to the DASD(CPP) confirming that performance

appraisal results, pay adjustments, and performance bonuses to DoD NAF senior executives:

(a) Are based on individual performance and contribution to the DoD Component

mission.

(b) Reflect organization performance.

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ENCLOSURE 3

PROCEDURES

1. AUTHORIZING OFFICIALS

a. For the purpose of Enclosure 5 of this volume, DoD Component heads function as the

authorizing official. This responsibility and authority may not be delegated below the DoD

Component head level, with the exception that the Secretaries of the Military Departments may

delegate the authority in writing to the Commandant of the Marine Corps; the Commander,

Naval Supply Systems Command; and the Commander, Navy Installations Command. Further

delegation is not authorized.

b. Authorizing officials will:

(1) Implement and apply requirements of the NAF senior executive performance

appraisal system in a consistent, transparent, trusted, creditable, equitable, nondiscriminatory,

and non-political manner.

(2) Ensure NAF executives are held accountable for rigorous performance management

and for aligning subordinate employee performance plans with organizational goals.

(3) Establish mechanisms to evaluate how well NAF organizations met mission

performance requirements during the performance appraisal period. These mechanisms will be

used to help evaluate how well NAF executives met the performance requirements that link to

the organization’s mission and goals.

(4) Establish a PRB, and select a chairperson in accordance with Enclosure 5 of this

volume and DoD Component-specific PRB procedures.

(5) Provide training and performance appraisal guidelines to rating officials, executives,

PRBs, and other officials in the performance management process to ensure effective

implementation of the DoD performance management policy. Performance appraisal guidelines

are based on USD(P&R) guidance, assessment of mission requirements and strategic goals, and

external standards such as those in Reference (e).

(6) Review disputes between the rating official, NAF executive, or PRB concerning the

initial summary rating and make informed final determinations.

(7) Make a written determination on the annual summary rating, performance score, and

performance pay increase or bonus after consideration of PRB recommendations.

(8) Ensure basic pay, pay adjustments, performance bonuses, and other awards based on

the results of the appraisal process accurately reflect and recognize individual performance or

contribution to agency or organizational performance.

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(9) Communicate aggregate performance rating, pay increase, and bonus results for their

organization to executives, while maintaining individual confidentiality, to foster understanding

of the basis for annual summary ratings and accompanying performance payouts.

(10) Establish guidance for scoring and weighting performance elements and

performance requirements.

(11) Conduct the processes in Enclosure 5 of this volume.

2. RATING OFFICIALS

a. The rating official is the supervisor who is responsible for assessing performance for the

appraisal period.

b. For the purpose of Enclosure 5 of this volume, rating officials will:

(1) Hold subordinate NAF executives accountable for rigorous performance management

of subordinates consistent with the performance management programs established in Enclosures

4 and 5 of this volume.

(2) Apply performance management principles and practices, including planning,

developing, assessing, and communicating performance to carry out the full range of

performance management responsibilities.

(3) Consult with the subordinate NAF executive in developing the performance plan.

(4) Develop performance plans that include results-oriented performance requirements,

align with organizational goals, and support meaningful distinctions in performance levels.

(5) Conduct meaningful progress reviews that address performance progress and

developmental opportunities at least once during the performance appraisal period to promote,

sustain, and improve performance as described in section 2 of Enclosure 5 of this volume.

(6) Appraise the executives realistically and fairly using the results of organizational

performance assessments as a factor and the performance rating level descriptors in Appendix 2

to Enclosure 5 of this volume to determine the appropriate performance rating.

(7) Communicate to the NAF executive the initial summary rating at the end of the rating

cycle and the annual summary rating when approved by the authorizing official as described in

section 4 of Enclosure 5 of this volume.

(8) Recommend a total performance payout adjustment consistent with policy outlined in

Volume 1405 of this instruction.

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(9) Be prepared to discuss the executive’s individual performance rating and

contributions at PRB meetings, as necessary.

(10) Address executive performance deficiencies in a timely and constructive manner.

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Change 1, 4/28/2023 ENCLOSURE 4

ENCLOSURE 4

PERFORMANCE MANAGEMENT PROGRAMS FOR NAF EMPLOYEES

IN PAYBANDS NF-1 THROUGH NF-5, CY PAYBANDS,

AND CRAFT AND TRADES PAY SCHEDULES

1. CORE REQUIREMENTS. Performance management programs for all NAF employees in

NF-1 through NF-5 payband levels, CY paybands, and crafts and trades pay schedules, as

established in Enclosure 3 of Volume 1405 of this instruction, must include:

a. A written policy establishing the performance management program criteria. The written

policy must include: the requirements for setting and communicating employee performance

expectations, monitoring performance and providing feedback, addressing poor performance,

providing opportunities for employees to develop performance, rating and rewarding

performance, and applicable approval authorities for performance ratings and rewards. DoD

Component performance management program policies will be communicated to employees,

supervisors, and managers.

b. A process for communicating performance expectations. Performance expectations must

be communicated to the employee in writing before holding the employee accountable for those

expectations and must be discussed with the employee on at least an annual basis. The

expectations must be results-oriented and aligned with the organization’s mission. The process

of developing the performance expectations should include an opportunity for the employee to

provide input. Expectations must include job objectives that are measurable and are reflective of

expected accomplishments and contributions for the appraisal period. Job objectives must be

commensurate with the duties and responsibilities assigned to the employee and the salary paid

to that employee.

c. A fair and consistent method for appraising performance and deriving a rating of

performance that is based on measurable results. The typical performance appraisal method

must enable supervisors to measure the employee’s achievements and contributions against

performance expectations. The performance appraisal method should include an opportunity for

employee and supervisor dialogue during the appraisal period and provide the flexibility to

accommodate changing program objectives, as needed.

d. An annual written appraisal of whether the employee’s performance met expectations.

e. A five level rating system.

f. An official DoD Component appraisal period consisting of a consecutive 12-month period.

g. Description of actions to be taken when performance expectations are not met.

h. Approval of the appraisal or rating at a level above the rater, where practicable.

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i. Retention of the appraisal in the employee’s official personnel file.

2. PERFORMANCE RATINGS

a. When a rating of record cannot be prepared at the time specified in the performance

management program, the appraisal period will be extended until the conditions necessary to

meet the minimum period of performance have been met. However, the extension may not result

in an appraisal period that exceeds 15 months.

b. DoD Component heads may use an equivalent rating of record in the event of a missed

rating or a rating earned under a different agency or organization (government or private sector).

To qualify as an equivalent rating, the performance evaluation must have been the designated

official’s evaluation under the previous employer’s system and must identify whether the

employee performed at an acceptable or satisfactory level or higher.

c. In the case of employees who are returning to NAF positions following service in the

Military Services, the DoD Components will ensure that eligible employees are granted all

reemployment rights provided by chapter 43 of Title 38, U.S.C., also known as the “Uniformed

Services Employment and Reemployment Rights Act of 1994” (Reference (h)).

3. LESS THAN SATISFACTORY PERFORMANCE (LEVEL ONE OR TWO ON A FIVE-

LEVEL RATING SYSTEM)

a. Payband employees, including CY payband employees, who are rated less than

satisfactory are ineligible for pay increases in accordance with Appendix 1 to Enclosure 3 of

Volume 1405 of this instruction and will not be granted a pay increase.

b. Within-grade increases for prevailing rate employees who are rated less than satisfactory

are not authorized in accordance with Office of Personnel Management Operating Manual

(Reference (i)).

4. DISPUTING A PERFORMANCE RATING. An employee may challenge a performance

rating under the DoD Component’s prescribed procedures (e.g., appropriate grievance or Equal

Employment Opportunity process), but not the amount of a pay increase.

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Change 1, 4/28/2023 ENCLOSURE 5

ENCLOSURE 5

NAF SENIOR EXECUTIVE PERFORMANCE APPRAISAL SYSTEM

1. PERFORMANCE PLANNING

a. Developing Performance Plans. The rating official must develop the performance plan in

consultation with the executive. NAF senior executive performance plans:

(1) Are established annually and shared with the NAF senior executive on or before the

beginning of the appraisal period.

(2) Are in place within 30 days of the beginning of each appraisal period. For executives

assigned after the beginning of the appraisal period, performance plans will be in place within 30

days of appointment.

(3) Are discussed with the executive on or before the beginning of the appraisal period,

during the appraisal period, and at the end of the appraisal period. A summary of the

performance appraisal process is outlined in Appendix 1 of this enclosure.

(4) Are developed using DD Form 2939, “NF-6 Performance Management System

Executive Performance Agreement.” An electronic version of DD Form 2939 is available on the

DoD Forms Management Program Website at: https://www.esd.whs.mil/Directives/forms/

(5) Are modified whenever there is a significant change in mission, workload, or

performance requirements.

(6) Are documented by signature of the executive and the rating official on DD Form

2939.

b. Content of Performance Plans for NAF Senior Executives. Performance plans must be in

accordance with the requirements of Appendix 2 of this enclosure and must:

(1) Convey the five mandatory performance elements for executives, as described in

Appendix 2 of this enclosure, which are:

(a) Leading People.

(b) Leading Change.

(d) Business Acumen.

(e) Results Driven.

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(2) Establish all performance elements as critical elements.

(3) Include at least one results-oriented performance requirement for the Results Driven

performance element, and results-oriented performance requirements for the other performance

elements as needed, written using the specific, measurable, aligned, realistic, relevant, and timely

framework, that clearly aligns with organizational goals and objectives.

(4) Establish weights for performance elements in which the sum of the weights for all

performance elements used will be 100 percent. The Results Driven element must be weighted

at least 40 percent, the Leading People element must be weighted at least 20 percent, all other

elements must be weighted at least 5 percent each, and none may be weighted more than the

Results Driven element. The authorizing official may establish the critical element weights

annually. However, any critical element and weighting established for appropriated fund senior

executives will apply to NAF senior executives.

2. MONITORING PERFORMANCE

a. Rating officials must monitor performance during the performance appraisal period and

communicate feedback to the executive on progress in accomplishing the performance elements

and performance requirements described in the performance plan.

b. Relative to the performance plan, the rating official provides ongoing feedback as

necessary to reinforce, acknowledge, anticipate, and remedy performance. Feedback can be

provided at any time during the performance appraisal period. Executives may request periodic

feedback on performance.

c. At least one progress review must be held between the rating official and executive during

the performance appraisal period. Rating officials must provide advice and assistance to

executives on how to develop and improve performance. The rating official will document the

feedback using the appropriate section of the NAF senior executive performance agreement.

d. Rating officials promptly inform the executive when deficient performance is identified.

Any time an executive is failing to meet performance requirements, steps must be taken to

promptly address the unacceptable performance. When addressing unacceptable performance,

rating officials identify and communicate to the executive the specific performance deficiency

requiring improvement and identify necessary evidence that demonstrates improvement.

3. DEVELOPING PERFORMANCE

a. Developing performance is integrated within the performance management process.

Along with meaningful performance-related discussions that assist the executive in reinforcing

strengths and correcting weaknesses, employee development opportunities should be discussed.

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b. Performance elements and performance requirements may serve as the basis for assessing

and discussing executive developmental needs.

c. Rating officials should discuss and encourage executives to seek development

opportunities that promote achievement of the strategic initiatives of the DoD Component and

the DoD. These may include:

(1) Enhancing individual contributions to DoD and organizational missions and goals.

(2) Increasing personal understanding of the DoD Components operational environment

(e.g., increasing comfort level in working in remote regions of the world, dealing with local

communities, adapting to foreign languages and cultures, working with networks, operating

alongside or within the United Nations organizations, and working alongside nongovernmental

organizations to further U.S. and partner interests).

(3) Developing cultural awareness and foreign language proficiency as needed by the

DoD.

d. Rating officials should discuss and encourage executives to develop a portfolio of diverse

experiences to broaden perspectives and view responsibilities in the context of the larger DoD

enterprise, the national security mission, and public policy interests of the DoD.

4. APPRAISING AND RATING PERFORMANCE

a. Performance Appraisal Period

(1) The duration of the performance appraisal period is 12 months, except when:

(a) An executive fails to achieve expectations;

(b) A new executive is assigned to a position through appointment, reinstatement,

reassignment, or transfer after the beginning of the performance appraisal period; or

fewer or more than 12 months (e.g., departure of the rating official before the end of the

performance appraisal period). When the executive is being reassigned or the executive’s

supervisor is departing, an interim rating may be given during the rating period to reflect the

executive’s performance in the applicable portion of the rating period.

(2) The annual performance appraisal period is October 1 through September 30 each

year, unless the DoD Component head determines that a different consecutive 12-month

performance period is necessary to meet mission requirements and obtain key organizational

performance metrics.

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(3) The minimum performance appraisal period is 90 days, in order to provide for

meaningful evaluation of an individual’s performance.

(4) The performance appraisal period will be extended when an annual summary rating

cannot be prepared at the end of the performance appraisal period because the executive has not

completed the minimum performance appraisal period or for other reasons.

(5) The rating official determines how long the performance appraisal period will be

extended to provide the executive ample opportunity to achieve the performance elements and

requirements. However, the extension may not result in an appraisal period that exceeds 15

months.

b. Preparing the Appraisal

(1) Performance Accomplishments. At the end of the appraisal period, the rating official

determines the degree and level to which the executive accomplished the performance

requirements for each performance element in the executive’s performance plan. Rating officials

must use the performance elements, performance ratings, and derivation formulas in Appendix 2

of this enclosure. The performance benchmark descriptors in Appendix 3 of this enclosure may

be used to aid in delineating performance between the level 3, 4, and 5 ratings.

(a) Rating officials must provide written appraisals of each executive’s performance

based upon an assessment of individual and organizational performance against the established

performance elements and requirements.

(b) If the executive was supervised by more than one rating official during the

appraisal period, the rating official for the last 90 days of the appraisal period must consider

inputs provided by previous raters when preparing the appraisal.

accomplishments throughout the performance appraisal period to assist the rating official in

evaluating performance.

(d) The rating official considers the executive’s input describing accomplishments

toward performance elements and performance requirements, as well as input from individuals in

the executive’s rating chain, subordinates, and customers, if received.

(e) Rating officials document accomplishments on DD Form 2939.

(2) Initial Summary Rating. The rating official must prepare an initial summary rating at

the end of the rating cycle for each executive who has completed at least 90 days on an

established performance plan.

(a) The initial summary rating provides the executive a preliminary performance

assessment pending review and approval by the authorizing official. It includes a discussion

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about overall performance and the tentative performance rating. Signatures are required on the

DD Form 2939 to document this review and rating.

(b) The initial summary rating discussion with the executive does not include

discussion of a performance increase or bonus. The final performance score, rating, and

associated pay increase or bonus is not communicated to the executive until the authorizing

official makes a determination after consideration of PRB recommendations.

(3) Annual Summary Rating. After consideration of the initial summary rating, PRB

recommendations, and the results of any higher-level review, the authorizing official determines

the final annual summary rating, performance score, and performance increase or bonus. The

decisions of the authorizing official are subject to validation by the official identified in

Enclosure 2 of this volume.

c. Assigning Ratings. Appendix 2 of this enclosure provides the standard performance

rating level descriptors.

(1) The performance appraisal system includes five performance rating levels:

(a) Level 5 – Outstanding

(b) Level 4 – Exceeds Fully Successful

(d) Level 2 – Minimally Satisfactory

(e) Level 1 – Unsatisfactory

(2) Distribution of performance ratings and scores will not be forced or artificially

constrained by a rating official, PRB, or authorizing official.

(3) Within each performance appraisal system, the highest performance scores and

performance ratings are assigned to those who demonstrate the highest levels of performance and

make the greatest contributions to the DoD Components performance and mission. Executives

with the highest performance scores and ratings should receive the highest amounts of

performance payout or other appropriate recognition, in accordance with Volume 1405 of this

instruction.

d. Communicating Assessment

(1) The rating official must communicate to the executive the initial summary rating,

changes to the initial summary rating by the higher-level reviewer, the annual summary rating,

and the organization’s aggregate performance appraisal results.

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(2) Results are documented on the appropriate section of the DD Form 2939.

Authorizing officials and DoD Components may add Component-specific instructions for

completing the form.

(3) Signatures are required from the rating official and the executive in the

appropriate section of the DD Form 2939.

5. HIGHER-LEVEL REVIEW. The DoD Components may require a review of the rating

official’s recommendations by another official before review by the PRB. If the DoD

Component requires a higher-level review, the official should document the review by signing

the appraisal form in the area indicated for the higher-level reviewer.

6. EXECUTIVE REQUEST FOR HIGHER-LEVEL REVIEW

a. The executive has the opportunity to comment in writing regarding the initial summary

rating assigned by the rating official. Executives may request a review by an official at a higher

level within the DoD Component before review by the PRB. The executive must request such

review within 7 calendar days of receiving the rating official’s initial summary rating.

b. If the executive requests a higher-level review, a reviewing official at a higher-level in the

Component, either an executive or an active general or flag officer (GO/FO), must be appointed

to consider the executive’s response. The DoD Components may appoint someone outside of the

Component to perform the review when the authorizing official is also the rating official or the

review is more appropriately conducted by an external executive or GO/FO. When a GO/FO is

involved in the review, the executive must agree to the Service member’s involvement.

c. The higher-level reviewing official must respond within 7 work days of receiving the

request for higher-level review. The higher-level reviewing official may not change the rating

official’s initial summary rating, but may recommend a different initial summary rating to the

PRB and the authorizing official.

d. Copies of the reviewer’s findings and recommendations must be given to the executive,

the rating official, the higher-level reviewer (if conducted), the PRB, and the authorizing official.

e. The higher-level review is the final process by which an executive may request review of

the initial summary rating. An executive may not appeal any performance plan, appraisal,

performance score or rating, adjustment in basic pay, or amount or non-receipt of a performance

bonus. The executive may file a complaint under the DoD Component’s prescribed procedures,

about any aspect of the rating process the executive believes to involve unlawful discrimination

or a prohibited personnel practice.

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7. LINKING PAY AND PERFORMANCE

a. NAF senior executive pay is set and adjusted, and bonuses are paid in accordance with

Appendix 1 to Enclosure 3 of Volume 1405 of this instruction. Pay adjustments and bonuses

must be linked to performance. The highest rates of pay adjustments and bonuses must go to the

executives who demonstrate the highest level of performance and make the greatest contributions

to DoD or DoD Component success.

b. Following assignment of the initial summary rating, the rating official uses Appendix 1 to

Enclosure 3 of Volume 1405 of this instruction and applicable DoD and Component guidelines

to develop a recommendation regarding an appropriate performance-based pay adjustment and

bonus.

c. The rating official provides the PRB and the authorizing official with the initial summary

rating, and a separate written recommendation on the performance-based pay adjustment and

bonus warranted by the performance appraisal rating.

d. Executives must have a performance rating of Fully Successful to be considered for a

performance bonus or performance pay increase.

8. PRB

a. The authorizing official establishes a PRB to review the rating official’s initial summary

rating and recommended pay increase or bonus. The PRB review assists the authorizing official

in verifying that the performance assessment of the NAF senior executive is consistent among

rating officials and comparable within the DoD Component.

b. Each PRB has three or more members appointed by the authorizing official. These

members may include NAF or APF civilians and military officers from within or outside the

DoD Component. Members are preferably at the senior executive level (SES or NF-6) or

GO/FO level. In a DoD Component with small numbers of NAF senior executives, a PRB that

evaluates the Component’s SES executives may be used, or a PRB may be shared among the

DoD Components.

c. PRB members may not take part in any deliberations involving their own appraisals or

those in their supervisory chain.

d. Within the parameters of this enclosure, the DoD Components may provide Component-

specific PRB procedures.

e. The PRB reviews and evaluates the initial summary rating, and recommended pay

increase or bonus, as they relate to mission accomplishments and performance. The PRB also

reviews the executive’s written response (if any) and the written review by the higher-level

reviewing official (if applicable).

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f. The PRB makes written recommendations to the authorizing official regarding the

executive’s initial summary rating and pay increase or bonus.

9. FINAL PAY AND PERFORMANCE RESULTS

a. The authorizing official:

(1) Determines the executive’s annual summary rating and appropriate performance pay

increases and bonuses after consideration of PRB recommendations and any conclusions of a

higher-level review.

(2) Certifies in writing, no later than 90 days after the end of the appraisal period, that the

results of the appraisal process make meaningful distinctions based on relative performance and

are consistent with the guidelines established in this policy. (For situations in which individual

achievement of specific financial performance goals are measured against DoD Component

financial-related results, this 90-day period may be extended up to an additional 60 days, for a

total of 150 days after end of the rating period, to ensure availability of year-end financial

results.) Authorizing official certifications must be reviewed and validated in writing by the

appropriate official identified in Enclosure 2 of this volume before the executive performance

ratings and payout results are made effective.

(3) Ensures pay increases and performance bonuses (based on the results of the appraisal

process) accurately reflect and recognize individual performance or contributions to the DoD

Component’s mission or performance, as appropriate.

b. Authorizing official’s signature and determinations must be recorded on the appropriate

section of DD Form 2939. Authorizing officials and DoD Components may add Component-

specific instructions for completing the form that are within the parameters of Enclosure 5 of this

volume.

10. VALIDATION. Upon completion of the PRBs and consolidation of results, the DoD

Components will submit their annual summary ratings and performance-based payouts to

DCPAS for technical review.

a. Upon completion of technical review, DCPAS will submit, on behalf of the respective

DoD appointing authorities, each DoD Component’s collective results to the DASD(CPP) for

validation to ensure compliance of the NAF senior executive performance management system

with applicable annual closeout guidance.

b. The DASD(CPP) reviews and returns their concurrence, allowing for the processing of

pay adjustment and bonus actions.

c. The DASD(CPP) will elevate issues that are not satisfactorily resolved with the DoD

Components to the USD(P&R) pursuant to Reference (g).

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11. CERTIFICATION. Upon full certification of the DoD Senior Executive Service

Performance Management System, DCPAS will submit documents as required for full

certification of the NAF senior executive performance management system. DCPAS will certify

to the USD(P&R), through the DASD(CPP) and ASD(M&RA), that:

a. The appraisal process makes meaningful distinctions based on relative performance as

appropriate.

b. The appraisal process’s results take into account, as appropriate, the Component’s

organizational performance assessment.

c. Ratings, performance-based pay adjustments, and performance-based bonuses are based

on the results of the appraisal process and accurately reflect individual performance and

contribution to the Component’s performance.

Appendices:

1. NAF Senior Executive Performance Appraisal Process

2. NAF Senior Executive Performance Appraisals: Performance Elements,

Performance Levels, and Derivation Formulas

3. NAF Senior Executive Performance Benchmark Descriptors

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APPENDIX 1 TO ENCLOSURE 5

NAF SENIOR EXECUTIVE PERFORMANCE APPRAISAL PROCESS

The performance appraisal process for NAF senior executives is designed to communicate

expectations and evaluate the performance through an interactive process. Table 1 summarizes

the steps in the performance appraisal process.

Table 1. Steps in the Performance Appraisal Process

RATING OFFICIAL

STEP

ACTION

Develop performance plans using the five mandatory performance elements.

Assign a weight to each performance element. Refer to DoD Component or DoD

guidance if applicable. The Results Driven element must be weighted at least 40

percent, the Leading People element must be weighted at least 20 percent, all others

must be weighted at least 5 percent each, and none may be weighted more than the

Results Driven element.

Develop, with the executive, at least one results-oriented performance requirement

for the Results Driven performance element. Each performance requirement must be

aligned to organizational goals and objectives (e.g., Org Goal #4).

Discuss performance elements and requirements with executive.

Document performance elements and requirements on DD Form 2939

Provide ongoing feedback during the performance appraisal period.

Hold at least one progress review during the performance appraisal period and

document it on DD Form 2939.

Assess the executive’s accomplishments against the performance elements and

requirements, considering the executive’s input.

Assign numeric score to performance elements as part of initial summary rating.

10.

Discuss initial summary rating with executive (includes only executive’s overall

performance and tentative performance rating), at the end of the rating cycle.

11.

Forward the initial summary rating and recommended performance pay increase or

bonus to the PRB.

12.

Provide feedback to the PRB on their recommended changes to the performance

rating, performance score, and associated performance pay increase or bonus (if

warranted).

13.

Communicate the annual summary rating, when approved by the authorizing official,

to the NAF executive.

PERFORMANCE REVIEW BOARD

STEP

ACTION

Review executive initial summary ratings and recommended performance pay

increase or bonus.

Review the senior executive response to the initial summary rating (if any) and the

higher-level official’s comments (if any).

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Table 1. Steps in the Performance Appraisal Process, Continued

PERFORMANCE REVIEW BOARD

STEP

ACTION

Discuss recommended changes to the performance rating, performance score,

performance pay increase or bonus with the rating official, and consider feedback –

(PRB chairperson, if necessary).

Recommend adjustment in total payout, in writing, to basic pay and performance

bonuses to the authorizing official (if warranted).

AUTHORIZING OFFICIAL

STEP

ACTION

Determine the annual summary ratings, performance score, and performance pay

increase or bonus.

Provide, in writing, the annual summary ratings, performance score, and performance

pay increase or bonus to the rating official.

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APPENDIX 2 TO ENCLOSURE 5

NAF SENIOR EXCUTIVE PERFORMANCE APPRAISALS:

PERFORMANCE ELEMENTS, PERFORMANCE LEVELS, AND DERIVATION

FORMULAS

1. PERFORMANCE ELEMENTS

a. The five critical performance elements are established for NAF senior executive

performance appraisals. All are mandatory, and the language for all of the elements, except

“Results Driven,” must be used as provided:

(1) Leading Change. Develops and implements an organizational vision that integrates

key organizational and program goals, priorities, values, and other factors. Assesses and adjusts

to changing situations, implementing innovative solutions to make organizational improvements,

ranging from incremental improvements to major shifts in direction or approach, as appropriate.

Balances change and continuity; continually strives to improve service and program

performance; creates a work environment that encourages creative thinking, collaboration, and

transparency; and maintains program focus, even under adversity.

(2) Leading People. Designs and implements strategies that maximize employee

potential, connects the organization horizontally and vertically, and fosters high ethical standards

in meeting the organization’s vision, mission, and goals. Provides an inclusive workplace that

fosters the development of others to their full potential; allows for full participation by all

employees; facilitates collaboration, cooperation, and teamwork, and supports constructive

resolution of conflicts. Ensures employee performance plans are aligned with the organization’s

mission and goals, that employees receive constructive feedback, and that employees are

realistically appraised against clearly defined and communicated performance standards. Holds

employees accountable for appropriate levels of performance and conduct. Seeks and considers

employee input. Recruits, retains, and develops the talent needed to achieve a high quality,

diverse workforce that reflects the best of the nation, with the skills needed to accomplish

organizational performance objectives while supporting workforce diversity, workplace

inclusion, and equal employment policies and programs.

(3) Business Acumen. Assesses, analyzes, acquires, and administers human, financial,

material, and information resources in a manner that instills public trust and accomplishes the

organization’s mission. Uses technology to enhance processes and decision making. Executes

the operating budget; prepares budget requests with justifications; and manages resources.

(4) Building Coalitions. Solicits and considers feedback from internal and external

stakeholders or customers. Coordinates with appropriate parties to maximize input from the

widest range of appropriate stakeholders to facilitate an open exchange of opinion from diverse

groups and strengthen internal and external support. Explains, advocates, and expresses facts

and ideas in a convincing manner and negotiates with individuals and groups internally and

externally, as appropriate. Develops a professional network with other organizations and

identifies the internal and external politics that affect the work of the organization.

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(5) Results Driven. This critical element includes specific performance results expected

from the executive during the appraisal period, focusing on measurable outcomes from the

strategic plan or other measurable outputs and outcomes clearly aligned to organizational goals

and objectives. At a minimum, the performance plan includes performance requirements

(including measures, targets, timelines, or quality descriptors, as appropriate) describing the

range of performance at Level 3 for each result specified. It is recommended to also establish the

threshold measures or targets for Levels 5 and 2. The Results Driven critical element must also

identify clear, transparent alignment to relevant agency or organizational goals and objectives,

page numbers, from the Strategic Plan, Congressional Budget Justification/Annual Performance

Plan, or other organizational planning document in the designated section for each performance

result specified.

b. The main characteristics of these performance elements are:

(1) Leading Change

(a) Balances change and continuity.

(b) Innovates, integrates, and implements needed change based on the organizational

vision, mission, and goals.

(2) Leading People

(a) Rigorous performance management of subordinates.

(b) Equal employment opportunity, affirmative employment, and diversity.

feedback.

(d) Use of employee feedback to inform decisions.

(3) Building Coalitions

(a) Uses two-way communication with the customer and active solicitation of

customer feedback.

(b) Uses customer feedback to inform decisions.

(d) Explains, advocates, and expresses facts and ideas in a convincing manner.

(4) Business Acumen

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(a) Use of technology to enhancing process and decision making.

(b) Proper and mission-beneficial use of human, financial, material, and information

resources.

(5) Results Driven

(a) Weighted at least 40 percent.

(b) Weighted more than any other performance element.

c. The rating official establishes weights for each of the performance elements in each

executive performance plan, the sum of which must be 100 percent.

(1) The Results Driven performance element must be weighted at least 40 percent; the

Leading People element must be weighted at least 20 percent; the other three elements must be

weighted at least 5 percent each, and none may be weighted more than the Results Driven

element.

(2) DoD may establish the critical element weights annually or the authorizing official

may establish guidance for weighting performance elements each fiscal year or new rating

period. However, any critical element and weighting established for appropriated fund senior

executives will apply to NAF senior executives.

d. The rating official works with the executive to develop specific results-oriented

performance requirements for the Results Driven element, and for the other performance

elements, as needed, to reflect the duties, responsibilities, and expected outcomes. There must

be at least one and typically, no more than four, written performance requirements for the

Results Driven performance element. Agency-specific performance requirements may also be

added to the other elements, if needed to evaluate performance, normally no more than four

performance requirements per element. Results Driven performance requirements must:

(1) Apply to the executive’s areas of responsibility.

(2) Be mission focused, results-oriented, aligned with strategic plans and initiatives of

the DoD Component or Department, and reflect expected agency or organizational performance.

(3) Clearly describe performance that is attainable, measurable, verifiable, or apparent.

(4) Focus on tangible outputs, outcomes, milestones, or other deliverables that allow the

rating official to make meaningful distinctions in performance.

(5) Reflect the perspectives of distinct groups including customers and employees.

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(6) Demonstrate the complexity and scope of the work, and describe the level of

performance required to be rated “Fully Successful.”

(7) Contain only measurable results-oriented performance requirements in the Results

Driven performance element, and include a specific reference to an organizational strategic plan,

initiative, goal, or objective after each one (e.g., Org Goal #4).

2. PERFORMANCE APPRAISAL FORM. The performance elements, performance

requirements, and element weights will be documented on DD Form 2939. The form includes a

derivation formula that depicts how the ratings for each performance element combine to provide

the overall summary score. The performance elements and requirements documented on the

form are acknowledged by both the executive and the rating official as evidenced by signatures

on the form.

3. PERFORMANCE RATINGS AND PERFORMANCE SCORE. The performance ratings in

this system are:

a. Level 5 (Outstanding). The executive demonstrates exceptional top-level performance in

fostering a climate that sustains excellence and optimizes results in the executive’s organization,

agency, department, or government wide. This represents the highest level of executive

performance, as evidenced by the extraordinary impact on the achievement of the organization’s

mission. The executive is an inspirational leader and is considered a role model by agency

leadership, peers, and employees. The executive continually contributes materially to, or

spearheads agency efforts that, address or accomplish important agency goals, consistently

achieves expectations at the highest level of quality possible, and consistently handles

challenges, exceeds targets, and completes assignments ahead of schedule at every step along the

way. Performance may be demonstrated when the executive:

(1) Overcomes unanticipated barriers or intractable problems by developing creative

solutions that address program concerns that could adversely affect the organization, agency, or

government.

(2) Creates a work environment that fosters creative thinking and innovation, through

leadership by example, fosters core process re-engineering, and accomplishment of established

organizational performance targets.

(3) Takes the initiative to identify new opportunities for program and policy

development and implementation, or seeks more opportunities to contribute to optimizing

results; takes calculated risks to accomplish organizational objectives.

(4) Accomplishes objectives under demands and time pressure beyond those typically

found in the executive environment.

(5) Achieves results of significant value to the organization, agency, or government.

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(6) Achieves significant efficiencies or cost savings in program delivery or in daily

operational costs of the organization.

b. Level 4 (Exceeds Fully Successful). The executive demonstrates a very high level of

performance beyond that required for successful performance in the executive’s position and

scope of responsibilities. The executive is a proven, highly effective leader who builds trust and

instills confidence in agency leadership, peers, and employees. The executive consistently

exceeds established performance expectations, timelines, or targets, as applicable. Performance

may be demonstrated in ways such as:

(1) Advances progress significantly toward achieving one or more strategic goals.

(2) Demonstrates unusual resourcefulness in dealing with program operations or policy

challenges.

(3) Achieves unexpected results that advance the goals and objectives of the

organization, agency, or government.

c. Level 3 (Fully Successful). The executive demonstrates the high level of performance

expected, and the executive’s actions and leadership contribute positively toward the

achievement of strategic goals and meaningful results. The executive is an effective, solid, and

dependable leader who delivers high-quality results based on measures of quality, quantity,

efficiency, or effectiveness within agreed upon timelines. The executive meets and often

exceeds challenging performance expectations established for the position. Performance may be

demonstrated in ways such as:

(1) Seizes opportunities to address issues and effects change when needed.

(2) Finds solutions to serious problems and champions their adoption.

(3) Designs strategies leading to improvements.

d. Level 2 (Minimally Satisfactory). The executive’s contributions to the organization are

acceptable in the short term, but do not appreciably advance the organization towards

achievement of its goals and objectives. While the executive generally meets established

performance expectations, timelines, and targets, there are occasional lapses that impair

operations or cause concern from management. While showing basic ability to accomplish work

through others, the executive may demonstrate limited ability to inspire subordinates to give their

best efforts or to marshal those efforts effectively to address problems characteristic of the

organization and its work.

e. Level 1 (Unsatisfactory). In repeated instances, the executive demonstrates performance

deficiencies that detract from mission goals and objectives. The executive generally is viewed as

ineffectual by agency leadership, peers, or employees. The executive does not meet established

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performance expectations, timelines, or targets and fails to produce or produces unacceptable

work products, services, or outcomes.

4. RATING CRITICAL ELEMENTS

a. The rating official must assign a rating level for each performance element. The rating

level determination for each performance element is based on the relationship of the executive’s

accomplishment to the performance requirements, as established in the executive’s performance

plan. When any critical performance element contains more than one performance requirement,

the rating official uses the derivation formula in Table 2.

Table 2. NAF Senior Executive Performance Element Rating Derivation Formula

Element Rating

Levels

Element Derivation

Final

Elemental

Rating Score

Outstanding

Overall, the performance requirements in the element were performed

at the Outstanding level, with none below the Exceeds Fully

Successful level, as defined by Level 5 in Appendix 2 of this

enclosure.

Exceeds Fully

Successful

Overall, the performance requirements in the element were performed

at least at the Exceeds Fully Successful level, with none below the

Fully Successful level, as defined by Level 4 in Appendix 2 of this

enclosure.

Fully Successful

Overall, the performance requirements in the element were performed

at least at the Fully Successful level, with no more than one performed

at the Minimally Satisfactory level, and none performed at the

Unsatisfactory level, as defined by Level 3 in Appendix 2 of this

enclosure.

Minimally

Satisfactory

Two or more of the performance requirements in the element were

performed at the Minimally Satisfactory level, with no more than one

performed at the Unsatisfactory level, as defined by Level 2 in

Appendix 2 of this enclosure.

Unsatisfactory

Two or more of the performance requirements in the element were

performed at the Unsatisfactory level, as defined by Level 1 in

Appendix 2 of this enclosure.

b. Once the rating for each critical element is determined, the following point values are

assigned to the element ratings:

(1) Level 5 = 5 points

(2) Level 4 = 4 points

(3) Level 3 = 3 points

(3) Level 2 = 2 points

(4) Level 1 = 0 points

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5. DERIVATION FORMULA

a. The derivation formula is calculated as follows:

(1) If any critical element is rated Level 1 (Unsatisfactory), the overall summary

rating is Unsatisfactory. If no critical element is rated Level 1 (Unsatisfactory), continue to the

next step.

(2) The rating official multiplies the assigned numerical rating of each performance

element by the element’s percentage weight and adds the results to determine the performance

score. The maximum performance score is 500 points.

(3) The rating official assigns the initial summary rating using the summary level

ranges in Table 3.

Table 3. Performance Rating and Score Ranges Conversion Chart

SUMMARY LEVEL RANGES

475-500 = Level 5

400-474 = Level 4

300-399 = Level 3

200-299 = Level 2

Any critical element rated Level 1 = Level 1

b. An example of the derivation formula, with the initial summary rating determined to be

Level 4 (Exceeds Fully Successful), is provided at Table 4.

Table 4. Example of NAF Senior Executive Derivation Calculation

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APPENDIX 3 TO ENCLOSURE 5

NAF SENIOR EXECUTIVE PERFORMANCE BENCHMARK DESCRIPTORS

The performance benchmark descriptors in Table 5 provide examples of typical senior executive work behaviors at performance levels

3 (Fully Successful) and 5 (Outstanding). Table 5 may be used as a guide to help identify where an executive’s performance falls on

the performance rating scale and to delineate performance between level 3, 4, and 5 ratings.

Table 5. Examples of Senior Executive Work Behaviors

Leading Change

This performance element involves the ability to bring about strategic change, both within and outside the organization, to meet

organizational goals. Inherent to this element is the ability to establish an organizational vision and to implement it in a continuously changing

environment.

Work Behaviors

Examples of Fully Successful Behavior

Examples of Outstanding Behavior

Vision

• Works with senior leaders and others across DoD

Components to forge and communicate a shared strategic

vision, translates that vision into terms and actionable

activities that are relevant for the Component, and

generates enthusiasm and rallies support among others to

accomplish the vision.

• In partnership with other senior leaders, engages in

strategic, business, and financial planning to meet DoD’s

shared vision and develops standards for evaluating

program success.

Establishes strategic vision in support of Component and parent

organization; communicates a strategic vision in support of

Component and parent organization; aligns vision to meet the DoD’s

shared vision; translates that vision into actionable activities; readily

engages in the core planning tasks needed to meet the DoD’s shared

vision (e.g., strategic, business, financial); generates sufficient

support and enthusiasm among others to accomplish the vision;

ensures adequate standards and metrics are in place to evaluate

program success.

Establishes strategic vision in support of Component and parent

organization, aligned with the DoD shared vision; develops and

achieves support of a compelling strategic vision; spearheads the

strategic, business, and financial planning tasks required to meet

the DoD’s shared vision, energizing subordinate units to embrace

and accomplish the vision; insists that robust standards and

metrics are in place to evaluate program success and oversees

their implementation; achieves measurable impact on

organizational behavior.

Change and

Innovation

• Acts as a catalyst for organizational change by developing

and implementing programs, unit structures, plans, or

objectives that integrate and align Component activities and

achieve DoD-wide priorities and goals.

• Positions the organization or Component for future success

by fostering an environment of innovation and improvement,

regardless of professional or personal risk.

Encourages innovative solutions to problems and organizational

continuous process improvement; promotes an environment in which

innovation is enabled and status-quo thinking and assumptions are

challenged to mitigate risk and increase productivity.

Develops a culture which anticipates and embraces change and

innovation; positions the organization for success under future

conditions; ensures that change efforts integrate and align

Component activities and achieve DoD-wide priorities and goals;

demonstrates willingness to evaluate institutionalized policies and

procedures; demonstrates willingness to test unproven ideas to

achieve improved outcomes; overcomes significant obstacles;

influences change in other organizations.

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Table 5. Examples of Senior Executive Work Behaviors, Continued

Leading People

This performance element involves the ability to lead people toward meeting the organization's vision, mission, and goals.

Inherent to this element is the ability to provide an inclusive workplace that fosters the development of others, facilitates cooperation and teamwork,

and supports constructive resolution of conflicts.

Work Behaviors

Examples of Fully Successful Behavior

Examples of Outstanding Behavior

DoD Values

• Creates a merit-based work environment and organizational

culture that values and promotes equal opportunity and

diversity (of both persons and points of view), that does not

tolerate harassment or discrimination.

• Demonstrates and serves as a role model of integrity,

honesty, openness, and respect in dealings with

subordinates, coworkers, peers, stakeholders, and others.

• Demonstrates and promotes organizational, Component,

and DoD core values.

• Serves as a role model of commitment to selfless service

and excellence in support of DoD’s mission.

Creates a merit-based work environment that values and promotes

equal opportunity and diversity; provides open and constructive

feedback; demonstrates organizational core values as well as

inclusiveness and sensitivity to individual differences, modeling the full

range of DoD core values for subordinate leaders and staff.

Creates and supports progressive programs and policies that

support merit principles, equal opportunity, and diversity; fosters a

culture of trust and inclusion by modeling behavior that

underscores the value of individual differences, open

communication, and merit; fully considers equal employment

opportunity implications when making decisions; personally

demonstrates organizational core values and influences others to

do so.

Leveraging Human

Capital

• Delegates and assigns tasks to individuals or work teams

based on skills, experience, developmental needs, growth

opportunities, and workload.

• Accurately and fairly evaluates employee’s contributions to

organizational, Component, and DoD-wide results, and links

rewards or corrective action to the accomplishment of those

results.

• Counsels and assists subordinate managers in resolving

work problems, conflicts, and issues to ensure effective

performance and productivity.

Assigns staff to projects, teams, and job experiences where their skills

and talents can be fully leveraged or developed; accurately and fairly

evaluates individual employee contributions to mission objectives and

links rewards or corrective action to the accomplishment of those

results; ensures all employees have written performance plans;

collaborates with subordinate managers to ensure effective workforce

performance and productivity.

Creates enduring and new opportunities to increase the number

and quality of developmental experiences; leverages individuals’

abilities to capitalize on their potential; partners with subordinate

managers to optimize the performance management system and

effectively reinforce and foster superior performance across the

board.

Talent Retention

and Development

• Serves as a proactive advocate to management on the

promotion, advancement, recognition, job assignment, and

retention of personnel, both within and temporarily assigned

to, the organization or Component.

• Plans for succession by proactively identifying and recruiting

a talented pool of candidates for upcoming vacancies and

ensuring that any knowledge or skill gaps are addressed in

a timely manner.

Identifies, develops, and promotes highly qualified personnel; develops a

diverse pool of talent; develops a succession plan for direct reports.

Shapes the workforce by consistently assessing personnel

knowledge and skill gaps and identifying, developing, and promoting

highly qualified personnel; develops a diverse pool of talent for key

organizational positions; develops succession plans and identifies

and supports the development of internal leaders for key

organizational positions; retains a cadre of high-performing

professionals that enhances the outputs and reputation of the

organization.

DoDI 1400.25-V1404, June 26, 2014

Change 1, 4/28/2023 APPENDIX 3 TO ENCLOSURE 5

Table 5. Examples of Senior Executive Work Behaviors, Continued

Leading People

This performance element involves the ability to lead people toward meeting the organization's vision, mission, and goals.

Inherent to this element is the ability to provide an inclusive workplace that fosters the development of others, facilitates cooperation and teamwork, and

supports constructive resolution of conflicts.

Work Behaviors

Examples of Fully Successful Behavior

Examples of Outstanding Behavior

Continuous Learning

• Creates a learning culture and empowers others by

mentoring and developing personnel through tools such

as training, skill development, timely performance

feedback, details, and work assignments.

• Expands own leadership and managerial knowledge and

skills by soliciting and acting upon constructive feedback.

• Encourages and supports joint duty assignments and

developmental experiences that develop and reinforce a

DoD-wide enterprise focus among subordinates.

Serves as a mentor; routinely provides and solicits candid and

constructive feedback that can be translated into meaningful behaviors,

empowering personnel (including self) to reach full potential; ensures

existing continuous learning activities reinforce a Component- or

organization-wide focus.

Implements and achieves results through mentoring and development

programs; promotes a climate that encourages development across a

variety of learning methods (e.g., training, skill development, timely

and candid performance feedback, details, and work assignments);

identifies and implements innovative continuous learning and

developmental activities that reinforce a DoD-wide enterprise focus.

Results Driven

This performance element involves the ability to meet organizational goals and customer expectations. Inherent to this element is

the ability to make decisions that produce high-quality results by applying technical knowledge, analyzing problems, and calculating risks.

Work Behaviors

Examples of Fully Successful Behavior

Examples of Outstanding Behavior

Strategic

Thinking

• Prioritizes and aligns work activities to accomplish the

Component’s and DoD’s long-term goals.

• Proactively identifies and implements actions to address and

overcome potential mission shortfalls.

• Recognizes or capitalizes on emerging opportunities to

enhance Component and DoD mission accomplishment.

Develops an approach or plan for achieving Component and

organizational goals and objectives that is responsive to critical

requirements, prioritizing and aligning work activities as necessary, and

capitalizing on opportunities to ensure mission accomplishment.

Anticipates and leverages change to enhance mission success;

envisions a future, and articulates a vision with specific plans,

goals, and objectives; capitalizes on opportunities and strategically

prioritizes and aligns work activities to ensure mission success.

Organizational

Savvy

• Understands and keeps up-to-date on how the missions,

structures, leaders, and cultures of the DoD Components

interact and connect.

Demonstrates an extensive understanding of how various DoD

Component missions, structures, leaders, and cultures interact and

connect in area of responsibility; seeks out and capitalizes on

opportunities to use this knowledge to help DoD accomplish its mission

and move toward its long-term vision.

Acts as an institutional resource, consistently consulted by senior-

level officials for their expertise regarding the interactions and

connections between various DoD Component missions,

structures, leaders, and cultures; fully leverages this knowledge to

make contributions with far-reaching impact; maintains extensive

professional relationships with the whole of government and private

industry.

DoDI 1400.25-V1404, June 26, 2014

Change 1, 4/28/2023 APPENDIX 3 TO ENCLOSURE 5

Table 5. Examples of Senior Executive Work Behaviors, Continued

Results Driven

This performance element involves the ability to meet organizational goals and customer expectations. Inherent to this element is

the ability to make decisions that produce high-quality results by applying technical knowledge, analyzing problems, and calculating risks.

Work Behaviors

Examples of Fully Successful Behavior

Examples of Outstanding Behavior

Performance

Measurement

• Develops metrics, procedures, measures and tools to ensure

Component and DoD goals and objectives are achieved.

• Assesses the unit’s or Component’s performance and takes

actions to ensure successful achievement of Component

and DoD-wide goals and objectives.

• Continuously assesses and updates plans, goals, and

objectives for the program, unit, organization, or Component

to accomplish the Component’s and DoD’s mission more

effectively.

Identifies key metrics, procedures, measures, or tools to track efficiency

and effectiveness of work processes and results; regularly assesses the

unit’s or Component’s performance and uses these data constructively in

establishing plans and goals that ensure DoD-wide objectives are

achieved.

Establishes metrics and stretch goals that support strategic

objectives and drive the proper ethics, values and behaviors;

focuses on and measures outcomes, not outputs; uses meaningful

assessment data to drive continuous improvements in efficiency

and effectiveness, updating plans and goals to ensure objectives

are met, ultimately enhancing mission contribution to DoD-wide

objectives.

Situational

Awareness

• Determines the need for new or updates to existing

Component or DoD-wide policies or procedures and

evaluates the effectiveness and organizational impact of

changes after implementation.

Identifies the need to update existing Component policies or procedures

and recommends/implements updates in area of responsibility; plays a

key role in evaluating the effectiveness and organizational impact of

changes after implementation.

Anticipates future strategic changes to DoD-wide policies or

procedures; recommends implements updated policies and

procedures based on external awareness of policy developments

outside the immediate organization; is a driving force in ensuring

thorough evaluation of the effectiveness and organizational impact

of changes after implementation.

Work Quality

• Ensures products and services within area of responsibility

are of maximum quality, timely, and contribute to mission

objectives. Takes responsibility for subordinates’

performance

Takes personal accountability for accomplishment of all mission tasks;

manages the delivery of products or services within area of responsibility,

and ensures they are high quality, timely, and address mission

requirements; anticipates and proactively implements effective solutions

that prevent problems and avoid gaps in delivery; is responsible for

subordinates’ performance.

Manages the delivery of products and services within area of

responsibility, and ensures they are high quality, timely, and

address current and future mission requirements; takes the

initiative to integrate the organization’s long-term goals and vision

into future product and service offerings, resulting in highly valued

deliverables that significantly advance mission objectives, while

simultaneously implementing solutions that address current quality

issues; takes responsibility for subordinates’ performance.

DoDI 1400.25-V1404, June 26, 2014

Change 1, 4/28/2023 APPENDIX 3 TO ENCLOSURE 5

Table 5. Examples of Senior Executive Work Behaviors, Continued

Business Acumen: This performance element involves the ability to manage human, financial, and information resources strategically.

Work Behaviors

Examples of Fully Successful Behavior

Examples of Outstanding Behavior

Resource Planning

• Adopts a broad perspective and takes a long-term DoD-wide

view when planning for acquiring, prioritizing, integrating, and

allocating the human, financial, material, and other resources

to accomplish the organization’s, Component’s, and DoD’s

mission and objectives.

• Provides for the future by revising and updating resource

management action plans to align with changes in the

situation or environment.

Implements DoD guidance; develops near-, mid-, and long-term

perspectives in acquiring and allocating resources (e.g., human,

financial, material) to accomplish the organization’s, Component’s, and

DoD’s mission and objectives; anticipates and responds to changes in

the situation or environment, adjusting plans and redistributing

resources to address changing requirements.

Taking into account a DoD-wide perspective, formulates strategic

plans and identifies the resources needed to achieve near-, mid-,

and long-term organizational goals; develops contingency plans to

effectively deal with and anticipate changes in the situation or

environment; achieves significant real total cost savings near-, mid-,

and long-term.

Resource

Management

• Formulates strategies and safeguards and monitors budgets

to ensure effective and efficient resource use in accordance

with applicable laws and regulations.

• Leverages appropriate tools and resources to improve

business processes and increase efficiency in accomplishing

the Component’s and DoD’s mission.

• Synthesizes resources and information to integrate and align

the DoD Components and DoD interests and activities to

achieve mission results.

Uses resources provided to support and contribute to meeting mission

requirements; uses standard processes to make efficient and effective

use of available resources to accomplish the Component’s and DoD’s

mission, doing so in accordance with applicable laws and regulations.

Identifies and obtains additional resources needed to increase

mission results; develops and implements flexible and innovative

approaches to stretch limited resources in accordance with

applicable laws and regulations, resulting in greater contributions to

the organization.

Compliance

• Receives and acts upon complaints and requests for

assistance concerning any DoD activity which might

constitute mismanagement, fraud, waste, abuse of authority,

danger to health, safety, environment or related matters, or

violation of law, rule, or regulation.

Establishes a compliance-oriented culture that reinforces continuous

ethical behavior; addresses issues and requests for assistance

concerning any DoD activity that might constitute mismanagement,

fraud, waste, abuse of authority, danger to health, safety, environment

or related matters, or violation of law, rule, or regulation.

Strengthens and reinforces a compliance-oriented culture by

anticipating and following up on issues and identifying root causes;

develops effective risk mitigation strategies; promotes an atmosphere

of transparency and ethical behavior where subordinates can surface

issues.

Program or

Process

Evaluation

• Conducts specific analytic, assessment, or evaluation

activities to inform or enhance innovations to Component or

DoD-wide programs, processes, or policies.

Conducts or leads analytic assessment or evaluation activities to inform

or enhance organizational, Component or DoD-wide programs,

processes, or policies; evaluates outcomes.

Anticipates and defines problem or question; envisions end state;

conducts or leads analytic assessment or evaluation activities to

significantly advance organizational, Component or DoD-wide

programs, processes, or policies to obtain high-impact, measurable

results; evaluates outcomes.

DoDI 1400.25-V1404, June 26, 2014

Change 1, 4/28/2023 APPENDIX 3 TO ENCLOSURE 5

Table 5. Examples of Senior Executive Work Behaviors, Continued

Business Acumen: This performance element involves the ability to manage human, financial, and information resources strategically.

Work Behaviors

Examples of Fully Successful Behavior

Examples of Outstanding Behavior

Enhancing Technical Expertise

• Stays abreast of changes and developments in relevant

technical areas, including an awareness of technical

developments outside of one’s own area, and continually

builds competencies, skills, and knowledge to maintain the

highest levels of expertise and drive DoD mission

accomplishment.

• Acts as an advocate for others within specialty area with

respect to professional development, career enhancement,

and attrition and retention issues.

• Conducts research and consults with colleagues in related

fields to extend the state-of-the-art in area of expertise (e.g.,

peer-reviewed publications or awards and other

recognitions).

Stays up-to-date with the latest developments in relevant disciplines

and builds the knowledge and skills necessary to drive DoD mission

accomplishment; provides others with challenging opportunities and

experiences to enhance their skills, inspiring them to continually strive

for excellence.

Continually strives to broaden and enhance expertise, knowledge,

and skills both within and beyond own area, leading to contributions

that significantly advance key organizational goals and objectives;

effectively applies understanding gained from learning activities;

clearly recognizes and reinforces professional development and

continual learning; broadens the body of knowledge in relevant

fields.

Technical Oversight or

Consultation

• Provides expertise, generates alternatives, and offers advice

and guidance to others within and across DoD Components

on approaches, techniques, and methods to aid in resolving

highly complex problems.

• Works with others to establish technical goals and objectives

for projects or programs that align with DoD’s strategic goals

and objectives.

• Reviews and provides meaningful technical feedback on

products of projects and/or programs.

• Directs and provides technical oversight for projects,

programs, or initiatives relevant to organization, Component,

or DoD mission success.

Utilizes and applies domain knowledge and expertise to aid in

resolving highly complex problems, establish strategically aligned

goals and objectives, provide feedback and oversight, and offer advice

and guidance to others within and across DoD Components to ensure

mission success.

Leads multi-disciplinary teams while fully leveraging domain

knowledge and expertise to successfully address critical issues and

problems, thereby significantly advancing DoD’s strategic goals and

objectives; serves as a noted expert and is routinely sought out for

advice on projects, programs, or initiatives relevant to organization,

Component, or DoD mission success; uses domain knowledge to

positively influence decision making processes to better achieve

mission goals.

Technical

Credibility

• Represents an organization’s or Component’s position on

specific technical issues with confidence, expertise, and

authority.

• Understands and communicates the broader technical

context in which programs are pursued and how they will be

synthesized into the larger organization or Component.

Advocates an organization’s or Component’s position on specific

issues; understands how specific issues exist within a broader

context, conveying how and why programs are synthesized into the

larger organization or Component.

Advocates an organization’s or Component’s position on specific

issues; leverages domain knowledge, communicating a balanced

understanding of how specific issues fit within a broader context,

and instilling in others an understanding of how programs are

synthesized into the larger organization or Component; positively

influences outcomes.

DoDI 1400.25-V1404, June 26, 2014

Change 1, 4/28/2023 APPENDIX 3 TO ENCLOSURE 5

Table 5. Examples of Senior Executive Work Behaviors, Continued

Building Coalitions: This performance element involves the ability to build coalitions internally and with other Federal agencies, State and local

governments, nonprofit and private sector organizations, foreign governments, or international organizations to achieve common goals.

Work Behaviors

Examples of Fully Successful Behavior

Examples of Outstanding Behavior

Representing

DoD

• Applies expertise to represent DoD in interactions with

representatives from other agencies, organizations, or

countries.

• Demonstrates an understanding of the cross-Component

shared commitment to the DoD’s core values.

Represents organization within DoD to clearly communicate the

organization’s stance on important issues; contributes valuable input in

strategic planning and conversations, and upholds organization’s values

across DoD Components by incorporating them into communications

with external organizations.

Represents DoD, Service Component, command or agency to

other parties within and outside of DoD; melds the goals, values,

and capabilities of other agencies, organizations, and countries

with those of the DoD to achieve common objectives; influences

decision making of other agencies, organizations, or countries to

incorporate DoD’s core objectives.

Partnering

• Leverages cross-Component collaborative networks to adapt

and respond to unexpected changes or situations, engaging

peers and stakeholders in key decisions.

• Develops strategic networks and alliances with key

personnel both within and outside DoD to create synergy

across boundaries, foster cooperation, develop and

implement policies, and garner support and resources to

effectively and efficiently accomplish the assigned mission

and achieve significant mission results.

Develops and maintains productive, collaborative, professional

relationships within activities and across DoD Components and external

to DoD; uses relationships and networks to obtain support, resources,

and cooperation to efficiently and effectively achieve mission objectives

and share ideas.

Implements an organizational relationship and engagement

program that grows and nurtures professional networks of key

partners internal and external to the DoD; leverages strategic

alliances to maintain agility and ability to quickly respond to novel

or unforeseen situations; capitalizes on networks to create a

synergistic approach in achieving mission results (e.g., through

knowledge and resource sharing), maintaining constant

awareness of organizations that are critical to the organization’s

functioning.

Disseminating

Best Practices

• Interacts with other DoD Components, Services, agencies,

organizations, or industries to gather insights, lessons

learned, and best practices for potential application across

DoD.

• Develops and distributes knowledge and lessons learned to

relevant communities in an effort to promote and encourage

organizational learning.

Considers feedback pertaining to potential methods to improve

organizational functioning; collaborates with leadership to discuss

lessons learned and generate discussions for improvement, while

keeping and encouraging an open mind to improve current work

methods; disseminates and implements strategies for improvement to

relevant communities and stakeholders.

Actively seeks insights from individuals at varying levels (both

internal and external) to identify strategies that improve areas of

weakness and capitalize on areas of strength; is recognized as a

thought leader who gathers information and leaders of best

practices; regularly reevaluates organizational functioning and

applies lessons learned to facilitate a culture of continuous

learning and improvement.

Information

Sharing

• Provides timely, accurate, relevant, and precise information

to others, including information related to problem situations

and work progress, and appropriately shares information and

knowledge to achieve desired Component and DoD goals.

Shares information related to major projects with stakeholders in a

timely manner; understands the proper flow of information, both internal

and external to the organization, ensuring that new information flows

through appropriate channels; engages in knowledge sharing with

partners to help achieve common goals and understanding.

Strategically shares important information across the organization

to integrate organizational activities into strategic outcomes;

initiates new processes to adapt to new information requirements;

proactively shares information with key persons across the DoD

Components and DoD so they have the situational awareness

needed for current and future mission success; anticipates and

incorporates future challenges or opportunities into

communication.

DoDI 1400.25-V1404, June 26, 2014

Change 1, 4/28/2023 APPENDIX 3 TO ENCLOSURE 5

Table 5. Examples of Senior Executive Work Behaviors, Continued

Building Coalitions: This performance element involves the ability to build coalitions internally and with other Federal agencies, State and local

governments, nonprofit and private sector organizations, foreign governments, or international organizations to achieve common goals.

Work Behaviors

Examples of Fully Successful Behavior

Examples of Outstanding Behavior

Understanding and

Communicating

Policies/Directives

• Drafts proposed Component and DoD-wide directives,

policies, regulations, instructions, or legislation and prepares

reports, comments, and suggested amendments or redrafts.

• Interprets and communicates the future impact of proposed

directives, policies, regulations, instructions, or legislation to

the organization, Component, or DoD.

Considers the legal requirements, values, goals, and needs of

stakeholders when developing or modifying directives, policies,

regulations, instructions, or legislation; writes directives and policies that

are clear, concise, logical, and presented in a contextually appropriate

manner; interprets and clearly articulates the meaning of directives,

policies, regulations, instructions, or legislation, anticipating the impact

they may have.

Develops or modifies directives, policies, regulations, instructions,

or legislation that reflect the legal requirements, values, goals, and

needs of stakeholders; establishes a firm understanding of

impacted persons and gains buy-in from key stakeholders; writes

clear, concise, logical, and contextually appropriate policies,

directives, etc. and serves as a resource for others; adeptly

analyzes, interprets, and conveys potential consequences of

proposed directives, etc. that could impact various stakeholders in

the organization, Component, or DoD and, when imminent,

prepares relevant individuals or systems accordingly.

Identifying Customer

Needs

• Communicates with and obtains information from others

across the organization or DoD to understand their

environment and accurately anticipate their current and

future needs.

• Takes initiative to identify and understand emerging issues

and adapts to respond to others’ needs.

• Sets clear (agreed-upon) expectations with key stakeholders

in the organization, Component, or across DoD and keeps

them informed of issues, changes, or problems to avoid

“expectation gaps” and maximize information sharing.

Meets with customers on a recurring basis to identify current and

emerging customer needs; sets clear expectations with all stakeholders,

ensuring they are fully informed about any issues, changes, or

problems; identifies the risk of various solutions to the customer;

obtains and addresses customer feedback; establishes service level

agreements and meets those commitments.

Anticipates customers’ current and future needs by developing

and implementing highly agile or innovative ideas or solutions for

adapting products and services beyond the immediate

organization; exceeds service level agreement commitments.

Customer

Service

• Provides advice, information, and services to others across

the organization or DoD that clearly demonstrate added

value and contribute to the organization’s or Component’s

mission.

• Designs and delivers high-quality and practical products and

services to meet the organization’s and DoD’s needs.

Contributes to the organization’s or Component’s mission by delivering

high-quality advice, products, and services that add significant value

and meet DoD needs, even when balancing competing priorities.

Significantly contributes measurable value to partner organization

or Component’s mission by anticipating requirements, dispensing

insightful advice and delivering products and services, even when

balancing complex, competing priorities; consistently exceeds

customer expectations.

Conflict

Management

• Negotiates and resolves conflicts in a productive manner to

achieve agreed upon outcomes.

Instills a management culture of trust and honesty; resolves work-

related disagreements or conflicts in a positive and constructive

manner; takes effective measures to minimize conflict escalation.

Establishes a management culture that minimizes conflict;

anticipates potential problems and establishes policies or

procedures to prevent or mitigate; effectively resolves even

complex or sensitive work-related disagreements or conflicts.

DoDI 1400.25-V1404, June 26, 2014

Change 1, 4/28/2023 APPENDIX 3 TO ENCLOSURE 5

Table 5. Examples of Senior Executive Work Behaviors, Continued

Building Coalitions: This performance element involves the ability to build coalitions internally and with other Federal agencies, State and local

governments, nonprofit and private sector organizations, foreign governments, or international organizations to achieve common goals.

Work Behaviors

Examples of Fully Successful Behavior

Examples of Outstanding Behavior

Collaboration and Team

Building

• Creates a collaborative environment that promotes active

engagement, integration, knowledge sharing, and the candid,

open exchange of diverse points of view across

organizational and Component boundaries.

• Brings together groups of individuals with competing

interests and priorities to actively engage them in discussion,

achieve goals, and develop mutually beneficial action plans.

• Fosters a work environment between offices, organizational

units, or other DoD Components to anticipate, mitigate, and

resolve key issues or disputes at the appropriate level.

Fosters a collaborative environment where individuals across the

organization actively engage in idea sharing and constructive feedback;

considers others’ perspectives without interjecting one’s own pre-

established opinions; unites groups with competing priorities and

viewpoints to establish a plan that is mutually beneficial for all involved,

serving in a mediating role throughout the process; uses group

discussions/meetings to develop points of contact in different offices,

emphasizing the benefits of resolving issues at the appropriate level

(e.g., unit, Component) to avoid unnecessary escalation.

Establishes and promotes a culture of collaboration across the

organization with other stakeholders, promulgating an

environment that values candid knowledge sharing and respectful,

honest feedback; increasing trust through collaboration; where

appropriate, participates or leads cross-organizational teams,

committees, or working groups; openly considers diverse

viewpoints and models inclusive behavior; unites key players and

groups with competing priorities and strategically obtains buy-in to

devise action plans that are beneficial for all involved and achieve

mission objectives.

Communication

• Follows up and solicits feedback to ensure the intended

message was clearly communicated and understood by the

end user or stakeholder.

• Tailors the presentation of information (i.e., tone, level of

specificity, technical detail, organization) to the audience’s

level of expertise and needs to ensure information is

understood and processed.

Communicates with stakeholders (appropriate to level), leveraging

knowledge of audience's understanding of subject matter and tailors

information content and delivery style accordingly, distilling complex

issues into clearer and actionable objectives; solicits feedback and

encourages questions in an approachable manner; interprets and

skillfully responds to a variety of questions ranging in difficulty and

incorporates stakeholder ideas in dialogue.

Communicates with stakeholders by incorporating a

comprehensive understanding of the audience’s background and

expertise, instilling confidence in the information conveyed and

building support for position; incorporates audience cues to make

dynamic and engaging changes to the content and style of

presentation; ensures audience understanding, thoughtfully

anticipating and responding to complex questions; uses situational

awareness to anticipate impact of message.

DoDI 1400.25-V1404, June 26, 2014

Change 1, 4/28/2023 GLOSSARY

GLOSSARY

PART I. ABBREVIATIONS AND ACRONYMS

Acronym

Meaning

APF

appropriated fund

ASD(M&RA)

Assistant Secretary of Defense for Manpower and Reserve Affairs

child and youth

DASD(CPP)

Deputy Assistant Secretary of Defense for Civilian Personnel Policy

DCPAS

Defense Civilian Personnel Advisory Service

DoDD

DoD directive

GO/FO

general or flag officer

NAF

nonappropriated fund

PRB

performance review board

SES

Senior Executive Service

U.S.C.

United States Code

USD(P&R)

Under Secretary of Defense for Personnel and Readiness

PART II. DEFINITIONS

These terms and their definitions are for the purpose of this volume.

annual summary rating. The overall rating that an authorizing official assigns at the end of the

appraisal period after considering a PRB’s recommendation. This is the official rating.

authorizing official. For the purpose of NAF senior executive performance appraisal system, the

official that reviews the NAF senior executive’s initial summary rating, and associated pay and

bonus recommendations from the rating official and the PRB. The authorizing official

determines the executive’s annual summary rating, and the pay adjustments or performance

bonus warranted.

executive. DoD NAF employees in positions at the NF-6 payband level.

initial summary rating. The overall rating level the rating official derives from appraising the

senior executive’s performance during the appraisal period and forwards to the PRB.

NF. NAF white-collar occupational category payband.

DoDI 1400.25-V1404, June 26, 2014

Change 1, 4/28/2023 GLOSSARY

payband level. Distinguishes the level of compensation given for certain ranges of NAF jobs.

performance appraisal period. The established period of time for which a NAF employee’s

performance will be appraised and rated.

performance bonus. A lump-sum monetary bonus paid in recognition of performance during the

appraisal period. A performance bonus is not part of the basic pay.

performance element. A key component of an executive’s work that contributes to

organizational goals and results, and is so important that unsatisfactory performance of the

element would make the executive’s overall job performance unsatisfactory. The standard

critical elements used when evaluating an executive include: Leading Change, Leading People,

Business Acumen, Building Coalitions, and Results Driven.

performance levels. A set of five terms used to summarize in a concise manner the overall

performance of the employee. The five performance levels for NAF senior executives are:

Outstanding, Exceeds Fully Successful, Fully Successful, Minimally Satisfactory, and

Unsatisfactory. The rating official assigns the initial summary rating for an executive. The

authorizing official authorizes the official rating for an executive.

performance plan. The written summary of work expected to be accomplished during the

appraisal period that includes the requirements against which performance is evaluated. For

NAF senior executives, the plan must address all established critical elements.

performance requirements. A statement of the performance expected for a critical element.

PRB. In the NAF executive performance appraisal system, a panel of selected individuals

established to provide oversight to ensure balance, equity, and fairness to the evaluation and

scoring process and to ensure there are meaningful distinctions in relative performance. The

authorizing official establishes the applicable NAF PRB. The PRB reviews the rating official’s

initial summary rating and makes recommendations to the authorizing official regarding the

executive’s final performance score and rating.

rating official. The supervisor who is responsible for assessing performance for the appraisal

period. For the NAF senior executive performance appraisal system, the rating official assigns

the initial summary rating and recommends the pay adjustment and/or bonus warranted.