AGENCY RESPONSIBLITIES UNDER THE PRESIDENT'S MANAGEMENT PROGRAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP60-00213A000100010003-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: November 11, 2016
• Document Release Date: July 11, 1998
• Sequence Number: 3
• Publication Date: June 29, 1951
• Content Type: MEMO

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EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON 25, D. C.
June 29, 1951 CIRCULAR NO. A-8
Revised
SUBJECT: Agency responsibilities under the President's Management
Program
This revision of Circular No. A-8 replaces and rescinds Circular
No. A-8, dated January 31, 1950. Supplement No. 1 of Circular No. A-8 re-
mains in effect. The wording of the revised Circular has been simplified.
The responsibility of department and agency heads to carry out systematic
reviews as a part of their regular management process has been given greater
emphasis. The reporting requirements have been reduced under the revised
Circular. Annual reports on the operation of management improvement plans,
and. the schedule of improvement action for the budget year are no longer
required. The revised Circular still requires summary reports of improve-
ment actions taken during the past year and of major areas of potential
improvement selected for emphasis during the current year.
1. Purpose. The President by Executive Order 10072, dated
July 29, 19L , and the Congress by Title X of the Classification Act
of 1949 (Public Law 429, 81st Congress) have directed that each depart-
ment and agency head systematically review the effectiveness of his
agency's programs and the economy of its operations.
Emphasis on strengthening agency management is one phase of the
President's Management Program. The objectives of this,_program are to
carrry.out_Federal responsibilities more effectively at less cost to the
taxpayer and to make easier congressional and public control of Federal
programs and expenditures. To achieve those objectives the President's
Management Program provides for three types of action: (1) action to
improve the organization of the executive branch and to clarify respon-
sibilities; (2) action to improve Government ride activities, such as
budgeting, fiscal, personnel and property management; and (3) action to
strengthen agency management practices and provide for continuous
review and improvement of Federal programs and operations.
This Circular describes the responsibilities of department and
agency heads under Executive order 10072 and Title X, provides general
guides for carrying out those responsibilities, and describes pertinent
relationships between agencies and the Bureau of the Budget.
Instructions for the use of employee awards, including _awards__
authorized by Title % of Public Law 429, 81st Congress, are provided
in Supplement No, 1 of this Circular. *t
(No. A-8)
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2. Objectives of systematic review. The Executive Order and
Title X are aimed at achieving continuous improvement of Federal programs
and operations through systematic review and appraisal by the officials
who are responsible for carrying out those programs. The objectives of
this systematic review are:
a. To determine program effectiveness, i.e.,
(1) The extent to which long- and short-range objectives and
program goals of the agency are clearly defined for
the guidance of operations, are consistent with the
intent of the Congress and the program of the President,
and are suited to current circumstances.
(2) The degree to which objectives and program goals are
being met.
b. To determine the efficiency and economy of operations,
including an appraisal of organization, procedures and
staffing at each level.
c. To plan and take improvement action by:
(1) Identifying opportunities for improvement in programs and
operations.
(2) Determining priority of improvement actions in terms of
potential economies or better service to the public.
(3) Setting time schedules and assigning responsibility and
staff to take necessary action in areas selected for
priority attention.
d. To encourage employee participation in management improvement
by identifying, for purposes of recognition and awards, those
employees or organization units which have made outstanding
contributions to efficiency and economy of operations.
3. Agency responsibilities for systematic review.
a. De artment and agency heads. Each department and agency head
is accountable to the resident and the Congress for appraising
the effectiveness of programs and the efficiency and economy of
operations in his department or agency. More specifically,
each department and agency head is responsible (1) for seeing
that an over-all, integrated review system, geared to his own
requirements as top executive, is developed in his agency;
(2) for taking action to achieve potential improvements
(No. A-8)
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revealed by systematic review; and (3) for seeing that
subordinate officials develop effective management practices
consistent with the over-all system and that they take
appropriate improvement action for activities under their
jurisdiction.
b. Heads of constituent bureaus or agencies. Subordinate officials
are accountable to department and agency heads in the same terms
as above for their respective areas of responsibility. They
are also responsible for assuring full participation by employees
at all levels in increasing the effectiveness of programs and
the economy of operations.
14. Methods of systematic review.
a. Use of existing processes. Systematic reviews as required by
the Executive Order and Title X will normally be carried out
through the regular processes used by the agency for the
direction and conduct of agency activities. Effective manage-
ment encompasses all necessary arrangements for orderly
review, appraisal and improvement of agency activities and
thus should provide the framework for systematic review as
outlined in this Circular. The agency head should review the
management of his agency to assure himself that the objectives
of systematic review as outlined in section 2 of this Circular
are being accomplished,
b. Requirements of an effective reviews tem. An effective review
system must be conditioned by the specific situation in which
it operates. Therefore management review processes, devices,
or arrangements may vary with types of programs, nature of
operations, and levels of organization.
The review system at each organization level should pro-
vide for appropriate and balanced use of continuing staff
analysis; normal supervisory processes, such as staff meetings,
conferences, and observation and inspection of work; reports
of program progress and the cost, quantity and quality of work
performed; periodic or special surveys; and evaluation of pro-
grams and operations in the development of annual work programs
and budget estimates.
The effectiveness of reviews is increased by development
of performance standards covering cost, quality and quantity of
production where possible. As a minimum, the review system
should provide a means for comparing actual performance with
projections which provide the basis for work programs and
budget estimates.
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For department or agency heads and bureau directors, the
review system should focus on (1) analysis, direction and
review of policies and programs; (2) evaluation of program
progress against predetermined goals, past performance or
other standards; (3) identification and solution of problems
in program coordination, organization, utilization of resources
and outside relationships; (4) determination of efficiency and
economy; and (5) evaluation of the effectiveness of subordinates
in key positions, including review of means by which subordinate
officials assure efficient and economical operations,
For subordinate line officials and supervisors, the review
system should focus on (1) measurement and evaluation of pro-
gress in operations; (2) determination of accomplishments of
individuals or organization units; (3) determination of cost,
quality, and quantity of specific work; and (4) evaluation of
procedures, staffing, and other requirements for operation.
5. Responsibilities of the Bureau of the Budget.
a. Executive Order 10072 directs the Bureau of the Budget to review
department and agency plans for management improvement, to
advise and assist the agencies in working out programs to improve
their operations, to make appropriate arrangements for handling
problems of an interagency nature, and to report to the President
on the progress and results of agency management improvement
efforts. Title X directs the Bureau to maintain control of the
program set forth in that Title and to make annual reports to
the Congress concerning results.
b. The Bureau of the Budget carries out its responsibilities under
the Executive Order and Title X by (1) issuing guides to assist
the agencies in developing effective review systems; (2) eval-
uating agency review systems and the adequacy of actions under
way to achieve potential improvements identified through
systematic review; (3) maintaining working relationships with
the agencies to assist agency officials on a day-today basis
in improving the general effectiveness of management; and
(4) submitting reports as required.
The evaluation of agency review systems and management
improvement action is based on (1) personal observation and anal-
ysis in the agencies, (2) written statements from the agencies
describing their plans for making systematic reviews, (3) annual
reports submitted by the agencies to the Bureau of the Budget,
and (4) discussion of agency programs for management improvement
at budget hearings and at other appropriate times.
(No. A-8)
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6. Agency reports.
as Submission of statements describing agency review systems.
Initial statements describing the agency plans for making
systematic reviews were submitted to the Bureau of the Budget
in accordance with Circular No. A-8, dated January 31, 1950.
Federal agencies established since January 31, 1950 should sub-
mit a statement of their plans for making systematic reviews
to the Bureau of the Budget as soon as feasible after their
establishment. This statement should contain a section for
the agency as a whole and separate sections for each bureau or
major constituent unit. Each section should describe the methods
to be followed by the agency in (1) accomplishing systematic
reviews of operation to determine the degree of efficiency and
economy, (2) identifying opportunities for improvement and
scheduling action to achieve improvements, and (3) identifying
units that are outstanding and supervisors and employees who
make outstanding contributions to efficiency and economy.
be Submission of annual reports under Executive Order 10072 and
t e Each agency shall submit an annual report, in tr p-
on its management improvement program to the Bureau of
the Budget by September 15. This report should contain a summary
section for the agency as a whole and separate sections for each
bureau or major constituent unit.
The summary section of the report, dealing with the agency
as a whole, should present the highlights of action taken during
the past year to solve major program and operating problems,
including highlights of action taken by bureaus or major con-
stituent units as well as action taken at the department or
agency level. Major areas of potential improvement selected
for emphasis during the current year within the department or
agency should also be indicated.
The sections of the report for each bureau or major con-
stituent unit should present the highlights of action taken
during the past year to solve major program and operating
problems. Major areas of potential improvement selected for
emphasis during the current year should also be indicated.
If major management problems have been identified which
are beyond the authority of the department or agency to solve,
these should be summarized briefly. Recommendations for
action, including proposed legislation, may be included if
desired.
(No. A-8)
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The reports should take into account the requirements of
Circular No. A-hh, Conservation and utilization of manpower
in the Federal Government, issued jointly with the Civil
Service Commission.
c. Submission of reports on awards. Instructions for reporting
on away s under Section 1002-7 Title X, Public Law 429, are
contained in Supplement No. 1 of this Circular.
FREDERICK J. LAWTON
Director
(No. A-8)
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